Matrixport Predicts Impact of Mt. Gox Rumors on Bitcoin’s 8% Drop
The cryptocurrency world was rocked this week by the news that Bitcoin had taken an 8% hit due to rumors of a potential bankruptcy at Mt. Gox, one of the largest exchanges for digital assets. In response, Matrixport, a leading provider of cryptocurrency services and analysis tools, has released its predictions on how the market is likely to react in the coming weeks.
Matrixport’s report suggests that while there may be some short-term volatility as investors adjust their portfolios in reaction to news about Mt. Gox’s prospects, overall, it is unlikely that there will be any long-term impact on Bitcoin prices or trading volumes. The company believes that other major exchanges are now well-established enough not to suffer significantly from any disruption caused by Mt. Gox’s troubles and have sufficient liquidity reserves should they need them during times of increased demand or uncertainty over pricing trends.
In addition, Matrixport also predicts that although traders may become more cautious when dealing with certain altcoins (alternative cryptocurrencies) which are less liquid than Bitcoin itself; these coins should remain relatively stable compared with BTC given their smaller size and lower levels of activity among users/investors. All in all, it appears then according to Matrixports analysis, that despite recent events, the cryptocurrency market remains healthy and resilient going forward into 2020.Read more at Benzinga