Bitcoin along with other cryptocurrencies is going through a very strained period as it seems. As the time progresses more and more issues are looking to bring out the negative side of the digital market instead of embracing it.
The latest negative news, are coming from the Asian continent and more directly the South Korean crypto exchange Coinrail was undergone a cyberattack during the past weekend. In a more simple tone, a digital robbery was confirmed by Coinrail as well as an amount around $30 million worth of lesser-known cryptocurrencies. This negative event, digs deeper in investors’ fears dealing with the digital market reliability and it repels the smooth operation these exchanges boast about, leaving them vulnerable to further harmful publicity. Even though insurance could come into play and should be enacted as this is not the first time cyber-attacks have taken place, the issue still remains unresolved and more work has to be put in the industry to protect investors and companies .
The abovementioned event, hurt Bitcoins price which followed with a steep drop dragging along its path other crypto’s like Ripple, Ethereum, and Litecoin. The drop acted like a blow to the head for investors which chose to cut their crypto holding, erasing almost $50 billion from the market since Friday.
In the US, Government investigators requested complete trading data from various bitcoin exchanges in order to form a complete investigation regarding crypto price manipulation. Bitcoin futures were made available for trading on CME Group Inc, some 6 months ago and this investigation was put in place in order to check if the prices of those instruments represent a fair and true value. CME Group Inc offered these crypto futures from prices received from four bitcoin exchanges Bitstamp, Coinbase, itBit and Kraken. Some of the pre mentioned exchanges refused to give the data requested, however later followed up and made the data available when limits to the request were set and smaller volume of data was asked for. CME’s regulator, the Commodity Futures Trading Commission was not satisfied as no agreement is in place to be able to retrieve this kind of data from price providers, when needed.
On another front, Apple Inc. has legally prohibited users of iPhones and iPads from mining digital currency on their devices. The company publicly noted that cryptocurrencies processing could be performed by cloud-based mining but not applications devices. Apple Inc assists Google’s decision made in April 2018, which very similarly does not allow in-browser mining of cryptos as these activities are contrary to their terms and conditions.
In addition, chairman and CEO of JPMorgan Chase Jamie Dimon while on a live interview on CNBC along with Warren Buffet, made it clear for bitcoin followers or investors to be aware.
It is our opinion that a solution can be found. However, market participants should be on the lookout as the industry’s inexperience could be exploited further and even bigger amounts than 30M could be stolen. Eventually governments and regulations could make the necessary changes to confirm security and reliability to market participants by identifying users or by finding a way to trace digital assets.
Bitcoin fell 1.05% to $6,700 but remained just above lows seen over the weekend of 6,633.9.
It is current trading between our noted $6,700 (R1) resistance level and the (S1) $6,100 support level.
A break above $6,700 (R1) resistance level, however, will not only lead to an advancement to $7,120 (R2) resistance level but also signal a reversal of the downtrend from the May 5 high of $9,948.98.
If the bears dominate the market Bitcoin could have downward movement break below $6,100 (S1) Support level and could aim for the $5,700 (S2) Support barrier.