Impact of Negative News on Ton Blockchain

It's no news that bitcoin's price surpassed the $61k mark after many trials of rejection. This was the surge in prices of bitcoin and other altcoins, giving them a percentage increase in prices. The Impact of the market surging to that level and crossing the $61k was because of the interest rate cut which was a major trend in the economy of the US. This raised speculations in the market that bitcoin would be accepted further after its retest to the $65k and then dump to $59k.

The fear and greed index moved to greed and most people knowing that when the price gets to this level, there's always a drop down to $59k. This didn't actually complete that level but bitcoin was rejected to go beyond $65k. If it was accepted, we would have seen longs to $70k.

It got rejected. In the evening bitcoin price was hovering around $64k, something tragic happened in the market. There was a great fall in the market of a particular asset and its subordinates. The TON coin dropped from $7.2 to $5.2 following the arrest of the owner and CEO of Telegram of which company Ton Blockchain has foundation on. With the effect of this arrest, the baby Ton dropped in seconds badly to $5.2 and is struggling to recover its price

Toncoin experiences a surge in trading activity following Telegram CEO's arrests in France on August 24th. This sparked flurry of reactions from prominent personalities around the globe like Elon Musk and others. Pavel Durov was detained by French authorities at the Bourget airport.

He was charged against fraud, drug trafficking, cyber bullying and other crimes. Telegram was also investigated for alleged failure in content moderation. This investigations could have had serious legal repercussions for the CEO as reports suggested that he might face 20 years in prison if convicted.

This arrest impacted the crypto space as there was a sharp decline in the price of Ton and increased trading activities. Toncoin's open interest surged by 32% which was about $303M. This influx brought about a drop in the price of Ton. At the time of seeing the events, ton was trading at $5.5 as it dropped by 14%.

The increase in open interest shows that traders are actively supporting the future price of Ton with a move towards placing short positions. A lot of money was made from this drop by those who traded the news earlier. They were on shorts as a fall was expected which happened.

Some analyst warned against holding these short positions as the release of Telegram CEO can cause great surges in the price of bitcoin. This is a screenshot showing the unusual drop. Even when bitcoin dumped, Ton was still stably increasing without any sharp decline.

Dated 27th August, we saw bitcoin drop to $60k as expected. It got rejected in the $65k area and retraced back to $60k favouring those in short positions and liquidating those on longs that weren't strong enough.

From this, we can see how news can impact the market positively and negatively. The drop affected not only ton price but also the price of other altcoins. When one Blockchain is sick, the rest are infected though. Now, there are questions as to, what would be the fate of bitcoin next month? September is not always a good month for crypto. Will it follow suit or will there be a difference?

Bitcoin may pull to $70k after the FOMC September meeting. It may dump as well. Let's just use our technical tools, watch out for news, trade well and make wise trading decisions to avoid incessant losses..

Sreenshots are from my bybit and twitter app

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have