Another red week and red day for bitcoin as its price has taken another massive leg lower over the weekend. Highlighting reasons why this happened is like searching for a needle in a haystack – hard to find anything viable. Lot of people jumped to blame the hack of a small volume and almost uknown exchange CoinRail, but that is very unlikely cause for the massive dip. The exchange is a small platform with a shaky reputation in South Korea.
The hack is unfortunate but surely not the cause of the price drop
The impact of Coinrail hack on bitcoin price is minimal, it is not like Binance or some other major exchange got hacked. This platform ranks outside of top 80 exchanges by volume and specializes in trading small tokens that are basically not listed anywhere else and have minuscule market cap and trading volume. So the hack might have shaken their small caps, but major coins didn’t feel anything, a bit of a mosquito would hurt more.
Although, a substantial amount of media outlets picked Coinrail as the culprit for the latest price nosedive, the correlation of this unfortunate event and market bloodbath is not proven and not existent.
But all the articles and reports did add oil to the fire and sped up the panic selling. Market is frightened and easy to spook these days. Media managed to dig out couple of more reasons as well, like the ongoing price manipulation investigation by the US authorities. But the link is weak on this one as well.
Momentum is lost and we are looking for it so the market can reverse
Life is full ups and downs and cryptocurrency markets are the same – lot of dips and rallies that catch us off guard. The latest dip is not unusual for experienced traders and individuals from the industry, like the Binance CEO Zhao. And they all were very vocal in pointing out this is normal behaviour and nothing to worry about if you zoom out and look at the broader picture.
The Coinrail news was an easy to swallow story so people chose the path with less friction and blamed the small and obscure platform to the nosedive.
We all keep forgetting to highlight more positive news from the industry, such as big tech developments across the whole market, starting from bitcoin, IOTA and many others that are nearing the ultimate goal every day: creating a useful, real-world application that will make people’s lives better and consequently boost adoption.
Bitcoin and Ethereum will both resolve scalability issues and scale beyond their current capabilities. Litecoin gears towards the merchant industry and all other currencies are also starting to find their place under the sun. Moreover, a lot of financial industry leaders are positive cryptocurrencies will still be a huge part of the future of finance world moving forward. Long term outlook is more than fine and the price can jump around all it wants – it will eventually rebound and follow suit.
