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The price of Bitcoin has rebounded back to $9,200 after experiencing a 10% decline yesterday. The sharp decline was said to be triggered by the sale of the Mt. Gox trustee funds.
Approximately 17,000 bitcoins were said to be dumped on the public cryptocurrency exchange market over the past 24 hours by the Mt. Gox trustee. At a price of $9,700, 17,000 bitcoins were worth $165 million and that large sum of funds were dumped on major cryptocurrency exchanges.
This is not the first time we’re seeing this happening. Previously, the Mt. Gox trustee triggered the bitcoin price to drop by large margins in several occasions. The organization was heavily criticized for their decision to utilize public cryptocurrency exchanges to sell their funds instead of disposing them in the over-the-counter (OTC) market.
Despite so much criticism from the cryptocurrency community and the request from investors to utilize the OTC market to sell large batches of bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of bitcoin has fallen by large margins.
Bitcoin continues to recover quickly from the sharp decline in price cause by the Mt. Gox trustee’s dump. Volumes have re-emerged on major exchanges and overall demand has risen. The Relative Strength Index (RSI) and Williams’ Percent Range (WPR) of bitcoin signal a neutral zone for bitcoin and have not demonstrated either oversold or overbought conditions over the past three days.
However, it is important to note that Bitcoin has not been able to break above $9273 (key resistance level), so today’s bounce needs to be tagged as a simple bounce from the significant falls from the last couple of days. Only above that level, we would see a rise to relative highs, located at $9750.
As for alts, for three straight weeks, tokens including ICON (ICX), Decentraland (MANA), WanChain (WAN), EOS, OmiseGo (OMG), Kyber Network (KNC) and others have performed strong against both bitcoin and the US dollar. Notably, ZCL was dumped to the oblivion today – going from $188 to $4 at the time of writing.
Top Stories from the Crypto World
1. Coincheck posts $490 million in profit
Japanese crypto exchange Coincheck earned an estimated ¥53.2 bln (approximately $490 mln) in the ten months between April 2017 and January 2018, the month of its unprecedented hack, according to data from parent company Monex Group Inc.
By comparison, Japan Exchange Group, the operator of Japan’s leading stock and derivatives markets, earned ¥71.8 bln ($657 mln) in the fiscal year ending in March 2018, putting the traditional exchange’s profits roughly on par with those of Coincheck.
Coincheck was acquired by Money Group Inc. as a wholly owned subsidiary on April 16, 2018, when Coincheck decided to rehaul its shareholder composition and management after $532 mln worth of NEM was stolen from its wallets in January 2018.
Monex Group estimates that Coincheck recorded a mammoth writedown of ¥47.2 bln ($432 mln) for the fiscal year closing in March as a refund to its customers affected by the hack, yet despite this “extraordinary loss” of funds, Coincheck still closed the fiscal year in the green, netting ¥6.3 bln revenue on sales of ¥62.6 bln.
2. Nexon Korea CEO denies rumours of acquiring Bitstamp
Video game company, Nexon Korea’s CEO, Lee Jung-hun has issued a statement in a press conference denying the rumors of a Bitstamp acquisition.
The rumors, which hit the headlines yesterday, suggested the oldest bitcoin exchange was up for sale and that the South Korean gaming company was the frontrunner for acquiring it. According to the reports, ‘people with knowledge’ said the price being discussed was around $350 million.
However, during a press conference held at Nexon Korea’s headquarters, CEO, Lee Jung-hun said: “Nexon Korea does not have anything to do with a Bitstamp acquisition,”.
“We do not have any plans to link cryptocurrencies with our game business.” he added.
3. Crypto mining boosts AMD profits despite volatility
Advanced Micro Devices’ first-quarter earnings results were buoyed by cryptocurrency mining revenue, but the chipmaker warned the volatility is getting in the way.
AMD in Q1 generated a higher percentage of its revenue from sales of its graphics chips that are used to power computers in the cryptocurrency mining process for digital currencies like Bitcoin and Ethereum.
The company, however, is bracing for a “modest decline” in blockchain-fueled revenue in the second quarter even as bitcoin has turned a corner. Nonetheless, AMD CEO Lisa Su expects mining demand will be around for the long term.
“I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology,” said Su on the earnings call.