Bitcoin Tumble to 10% Leading to Expansive Cryptocurrency SelloffJune 17, 2018
According to Google Translate, the South Korean crypto Coinrail tweeted it was hacked over the weekend. Since this news, Bitcoin tumbled 10% to a low $6,647. 33. According to the bitcoin price index of CoinDesk, this is bitcoin’s lowest price since April 9.
After this decline, The Wall Street Journal reported that U.S. regulators began investigating a possible price manipulation at the four largest cryptocurrency exchanges. Over the weekend, Coinrail tweeted it was hacked and among the lesser-known cryptocurrencies affected was Pundi-X.
According to the data showed by the CointMarketCap, the pair Pundi X-Bitcoin was most traded in Conrail. But even so, the public statements of Coinrail did not say that bitcoin was affected by the hack. Nonetheless, bitcoin was affected as it hit low with a price of $6,647.33.
It was the lowest price of bitcoin since April and it also coincided with an extensive sell-off of crypto. So far, market capitalization shows that the biggest cryptocurrency is still 50% lower for this year. Apart from bitcoin, other cryptocurrencies followed and tumbled in price.
According to CoinDesk, Ethereum hit a low at 14% with its price dropping to $514. Litecoin fell at 11% to about $104 in its price. The report of an investigation for a price manipulation over the weekend is also a contributory factor to this decline.
The Wall Street Journal reported that the U.S. regulators are investigating the major crypto exchanges itBit, Bitstamp, Coinbase, and Kraken. On this investigation, A CNBC request was given to the exchanges, the Commodity Futures Trading Commission, and CME.
However, they did not immediately respond to the request. The US Commodity Future Trading Commission’s probe of the four cryptocurrency exchanges began at the end of last month. Reports said this was all because of the futures market’s distorted prices.
The CFTC handed subpoenas to the exchanges to transfer their entire trading data to assist them in their ongoing investigation. Additionally, this would help in preventing the CME futures market’s distorted prices.
According to Wall Street Journal, sources are saying this is still a constant problem for the CME. Bitcoin futures were launched by CME last year. When it created the Bitcoin futures, the exchanges were asked by CME for data they can base the bitcoin price they can use for the futures trading.
The four major exchanges mentioned above were those requested by CME but they refused to comply. They cited privacy and security as main concerns why they refused CME. But still, they were forced to share a limited amount of their data with CME restricting their trading activities.