Bitcoin Hits New-Low Near $6600 As Expected

in bitcoin •  4 months ago

Bitcoin and cryptocurrency regulations have pushed prices lower, but recovers in due time


Image source: pixabay - geralt

As I have reported two weeks ago on my Steemit post: https://steemit.com/bitcoin/@tysler/bitcoin-sliding-to-usd5500-may-be-the-best-buy-in-period, Bitcoin prices are predicted to get as low as $5500 based on analyst Willy Woo. In a long-term investment this drop has been anticipated, however it seems that the drop in prices was also brought upon by today’s cyber hack on Coinrail.

Earlier Coinrail tweeted:

There has been an cyber intrusion in our system. We're confirming it and some coins(Pundi X, NPXS) are confirmed.
Source: twitter @coinrail

The South Korean crypto exchange, Coinrail, is said to have lost 30 percent of its coins worth about $40 million. The largest targeted cryptocurrency was Pundi X [NPXS], which lost $20 million, as well as ATX ($13.8m lost), DENT ($6m) and Tron ($1m) tokens. Some 26 million of the 2.6 billion stolen NPXS tokens resurfaced on a decentralized ERC-20 exchange IDEX, however the tokens were frozen before liquidation. Source: CCN - Samburaj Das. The rest of the 70 percent of the coins on Coinrail has been moved to an offline cold wallet.

Pundi X confirmed, adding it had also instigated its own ‘emergency security protocol’ to halt all NPSX transactions at midday Sunday to investigate the theft of coins that equaled 3 percent of its entire current supply.
Source: CCN - Samburaj Das

While the magnitude of the cyber attack was not as huge as the Mt. Gox incident, it has sparked enough sell off from investors especially in South Korea. South Korean regulatory groups were not happy and cited Coinrail’s low security standards have exposed investors to more risk.


Image source: pixabay - Public Domain Pictures

Sell off may be caused mainly by SEC regulation
Many are pointing fingers at a small exchange trading platform holding $120 million worth of cryptocurrencies, and only $40 million stolen (not Bitcoin). The sell off could have been attributed mainly to CFTC’s decision to probe into Bitcoin futures trading.

As discussed yesterday here on Steemit, market manipulators are exiting the trade to avoid getting caught. Most of the Bitcoin have been moved to Tether [USDT] on Binance, OKEx and Huobi. These contributed to $800 million worth of transactions on the Bitcoin exchange, a significant amount sufficient to cause prices to drop.

As long as USDT exists, trading pump and dump is bound to happen frequently. With or without regulation, these movements are difficult to judge as illegal trades. We could use stronger regulation to ensure that cryptocurrency is secure and potentially safer to use than cash. Cash, on the other hand, faces a slow poisoned death, where inflation causes the dollar to become weaker each day.

-tysler

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Well, i think if cftc wants to probe then exiting positions is not a great way to not be caught. They will look at historical trading activity and orders placed to identify manipulation. I do think that they would not be probing futures market and trading on regulated exchanges would be happening as per cftc guidelines so they dont have much to find out, possibly they cant find out a lot.

May have been a case that someone wanted to shake out small buyers and invite amateur shorts or selling out of positions..weekend usually has thin liquidity. There had been a long consolidation phase in the past few days and there may have been buyers wanting to pick btc up at key fib level of 7100 to 7200. I think a lot of people got stopped out. And it could have triggered a sharp decline.

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Exit is necessary as confirmation of fraud and manipulation will lead to accounts being frozen on the exchange. These people are finally exiting exchanges, either moving their coins into cold storage or cashing out before authorities traced their activity.

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Your balance is below $0.1. This is your 2nd notification that your account is running low and should be replenished.

Predictions for the next few weeks?

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Probably down for the rest of 2018 before recovery