The Untold Reasons For Crypto Value Loss

The Untold Reasons For Crypto Value Loss

This past weekend was no doubt a bearish one for Bitcoin and Ethereum, as within a period of about 24 hours, these cryptocurrencies had lost about 12% of their market value. This downturn of value was not only witnessed by Bitcoin and Ethereum alone, as what constitutes the larger number of the globe’s leading cryptocurrencies also suffered great loss in their market value too. Prior to this value decline witnessed by cryptocurrencies, two powerful news headlines was published. But how realistic is it to relate this headlines to the over $20 billion worth of value loss experienced in 24 hours?

CFTC price Manipulation Probe

The first news headline published explained how leading cryptocurrencies see red regardless of the CFTC price manipulation probe. The financial system of every nation is always subjected to government regulations, and this remains unchangeable. To succeed in the financial market means to have rules in your favor. Initially, when the news of CTFC hit the market, leading cryptocurrencies where moved, but it subsequently turned out that it only had to do with trading records related to Bitcoin alone. Whatever resulted in an issue, was because the four exchanges involved failed to be specific as to the terms of the agreement they had with CFTC on providing them with data. This forms the basis of the legal battle that arose and is still on.

Exchange Hack Suffered By South Korea

The second news headline which was published by Gerelyn Terzo tried to relate the downtime witnessed by crypto markets to an exchange hack suffered by South Korea. This headline became very catchy not just because of the credibility of the writer, but because it had followed Cointelegraph’s initial publication.

Coinrail, South Korean’s Crypto exchange, was reported to have evidence that suggested an attempted hack on it. This is quite interesting because it helps in drawing our attention to a likely hack into top cryptocurrencies which results in the loss of value suffered over the weekend. If an attempt can be made to hack Coinrail, a tiny and unpopular exchange, how then safe are the leading cryptocurrencies?

The Untold Reason For Crypto Value Loss

While these two news headlines can be said to be reliable, particularly due to the credibility of the writers, a clearer and more convincing reason for the value loss especially witnessed by cryptocurrencies over the weekend, was given by Alistar Milne’s Twitter followers in a survey carried out. The survey had 10% in favour of Cointelegraph’s publication; 9% in favour of South Korean’s exchange hack, while the majority accrued the loss to the presence of aliens. Funny right? Yes, but really true.

Cryptocurrencies lacking a clear origin means that buyers, issuers and traders alike cannot clearly explain what truly is responsible for the loss of such huge amount of money in just 24 hours.