Bitcoin fell to $19,000 and MtGox could be responsible (again)

हाल ही में, the price of Bitcoin (BTC) hit $19,000, its lowest value in the last two months. This fall could be related to the most recent statements by Federal Reserve Chairman Jerome Powell. Furthermore, the panic caused by releasing stolen funds in Bitcoin from MtGox put additional pressure on the crypto market.

Is Bitcoin affected by inflation?

Last Friday, Powell remarked, “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.” For the executive, restoring price stability (which is close to its maximum in 40 years) will take some time.

This statement played an essential role in decreasing the demand for risky assets in general. As a result, both stocks and 1 टीटी 6 टी closed lower on Friday. But, the cryptocurrency has recovered the value of $20,100 this Monday, August 29.

Bitcoin, trading at $21,800 before Powell’s speech, posted a 4.1% drop. After the announcement, the S&P 500 index and the Nasdaq also fell, 1.92% and 2%, respectively.

In addition, cryptocurrency’s correlation with stocks weakened: in the last six months, Nasdaq has lost 4% and Bitcoin 46%. Thus, this sharp drop in the price of the cryptocurrency makes it very difficult to consider it as a hedge against inflation or digital gold, one of the primary uses that have determined the importance of this crypto active over the years.

Rumors about a Bitcoin sell-off coming from MtGox

Another factor that could be affecting the market is the rumors of 140,000 BTC coming into circulation this week.

🚨MT GOX are reportedly releasing 140k BTC tomorrow🚨
— The Altcoin Hub (@TheAltcoinHub) August 27, 2022

According to information shared on ट्विटर, creditors would receive some $2.7 billion in Bitcoin recovered from the defunct MtGox exchange in the coming days.

However, several creditors on the MtGox exchange denied the rumors and a scenario that would negatively affect the price of Bitcoin in the event of a sell-off. However, those in charge of distributing the funds have not yet contacted those affected to ask for their address and receive the funds.

PSA: MtGox is *NOT* distributing any coins this week, or the next week, or the week after that.

Source: I’m a MtGox creditor. The repayment system is not live yet.

Next step: Go and block @TheAltcoinHub for spreading this misinfo.
— Eric Wall (X🏴,X🏴) (@ercwl) August 27, 2022

MtGox, the largest cryptocurrency exchange in 2014, suffered a hack of 850,000 BTC when the cryptocurrency was worth $500. Since then, MtGox has located 200,000 BTC, most of which could be sent to creditors on a rolling basis in the coming months.

In addition, the creditors said that the exchange would distribute the funds through BTC, BCH, and fiat currency.

24/ Creditors have the option of receiving USD, $BTC या $BCH. It's estimated that creditors will start receiving funds as early as August.

Many people are panicking that the release of these funds will lead to a huge supply-dump, which could significantly impact the $BTC price.
— Miles Deutscher (@milesdeutscher) July 9, 2022

The creditors approved the plan to return the stolen bitcoins in November 2021, when the cryptocurrency price was $60,000. On that occasion, the cryptocurrency price fell slightly after the announcement.

Most cryptocurrencies work thanks to decentralized networks. However, when they are stored on custodial exchanges, scenarios like MtGox can occur. Therefore, users must choose a non-custodial exchange for their cryptocurrencies.

Wanna trade BTC, BHC, and other tokens? You can do it सुरक्षित रूप से Alfacash पर! And don’t forget we’re talking about this and many other things on our social media.

तार * फेसबुक * इंस्टाग्राम * यूट्यूब *ट्विटर