Exchange hacks caused Bitcoin to fall by $6000

On Friday fluctuation occurred again and the value of bitcoin fell below $6,000, but still there are crypto bulls and institutional traders keeping their positive and optimistic approach against these regular oscillating movements in the cryptocurrencies.

Brian Kelly is the founder and CEO of BKCM LLC, an investment firm focused on digital currencies; portfolio manager of the BKCM Digital Asset Fund; and author of “The Bitcoin Big Bang – How Alternative Currencies Are About to Change the World.” He is one of those market analysts, traders, and hedgers who have got exceptional abilities to evaluate the market trends and forecast the future.

He told a USA based news agency on Friday, “Do you know where we were a year ago? $2,500,” reminding investors not long ago bitcoin was priced much lower than what it currently is. There are several permutations including tax selloffs in April; multiple exchange hacks, including the recent hack on South Korea’s Bithumb reported on Tuesday, that is causing regulators to pursue tighter controls; and about $10 billion in funding of ICOs (initial coin offering’s) have reasonably caused the coin to fall in price.

Friday morning, to get specific, bitcoin fell from around $6,400 to around $6,081 but this is not a bad thing for long term. “Everyone thinks all of a sudden there’s going to be a wave of selling.” But he said, “it’s not happening now.”

Kelly also commented that the decline in bitcoins performance is “painful” but “not unusual.” “Cryptocurrencies are in the bear market right now and bear markets, we don’t know where they end. It doesn’t mean that bitcoin can’t go lower. But this is by no means
the funeral for bitcoin.”

Not with standing the vertiginous fall of bitcoin since it was priced at $19,500 in December 2017, analysts have continued to be optimistic perhaps because Mt. Gox exchange in Japan, which shut down in 2014, has announced that it hopes to start paying back investors in early 2019, as well as the impending launch of Coinbase custody which is expected to draw institutional investors to the cryptocurrency markets.

On Friday, a Japanese financial regulator ordered several cryptocurrency exchanges to improve business conditions to prevent future money laundering.

“Short run it’s going to be a little tough because they’re stopping new accounts from coming in,” Kelly said of Japan’s Financial Services Agency led bitFlyer, the country’s largest crypto exchange. “They’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people.”

“Traders should think long term about cryptocurrencies and less about investing in ICOs,” Kelly concluded.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin8,119.89 1.36 % 10.31 % 11.57 %
Ethereum260.14 0.89 % 9.42 % 33.94 %
XRP0.413 1.34 % 10.01 % 29.44 %
Litecoin95.45 1.20 % 9.04 % 6.38 %
Bitcoin Cash417.16 3.37 % 16.06 % 15.08 %