GM. Eric here. 

It’s getting brutal out there. 

Crypto crashed this week, dropping 8.1% over the past 24 hours. 

Bitcoin nosedived 7% to below $55,000 and Ether plunged about 10% to around $2,850, swinging below $3,000 for the first time since mid-May.

Two things triggered the cascade: Mt. Gox creditors are finally getting repaid and the German government is selling Bitcoin.  

Mt. Gox 

Mt. Gox repayments to creditors started this week — helping to send Bitcoin lower as up to about $9 billion in the cryptocurrency floods the market.

Mt. Gox crashed in 2014 after a hack that resulted in loss of 740,000 Bitcoin. 

At the time, it was the world’s leading crypto exchange, handling some 70% of Bitcoin trades. 

Some market watchers hope early adopters among the creditors will hold their Bitcoin instead of selling them. 

If those hopes hold true, that could stymie the bloodbath.

Germany

Germany is the second factor driving the crash. 

The German government has moved over 9,800 Bitcoin to different wallets and exchanges since June 19, according to Arkham Intelligence. 

This has spurred speculation that Germany is preparing to sell off some of the $2.2 billion it holds in the cryptocurrency, hurting sentiment. 

German lawmaker Joana Cotar urged the Bundestag to stop the selloff and instead keep it as a “strategic reserve currency.”

Standard Chartered’s crypto desk and Zodia Markets can co-exist, says CEO — will traders get it?

Zodia Markets CEO Usman Ahmad downplayed concerns that its biggest backer will launch a service that will compete with its own.

The SEC is now going after crypto VCs, says BlockTower Capital founder

The US Securities and Exchange Commission is escalating its war on crypto by going after venture capitalists, according to BlockTower Capital’s founder.

Polkadot defends $37m splurge on influencers and private jet logos: ‘All the networks have similar spending’

Polkadot, one of the longest-running blockchains, is under fire after releasing details of its spending in the first half, Tim Craig and Aleks Gilbert report.

Post of the week

The UK will get a new prime minister after the ruling Conservative party lost 251 seats in the election on Thursday, ending 14 years in power. 

At the time of writing, two seats were yet to be declared.

Crypto pundits wonder what a Labour government will mean for the industry. 

Prime Minister Rishi Sunak had pledged to transform Britain into a crypto hub, but incoming Labour leader Keir Starmer’s views are unclear.