Cryptocurrency traders fear that Mt. Gox and the German government will sell off Bitcoin (BTC), which would be terrible for the market. Joe Burnett, who was a developer for Blockware Solutions and is now Unchained’s senior product marketing manager, says the market might not get better until these sources stop trying to sell it.
It had sent portions of 3,000 BTC to Coinbase, Kraken, and Bitstamp as of July 4. BTC has been flitting about a lot lately. Berlin still has 40,359 BTC, worth $2.22 billion right now, preserved thus. This drives great fear in the market. Now collapsed, Mt. Gox sold $2.7 billion worth of Bitcoin, ready for a $9 billion payment process to pay off debt. This is the first important trade on the exchange since May. There were some quick test maneuvers early this week.
Bitcoin’s Market Reacts Swiftly To Recent Price Drop
Things moved quickly in the market. Late Thursday night, Bitcoin lost 7% of its value. At $53,550, it was the lowest price in four months, and this caused a rush of sales across the crypto market.
In an interview with CNBC, John Glover, Chief Investment Officer at Ledn, spoke on Mount Gox. Not stating the exact amount, he stated, “$9 billion of Bitcoin in a market that trades $30 to $40 billion [a day].”Glover said that fixing this problem would make people believe each other more, which could cause Bitcoin to rise after the “summer doldrums.”
Since the market is decreasing, any return to price growth will likely need a big lift. Exchange-traded funds (ETFs) for spot Ethereum in the US will likely be approved in the third quarter. This may start a bull run. Once they are approved, Spot Ether ETFs are expected to attract a lot of interest from institutional investors.
Many big banks and asset managers have been afraid to put money straight into crypto because the rules aren’t clear, and digital assets are hard to track. A controlled ETF would be a safe and legal way for these groups to get into Ether.
Some people believe that Ether ETFs will have less of an impact than Bitcoin ETFs, which helped Bitcoin hit new all-time highs. The SEC has given eight companies the go-ahead to sell Ethereum ETFs, but the process is still ongoing. Gensler, the head of the SEC, says that things are starting off “smoothly.”
The funds have sent the S-1 forms that the SEC needs. The supervisor will look at the details of each ETF as part of the next steps in the approval process. Based on a new Bloomberg story, the process could be sped up. This would allow the ETFs to begin trading by the middle of July. It takes a few weeks right now.
As the market experiences these tough times, investors will look for signs that the Bitcoin sell-offs will end and for events that could help the market rebound.
