Bitcoin drops by over $1000 in the last hour
Bitcoin has been in a free fall over the past hour.
After finding resistance just below the $12k mark a few days ago, bitcoin had been trending lower ever since.
However, that was kicked into hyper drive this morning.
Bitcoin starting falling very quickly, blowing through support levels without so much as a pause.
What's causing the slide?
Like most drops, the cause is not always clear.
However, there are some very likely culprits.
Just over an hour ago, a report was released from Japan talking about how the Japanese Regulators are looking at suspending trading of non KYC compliant cryptocurrency exchanges.
The release can be seen here:
https://www.coindesk.com/report-japanese-regulator-punishing-crypto-exchanges/
By itself doesn't seem like that big of news, we already know exchanges all over the world need to start complying by financial laws if they want to remain open.
However, this next piece of news is probably what is driving most of the negative price action...
Possible exchange hack?
(Source: https://coincentral.com/binance-review/)
Also, right around the same time that prices started falling, reports started coming out that users on the Binance exchange were having their altcoins sold for bitcoin without their consent.
Binance came out and said the moves were due to a bug/glitch in their software.
However, that didn't stop the rumor mill from running full speed ahead with many fearing that Binance had been hacked.
A quick check of my personal holdings on Binance doesn't show any strange behavior, but it appears this "glitch" is only affecting a small number of users.
In fact as I type this, a representative from Binance just put this statement out:
"As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised."
(Source: https://www.coindesk.com/bitcoin-price-drop-1k-10k-break/)
Which would explain why my holdings weren't affected as it appears regular hodlers were not affected, which also lessons the probability of these issues being related to a hack as opposed to a glitch.
There you have it, a possible Japanese crack down on non compliant exchanges and rumors of a major exchange experiencing a hack...
Just another day in the crypto world. :)
Oh and by the way if you are wondering, I bought the dip.
Stay informed my friends.
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Follow me: @jrcornel
So much for all of the Technical Analysis posts out here. None of them saw that one coming.
If the "glitch" is isolated to a small subset of accounts, then Binance will most likely compensate everyone affected. The worrying thing is this: we still don't know the extent of the monetary losses incurred by those affected!
A lot of bot traders are saying on the Binance subreddit that they're not affected, so it appears that this "hack" only hit some bot operators.
News @jrcornel Really almost all the changes in the favorite cryptocurrencies present this day a decrease in value and volume. Will see next hours...
I like your post , I am voting you.
I was hacked on binance in January. It was not a system glitch. A bot simultaneously sold all my alts into bitcoin and then transferred to a random address. Based on my personal experience, they are lying or in denial.
That is interesting... I hadn't heard anything like that. Back in January they had their platform down due to "system maintenance"... was this during that time?
It was on Jan 30. You can tell it was a bot because it sold all my position at the same time. To be clear, they got into my individual account and it may not have anything to do with the feb upgrade or the new issues today but bottom line is that binance security is hack able and a target. I just try to warn everyone I can.
Did binance do anything to help or reimburse? Any thing you can do?
Nothing other than to lock my account. I have kept the account locked and only have some money in Coinbase. No more alt trading because I don’t trust the platforms. Crypto markets are too easy of a target for hackers. Addresses remain anonymous. Be careful.
Whoa, I hope we don't see BTC dip under 5K :(
Your right it’s bloody bad day for all coins, cheers mike
Binance is really flawed!
When will people learn not to leave coins on exchanges? If you don’t hold the keys, you don’t hold the funds.
The best comparison I have heard was on a video (apologies but I can’t find it now to give credit):
A crypto exchange is like a public toilet. You get in, do your business then get out.
Haha unfortunately that is a really good analogy.
It's not pleasant to watch my portfolio tank, but I believe in this space for the long term. I'm satisfied I'm holding quality crypto assets and am not risking more than I can afford to lose, so I'm not selling.
Steem form $1 --> $3 - in a few weeks :)
Steem from $3 --> $2,80 - pure chaos
I feel the same way. The incredible journey these coins have been on the past few months...the problem lies for the day traders. For me I want the technology to exist and be used, while I see the interest growing thanks in a big way for the day traders I also feel bad because it isn't the true way for these things to be utilized. I also feel their pain relying on that income would be very difficult, or impossible at this point in time.
I think the primary or the most speculated reason I understand is because of rumours that bitcoin prices are controlled by bitcoin whales, according to Bloomberg, is about 1000 people, that hold about 40% of the bitcoins.
One such whale they say is now defunct Mt. Gox exchange's attorney called Nobuaki Kobayashi, has said, he is raising money to pay off Mt. Gox creditors.
It is also said that he holds about $2 billion worth BTCs and out of this, already $400 million dollars of BTC & BCH combined together has been sold, which is setting off panic in the market already.
That could be part of it for sure, though it looks like he sold the original $400 million worth reasonably slow (over a period of 3 months). We just saw a drop of about $50 billion in crypto markets in an hour.