Speculation is rife at the moment. Over the past few days we have seen the markets take a major tumble. The majority of us, assumed that this was down to a correction period, taking place after a couple of weeks of consistent gains, in the wake of the mid-April market surge that saw the major currencies hit forty-day highs. This trend, sat right through the market.
The correction period looked to carry on over a couple of days, begging the question that something more sinister could be going on. As Thursday concluded, many of us did see the progression made in April, seemingly take a turn for the worse
Thankfully however, the good April spell seems to have returned today.
At the time of writing, Bitcoin is up 6.34%, Ethereum is up 7.81%, Ripple is up 6.79% and Stellar is steaming ahead still, up 11.80%.
We do have some more information on what seems to have caused this drought now. Suspicions of a heavy correction seem to be wrong, in light of a huge Mt. Gox coin dump that has taken place (again) on public exchanges. This isn’t the first time a Mt. Gox coin dump has caused us problems either.
These tweets by Alistair Milne, Bitcoin Evangelist highlight that indeed some heavy Mt. Gox related activity has taken place. Indeed, a quick search online through the blockchain does confirm that huge transactions of 2,000 or so Bitcoin have taken place. In total, these transactions add up to around 16,000 Bitcoins.
In the past, Mt. Gox trustees have sold Bitcoin in order to pay out compensation owed to their customers, this is something few are willing to admit. Overall this has raised the question of what impact Mt. Gox have had on the value of cryptocurrency overall, with many blaming them for the onset of the March depression.
So, we can’t say for sure that this coin dump has caused the slight market dip entirely, but most fingers are pointing that way. I would assume that some correction had taken place prior to the coin dump, with the decreasing value encouraging Mt. Gox trustees to start selling off. The mass sell off then obviously had an adverse effect, causing the markets to tumble for a day longer than expected.
That’s the theory at least.
Mt. Gox thankfully haven’t destroyed April, but their presence is continuing to frustrate a lot of people. For now, let's hope the dip has passed and that once more, we see values continue to climb through the weekend.
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