Bitcoin just saw its rough week get rougher! The original cryptocurrency suffered another night to forget after it shed another thousand to go below the $9,000 mark.
And the reason?
A Tokyo whale that triggered this fall that pushed the price of Bitcoin under five figures.
News emerged this week that Nobuaki Kobayashi, an attorney, had been liquidating cryptocurrencies on behalf of the creditors of the defunct Mt. Gox crypto exchange. The bankruptcy trustee himself disclosed that he has sold about $400 million in Bitcoin and Bitcoin Cash since late September.
What’s more, according to the report, he is in control of a pool of more than 166,000 Bitcoins, and many believe he has been flooding the market with them for a while now.
Now, just because Bitcoin is trading at these significantly lower levels does not meant that the market will not recover at some point soon.
The digital coin had been able to get above the $10,000 figure every time.
Analysts for the London Block Exchange are of the view that the slump is being caused by a string of bad headlines this week that have dented investor sentiment.
The Binance spook, along with the SEC scare and Japan shock have all combined to drive down the price of not just Bitcoin but also other cryptocurrencies. These are, at the end of the day, purely behavioral markets, and the market instantly comes under pressure from bullish or bearish developments.
Nevertheless, the cryptocurrency markets have increasingly been attracting more traditional investors that are lured by the volatility and potential returns in the sector.