June was a dark month for cryptocurrency investors. Early July was the day several cryptocurrency lending companies declared bankruptcy.Last week was a good week, as the cryptocurrency market saw price increases for several of the top 100 cryptocurrencies by market cap.
CryptoCurrency Market Situation
According to CoinMarketCap data for July 10, it can be seen that:
Cryptocurrencies: Bitcoin was up 12% in the last seven days, Ether is up over 15%.
Various other leading projects: Uniswap is up to 30%, Polygon is up 26%, Avalanche is up over 22% and Solana is up almost 16%.
The only cryptocurrency to fall: Unus Sed LEO (LEO) was down less than 1%.
Cryptocurrency billionaire Sam Bankman Fried has issued a dire market crash warning, according to a July 10 Forbes News report. It stems from the collapsed cryptocurrency exchange Mt. Gox. Last week, the exchange’s bankruptcy trustee-Nobauaki Kobayashi-announced that the exchange is preparing to pay back some of its creditors. Their creditors can choose to receive their funds in the form of U.S. dollars, bitcoin or bitcoin cash.
In the future, the cryptocurrency market will see up to 150,000 bitcoins (currently worth about $3 billion). According to cryptocurrency investor Aaron Brown “This could depress prices …… The drop could spook others and we could see further declines.”
Who Is Mt. Gox?
It was established in July 2010 as a Bitcoin exchange based in Tokyo, Japan. In February 2014, it experienced a hacking incident that caused it to go offline and suspend online trading, and it didn’t take long to declare bankruptcy. At the time, the bitcoin exchange owed creditors more than 141,000 bitcoins.
The Impact Of Mt. Gox
In 2014, Mt.Gox caused a turmoil in the cryptocurrency market at the time due to the loss of about 850,000 bitcoins.
In 2018, Kobayashi sold nearly 25,000 bitcoins (worth $260 million at the time), pushing the price of bitcoin to its peak value at the time-around $20,000-while causing the price of bitcoin to fall to its lowest point at the time-$3,000.
This year, the sudden influx of $3 billion worth of bitcoin into the market could also lead to an even more unforgettable storm in the cryptocurrency market.
While multiple cryptocurrencies rose last week, that doesn’t take cryptocurrency investors lightly. In the future, with unpredictable events, it seems that a bloody storm is about to hit.
This content information comes from forbes.com.