During the past week, the market was flat for most of the week until the selloff on Sunday. The overall market cap dropped by 13% to $303 billion. Bitcoin is down 10% to $6,800 while ether price decreased 11% to $540.
The drop followed news that Korean exchange Coinrail was hacked. However, Coinrail is a small exchange and we believe it should not have much drive to the overall market.
We believe that the real reason of the drop is that some investors are losing patience. Bitcoin price had been mostly sideways for over 2 weeks with no upward momentum. Investor sentiment on Twitter are again mostly looking at a lower bitcoin price in the near future.
Trading volume had been low, indicating that investors are taking a wait and see approach. Even positive news like the CTFC calling the virtual current movement might be “a modern miracle” went unnoticed. If this news came out during a bull market, we believe it would’ve received a much stronger market response.
Right now, we are being patient and aim to wait it out. Remember, when the sentiment feels extremely one sided, that’s preciously when the market tends to move the other direction.
CFTC Commissioner Says We Are Witnessing a ‘Revolution’, Cryptocurrencies Are a ‘Modern Miracle’: https://cryptoslate.com/cftc-commissioner-says-we-are-witnessing-a-revolution-cryptocurrencies-are-a-modern-miracle/
Korean Exchange Coinrail Gets Hacked for Coins Worth $50 million: https://ethereumworldnews.com/cryptos-dump-as-korean-exchange-coinrail-gets-hacked/
CFTC Subpoenas Leading Exchanges for Trading Data: https://news.bitcoin.com/cftc-subpoenas-leading-exchanges-for-trading-data/
Binance Sets Up Bank Account in Malta: https://cointelegraph.com/news/exclusive-world-s-top-crypto-exchange-binance-sets-up-bank-account-in-malta
Coinbase is Acquiring a Securities Dealer: https://techcrunch.com/2018/06/06/coinbase-is-acquiring-a-securities-dealer-in-order-to-trade-your-startup-tokens/
Chinese Cryptomining Chip Giant Bitmain Is Considering an IPO: https://bitcoinmagazine.com/articles/chinese-cryptomining-chip-giant-bitmain-considering-ipo/
Fidelity Investments Opening Cryptocurrency Exchange: https://cryptodisrupt.com/fidelity-investment-opening-cryptocurrency-exchange/
Japan's Financial Services Giant SBI Launches Crypto Exchange: https://cointelegraph.com/news/japans-financial-services-giant-sbi-launches-crypto-exchange
EOS Mainnet Set to Launch: https://www.coindesk.com/yes-votes-eos-blockchain-launch-imminently/
Carry Protocol ICO Review: https://crushcrypto.com/carry-protocol-ico-review/
Crush Crypto Core Monthly Report – May 2018: https://crushcrypto.com/ccc-may-2018/
Crusher of the Month – Eximchain: https://crushcrypto.com/eximchain-crusher-june-18/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.