Reason Behind Bitcoin Price Crash
On December 19, 2024, Mt. Gox was reported to have distributed $100 million worth of Bitcoin. The report indicates that the firm transferred this substantial amount of BTC to three different wallet addresses, each receiving $30.18 million worth of Bitcoin.
Mt. Gox Payout
The potential reason for the selling pressure created by Mt. Gox is the distribution of billions of dollars worth of BTC to creditors, an event expected to occur in the coming days. However, the exact timeline remains unknown. If this distribution happens, the recent price decline could lower in comparison, and we may witness a substantial drop in Bitcoinâs price.
Jerome Powellâs Stance Adds Pressure
Another potential reason for the recent price decline is Fed Chair Jerome Powellâs anti-crypto stance during the rate cut announcement. In an interview, Powell made a bold statement that has garnered significant attention from the crypto community.
He stated, "We are not allowed to own Bitcoin and have no desire to change the law." Following this statement, the overall crypto market has been witnessing a price decline.