Analysis showed there would probably be a breakout
As reported in a June 8 Digital Journal article CoinDesk’s analysis predicted the probability of a strong move up or down for the price of BTC after it had been trading for several weeks in a narrow range. Although the article noted that the movement could be up or down it thought that probably it would be to the downside and it was.
However, the BTC price is still well above what it was at this time last year when it was trading for less than $3,000.
A number of issues may have influenced the price drop
Coinrail a South Korean exchange reported it was reviewing its system because of a hacking attempt.
A second factor may have been a report that US regulators are investigating potential price manipulation of four major cryptocurrency exchanges.
The high power consumption used for mining bitcoins may also be starting to hurt some miners as the price drops.
The Coinrail hack
Coinrail although relatively small, is still in the top 100 of global exchanges. It trades some 50 cryptocurrencies. The hack is just one of several in recent months and may stoke fears of the safety of bitcoin as an investment and trading commodity. South Korea is the third largest market in the world for trading bitcoin. Only Japan and the US are larger markets.
Some of the largest recent hacks have been in South Korea. In July last year Bithumb the largest South Korea exchange at the time was hacked. The data of almost 32,000 users was stolen. Hackers were able to use the data to log in and transfer coins.
Just a few months later in December, the exchange Youbit lost about 4,000 bitcoins about 17 percent of all its assets. The Coinrail hack appears to be not as severe but it will still shake confidence in the exchanges.
Coinrail claims it has already accounted for 70 percent of its cryptocurrency. The exchange trades around $2.6 million every day according to CoinMarketCap. The exchange says it has frozen all exposed NPXS, NPER, and ATX coins. Other coins are kept in a cold wallet.
One article claims that there was the theft of over 2.6 billion Pundi X (NPXS) and many other Ethereum based tokens. The value of one NPXS is $0.006875.
The present bitcoin price situation
The price of bitcoin fell virtually all day today with the opening price of $7,497 being also the high for the day. The low was $6.649 over 800 hundred dollars below the open. It is now June 11 UTC. The price opened at $6,765. At 02:30 UTC the price was up to $6,800 the high for the day at the time. The price may perhaps have bottomed out but the day is just beginning. The present price of bitcoin can be found here.
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