Throughout July and in the past months, Bitcoin has winded up and down the charts, and this time, it saw a massive crash down to as low as $53,000, its lowest since earlier this year. One of the critical reasons that prompted this crash was the long-awaited repayments from Mt. Gox, and once that took place, it led to massive changes in the blockchain.
For a long time, Bitcoin has been struggling to increase its numbers, but this recent crash is one of the most devastating for the year it was supposed to bounce back.
Bitcoin Crash: Will It Go Under $50,000 Amidst Market Struggles?
Bitcoin came crashing down over this entire week. Starting from its highest value last Monday at $62,000, it is now at its lowest, sitting at $56,000, according to Forbes. In its current state, Bitcoin closed the week at $56k, seeing as much as a 6.73 percent decline over the past week when it started its July.
However, Bitcoin's lowest point dipped to around $53,000 throughout its crash but climbed back to a higher valuation when it closed on Friday.
It also affected other coins, like Ethereum, which is now at $2,900, with a larger 11.7 percent decline, Solana, and all the other coins making up as much as $2 trillion market capitalization after recording $3 trillion last March.
Gox's Repayments Prompted BTC, Crypto Crash
According to Forbes, one of the main reasons for Bitcoin and the cryptocurrency industry's decline was Mt. Gox's repayment, which took place on July 5. Creditors got the coins and Bitcoin cash they were owed. As much as 50,000 BTC worth $2.7 billion was believed to have been spotted on Mt. Gox's account and later distributed to creditors.
Experts claim that further repayments may lead to more Bitcoin crashes.
Gox and Bitcoin
A decade ago, one of the most significant downfalls of a crypto exchange company, with a particular focus on Bitcoin, took place with Mt. Gox, and the company was then and there, dead on water. During that time, the Japanese government denied its request for the equivalent of Chapter 11 bankruptcy protection, preventing it from rebuilding.
It is also known that during this time, Mt. Gox was hacked, and these bad actors also spilled the beans on the company, going as far as to call them a fraud. At one point during their collapse, the company reported missing as much as 200,000 Bitcoins in its holdings, already amounting to a massive fortune back then. Hackers revealed that massive holdings of BTC were still in their books.
The fall of Mt. Gox was a devastating blow to the entire cryptocurrency industry. The company was known for upholding BTC and mainly centering on the coin, but the massive fiasco left customers high and dry. Earlier this year, Mt. Gox started repaying customers, creditors, and investors, but the following months have now taken a toll on Bitcoin again.
Related Article : Mt. Gox 2014 Bitcoin Hack: Customers Report Double Payments Made, Now Asks to Return It
