Bitcoin drops by over $1000 in the last hour

in bitcoin •  last year 

Bitcoin has been in a free fall over the past hour.

After finding resistance just below the $12k mark a few days ago, bitcoin had been trending lower ever since.

However, that was kicked into hyper drive this morning.

Bitcoin starting falling very quickly, blowing through support levels without so much as a pause.

What's causing the slide?

Like most drops, the cause is not always clear.

However, there are some very likely culprits.

Just over an hour ago, a report was released from Japan talking about how the Japanese Regulators are looking at suspending trading of non KYC compliant cryptocurrency exchanges.

The release can be seen here:

https://www.coindesk.com/report-japanese-regulator-punishing-crypto-exchanges/

By itself doesn't seem like that big of news, we already know exchanges all over the world need to start complying by financial laws if they want to remain open.

However, this next piece of news is probably what is driving most of the negative price action...

Possible exchange hack?

(Source: https://coincentral.com/binance-review/)

Also, right around the same time that prices started falling, reports started coming out that users on the Binance exchange were having their altcoins sold for bitcoin without their consent.

Binance came out and said the moves were due to a bug/glitch in their software.

However, that didn't stop the rumor mill from running full speed ahead with many fearing that Binance had been hacked.

A quick check of my personal holdings on Binance doesn't show any strange behavior, but it appears this "glitch" is only affecting a small number of users.

In fact as I type this, a representative from Binance just put this statement out:

"As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised."

(Source: https://www.coindesk.com/bitcoin-price-drop-1k-10k-break/)

Which would explain why my holdings weren't affected as it appears regular hodlers were not affected, which also lessons the probability of these issues being related to a hack as opposed to a glitch.

There you have it, a possible Japanese crack down on non compliant exchanges and rumors of a major exchange experiencing a hack...

Just another day in the crypto world. :)

Oh and by the way if you are wondering, I bought the dip.

Stay informed my friends.

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So much for all of the Technical Analysis posts out here. None of them saw that one coming.

If the "glitch" is isolated to a small subset of accounts, then Binance will most likely compensate everyone affected. The worrying thing is this: we still don't know the extent of the monetary losses incurred by those affected!

A lot of bot traders are saying on the Binance subreddit that they're not affected, so it appears that this "hack" only hit some bot operators.

News @jrcornel Really almost all the changes in the favorite cryptocurrencies present this day a decrease in value and volume. Will see next hours...
I like your post , I am voting you.

I was hacked on binance in January. It was not a system glitch. A bot simultaneously sold all my alts into bitcoin and then transferred to a random address. Based on my personal experience, they are lying or in denial.

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That is interesting... I hadn't heard anything like that. Back in January they had their platform down due to "system maintenance"... was this during that time?

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  ·  last year (edited)

It was on Jan 30. You can tell it was a bot because it sold all my position at the same time. To be clear, they got into my individual account and it may not have anything to do with the feb upgrade or the new issues today but bottom line is that binance security is hack able and a target. I just try to warn everyone I can.

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Did binance do anything to help or reimburse? Any thing you can do?

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  ·  last year (edited)

Nothing other than to lock my account. I have kept the account locked and only have some money in Coinbase. No more alt trading because I don’t trust the platforms. Crypto markets are too easy of a target for hackers. Addresses remain anonymous. Be careful.

Whoa, I hope we don't see BTC dip under 5K :(

Your right it’s bloody bad day for all coins, cheers mike

Binance is really flawed!

When will people learn not to leave coins on exchanges? If you don’t hold the keys, you don’t hold the funds.

The best comparison I have heard was on a video (apologies but I can’t find it now to give credit):
A crypto exchange is like a public toilet. You get in, do your business then get out.

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Haha unfortunately that is a really good analogy.

It's not pleasant to watch my portfolio tank, but I believe in this space for the long term. I'm satisfied I'm holding quality crypto assets and am not risking more than I can afford to lose, so I'm not selling.

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Steem form $1 --> $3 - in a few weeks :)
Steem from $3 --> $2,80 - pure chaos

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I feel the same way. The incredible journey these coins have been on the past few months...the problem lies for the day traders. For me I want the technology to exist and be used, while I see the interest growing thanks in a big way for the day traders I also feel bad because it isn't the true way for these things to be utilized. I also feel their pain relying on that income would be very difficult, or impossible at this point in time.

I think the primary or the most speculated reason I understand is because of rumours that bitcoin prices are controlled by bitcoin whales, according to Bloomberg, is about 1000 people, that hold about 40% of the bitcoins.

One such whale they say is now defunct Mt. Gox exchange's attorney called Nobuaki Kobayashi, has said, he is raising money to pay off Mt. Gox creditors.

It is also said that he holds about $2 billion worth BTCs and out of this, already $400 million dollars of BTC & BCH combined together has been sold, which is setting off panic in the market already.

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  ·  last year (edited)

That could be part of it for sure, though it looks like he sold the original $400 million worth reasonably slow (over a period of 3 months). We just saw a drop of about $50 billion in crypto markets in an hour.

Bloomberg is attributing the fall in response to the SEC stating that crypto exchanges must register with the SEC.

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Yes I saw that as well, probably should have included that as a possible cause. It came out right about the same time as the others as well. There were about 3-4 really negative pieces of news all coming out within the last few hours. If this is all the drop we get, I would consider that a win at this point.

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Good time to buy!

Better check the binance account :O
Thanks for the news!

This is happening because Binance is acting weird again. I'm not sure if this is possible but what if Binance is intentionally doing that to gain some profit in some way? Who knows?

