Mt Gox repayments and Nvidia pullback start doom scenario for Bitcoin

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Last Updated on 6 July 2024 by CryptoTips.eu

Even though the Bitcoin transfers from the German government have also put pressure on crypto prices in recent days, it is mainly the $9 billion worth of Bitcoins from Mt Gox that are making crypto investors very nervous. Panic is slowly overtaking the market at the moment and many are thinking of a doomsday scenario where Bitcoin could fall back to the value of the beginning of this year ($42,000) before it finally makes another move higher.

At the same time, the recent pullback of the Nvidia stock, the darling of Wall Street in recent years, is also troublesome.

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Mt Gox

The Mt Gox customers’ repayment plan has started. This means that many unknown people, who lost their Bitcoins in 2014 due to the Mt Gox hack, are bound to become millionaires. The value of their Bitcoins has increased exponentially since the 2014 hack, thus the market expects all these people will want a quick payout of their crypto coins.

This puts a lot of pressure on the market and so Wall Street investors have also been trading in their profits since the beginning of this year before this tsunami of new Bitcoin millionaires does the same.

Nvidia

Furthermore, we seem to have also arrived at the end of a period in which Nvidia shares did a so-called stock split and then experienced a decline that many investors had long predicted but no one dared to think about. The high point for Nivida was about three weeks ago. Since then, the stock has traded about 8 to 10% lower. Yesterday, it dropped another 2%.

Some analysts now think that this will cause Wall Street firms to reduce their risk positions for the summer and that tech stocks and crypto will be hit as the risk of a pullback outweighs the possibility of a new top in the weeks to come.

Just like Nvidia, Bitcoin is still posting a very nice profit in 2024, but it is clear that we are no longer at the top. The next days and weeks will be very exciting.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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