Crypto Bloodbath: Bitcoin Plummets and Major Tokens Follow

Business | July 4, 2024, Thursday // 15:04
Bulgaria: Crypto Bloodbath: Bitcoin Plummets and Major Tokens Follow @Pixabay

The price of Bitcoin dropped below 58,000 USD for the first time in two months early this morning, with several other major cryptocurrencies also experiencing declines, Bloomberg reported.

Ethereum's price fell by over 5.4%, bringing it below 3,200 USD, while other popular tokens such as Binance's BNB, Solana, and Dogecoin saw declines of 6.1%, 8.8%, and 7.2% respectively.

A significant reason for this downturn is likely concerns over the impending return of a large amount of bitcoins to creditors of the now-defunct Mt. Gox.

By 2014, Mt. Gox handled 70% of all bitcoins but then completely ceased operations amid revelations of loss and theft of hundreds of thousands of bitcoins, worth hundreds of millions of dollars. Bankruptcy followed, leading to a 10-year battle by creditors with the exchange's administrators to recover their crypto investments.

In the end, an agreement was reached in late 2023, and some of the lost bitcoins were found. The payout is currently underway and is expected to be completed by October of this year.

The payout involves approximately 140,000 bitcoins, valued at about 8 billion dollars. There is concern that creditors might liquidate some of their returned crypto assets.

Analysts cited by Bloomberg also note that the US presidential election may influence cryptocurrency prices. Biden's poor performance in the first debate has led to calls for him to drop out of the race. The cryptocurrency market is wary of a stronger Democratic candidate replacing Biden to face former President Donald Trump, who has recently presented himself as a pro-crypto leader.

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Tags: bitcoin, price, payout

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