Bitcoin Price Analysis: Why is Bitcoin down? Coinrail Hack and Possible Causes for Red Market. Tuesday, June 12
Important Bitcoin News
We will try to take a look at recent news and events which may affect BTC price and cause the recent lows.
Coinrail, A South Korean Cryptocurrency Exchange Hacked, Hitting Hard at Bitcoin
A South Korean cryptocurrency exchange, Coinrail announced that it is moving all its digital currencies to cold storage on account of a hack that had 30 percent of the exchange’s coins stolen. In a blog post released on Sunday, the company said, it has recovered some of the coins after having the addresses that received the stolen coins frozen.
The announcement caused Bitcoin price to drop to a two-month low, sparking speculations that the bear market will be sustained longer than anticipated. "It's one more drop in the ocean of crypto-breaches will unlikely drive any substantially new conclusions or concerns. This Bitcoin drop seems to be a temporary fluctuation, investors are now waiting for some good or bad news," said Ilia Kolochenko, CEO and founder of High-Tech Bridge to SC Magazine.
In the Coinrail release, the hackers took advantage of ongoing initial coin offerings to steal Pundi X (NPXS), NPER (NPER) and Aston (ATS) coins. The exchange stated that they are working with other exchanges and law enforcement agents to recover the remaining coins.
Speculations Rife Over Reasons for Recent Bitcoin Price Slump
With the new low price of Bitcoin over the weekend, there have been speculations on the reasons for the downward trend. Even before the Coinrail hack, there have been indications that the coin market was in for challenging times.
The suspicion that there are widespread manipulations in the coin market has already caught the attention of regulators who were preparing to launch investigation into the activities of exchanges. The CFTC has already subpoenaed four exchanges demanding access to their trading data in the ongoing inquiry.
According to Coinmarketcap, the Bitcoin exchanged for $6, 600 in some exchanges on Monday in a dip that many speculators said was a result of stringent regulatory measures and the hack of Coinrail.
Interestingly, there are still traders who are upbeat, seeing the next rally as opportunity to short, while others think large dips are times to buy in if you’re a hodler.
BTC Price Analysis
On June 9th, BTC Price was steadily fluctuating around $7600 mark. The price fall seems to have taken place in two notable steps. The first drop took place from $7618 down to $7300 region. The second, most significant fall was from the $7240 region to $6720, which had an impact on the whole cryptocurrency market. The price tried to recover slightly, however it seems to have stabilized at this lower range and is currently trading at $6747, with a slight downtrend.
BTC/USD Price Chart, Tuesday June 12th:
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