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Bitcoin Stumbles While Ethereum Comes Crashing Down

Almost all the major cryptocurrencies of the world are facing a sudden drop in their price values. Bitcoin has come down from the mark of $6,500, which it saw in the previous few days, to the $6,200 range. Alongside bitcoin, ethereum has also become the victim of the same fate and is now lingering below the $200 mark, as per CoinMarketCap.

Following graph shows the sudden drop that bitcoin has faced.

Source: CoinMarketCap

Similarly, ethereum has also seen a huge drop in its market value. The following graph signifies the brunt that ethereum had to face in the past couple of days.

Source: CoinMarketCap

Regarding the situation, some experts are suggesting that the crypto market is going to head downwards from here on in the lights of all the proceedings that are underway in the crypto world. Thomas Power, one of blockchain’s world well-renowned personalities and a board member at 9 Spokes, is of the view that bitcoin is going to crash even further alongside ethereum.

Talking to BlockPublisher regarding the direction of these cryptos, Thomas Power stated that:

Mt. Gox flooding coming. BTC heading $3,000. ETH below $100.

Thomas stood by his previous claim of seeing bitcoin drop down to the $3,000. Talking to BlockPublisher he had previously stated:

We’re heading for $3,000 before ETF approval.

Thomas seems to be suggesting that the proceedings happening regarding the Mt. Gox case might lead to the crash of both bitcoin and ethereum. Mt. Gox was a well-renowned bitcoin exchange based in Japan. At one point in time, it handled almost 70% of bitcoin transactions worldwide. Mt. Gox became a victim of a large-scale hack and as a result many bitcoins were taken out of circulation. Now that Mt. Gox has started its civil rehabilitation process, victims of the hack can claim their lost bitcoins. A time frame has been given to the claim makers. Victims are given time until October 22 to make their claims. After the deadline passes, the requests will be submitted to the Japanese courts and the distribution among the claimants will be handled accordingly.

This news might not be good for the overall market as it might lead to a crash due to a sudden mass liquidation event. Claimants who get their bitcoins back as a result of this payout might also sell them instantly exacerbating the situation. So, moving forwards from here on, with the Mt. Gox scenario at hand, things do not seem to be good for the crypto market overall.

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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