There was a huge loss in the cryptocurrency market on the 22nd of June when major cryptocurrencies, Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS suffered a total loss of $17 Billion in just 24 hours. EOS suffered a record loss of more than 10% overnight, while others fell by 7%.
The cryptocurrency market seemed very stable in June, when Bithumb, South Korea’s largest cryptocurrency exchange came crashing down. South Korea is third largest cryptocurrency market after US and Japan. So naturally, the investors were in a state of panic. A day eerier, on the 21st June, Bithumb reported that $30 million dollars were stolen from its hot wallet. It was cooperating with the Korea Internet and Security Agency to minimise its losses.
CCN reported that Cryptocurrency Market is a bear cycle (period of pessimism) and started a restorative rally, not a bull rally. Increase in prices during a bear market is called a bear market rally. A rally is caused because of large investment influx into the market, leading to significant increase in demand. But this is not the case with Cryptocurrency Market, where there is just a restorative rally.
Ethereum suffered the biggest setback among the cryptocurrencies, and small cryptocurrencies follow the trend of BTC and ETH. So it becomes important to note the short term trend of Ethereum. Various momentum indicators are indicating neutral zone for ETH. The current price of ETH is $503.The Relative Strength Index (RSI) of ETH is 40.5 and the MACD of ETH. This is demonstrating a buy signal. However, a neutral signal for ETH, in an atmosphere of pessimism, could mean that the decline could be prolonged.
This event is another test of the validity and authenticity of the crypto world, which already is looming under the dark clouds of doubt.[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. ]