The Labour Party’s election win secures Keir Starmer as the next UK prime minister. Bitcoin fell to $54,000 as Mt. Gox started creditor repayments, impacting the crypto market. Meanwhile, U.S. unemployment rose to 4.1% in June, hinting at effects from Federal Reserve policies despite job growth.
The Labour Party has won a decisive victory in the UK general elections, with nearly all seats declared.
Keir Starmer will assume the role of prime minister and is expected to meet the king shortly to be invited to form a government.
Labour has secured 410 of the 650 seats, achieving a strong majority, with only a few seats yet to be declared.
This result in United Kingdom draws attention to the upcoming second round of France’s parliamentary elections, scheduled for Sunday.
Bitcoin Plunged to 54k as Defunct Exchange Starts Paying Back to Creditors
Bitcoin’s price dropped amid a broad crypto market selloff.
Mt. Gox, a crypto exchange that went bankrupt in 2014, has started repaying its creditors, contributing to the market decline.
Other cryptocurrencies were also affected:
Ether dropped below $2,900, a decline of over 9%.
Binance’s BNB fell by 11%.
Solana dropped by 5.8%.
Mt. Gox will repay creditors using both Bitcoin and Bitcoin Cash.
Repayments will be staggered, with creditors receiving:
Around 140,000 Bitcoins, valued at approximately $7.6 billion.
Approximately 143,000 Bitcoin Cash (BCH) tokens, worth about $42.5 million.
On Thursday evening, Mt. Gox transferred approximately 47,228 Bitcoins (valued at $2.71 billion) from cold storage to a new wallet. The substantial payout has raised concerns that creditors might sell some of the assets they receive, potentially leading to a decline in prices.
US Unemployment Rate Surged to 4.1%
In June, the U.S. job market added 206,000 jobs, signaling growth.
The unemployment rate, however, rose to 4.1% during the same period.
Although still low by historical standards, the gradual rise in unemployment hints at economic impacts from the Federal Reserve’s hawkish policies and higher interest rates.
The U.S. unemployment rate has been climbing since February 2023, when it reached a historic low of 3.4%.
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