- Bitcoin fell below $20,000 over the weekend amid selling pressure in equities and crypto.
- BTC price bounced back above key levels, with the bulls currently battling the bears near the $20,245 level.
- The bitcoin market is not surprised by the alleged issue of 140,000 MT of Gox bitcoin to creditors.
After Friday’s selloff, bitcoin climbed above $20,000 on Monday and broke around $19,600 over the weekend.
sell off shares
The picture on Wall Street, with US stocks also reeling under selling pressure, as Powell’s scathing comments on Friday added to the overall darkness.
After falling more than 3.3% on Friday, the S&P 500 opened lower on Monday and is currently down 0.6%. The Dow Jones Industrial Average and Nasdaq are also in the red as the 10-year US Treasury yield climbs above 3%.
mount gox dump ‘not happening’
As well as a broad dump in riskier markets due to the Jackson Hole shock of the US Federal Reserve Jerome Powell, the bitcoin market saw some negativity amid fear and uncertainty related to the Mt Gox news.
As August draws to a close, about 140,000 BTC will hit the cryptocurrency retail market for a dump price of around 140,000 BTC, with the expectation of payment to creditors of the dormant bitcoin exchange. But the rehabilitation plan, announced Last month, will not come as a lump sum. Rather, it is going to spread over several months.
Crypto analyst Michael van de Poppe commented that payments should not scare merchants, noting in a tweet:
Breaking:
mount gox will not be released #bitcoinAnd will once again delay the delivery.
The entire cryptocurrency sector is emphasizing this, but it is unfair.
— Michael van de Pope (@CryptoMichNL) 28 August 2022
At the time of writing, BTC is trading around $20,245. It is up about 1.2% over the past 24 hours.
But while the bulls are struggling to maintain the psychological support area, weakness in the riskier asset could still propel the cryptocurrency towards intraday lows and potentially retest the $19,000 area.