Cryptocurrency

Bitcoin Crashes to Lowest Level in 6 Weeks

Bitcoin Crashes to Lowest in 6 Weeks

  • Bitcoin’s value crashed to $55,490 on Tuesday, falling about 20% from its all-time high of $69,000 attained earlier this month
  • Analysts have predicted that Mt. God could be responsible for the drop in the value of the flagship cryptocurrency
  • Creditors of the defunct exchange are set to receive more than 140,000 units of bitcoin worth $7 billion and selling those coins could cause a market crash

Bitcoin’s price has continued to regress as the flagship cryptocurrency dropped to its lowest point since the middle of October.

Bitcoin scam

The world’s number one cryptocurrency crashed to $55,490, according to CoinMarketCap as market observers attribute the fall to various factors.

The current value means that BTC is now 20% below its all-time high of $69,000 which was attained in early November.

Mt. Gox

One of the prominent news in the crypto space is the ongoing Mt Gox situation, which could have caused the changes in the market.

The proposed rehabilitation plan of the exchange which was hacked in 2014 is about the kickstart.

As a result of this, creditors of Mt. Gox are set to receive more than 140,000 units of bitcoin, valued at over $11 billion.

Should the creditors decide to sell their holdings, it could place downward pressure on the crypto market and cause the prices of coins to crash.

Read also: Davido Launches Cryptocurrency Echoke Social Token For Giveaway

Dollar rise

Another factor that may be responsible for the market crash is the rising value of the dollar in relation to other Fiats.

The dollar has gained over other fiat currencies in 2021. This has pushed investors to sell dollar-denominated assets to cover denominated dollar-denominated liabilities.

At the time of this report, Bitcoin has however bounced back to $57,247, more than 2% up in the last 24 hours.

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