Bitcoin is in danger: three reasons for the BTC collapse in October
Bitcoin may crash in October
Coronavirus, US politics, and Mt Gox coin giveaways will be bearish catalysts for MTC
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In the past few days, the value of the main cryptocurrency has been falling rapidly. The reasons for the fall were called problems on the BitMEX exchange, election debates in the United States, as well as Donald Trump’s illness with coronavirus. However, experts have identified several more reasons why the price of bitcoin could collapse even lower in October..
Mt Gox will distribute 140,000 BTC to creditors
Among the main reasons for the possible collapse of the price of bitcoin, cryptoexpert and blogger Lark Davis calls the execution of the decision of the Tokyo District Court against Mt.Gox, which was previously accused of fraud. According to the document, on October 15, 2020, the Mt Gox receiver is to distribute about 140,000 bitcoins among creditors..
Based on the original purchase price, which is about $ 400, and a 20% recovery rate, the payouts to creditors are estimated at $ 2,000. While some recipients of the coins will certainly choose to hold them, most lenders will sell the coins as their value has increased by 5 times. The massive sale of BTC will lead to a collapse in the price of the coin. Davis himself says that the value of the asset may drop to $ 9000.
Venezuela uses cryptocurrencies to circumvent US sanctions
This fact has been known for a long time. Nicolas Maduro himself, President of Venezuela, has repeatedly stated that cryptocurrencies help the country bypass US sanctions and sell oil, gold, gems for Bitcoin and ETH. However, such frankness Maduro can play a bad joke with him. As Davis suggests, candidates for the presidency of the United States can speculate on this topic and tighten the rules for the circulation of cryptocurrencies, putting pressure on the FATF and other organizations. For example, an anti-money laundering organization can oblige absolutely all exchanges to introduce the KYC procedure, as well as introduce a number of other requirements that will negatively affect the turnover of cryptocurrencies..
“On the one hand, cryptocurrencies have shown their power and independence from central banking systems. But on the other hand, countries, and in particular the United States, can seriously tighten the circulation of cryptocurrencies, which contribute to bypassing sanctions, ”said Lark Davis.
US presidential election could bring down the price of bitcoin
Despite the fact that bitcoin is a decentralized payment asset, the political situation in the world and, in particular, in the United States can have a serious impact on the coin’s rate. In support of his words, Lark Davis cites the example of past elections, when during the debate between George W. Bush and Al Gore, the markets fell by 10%. A similar situation may be repeated this year..
By the way, the BeInCrypto portal has already written about how the election of the US president may not affect the price of bitcoin. If Lark Davis’s predictions turn out to be correct, then in October Bitcoin may roll back to the $ 9000 – $ 9500 mark.
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