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Bitcoin plunges below $7000 as Coinrail gets hacked

Summary:

  • Cryptocurrency markets dips below $300 billion as South Korean exchange gets hacked

  • Banks from another South American country are said to be shutting down exchanges’ accounts

  • Dutch central bank has published the results of its four-year test of the blockchain technology

Another rout stormed the cryptocurrency market over the weekend as one of the South Korean exchanges said there was a “cyber intrusion” in its system and an unknown amount of digital assets has been stolen. Steep declines were observed on all the major coins with Bitcoin plunging below the $7000 handle. It is worth to note that the capitalization of the whole cryptocurrency market has dipped below $300 billion for the first time since mid-April. Moreover, we will mention a situation from Colombia where banks are said to be closing cryptocurrency exchange’s accounts. On top of that we will say a word about a research of the Dutch central bank.

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Following the news of a Coinrail hack BITCOIN price took a dive and smashed through the support zone. The freefall was halted by the recently broken downward trendline (orange circle). If this technical hurdle manages to hold off the bears we may see a bounce towards the 78.6% retracement level where the previously mentioned zone can be found. Source: xStation5

Coinrail, a South Korean cryptocurrency exchange, informed on Sunday that it has been targeted by hackers and an unknown amount of cryptocurrencies was stolen. According to some news stolen coins could have been worth as much as $40 million. The exchange said it is cooperating with investigators and other cryptocurrency exchanges in order to track the stolen funds. Coinrail announced that it has managed to move all the other cryptocurrency holdings to the cold wallet and will now review its system to prevent such situations in the future. According to CoinMarketCap the exchange was ranked #98 in the world by volume.

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RIPPLE also took a hit following the Coinrail hack. The coin slumped and even touched the $0.55 handle. The price managed to advance later on yet the same level was tested in today’s early trading signalling that the bears may not have been fend off already. In case the downward pressure prevails the next stop for sellers may be at 2018 low around $0.45. Source: xStation5

South American cryptocurrency exchange Buda.com is also experiencing troubles. Reportedly Colombian banks decided to shut down its accounts. The reason behind such decision is the letter from the Columbian watchdog to the domestic banks in which the supervisor warned lenders not to do any business connected to the cryptocurrencies. This includes intermediating, guarding or investing in coins. Buda’s CEO said that this move was bold as the letter was just a warning and did not require lenders to take any action. What one may find interesting is the fact that other cryptocurrency exchanges from the region did not report such issues.

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DASH is the only major coin that has reached its new 2018 lows as a result of the Coinrail hack. The pair is trading at its lowest levels since November 2017 and the latest price action may suggest that the declines are not over on this market. The next support level can be found at $250 as price has tested it a few times in the early days of the 2017 cryptocurrency rally. Source: xStation5

De Nederlandsche Bank, a central bank of Netherlands, announced that it has concluded its four-year test of the blockchain technology. The aim of the test was to see whether this technology is capable of supporting the financial market infrastructure. From four different blockchain prototypes none proved to be capable to do so. The Bank said that blockchain fails to meet capacity needs and uses too much energy. However, the Bank has recognized technology’s resilience to the external attacks yet its not enough to offset the flaws in earlier mentioned areas. This means that we may have to wait some time until we see blockchain being integrated into financial markets structure.

 

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