Warning: Bitcoin Set for Black Swan Shock after Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Price Crash





Bitcoin and cryptocurrency prices struggled to maintain momentum after rising in the first week of July, thanks in part to surprisingly bullish data.

The price of bitcoin rose to over $ 22,000 per bitcoin – the highest since mid-June – before falling back amid a sudden surge of optimism. The price of ethereum and other top 10 cryptocurrencies BNB, XRP, solana, cardano and dogecoin also stalled.

Today, after cryptocurrency billionaire Sam Bankman-Fried issued a warning of market crashes, cryptocurrency prices are gearing up for what some have called an unpredictable and potentially serious “black swan” event because $ 3 billion bitcoins could suddenly flood the market.

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A black swan event is a rare or otherwise unexpected event that has a profound effect – with…. [+] bitcoin and cryptocurrency prices including ethereum, BNB, XRP, solana, cardano and dogecoin are particularly vulnerable to such shocks.

This week, the curator of the cryptocurrency exchange Mt. Gox, once the world’s largest bitcoin exchange, said the company was preparing to pay some of its creditors, according to a letter posted on its website. Nobauaki Kobayashi sent an email to creditors, allowing them to receive money in US dollars, bitcoin or bitcoin cash, a fork of bitcoin.

The redemption could mean that up to 150,000 bitcoins – which are currently worth about $ 3 billion – are flooding the cryptocurrency market. Cryptocurrency investor Aaron Brown told Bloomberg: “It could push prices down … the fall could scare other people away and we could see another fall.”

The implosion of Tokyo-based Mt. Gox after the loss of about 850,000 bitcoins in 2014 sent shock waves through the burgeoning cryptocurrency market.

In 2018, when Kobayashi sold nearly 25,000 bitcoins from Mt. Gox, then worth $ 260 million, marked the peak of the bull run in late 2017, pushing the price of bitcoin to all-time highs, about $ 20,000, and leading to a multi-year bear market that sent bitcoin price down to $ 3,000.

If the price of bitcoin experiences a similar drop from the top of almost $ 70,000 per bitcoin last year, it could fall well below $ 10,000.

The price of bitcoin has collapsed by about 70% since the peak in 2021, which pulls the price of the first ten… [+] cryptocurrencies ethereum, BNB, XRP, solana, cardano and dogecoin.

The $ 2 trillion Bitcoin and cryptocurrency crash that comes on top of the stock market upheaval triggered by the Federal Reserve’s decision to start raising interest rates and ending pandemic stimulus measures has already been exacerbated by the collapse of Terra blockchain, its stablecoin. USTUST
and its luna support currency, as well as the crisis in cryptocurrency lending companies that have spread to brokerage firms and hedge funds.

Many players in the bitcoin and cryptocurrency industries remain optimistic despite the sudden divestment that yielded billions of dollars of the value of the top ten coins, namely ethereum, BNB, XRP, solana, cardano and dogecoin.

“Bitcoin saw positive momentum over the long weekend and remained largely in the green this week. However, the range between $ 22,000 and $ 23,000 remains a challenge,” wrote Joe DiPasquale, CEO of bitcoin and cryptocurrency hedge fund BitBull Capital, in emailed comments, adding , that the monetary tightening of The most important immediate event for bitcoin, he said, is the Fed.

Meeting of the Federal Open Market Committee (FOMC) [de la Fed] the end of the month is currently the major event that is likely to introduce volatility in the market again. »

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Thomas Estimbre
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