Understanding Bitcoin’s 8% Drop in a Few Minutes: Is Mt Gox and the US Government Wallet Trading the Cause?

04/27/2023 07:39 • NFT Newsflash • 134 views

It is reported that Markus Thielen, director of research and strategy of Matriexport, an encryption service provider, said on social media that a few hours ago, Bitcoin fell by 8% in a few minutes due to the news that “Mt Gox and the US government wallet are trading”. After repeated analysis of the potential market impact, we believe that this is not a big deal, and the market has already understood the final distribution of these Bitcoins.

Matrixport Strategy Director: After analysis, the previous BTC decline was not related to Mt Gox and US government wallet transactions

In recent years, Bitcoin has dominated the headlines of the financial markets due to its unprecedented surges and plunges. Recently, it made the news again when it fell by 8% in a matter of minutes, caused by the news that “Mt Gox and the US government wallet are trading.” This has caused concern among the Bitcoin community, especially those who invest in it. In this article, we will examine the situation that caused Bitcoin’s sudden drop and determine whether this is a significant issue to worry about.

Who is Markus Thielen?

Before we delve into the cause of Bitcoin’s drop, let us first get to know Markus Thielen, the director of research and strategy of Matriexport. Matriexport is a reputable encryption service provider that offers secure communication solutions, which keeps customers’ data private and secure from unauthorized access. Thielen is an expert in cryptography and security, and is well-respected in the industry for his vast experience and insights.

The Reason for Bitcoin’s 8% Drop

According to Thielen, Bitcoin’s sudden fall was due to the news that Mt Gox and the US government wallet are trading. Mt Gox was once the world’s biggest Bitcoin exchange, accounting for 70% of global Bitcoin transactions. However, in February 2014, it filed for bankruptcy and reported that it had lost 850,000 bitcoins (worth around $450 million at that time) due to hacker attacks. The US government also holds a significant number of bitcoins, which have been seized from criminal activities.

The Market Impact

At first glance, the news might have caused panic in the market. However, after analyzing the potential impact, many experts believe that it is not a significant event. Since Mt Gox’s bankruptcy in 2014, they have been gradually selling their remaining bitcoins to repay their creditors. Therefore, Mt Gox’s recent trading of Bitcoin is not surprising, nor does it have a considerable impact on the market.
Furthermore, the US government’s wallet selling of Bitcoin is not unusual, as they have been doing this for a while to decrease their holding of seized cryptocurrencies. The US government selling their Bitcoin holdings does not directly affect the market because the amount they hold is relatively small compared to the total market.
Therefore, many experts believe that the market has already understood the situation, and it will not significantly impact Bitcoin’s current bullish momentum.

Conclusion

In conclusion, Bitcoin’s 8% drop caused by the news that Mt Gox and the US government wallet are trading is not something to be worried about. The market has already adjusted to the continuous trading of Bitcoin by Mt Gox and the US government, which has been ongoing for several years now. Therefore, investors and traders should not be alarmed and maintain their trust in Bitcoin’s long-term bullish trend.

FAQs

1. Is the Mt Gox Blunder responsible for the Drop in Bitcoin’s Value?
No, the Mt Gox Blunder was responsible for Bitcoin’s drop in value in 2014. The recent 8% dip had nothing to do with it.
2. Will Bitcoin’s Drop Severely Affect the Cryptocurrency Market?
No, it will not. Bitcoin’s recent drop is not severe enough to cause panic in the cryptocurrency market, nor is the situation with Mt Gox and the US Government wallet trading.
3. Is Bitcoin’s Price Expected to Rise Again Soon?
Since the market has reacted positively to the situation, many experts believe that Bitcoin’s price is expected to rise again soon. However, this is not guaranteed, and the cryptocurrency market is notoriously unpredictable.
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