The cryptocurrency market experienced a mixed day as bitcoin (BTC), the leading digital currency, showed signs of low enthusiasm following the delay of a key Mt. Gox action. As a result, alternative cryptocurrencies such as BNB and XRP also suffered losses.
Mt. Gox, a defunct crypto exchange, announced that it was pushing the deadline for its repayments to October 31, 2024. In 2014, the exchange was hacked, resulting in the theft of 850,000 bitcoin, which is now worth nearly $23 billion. The delay in repayments suggests that investors had already priced in rumors of the postponement.
Some investors anticipated that the distribution of funds to Mt. Gox customers would impact the crypto market. Early investors who still hold significant amounts of bitcoin may have had an incentive to sell and secure their gains. However, bitcoin’s recovery above $27,000 was attributed to rumors of the delay in the distribution of funds, but the cryptocurrency failed to maintain those levels and slid to $26,900.
On the other hand, major alternative cryptocurrencies like BNB, XRP, and Ether experienced sell-offs as traders locked in gains from earlier in the week. BNB and XRP slid as much as 2%, while Ether shed 1%. Dogecoin, however, remained relatively unchanged. Toncoin (TON) was one of the notable losers, dropping 8% after a 35% rise in the past week following an endorsement by messaging giant Telegram.
In terms of Layer-2 network tokens, Optimism’s OP tokens fell 5% as the Optimism Foundation sold 116 million OP tokens to seven separate buyers. These buyers are expected to use their tokens to vote on Optimism’s governance forums. Meanwhile, ImmutableX’s IMX tokens experienced a significant surge of 30%.
Despite the short-term bearish outlook, some traders noted that data indicated investors were accumulating bitcoin in anticipation of a bull market. FxPro analyst Alex Kuptsikevich highlighted that long-term bitcoin holders were accumulating the coins they sold to short-term investors, which could point towards positive prospects for the future.
Furthermore, on-chain analysis firm CryptoQuant noted that the current price action of bitcoin closely resembles past cycles, suggesting that the cryptocurrency is likely to remain in a consolidation phase until the 2024 halving event. However, analysts also hinted at a significant price increase after the halving event.
Overall, the delay in the Mt. Gox action had a noticeable impact on the cryptocurrency market, with bitcoin showing signs of low euphoria. Alternative cryptocurrencies nursed losses, but analysts believe that bitcoin’s long-term prospects remain positive, indicating potential for a price increase in the future.
