 ▲ Bitcoin crash ©Coin Leaders |
While cryptocurrency leader Bitcoin (BTC) is barely maintaining the $60,000 level due to concerns that a large number of Bitcoins held by Mt. Gox will be released into the market, cryptocurrency investment company Mechanism Capital's Co-founder Andrew Kang warned that Bitcoin could correct to the $40,000 level.
Kang said through X on the 4th (local time), “The current market is similar to May 2021. However, this time, large-scale cryptocurrency futures liquidation did not take place like back then. Considering this, the previous BTC price forecast of the low $50,000 range is too conservative. There is a high possibility that it will be adjusted to the $40,000 range. “In this case, the market will take a significant hit and will require a recovery period of several months.”
Cointelegraph said, "The previous day, the Bitcoin price temporarily collapsed below the $60,000 level. This is believed to be a decline due to concerns about the start of bond repayment worth $9 billion by the bankrupt cryptocurrency exchange Mt. Gox. As the $60,000 support line collapsed, “The possibility that the adjustment period will take longer has also increased,” he said.
Mt. Gox plans to return a total of 142,000 BTC, 143,000 BCH, and 69 billion yen to creditors. By March 10 of last year, creditors had to decide whether to receive in-kind cryptocurrency equivalent to about 90% of the amount to be repaid (in-kind) as a lump sum in July, and it is estimated that 75% of creditors accepted the plan.
According to CoinMarketCap, the price of Bitcoin fell to $59,417.93 at one point on this day. It has been 5 days since the 29th of last month that Bitcoin fell below $60,000.
