Bitcoin price tumbled 10 percent on Sunday; thereby dropping to one-month lows below $8,000 after a South Korean exchange claimed it was hacked.
Crypto exchange Coinrail over the weekend tweeted that it was hacked. According to Google Translate, less popular cryptocurrencies such as Pundi X were affected among few others. According to CoinMarketCap data, the Pundi X-bitcoin pair is the most-traded on Coinrail. However, the public statement issued by Coinrail did mention bitcoin.
Bitcoin’s (BTC) drop has strengthened the grip on the markets, as per the technical charts on CoinDesk. Cryptocurrency fell to a startling $7,925 on Bitfinex on Sunday. This is the lowest level since April 18. As of Sunday, bitcoin is changing hands at $8,120, a 2 percent drop in 24 hours. The reason for the increase from $7,925 has probably got to do with the oversold conditions shown by the relative strength index (RSI) in the hourly chart. The gains, however, might not last long. As far as market capitalization is concerned for this year so far, the biggest cryptocurrency remains nearly 50 percent lower.
Bitcoin was not the only one to be affected as prices of other big cryptocurrencies also fell. Ethereum fell 14 percent to almost $514 while litecoin dropped more than 11 percent to approximately $104. Ripple is at $0.65, trading 17% down. In fact, all the leading 20 cryptocurrencies have corrected by more than 10% with most of them in the range showing 15-20% correction.
Bitcoin price drop will not affect the real world
Stefan Hofrichter, global economics and strategy head of the investment firm Allianz is of the opinion that bitcoin has zero intrinsic value. Besides, it does not generate any income stream, as per Hofrichter.
Bitcoin’s demise would have few spillover effects on the ‘real world,’ since the market for this cryptocurrency is still quite small in size. As a result, we believe that the risks to financial stability stemming from bitcoin are negligible — at least as of today.
The bitcoin price drop was noticed after a report appeared on Friday on The Wall Street Journal, stating that U.S. regulators are looking into the possible price manipulation at Bitstamp, itBit, Coinbase, and Kraken.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]