It’s a sad day for crypto investors. Well… at least for the individuals that are not used to such price drops as seen today before. If you, for example, started to invest in January 2018, you’re probably seeing a psychologist by now.
Market prices dropped more than 10 percent for bitcoin and several altcoins today, with no discernible reason, after the market had been stationary for approximately a week. Some have described this as the “Flash Crash” because some lapse occurred in less than two hours. As forever, analysts are studying the business to find the things that had possibly created this pullback of more than 15 billion.
For some, a hack of an exchange called Coinrail in Korea could have applied the eyes over the discrepancies in the security that transfers are appearing right now, but this is extremely unlikely. The exchange was the sacrifice of a hack that occurred this early morning, with an undetermined number of altcoins eliminated from their wallets. Despite Coinrail being a little exchange in Korea (number 88 in trading volumes), the irrational effect of a successful hack in a country so highly funded in cryptocurrencies cannot be overstated.
Figure above (Coinmarketcap June 11, 2018): A horrible sight for crypto lovers and investors.
Another potential cause of the price drop could be the continuing investigation that the Securities and Exchanges Commission and the Commodity Futures Trading Commission regarding possible price use in the cryptocurrency market. Just today, four exchanges were sent subpoenas to vary in information regarding their trading platforms, to see a potential price-transaction relationship. The exchanges subpoenaed were Bitstamp, Coinbase, itBit, and Kraken. This kind of inquiry causes trust problems in the market and can also affect people to start selling off their crypto.
Some others also insist that a mysterious Asian whale (a single customer with a lot of cryptocurrency of one type) is serving for a sell-off of more than 93,000 bitcoin, after combining them into a separate account earlier this week. But these are only suggestions; the statement and its movements can be checked, but there is no report about the final destination of these funds.
People are watching for a reason for the unexpected market volatility; but this time, it may not be so apparent at first glance.