Almost $230 million worth of longs (bullish positions) by crypto investors have been erased as Bitcoin falls below $59,000. Two key factors are attributed to the slump: the approaching US elections and the return of Mt. Gox, the infamous crypto exchange hacked.
The upcoming US presidential election casts a long shadow over the crypto market. Investors are hesitant due to uncertainty about potential regulations and policies under different administrations. Donald Trump has previously stated his interest in crypto, so a win by Trump may benefit crypto, but his silence during the first debates has left many wondering.
In 2014, Mt. Gox was hacked for a staggering amount of Bitcoin.
The exchange has begun repaying creditors. A large influx of Bitcoin hits the market, potentially driving down prices as creditors sell their reclaimed coins.
Some analysts, such as CryptoQuant, believe that the miner capitulation (selling due to low prices) indicates Bitcoin is approaching its bottom, but overall sentiment remains cautious. The US election and Mt. Gox repayments could significantly influence Bitcoin’s price trajectory in the next few weeks.
