Bitcoin
Bitcoin and other cryptocurrencies fall on fears of Mt. Gox comeback
Bitcoin’s value (as seen in February) has fallen nearly 24 percent in the past week, while Bitcoin Cash, which is also being used by Mt. Gox, has fallen 25 percent. File photo by John Angelillo/UPI
July 5 (UPI) — Cryptocurrencies — including the king of digital currencies, Bitcoin — suffered a major sell-off this week that lasted through Friday, with the now-defunct Mt. Gox announcing its payment plans.
Fears have been growing that investors could quickly liquidate Mt. Gox’s repayment, which includes the use of $2.71 billion in Bitcoin, and in turn drive down the cost. And that’s what fueled the selloff, according to Forbes.
Announcement
Mt. Gox went bankrupt in 2014, but recently came up with a plan to pay off creditors.
Bitcoin’s value has fallen nearly 24% in the past week, while Bitcoin Cash, which is also used by Mt. Gox, has fallen 25%.
Due to Bitcoin’s continued dominance in the cryptocurrency industry, many other digital assets were negatively affected by the drop. Ether, the second most popular cryptocurrency, lost nearly 5% after falling 9% in the previous trading session on Friday.
In truth, according to CoinDeskMajor cryptocurrencies posted losses on Friday and last week.
For Bitcoin, the drop in value to $57,000 is the smallest since February 28, and it appears the decline may not be completely over.
“Bitcoin closing below $57,000 could spell trouble, with potential support only at $51,000,” crypto analyst Ali Martinez told Yahoo Finance.