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I doubt it. The hit to their reputation is much more valuable than any gain they might have gotten trading coins.

Cheers for this; yeah, hopefully it's an exploit that can easily be fixed.

I haven't seen any reports of people losing funds, though, which is encouraging.

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Same here, it looks like altcoins were being sold for bitcoin and it only affected a small number of users.

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It only affected people there were using third-party API bots from what i've read, so people that were just holding are secure

  ·  last year (edited)

4 months in and investing in crypto is the worst investment of my life, I should have stuck to stocks, this is B.S., all the markets do is tank on bad news or no news, and while there are all kinds of good news reports it has no positive effect

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  ·  last year (edited)

Unfortunately you decided to buy in after most of the coins were already up thousands of percent in the last year alone. There is bound to be some retracement of that. I have no idea which coins will bounce back but overall the big pull backs we have seen thus far are not that surprising. The question now is, is this the right time to buy or is there still more to come? Full disclosure I bought BTC today at 9500 and a couple other coins.

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Relax mate. Wait at least until Christmas, you'll be getting a nice present from cryptosanta!

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Ok I guess I have to start believing in cryptosanta now, and hope he brings presents to the alt coin children as well

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Sure mate, what you believe you create. Don't let the fear win. Ho Ho ho

i hope the see of red will be over soon... i think i am going to lose my mind :)))) thx for the update!

important information, thank you for share

I have been dragging my feet with selling off some of my less desireable alts and buying Steem. That changed today. I'm using this volitility to get into Steem on the cheap and will be powering up. What is the most cost effective way to buy Steem and move it into a Steemit account?

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Using exchanges like Bittrex. Do not use korean exchanges... they are to pricy...

Bitcoin falling faster than the snow outside my window . lol😂😂

Hard to trade bitcoin by following the news. Technical charts had already predicted a pause in near 100% gains since February 6th low. This is a heathy correction and will help the mid-long term bullish case.

that and there is a lot of action in the stock markets over trump's tariff threats and an advisor resigning.

the way some countries are dealing with crypto
is really making a difference !
there are alot of hurdles ahead

According to the media company Caixin, the authorities at the messenger service WeChat have shut down the accounts of several Chinese online trading platforms. In addition, you can no longer call their Internet addresses in Messenger because of the blockade.
Maybe that is causing as well the drop.

great cryptocurrency information,thanks for share

Bit hard to swallow this particular news...just when you think things are looking up something goes wrong. Life was so much easier when I didn't have to check the markets all the time.

thanks for the information... upvoted...

Keep the spirit, and I still believe that bitcoin still survives in normal prices. The price drop may be there, but the increase is sure to happen again .. Information is very fast @jrcornel

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doesn't help if the alt coins never recover, they have done nothing but crash for 4 months now

Thank god im holding, im dropping 600 bucks after binance goes back to normal, BUY THE DIPP!!

I am not a BTC merchant, but I will continue to learn about crypto. BTC is amazing

well post in bitcoin...
thanks for shareing dear.....

It's not good news for us also Steemians as the Steem price will also go down after this!

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It’s down over 10% and SBD is down neRer 20%.

Its the regulaition Problem by SEC They wanna Controle us. We need a Currency indipendly from Bitcoin. The Market is Crushing. Cryptos are no more Safe. Hope he will Rise to the Star.

SEC is saying the exchange platforms are practicing unlawful trading because of security tokens. The whole space is crashing. Price found buy orders at $9400, I think the better buy is lower...my buy target is $8400.

there is a guy related to mt gox is selling of a bunch of his btc to pay off his debt. here is a good video on it:

He has been selling off hundreds of thousands of bitcoin!

Can I resteemit your post?

thanks for the update.
you'd think exchanges would be testing their end till there was no end to exploit...

Not what the market needed at this moment, such is life in the crypto market. Just have to be diligent with your safety and control your emotions.

fire sale

There is also a report about SEC requiring exchanges to be registered here in the US: https://www.sec.gov/news/public-statement/enforcement-tm-statement-potentially-unlawful-online-platforms-trading

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Yes there is that as well, thank you for linking that. I hadn't seen that yet.

I just wrote a post about all exchange out there, and then whoa!!
Small world we are living.
Keep on steemin'

It´s going up and down and up and down, that´s the game.
That doesn´t sound good about binance.. so don´t use tradebot´s I guess

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Thanks fro this cryptocurrency news providing.... i appreciate this bitcoin. keep it up

1000$ in one hour. That's such a heavy blow, I mean in one hour 1000$. That's very sad but I think it's going to go up soon, I hope. And I think Japan's crypto exchange ban is a major reason.

Hopefully, it will fly back up soon. Time to buy more?

I will be looking for some purchases between $ 9,100 and $ 9,600 USD at the moment. I still have a profit to play with trading 6800/11 400, so I can take a little risk here

i still think no meter what now one can predict bitcoin

Was so funny to watch specially after I sold my btcs at 10.8k :P

yeah really its a informative post.you provide good news.thanks for sharing

Buy the dip!!!

Hi. I liked your post, keep it up. I wish you good luck and have a good day, and of course you can also get a big jackpot :)

Money-is-safe-in-our-bank.jpg

News driven events are usually great buys!

I like your posts @jrcornel ... and what is the right way to deal with all this.

Thanks @jcornel for the update! Good time to buy, as you say.

I’ve never really had any problems with binance. Many people say it’s flawed and stuff but I have never personally encountered any issues. Everyone affected was using a bot, why use trading bots? Do you really make the $$ like they claim they can?