The crypto market is under pressure as bitcoin (BTC-USD) prices experience a downturn following Mt. Gox’s initiation of customer repayments. This development has ignited concerns about a potential bitcoin correction or widespread sell-off.
Major cryptocurrency exchanges, including industry leader Coinbase Global (COIN), are seeing their stock prices decline in response to the news.
Market Domination co-hosts Jared Blikre and Josh Lipton dive into the details.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Angel Smith
Video Transcript
We’re also watching the cryptocurrencies this afternoon.
Bitcoin sliding after collapsed exchange Mount Gox is beginning to purportedly pay back the nearly $9 billion in Bitcoin and Bitcoin cash.
It owes to customers from its bankruptcy back in 2014.
Now, the crypto exchange platforms like Coinbase are falling on the news and a simple question might be, why is this happening?
Why is the value of Bitcoin falling?
Well, you have 140,000 Bitcoins at this has over in Japan when they start distributing those to customers.
A lot of customers are going to say, well, I want to convert this to cash.
So they sell the Bitcoin and then they buy the US dollar or whatever their local currency is.
So that’s what places potential pressure, but it doesn’t have to separately over in Germany.
I think there’s a trustee there who’s going to distribute something like 50,000 Bitcoins, that’s a lot of money.
So, you know, another couple of billion dollars there.
So this does tend to weigh on price.
And I think, you know, the technicals in Bitcoin not looking very good real quick on the Wi Fi Interactive.
I like to draw this at least once a day.
Here we go.
This is the year’s price action and now we are below.
We’ve dipped below before, but quickly recovered.
Doesn’t look like that’s happening today, but give it another day.
So, and then you said, well, what, what’s the cast to get this one moving in the right direction again with a Dovish fed, do it and cut or two.
You know, I think a Dovish fed is actually Bitcoin positive historically.
So that could have something to do with it.
Um, you know, is Bitcoin the inflation edge?
I don’t think we have enough time for that discussion.
Actually, we don’t have enough time for that discussion.
We’ll make room, we’ll make room, they’ll be on the podcast too.
Yeah.
Well, we got takeaways too.
So.