Mt Gox news causes Bitcoin flashcrash

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Last Updated on 6 November 2023 by CryptoTips.eu

On Thursday, the price of the largest digital currency, Bitcoin, climbed steadily after it emerged that the US banking crisis was not yet over. The problems at First Republic bank caused Bitcoin to move higher, just like gold.

However, the price of that same Bitcoin fell 7% in a span of just one hour on the night from Thursday to Friday, before climbing higher again. That is called a flash crash, and they happen quite often in the world of crypto coins. Usually they are large investors who agree to sell quickly and take their profit, then buy back later.

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Magic

This time, however, it turned out to be about Mt Gox.For those who don’t know the story yet. Programmer Jed McCaleb created a website in 2006 for users of the Magic: The Gathering Online, a tradable card service so that they could trade “Magic: The Gathering Online” cards just like stock shares between users. That later became mtgox.com, short for “Magic: The Gathering Online eXchange”. In 2010, the website became the very first crypto platform when the ‘Magic’ players discovered Bitcoin.

The platform was based in Tokyo, the capital of Japan, and during its peak traded nearly 70% of all Bitcoin in circulation at the time. However, in 2014 the site was hacked and since then there has been a great mystery surrounding the Bitcoins that were stolen.

On Thursday night, well-known crypto information site DB tweeted that Mt Gox wallets had begun transactions. Because hundreds of thousands of Bitcoins are still missing from that site, this can strongly influence the Bitcoin price. After the message appeared, the price of Bitcoin fell about 7% in an hour.

Then IT tech, another well-known crypto information account, tweeted that the message was fake news, after which the Bitcoin price went higher again. Several investors are considering filing a complaint against the crypto information site DB.

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Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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