Home / Crypto Currency / Bitcoin Price Plummets to Mid-$6,000 as Crypto Market Crashes: Factors and Trends

Bitcoin Price Plummets to Mid-$6,000 as Crypto Market Crashes: Factors and Trends


Advertisement

Similar to the short-term trend outlined by CCN yesterday, the Bitcoin price has dropped by mid-$6,000 as it failed to demonstrate a recovery in its volume.

Yesterday, CCN reported that the volume of BTC and the rest of the crypto market have dropped substantially since late July, by more than 30 percent. Given the failed recovery of Bitcoin’s volume and the overly strong downtrend of the crypto market, CCN reported that the price of Bitcoin will likely drop to mid-$6,000.

“The overall demand for crypto has declined in the past several days and market activity has subsided. From here, if the volume of BTC fails to pick up and rebound to $4 to $5 billion in the next few days, a drop to mid-$6,000 is inevitable, which may play into to the prediction offered by BitMEX CEO Arthur Hayes last month,” CCN reported.

Factors and Trends

Many investors and analysts have attributed to the sudden decline in the price of BTC on August 8 to the decision of the US Securities and Exchange Commission (SEC) to delay the approval of the Bitcoin exchange-traded fund (ETF) of VanEck and SolidX.

Under normal circumstances, most analysts would have claimed that the delay of the VanEck-SolidX Bitcoin ETF was expected and the foreseen decision of the SEC to delay the approval of the VanEck SolidX Bitcoin ETF is simply not enough to trigger such a steep fall in the valuation of the crypto market.

However, in leading cryptocurrency exchange markets such as Japan and South Korea, so-called “influencers” and “traders” have been establishing a narrative around the VanEck and Cboe Bitcoin ETFs, boldly claiming that the Bitcoin price will achieve previous highs in August, upon the approval of the first Bitcoin ETF.

Especially, in South Korea, widely recognized traders and cryptocurrency researchers with hundreds of thousands of subscribers and followers on social media platforms such as Twitter, Facebook, and YouTube have been claiming that the SEC’s decision in August will lead to a large spike in the price of BTC.

It is possible, given the massive hype and false hope created by many of these influential traders and researchers, that the market overreacted to the delay in the approval of the VanEck-SolidX Bitcoin ETF.

It is also plausible that the decision of the SEC coincided with a large sell-off in the over-the-counter (OTC) market, which experts believe it to be at least two to three-fold larger than the cryptocurrency exchange market.

Lastly, another possible scenario is that a large group of bears, who have intended to sell-off a large chunk of BTC over the past few days, found a reason to do so with the decision of the US SEC and initiated a short-term panic sell-off.

Major Factor is Still ETF

All of the scenarios above are all both directly and indirectly affected by the decision of the US SEC and as such, it can be said with certainty that the delay of the VanEck Bitcoin ETF caused the price of BTC to fall.

However, as some analysts explained, if the rejection of a Bitcoin ETF can have such a large impact on the valuation of the crypto market, in contrast, the approval of a Bitcoin ETF can also have a massive positive effect on the mid-term price trend of major cryptocurrencies.

Featured image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Forbes Launches Crypto Portal, Partner Trade.io Hacked for $7.5 Million in Crypto

Forbes Media today launched the beta version of it Forbes CryptoMarkets, in partnership with investment firm NewCity Capital and Trade.io, which suffered a hack that resulted in $7.5 million in cryptocurrency tokens being stolen from a cold storage wallet. Forbes Launches CryptoMarkets Data Portal for Tracking Crypto Prices Media powerhouse Forbes Media LLC, has unveiled a new cryptocurrency market and price data aggregation website, akin to CoinMarketCap. The new portal offers up-to-the-minute, comprehensive data on the top 200 cryptocurrencies by market cap. This includes trading volume data from 31 cryptocurrency exchanges, including Binance, Bitmex, and may other prominent names in the space. Forbes CryptoMarkets also includes content from interviews and articles from Forbes, as well as a “real-time newsfeed aggregating content from leading news organizations and companies.” Forbes will also leverage its unrivaled access to data to publish four different “CryptoMarket indices,” including the “Top Cryptocurrencies, Top 10 Global, Top 30 Global, and Top 10 Blockchain and dApps Global.” The initial offering of indices, Forbes says, are there to serve as an “informational tool” to demonstrate market trends, and will add more indices separated by “sector, industry, and cryptocurrency use-case” in the future. Forbes is launching the CryptoMarkets portal in a partnership that includes NewCity Digital Limited, investment firm NewCity Capital, and “next-generation financial institution based on blockchain technology,” Trade.io. Bad Timing: Forbes’ Partner Trade.io Hacked for $7.5 Million in Crypto Trade.io should be celebrating a successful high-level partnership with an American media mainstay like Forbes. However, the exchange and consultancy firm is currently licking its wounds after suffering an unusual theft of $7.5 million in cryptocurrency tokens. Trade.io confirmed via their Medium blog that a security breach had occurred, resulting in over 50 million in Trade (TIO) tokens being stolen from the firm’s cold storage wallets. The 50 million tokens are valued at $7.5 million at the current $0.15 price per TIO. The ongoing investigation has revealed that some of the TIO tokens had made their way to cryptocurrency exchanges Bancor and Kucoin, and the exchanges themselves are assisting Trade.io with the issue. What’s unusual is that the funds were stolen from the cryptocurrency exchange’s cold storage wallets, which are typically encrypted USB-devices or pieces of paper with private keys written down that the firm says it stored in safety deposit boxes – safety deposit boxes that the company says “were not compromised.” Regardless of where or how the tokens were stored, they somehow ended up in the clutches of hackers. Now the company is considering a fork of the TIO token codebase to render the stolen funds useless and preserve the price of the TIO token for other investors. The hack happened less than 24 hours before the publication went live with its announcement to launch the beta version of its CryptoMarkets product, in a partnership that involves Trade.io. Featured image from Shutterstock. The post Forbes Launches Crypto Portal, Partner Trade.io Hacked for $7.5 Million in Crypto appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.