Home Markets Crypto Braces for $2.7 Billion ‘Black Swan’ in September After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin Price Drops $1 Trillion

Crypto Braces for $2.7 Billion ‘Black Swan’ in September After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin Price Drops $1 Trillion

Crypto Braces for $2.7 Billion ‘Black Swan’ in September After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin Price Drops $1 Trillion

this week dipped below the $20,000 per bitcoin level after Well-attended remarks by Federal Reserve Chairman Jerome Powell.

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Bitcoin price, at the bottom of a 70% drop from its all-time high, last fell below $20,000 in July, erasing all of its August gains (although some suddenly think it’s a good time to buy bitcoin). Meanwhile, ethereum price rushes to its own earthquake and other top ten cryptocurrencies including BNB
solana, cardano and dogecoin – seek direction in a $2 trillion crypto winter where “anything can happen”.

Now, bitcoin, ethereum and other major cryptocurrencies could be heading into a risky September with an impending event dubbed “black swan”, major ethereum update and another Federal Reserve interest rate hike putting pressure on a booming crypto market.

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In September, nearly $3 billion worth of bitcoins could suddenly flood the market as 137,000 bitcoins lost by the once-dominant bitcoin exchange Mt. Gox are returned to investors. Mt. Gox filed for bankruptcy in 2014 after losing 850,000 bitcoins to fraudulent withdrawals.

The refund has already been named as a potential bitcoin black swan– a term used to describe a very rare or otherwise unexpected event – that could have a major effect on the price of bitcoin and could weigh on Ethereum, BNB
solana, cardano and dogecoin.

This week, unfounded rumors swirled on social media that the Mt. Gox administrator may imminently release some of his recovered bitcoins to creditors, compounding a bitcoin price crash. The debate has rages across social media as to “how many of these original investors sitting on a 50x
profit will sell” their newly returned bitcoin, potentially driving down the price of bitcoin.

On top of fears that $2.7 billion worth of bitcoins are about to flood the market (compared to just $540 each when Mt. Gox collapsed), traders expect the U.S. Federal Reserve continues its hawkish monetary policy agenda with another gigantic interest rate hike. in September. On Friday, Federal Reserve Chairman Jerome Powell warned traders against expecting a quick end to his interest rate hikes.

“The volatility that has become so characteristic of the digital token space shows no signs of abating,” analysts at bitcoin and crypto exchange Bitfinex wrote in email comments, calling the bitcoin price drop following Powell’s comments of “instant response”. “

Meanwhile, the impending Ethereum merger upgrade – scheduled for mid-September and designed to begin the network’s transition from energy-intensive proof-of-work to more environmentally-friendly proof-of-stake which is also expected to reduce fees and improve transaction times — the cause of market uncertainty.

“The month started with a brew of optimism as market participants brace for the Ethereum merger, but all clues [have] declined…as we near the end of August,” Vijay Ayyar, VP Asia at crypto exchange Luno, wrote in an emailed note, adding that ethereum “has under -performed against all major cryptocurrencies”.

Ethereum price is currently down about 25% from its August peak.

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Looking ahead to September, most analysts and market watchers are bearish on bitcoin, ethereum, and other major cryptocurrencies.

“In terms of the current direction of the market, it’s hard to see general sentiment returning to the exuberance of 2021 anytime soon,” Swarm Markets co-founder Timo Lehes said in emailed comments.

“While the merger is certainly creating traction with investors, other headwinds still exist, such as regulatory pressure, more macro concerns and rate hikes, and other ‘black swan’ events. such as the Mt. Gox bitcoin dump.”


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