Crypto Market Falls $25 Billion Overnight as Bitcoin Drops 6%

How Bitcoin Futures Led to December 2017 Crash

The cryptocurrency market has recorded a decline of over $25 billion overnight, after an abrupt bitcoin sell-off was recorded on June 10. Analysts have attributed the recent correction to a variety of factors but the market seems to have dropped due to a simple reason: a drop in volume and demand.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

Low Volume

Since last week, despite the stability in the cryptocurrency market and the optimistic short-term trend of bitcoin shown by its 1-day price chart, CCJ noted that the price of BTC will likely fall below the $7,000 mark if the volume of bitcoin does not rebound in the short-term.

Many momentum indicators including MACD, moving averages, and RSI demonstrated an optimistic short-term trend for BTC, and several prominent traders such as Peter Brandt acknowledged a positive price movement.

However, given the volatility of the cryptocurrency market, the price movement of cryptocurrencies can change drastically based on market conditions. As such, it is important to actively observe the market to find any irregularity and change in trading conditions.

Over the past week, BTC seemed to be gaining short-term momentum, fueled by several consecutive buy volumes on its 1-day price chart. The strong downward trend from $9,900 to $7,050 came to an end as a corrective rally from $7,050 to $7,500 temporarily stopped a further drop to the $6,000 region.

As the market started to gain some stability and small tokens began to outperform major cryptocurrencies once again, investors became more confident in the short-term trend of the market. But, investors dismissed one key factor; the daily trading volume of BTC was merely half of its volume in late April and early May. The demand from investors had notably declined.

The recent correction of BTC can be largely attributable to the failure of bitcoin to continue its momentum from the $7,500 mark due to its low daily trading volume. The downward price movement was not caused by independent events that have occured this week.

Coinrail Hack

The majority of traders and analysts have justified the short-term price drop of BTC to the Coinrail hackin South Korea, which led to a $40 million loss.

Coinrail is a minor cryptocurrency exchange in South Korea that is utilized by a small portion of investors in the country. The overwhelming majority of traders use the big three cryptocurrency exchanges Bithumb, UPbit, and Korbit, as they are more reliable than smaller cryptocurrency exchanges.

It is highly inaccurate to conclusively claim that the Coinrail hack caused the price of BTC to fall 10 percent in two days and the entire cryptocurrency market to fall, as Coinrail itself only accounts for about 5 percent of the volume coming from South Korea. Claiming Coinrail as a major catalyst behind the correction is essentially stating that an exchange that is responsible for less than 0.1 percent of the global cryptocurrency trading volume caused the market to plummet overnight.

Leave a Comment

Latest Crypto News

Mt. Gox Begins Civil Rehabilitation – Ends BTC Selloffs

Mt. Gox Begins Civil Rehabilitation – Ends BTC Selloffs

Mt. Gox Begins Civil Rehabilitation – Ends BTC Selloffs Mt Gox, the bankrupt cryptocurrency exchange, has now entered civil rehabilitation proceedings according to their official announcement on June 22. According to the proceedings documentation, Nobuaki

Bloomberg-Terminal-Lists-Crypto-Index-from-Huobi

Bloomberg Terminal Lists Crypto Index from Huobi

Bloomberg Terminal Lists Crypto Index from Huobi The paid financial monitoring service, Bloomberg Terminal, has now listed the cryptocurrency exchange Huobi Cryptocurrency Index according to press release on June 21. Nine cryptocurrency trading pairs will

Stanford-University-Launches-Blockchain-Research-Center

Stanford University Launches Blockchain Research Center

Stanford University Launches Blockchain Research Center Stanford University has recently created the Center For Blockchain Research according to their Stanford Engineering website posted on June 20. The research center is supported in part by the

Sixth Largest Crypto Exchange BitThumb Hacked

Sixth Largest Crypto Exchange BitThumb Hacked

Sixth Largest Crypto Exchange BitThumb Hacked   Hackers have stolen cryptocurrencies worth $30 million from South Korea’s leading virtual currency exchange Bithumb, reported June 19. As a result all deposits and payments have been temporarily suspended. —

Cointelegraph-Launches-DApp-Aggregator-for-platform-discovery

Cointelegraph Launches DApp Aggregator for Platform Discovery

Cointelegraph Launches DAppHub Aggregator for Platform Discovery Cointelegraph announced on June 19 that that they launched a decentralized application aggregator (DApps) for analysis and easy discovery of the increasingly growing number of decentralized apps in

Binance Supports Malta Stock Exchange’s Startup Accelerator Program

Binance Backs Malta’s Stock Exchange’s Startup

Binance Backs Malta’s Stock Exchange’s Startup The Malta Stock Exchange (MSE) has announced that digital currency exchange Binance is backing its newly launched program to support fintech and crypto startups, Finance Magnates reported June 18. According to a tweet

Italian Authorities Seize Bitcoin From BitGrail

Italian Authorities Seize Bitcoin From BitGrail

Italian Authorities Seize Bitcoin From BitGrail Bitgrail, the Italian cryptocurrency exchange announced today that Bitcoin’s stored on the firm’s wallet were seized by Italian authorities according to this official announcement on June 15. The authorities

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$6,124.64
-8.04%
2
Ethereum
Ethereum
$469.16
-8.98%
3
Ripple
Ripple
$0.4905
-6.60%
4
Bitcoin Cash
Bitcoin Cash
$756.20
-10.94%
6
Litecoin
Litecoin
$84.366
-10.20%
8
Cardano
Cardano
$0.1395
-8.77%
7
Stellar
Stellar
$0.2020
-9.37%
12
NEO
NEO
$33.331
-9.25%
5
EOS
EOS
$8.375
-16.69%
10
IOTA
IOTA
$0.9930
-12.03%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World

 

Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK