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Screenshot of a breaking news alert e-mail from Q2 2017
Mt Gox closure sent prices on other exchanges down 25% to low $400’s, now back around $600
Recent developments in the crypto currencies world have been of a substantially disruptive nature and there is no doubt that confidence has been shattered all over the place as the formerly leading Japanese exchange Mt Gox has finally shut down its doors. However there could be no better time to buy than right now as the overwhelming negative tone that ensued into the whole Bitcoin withdrawal shutdown has now passed.
This could be the best opportunity in a while to hop on the moving train and buy Bitcoin for the long haul. After all there is no information of any exchange having to deal with similar problems that Mt Gox had. For now it appears as if the inherent risks of dealing with the Japanese exchange have been well known in advance. Too bad new users who were not familiar with the issues surrounding the exchange since pretty much it’s inception got wrong footed and lost substantial sums of money.
In the end we do live in the information era and the only one that can be blamed for the loss of money are the customers themselves. There have been discussion threads on Reddit for a long while claiming that people were not able to withdraw their cash from the exchange so it was only a matter of time before this story unfolded.
But where are we headed now? The imminent answer is that it might be quite a good time to purchase the digital currency right now, since the bulk of negative news have already been prices in. As we have already mentioned mining still goes on and difficulty keeps rising, so it would take another blow to drive prices down around other exchanges. Not that they didn’t suffer – prices on BitStamp have dropped to $400 yesterday, however as of this morning they are trading close to $600 again.
Was the Bitcoin market “smart” enough to fully price in the demise of Mt Gox? For now it appears so – whether or not that continues to be the case, we will find out in the coming weeks. Stay tuned to LeapRate as we continue to cover the still mysterious world of digital currency trading. Meanwhile if you are anxious to speculate – perhaps there are a few safe Bitcoin CFD alternatives to do just that.