There may be a few short-term bearish catalysts for Bitcoin price, such as Mt.Gox Rehabilitation plan on 15 October

After the BitMEX event, it can be seen that Bitcoin price has not been affected much. Though BTC fell shortly thereafter, it recovered soon and is trading in the $ 10,690 range. However, there are still a few factors that could cause Bitcoin to drop in the short term, especially in October’s coming days.

#1: Mt.Gox and the Rehabilitation plan could cause the Bitcoin price to crash

According to Mr. Whale, it seems almost 150,000 Bitcoin is set to be sent back to customers that fell victim to the Mt. Gox exchange hack in 2013. While most of them could be hodlers in this market, even if half of these people sell, it will drive pressure to sell 70,000 BTC worth in the market, all along a time.

MT. Gox used to be the largest Bitcoin exchange in the world. It was responsible for more than 70% of BTC transactions at its peak. Whether the old users will actually get their Bitcoin back will be determined on October 15th, but It’s still important to keep this all in mind. If 150,000 BTC is sold on the market, it will cause a brutal drop, and fear would quickly spread across the markets.

#2: Venezuela and cryptocurrency

The second catalyst that could contribute to market destruction is Venezuela’s recent move to avoid U.S. sanctions using cryptocurrencies. The move could encourage U.S. regulators to double regulations in the crypto space, while at the same time strictly enforcing KYC compliance to ensure no transfer of cryptocurrencies between two countries. A regulatory announcement will inevitably affect the market to a certain extent, with the possibility of this happening.

there-may-be-a-few-short-term-bearish-catalysts-for-bitcoin-price

Source: Bloomberg

Since the correlation between Bitcoin and the predominantly capital market has remained positive so far, no-origin cryptocurrency market events could impact the crypto market more significantly than before.

#3: Presidential elections can also contribute significantly

2020 is the year of Coronavirus and the year of the US presidential election. Meanwhile, October was also the weakest month for the stock market, according to historical data. In the event of a disputed election result, the market will most likely be affected negatively.

Furthermore, the new fiscal stimulus bill, likely to be passed in October, could be delayed again, a development that could also harm the cryptocurrency market.

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