Today seems to be like every
day in the cryptocurrency market which is volatile as always. The price of
bitcoin, the world's largest cryptocurrency by market capitalization, plummeted
to $58K. The fall has been driven by anxiety in the market over Mt. Gox repayment
after it began to overshadow price rally started on news of a favorable
Consumer Price Index (CPI) numbers last week. We will look at what drove the
Bitcoin value down and dig into how it performs today accordingly, including
its gain percent in specific day or week along with all time high price.
1. What Caused the Price of Bitcoin to Drop?
The Mt. Gox repayment plan
fears were the largest factor that drove Bitcoin from $680 to its current
price, but there are many other things going on in country after country across
the globe which should be supporting it higher above those levels as a store of
value alternative – and they probably will sooner or later. In 2014 Mt. Gox, at
the time the world's largest Bitcoin exchange, failed after losing about 850,000
Bitcoins (BTC), valued around $500 million but worth a whopping $30 billion
today as of this publication. Those funds were later returned to the exchange's
creditors, who have been waiting years for repayment in a slow and arduous
process that has often found itself bogged down.
Many fear of how extensive
flooding the market with a large amount of Bitcoin all at once would be
detrimental to it, which is exactly what Mt. In addition, if creditors sell
their Bitcoins upon receiving them the market with supply which could lead to
massive price crashing. This threat has caused a lot of uncertainty and capital
flight, and is the main driver behind the recent sell-off.
Apart from this, the
cryptocurrency market is greatly tuned to go with macroeconomic factors where a
significant spot can be developed due to Past CPI data. The market is hyper
focused on the Mt. Gox situation, and any benefit Bitcoin assets like Bitcoin
should have received from the CPI reporting a slight deflation was left mostly
more current affair with everyone poised waiting for said news of Mt. Gox as an
announcement approaches to intervened later next week — Tyler Winklevoss
(@tylerwinklevoss) March 7, 2014
2. Today Price Action of Bitcoin:
Bitcoin Sees Elevated
Volatility in Bizarre Trading Today Bitcoin started the day at around $60,000
before plummeting to as low as $58,000 in early trading of a highly volatile 24
hours that came amid intensified warnings over Mt. Gox. During morning trade,
the market suffered a heavy sell-off that pushed prices briefly below $58K
before stabilising.
Bitcoin is for most of today
simply moving in a tight range, with $59k the resistance and $57.5k the support
levels throughout March 11. At the moment, the market is in a state of
"wait and see," with traders on high alert over any further news
regarding the Mt. Gox payout as well as general macroeconomic tidings coming to
light
3. So How much Is Bitcoin up or Down?
Since then, Bitcoin has traded
down about 3.3% from its open of $60,000 on the day. Bitcoin has seen a total
decrease of roughly 7% this week, as worries over the Mt. Gox compensation plan
have pushed market beliefs even lower into the red. That said, Bitcoin is still
up some 45% for the year to date even after losing more than $10K from its highs…powerful
testament to strength and toughness: pic.twitter.com/f7uW5Itb2q
4. When is Bitcoin at its Best Price?
Bitcoin registered its all-time
high on November 10, 2021 to an incredible $69,000anky Bitcoinifikativ aValue.
Most importantly, factors like institutional investment, retail appetite and an
abundance of liquidity entering the market as a consequenceof central bank
policies were cited for moving bitcoin price to this all-time high.
Since its peak in the first
half of 2022, bitcoin has seen a series of rounds down to lows for the cycle—as
low as $33,000. Bitcoin many have corrections, but Bitcoin bounces back every
single time which goes to show the strong nature of it as well as a natural
demand for this cryptocurrency.
Conclusion:
The price of Bitcoin fell to
$58,000 today while the Mt.Gox refund program has had investors wondering about
its impact on the market for weeks now. Though the CPI data did offer a ray of
hope for bullish sentiment, market attention is still dominated by Mt Gox
creating an atmosphere ripe with uncertainty and higher levels volatility.
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