The market is turbulent! Bitcoin leads the decline, with Ethereum, XRP and Dogecoin falling
On July 8, the price of Bitcoin suffered a significant decline, falling by approximately 5% to around US$54,400. This price has retraced approximately US$19,000 from its historical high in March this year. At the same time, other mainstream cryptocurrencies such as Ethereum, XRP, and Dogecoin were not immune and followed Bitcoin's footsteps in falling.
Specifically, after Mt. Gox, once the world's largest Bitcoin exchange, experienced bankruptcy and hacker attacks, its remaining Bitcoin assets have been in cold storage. In the near future, as the process of distributing funds to creditors accelerates, a large amount of Bitcoin is expected to be released into the market, which will undoubtedly bring additional selling pressure to the already fragile market.
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In addition, the German government’s holdings of Bitcoin have also attracted widespread market attention. While the exact timing and size of the sale is unclear, any large-scale sell-off could be the straw that breaks the market’s back.
In addition, JPMorgan analysts expect that the market may be under pressure in the short term as creditors may sell some Bitcoin to recover funds. However, analysts also pointed out that as the market adapts and digests, the cryptocurrency market may gradually recover after August.
Meanwhile, creditors of another bankrupt crypto exchange, FTX, are also expected to receive repayments in the form of cash in the coming months, totaling an estimated $14 billion to $16 billion. Unlike Mt. Gox and Gemini’s in-kind repayments, FTX’s repayments will be in the form of cash, which helps directly increase market liquidity.
