Bitcoin Rallies After 10% Slump
After going through a 10% drop on April 26, from $9,700 to $8,800, the Bitcoin price has moved back up t o $9,200. According to reports, the recent sharp decline in Bitcoin price was as a result of the sale of Mt. Gox trustee funds.
Over 17,000 Bitcoin were reported to have been moved by the Mt Gox trustee. Trading at a price of $9,700, 17,000 Bitcoin were valued at $165 billion and huge amounts of funds were dumped on leading cryptocurrency exchanges.
In the cryptocurrency market, more than hundreds of millions of dollars’ worth of Bitcoin could be traded in over-the-counter (OTC) transactions in a single day without affecting the public cryptocurrency exchange market given that there is a difference in the liquidity and structure of both markets.
Regardless of the various standpoints of the cryptocurrency community and the appeal from investors to make use of the OTC market to exchange large sums of Bitcoin instead of cryptocurrency exchanges, the Mt. Gox trustee still depends on leading exchanges to get rid of their funds.
However, Bitcoin has been able to bounce back from the sharp decline caused by the Mt. Gox trustee’s dump. Volumes have begun to rise again on major exchanges and demand has generally increased.
Usually, when Bitcoin trades at the neutral level and is not concerned with high demands from traders, it often performs better in the short-term. Given the present price situation, investors speculate that Bitcoin price will end the month at $10,000.
