Breaking News
0

Bitcoin sinks to two-month low as downtrend persists

Cryptocurrency NewsJun 12, 2018 05:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - Bitcoin fell to a two-month low on Tuesday, sliding in three of the last four sessions on nagging regulatory and security concerns after the weekend hacking of South Korean cryptocurrency exchange Coinrail.

The original virtual currency is nearing its lowest level of the year of just under $6,000 (BTC=BTSP) on the Bitstamp platform. It fell to a low of below $6,500 and last traded down 4.7 percent at $6,551.48.

So far in 2018, bitcoin is down nearly 53 percent, after soaring more than 1,300 percent last year.

On Sunday, Coinrail, a relatively small cryptocurrency exchange in South Korea, said its system was hit by "cyber intrusion," causing a loss of about 30 percent of the coins traded on the exchange. It did not quantify its value, but local news outlet Yonhap news estimated in an unsourced report that about 40 billion won ($37.28 million) worth of virtual coins were stolen.

The latest hacking wiped out more than $40 billion in the market value of the cryptocurrency market on Sunday. Bitcoin itself declined by nearly $1,000.

Bitcoin was able to recover after Sunday's bloodbath on Monday, but it has since continued its downtrend.

"Bitcoin is in a liquidity vacuum at the moment. Volumes on the crypto exchanges are now below $5 billion per day, their lowest levels since November 2017, before things got out of hand," Israel-based Mati Greenspan, senior market analyst, at eToro, said.

"As the trading activity is very low, even a small amount of pressure can move the price quite drastically. Kind of like if you hit a baseball in outer space," he added.

Other digital currencies also declined in sympathy with bitcoin. Ethereum, the second-largest by market value, was down 5 percent over the past 24 hours to $496.07, while the third-largest, Ripple, lost 4.3 percent to $0.55, according to cryptocurrency price tracker coinmarketcap.com.

South Korea is one of the world's major cryptocurrency trading centers, and is home to one of the most heavily trafficked virtual coin exchanges, Bithumb.

Investors and regulators were jolted earlier this year after Japan's cryptocurrency exchange Coincheck was hacked in a high-profile theft of over half a billion dollars worth of digital currency.

Since the beginning of the year, bitcoin has been trading in a "descending triangle," with important support at $6,500 analysts at online FX broker FxPro said.

A move below $6,500 is a strong technical signal for a sell-off, FxPro said.

Bitcoin sinks to two-month low as downtrend persists
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email