Home / Crypto Currency / Cryptocurrency Market Falls $25 Billion Overnight as Bitcoin Drops 6%: Factors and Trends

Cryptocurrency Market Falls $25 Billion Overnight as Bitcoin Drops 6%: Factors and Trends

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The cryptocurrency market has recorded a decline of over $25 billion overnight, after an abrupt bitcoin sell-off was recorded on June 10. Analysts have attributed the recent correction to a variety of factors but the market seems to have dropped due to a simple reason: a drop in volume and demand.

Low Volume

Since last week, despite the stability in the cryptocurrency market and the optimistic short-term trend of bitcoin shown by its 1-day price chart, CCN noted that the price of BTC will likely fall below the $7,000 mark if the volume of bitcoin does not rebound in the short-term.

Many momentum indicators including MACD, moving averages, and RSI demonstrated an optimistic short-term trend for BTC, and several prominent traders such as Peter Brandt acknowledged a positive price movement.

However, given the volatility of the cryptocurrency market, the price movement of cryptocurrencies can change drastically based on market conditions. As such, it is important to actively observe the market to find any irregularity and change in trading conditions.

Over the past week, BTC seemed to be gaining short-term momentum, fueled by several consecutive buy volumes on its 1-day price chart. The strong downward trend from $9,900 to $7,050 came to an end as a corrective rally from $7,050 to $7,500 temporarily stopped a further drop to the $6,000 region.

As the market started to gain some stability and small tokens began to outperform major cryptocurrencies once again, investors became more confident in the short-term trend of the market. But, investors dismissed one key factor; the daily trading volume of BTC was merely half of its volume in late April and early May. The demand from investors had notably declined.

The recent correction of BTC can be largely attributable to the failure of bitcoin to continue its momentum from the $7,500 mark due to its low daily trading volume. The downward price movement was not caused by independent events that have occured this week.

Coinrail Hack

The majority of traders and analysts have justified the short-term price drop of BTC to the Coinrail hack in South Korea, which led to a $40 million loss.

Coinrail is a minor cryptocurrency exchange in South Korea that is utilized by a small portion of investors in the country. The overwhelming majority of traders use the big three cryptocurrency exchanges Bithumb, UPbit, and Korbit, as they are more reliable than smaller cryptocurrency exchanges.

It is highly inaccurate to conclusively claim that the Coinrail hack caused the price of BTC to fall 10 percent in two days and the entire cryptocurrency market to fall, as Coinrail itself only accounts for about 5 percent of the volume coming from South Korea. Claiming Coinrail as a major catalyst behind the correction is essentially stating that an exchange that is responsible for less than 0.1 percent of the global cryptocurrency trading volume caused the market to plummet overnight.

Featured image from Shutterstock.

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A U.S.-based cryptocurrency investor and entrepreneur has filed a multi-million-dollar lawsuit against telecommunications firm AT&T. Michael Terpin believes that he became the victim of a theft in which a large amount of digital currency was taken from him due to the company’s negligence. Terpin Believes He Was the Victim of a SIM Swap Fraud Michael Terpin has brought legal action against the U.S. telecommunications provider AT&T. The investor and early cryptocurrency advocate filed a 69-page complaint with the U.S. District Court in Los Angeles. During the document, Terpin claims that a large number of digital coins and tokens were stolen from him on January 7, 2018. It goes on to state that AT&T are guilty of gross negligence and fraud, which resulted in the loss of a substantial amount of cryptocurrency. According to Reuters, AT&T responded via email to the complaint by stating: “We dispute these allegations and look forward to presenting our case in court.” The filing claims that Terpin was the victim of a SIM swap fraud that was made possible by the negligence of AT&T. Such a scam involves fraudsters convincing a mobile phone provider to switch a user’s phone number to another SIM card which is under their control. Scammers can then use the number to reset login information for various accounts, allowing them to access them. Michael Terpin is the co-founder of BitAngels – an early angel group for Bitcoin investors. He also helped to set up the first digital currency fund, the BitAngels/Dapps fund in 2014. Today, Terpin is one of the Alphabit Fund’s top advisers. According to the court documents, a total of three million digital tokens were taken from Terpin. Back in January, these were worth around $23.8 million collectively. The filing also states that Terpin is seeking an additional $200 million in punitive damages. Whatever the outcome of Terpin’s court case, it illustrates the dangers of keeping large amounts of digital assets anywhere but in properly secured cold storage. The precise details of the storage of Terpin’s tokens are not currently known. However, any solution which could be comprised by SIM swap fraud is evidently not secure enough. Terpin’s missing funds join the other $1.2 billion plus of cryptos stolen from poorly secured storage solutions since 2017. The case also highlighted a need for adequate custody services in the cryptocurrency industry. This is seen by many as one of the most important steps to opening cryptocurrencies to a wider group of investors. Many do not have the technical knowledge required to set up totally secure paper wallets. Others simply shirk the responsibility of being the sole participant responsible for the safety of their digital wealth. The industry is responding, however. Already this year, NewsBTC has reported on efforts by Circle, Coinbase, and Blockchain to facilitate secure storage for large net-worth individuals and institutions. Featured image from Shutterstock. The post US Investor Files Lawsuit Against AT&T Over Cryptocurrency Theft appeared first on NewsBTC.

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