BTC update

The price of Bitcoin hovering around 6771 , with trading vlume at 4.5 billon . Since last Friday the price of bitcoin has tanked by nearly 12%. Volume has gone up sice , but this is mainly due to investors/traders attempting to liquidate their holdings as the price is dropping. .

As predicted earlier there was consolidation that was occuring in the mid-$7000’s .

Most technical analysis tools are indicating that Bitcoin is due for a bounce, but it is hard to rely on those predictions currently as sentiment across the cryptocurrency ecosystem is overwhelmingly bearish due to recent developments.

The explanation of the drop witnessed in the market this weekend looks unlikely to be linked to one specific event - such as when China cracked down on cryptocurrency trading last year. Nonetheless, the big fall in the market this weekend was not a fault of a nation abandoning the market; instead, it fell on the news of Coinrail,a small exchange literally ranked 100th in trading volume being hacked and fears of potential market manipulation by four exchanges.

A bigger issue that still hangs like a cloud over the cryptospace is that U.S. regulators launched a probe into four United States-based exchanges this weekend: Coinbase, BitStamp, itBIT, and Kraken. The investigation is to unearth as to whether any market manipulation has occurred within the preceding exchanges, which are used by the Chicago Mercantile Exchange to derive its value for Bitcoin futures. An investigation of this seems to be the biggest reasons behind the capitulation of this past weekend.