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Are hacking issues alone responsible for cryptocurrency price drop today?

June 12, 2018


The Bitcoin price dropped 7% today. Ripple, Ethereum and Litecoin have followed suit. A closer look into altcoin prices reveals that some other cryptocurrencies have suffered even more--EOS is down 17%, while Tronix is down 12% and Bitcoin Cash declined 10%. The sharp drop in the price of bitcoin and other virtual currencies is attributed to the hacking of the South Korean cryptocurrency exchange Coinrail, which was compromised over the weekend. The obvious question is, why did the price of Bitcoin and Ethereum remain relatively more stable than the price of other virtual currencies? It's important to note that EOS, Tronix and Bitcoin Cash are all more susceptible to panic selling than the mainstream coins. Coinrail is a relatively minor cryptocurrency exchange in South Korea, and the volume traded on Coinrail will not impact the price of altcoins dramatically. However, when a panic attack hits the market, manipulators are going to be most noticeable in those areas where liquidity is lacking. Low liquidity is an issue for most altcoins because it allows individual traders to manipulate the price of cryptocurrencies. What follows next is a wave of panic selling from individuals who don't believe in the long-term opportunity for those altcoins, and are looking to curtail losses by liquidating their positions. The current decline in the price of cryptocurrencies is a move perpetrated by market manipulators who can, for all intents and purposes, drive down the price when it's opportunistic for them. To follow the price and news about cryptocurrencies, please visit Finstead (and type "BTC.X price" or "BTC.X news" to get the latest scoop and information).

Are hacking issues alone responsible for cryptocurrency price drop today?  

The obvious question is, why did the price of Bitcoin and Ethereum remain relatively more stable than the price of other virtual currencies?

Are hacking issues alone responsible for cryptocurrency price drop today?  

The obvious question is, why did the price of Bitcoin and Ethereum remain relatively more stable than the price of other virtual currencies?

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