BITCOIN PRICE DECLINE

Updated: 06/11/2018 12:01
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bitcoin price decline
Find out more about the reasons for the Bitcoin price decline, Coinrail break, South Korea investigations, learn about the future forecast
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Find out more about the reasons for the Bitcoin price decline, Coinrail break, South Korea investigations, learn about the future forecast

Over the past 48 hours, the Bitcoin rate has undergone a serious correction. The price of digital gold fell from $ 7,600 to $ 6,680. Sales are attributed to the breaking of the South Korean exchange Coinrail, tightening regulations in the market of crypto-currencies and the beginning of CFTC verification of the activities of large trading platforms for the manipulation of the course.

Crypto currency market continues to be a volatile space, influenced mainly by the emotions of the community, rather than external factors. However, over the past weekend, at least three factors that became possible triggers for mass sales attracted attention.

Coinrail is a relatively small crypto exchange, which, however, is included in the Top 100 of the world's trading crypto sites by trading volumes. Yesterday, June 10, the company announced the beginning of the system check for "cyber-intervention", and a little later reported the abduction of $ 40mln from the accounts of its customers in altcoins.

Although the amount of $ 40 million is relatively small, compared to other thefts and burglaries, the consequences of this attack could potentially be serious. South Korea is the third largest crypto currency market after Japan and the United States, which has already survived several major cybercrimes, which resulted in the loss of huge amounts of cash by traders. Such news now entails a significant reduction in the number of potential and current investors and traders who fear for the safety of their capital, as well as tougher regulation of the operations of exchanges by the government.

This leads us to the second factor - the uncertainty in the regulation of the bitcoin market - which has a constant impact on the rate and trading of crypto-currencies during 2018. Negative statements by the governments of different countries regarding the status of Bitcoin, the legal basis of ICO and the legitimacy of the activity of the crypto-exchange exchanges each time lead to mass sales and strong declines in the exchange rate.

According to many analysts, June will be the defining month in the regulation of the industry in the US crypto-currency. Institutional investors already openly declare their readiness to enter the market, and Goldman Sachs launches the first ever crypto currency trading desks for them. However, the ongoing investigations of the Securities Commission and the Commodity Futures Trading Commission on the crypto currency market manipulations continue to bother traditional financial institutions and reduce their degree of confidence in digital currencies.

So, literally yesterday it became known that the CFTC requested from Bitstamp, Coinbase, itBit and Kraken detailed information on trading operations for the period from December 2017 (when the bitcoin futures from the CME Group were launched) to June 2018, as part of the investigation on the subject of prices manipulating through spoofing and fictitious transactions.

And yet there are positive news on the market. For example, the Chinese Communist Party hinted at People's Daily that China was preparing to reconsider its ban on bitcoin trade, saying that it was time for China to lay the regulatory framework for further development by becoming a trend-setter in the digital assets market.

Crypto-enthusiast John McAfee, who recently announced his plans to run for the presidency of the United States in the election of 2020, calls on the bitco-community to remain calm. "Do not panic about the drop in Bitcoin's price. It is an overreaction to the news that Bitstamp, Coinbase, itBit and Kraken are being investigated for price manipulation. This will delay the bull market by no more than 30 days. Don't buy into the fear. Buy the coins." - declared John McAfee in of the latest tweets.


About the author

Brett Sherpan has been working for seven years writing and editing for online and print media. He has held various editing and copywriting positions and can quickly and competently write copy for sales, marketing and editorial content. Brett is a consistently dependable team player, who thrives in a high-pressure environment, enjoying the challenges of meeting deadlines and am comfortable researching, writing and editing on a wide range of topics
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