There was a slump in the crypto market last week. But what – or who – was to blame for the fact that the bitcoin suddenly lost significant value and the altcoins followed it?
• Slump in the crypto market
Bitcoin exchange rate falls more than $ 1,000
• Is Bitcoin founder Satoshi Nakamoto to blame for the price losses?
The crypto market crashed last week. The Bitcoin price dropped more than $ 1,000. Last Monday’s high peaked at around $ 9,900, close to the $ 10,000 mark, on Friday it fell back to around $ 8,800 – this Monday it went down further down, below the $ 8,800 mark.
Crash doesn’t just affect Bitcoin
Not only did the Bitcoin price collapse last week, but other cryptocurrencies such as Ethereum, Litecoin and Ripple also fell. The Ethereum price was still temporarily at a high of $ 216 last week, but fell back to around $ 192 during the week and thus lost more than 10 percent in value. Litecoin also declined by around 10 percent – last Thursday the price was at a low of $ 41.76. The ripple coin XRP fell by around 5 percent, which made the cyber currency, at 19 cents, only around one cent less than at the start of the week.
Bitcoin founder Satoshi Nakamoto to blame for the break-in?
After the market slump, the crypto scene speculates: Could Bitcoin founder Satoshi Nakamoto be to blame for the fact that cyber currencies lost significant value last week?
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Forbes reports that forty bitcoins that were mined shortly after the cryptocurrency originated in 2009 changed hands for the first time. That might have scared off some investors, “who believe that a handful of early whales – the anonymous Nakamoto and his inner circle – are sitting on billion-dollar Bitcoin.” Even if it is not clear whether the coins sold came from Satoshi Nakamoto, it is probably “a very early user of the crypto asset, and the timing of the rumors themselves seems to be the cause of yesterday’s flash crash “Forbes market analyst Adam Vettese said from a statement last week.
Are the miners pushing the Bitcoin rate?
Another reason for the correction of some crypto rates could be due to the activities of the miners. According to bytetree.com, the MRI (miner’s rolling inventory) has been over 100 percent for some time. The MRI indicates the ratio of mined bitcoin to bitcoin sold. A value above 100 means that the miners sell more Bitcoin than they mine, while an MRI below 100 indicates that the miners sell less Bitcoin than they mine. However, it would remain questionable why the MRI is only now having such a negative impact on the Bitcoin price, since yahoo finance already reported a 21-day MRI of over 100 in March during the Bitcoin recovery at that time. The halving, with halving the block reward for miners, could, as btc-echo suspects, be to blame. In order to be able to cover costs despite a lower reward, these could flush more Bitcoin onto the market and thus push the price down.
Before the halving event, experts outbid themselves with price forecasts for Bitcoin. After the event took place on May 12, the Bitcoin price increased, but the large jumps that were partly expected have so far not materialized. Some investors are nevertheless optimistic. For example, U.S. venture capital firm Andreessen Horowitz, which recently announced a $ half a billion crypto fund, is seeing a long-term growth trend in the crypto scene, and some experts are increasingly viewing Bitcoin as an alternative to gold.
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