and cryptocurrency prices are struggling to maintain momentum after rallying in the first week of July, due in part to some surprisingly bullish data.

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Bitcoin price surged above $22,000 per bitcoin – its highest level since mid-June – before falling back amid a sudden wave of optimism. The Ethereum price and other top ten cryptocurrencies BNB
Solana, Cardano, and Dogecoin have also stalled.

Now, after crypto billionaire Sam Bankman-Fried issued a dire market crash warning, crypto prices are braced for what some have dubbed an unpredictable and potentially serious “black swan” event as Bitcoin is worth $3 billion could suddenly flood the market.

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This week, the bankruptcy trustee of collapsed crypto exchange Mt. Gox, once the world’s largest bitcoin exchange, announced that the company is preparing to repay some of its creditors, according to a letter published on its website. Nobauaki Kobayashi sent an email to creditors giving them the option to receive the funds in US dollars, Bitcoin, or Bitcoin Cash, a fork of Bitcoin.

The payback could mean as many as 150,000 bitcoins — currently valued at around $3 billion — will flood the crypto market, according to crypto investor Aaron Brown Bloomberg “It could push prices down…the drop could scare some other people and we could see another drop.”

The implosion of Tokyo-based Mt. Gox after losing around 850,000 Bitcoin in 2014 sent shockwaves through the burgeoning crypto market.

When Kobayashi sold nearly 25,000 bitcoins from Mt. Gox in 2018, which were then valued at $260 million, it marked the culmination of the late 2017 bull run that took bitcoin price to unprecedented highs of around $20,000 and into a multi-year bear market that sent bitcoin price to lows of $3,000.

If bitcoin price sees a similar decline from its peak of nearly $70,000 per bitcoin last year, it could fall well below $10,000.

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MORE FROM FORBES“Crash Potential” Crypto Billionaire Issues Strong Warning as Bitcoin and Ethereum Price Recovers

The $2 trillion bitcoin and crypto crash, which coincided with a stock market crisis sparked by the Federal Reserve’s decision to hike interest rates and end pandemic-era stimulus measures, has already been through exacerbated the collapse of the Terra blockchain, their UST
Stablecoin and its support coin Luna, and a crypto lending company crisis spreading to brokers and hedge funds.

Many in the bitcoin and crypto space remain bullish despite the sudden selloff that wiped billions from the value of the top ten coins Ethereum, BNB, XRP, Solana, Cardano and Dogecoin.

“Bitcoin posted positive momentum over the long weekend and remained largely green this week. However, the $22,000-$23,000 zone still remains a challenge,” wrote Joe DiPasquale, the chief executive officer of bitcoin and crypto hedge fund BitBull Capital, in emailed comments adding the Fed’s monetary tightening policy is his opinion after the most significant event on Bitcoin’s immediate timeline.

“That [Fed’s] For now, the Federal Open Market Committee (FOMC) meeting later this month remains the big event that can bring volatility back to the market.”

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