The Bitcoin price has taken another massive dip over the weekend. Those who shorted it on Bitmex again gained massive profits. Pinpointing the exact reason for that development is not all that easy. Some people blame the hack of CoinRail to be the culprit. However, the exchange is a small platform with a less-than-great reputation in South Korea.
CoinRail Hack is Unfortunate
Whenever a cryptocurrency exchange is hacked, panic ensues. In the case of CoinRail, the actual impact on cryptocurrency markets is minimal. It was ranked outside of the top 80 by overall trading platform. Additionally, it mainly specializes in trading smaller tokens with a low market cap and little market presence. With this information in mind, the hack of CoinRail is not important for the major cryptocurrencies.
Even so, some media sources gladly claim otherwise. It is evident the cryptocurrency market has taken a nosedive. The correlation with the Coinrail incident, however, remains unproven and seems virtually non-existent. It is possible some of the stolen funds from the exchange is converted to Ethereum or Bitcoin in the process. However, that would represent marginal amounts of either currency and cannot trigger a massive market sell-off.
Spooking the cryptocurrency markets has become worryingly easy these days. Any major incident can trigger a wave of panic selling. At the same time, one has to wonder if there isn’t more to the ongoing Bitcoin price manipulation investigation launched in the US. All of these correlations seem to occur at the most opportune time for speculators to drive the price down.
Looking for Long-term Momentum
As Binance CEO Changpeng ZHao stated, this most recent dip is not unusual. A lot of volatility takes place in the cryptocurrency world at all times. Ups and downs occur every single day, and it seems that situation will remain in place for some time to come. Long-term veterans acknowledge this is nothing to worry about when looking at the longer picture.
Given South Korea’s position in cryptocurrency, it’s only normal the CoinRail news is highlighted. However, one has to acknowledge the bad news is also what most MSM are looking for rather than focus on positive news. There are a lot of things happening in the world of cryptocurrency which will result in positive developments over the coming years.
Bitcoin and Ethereum will both scale beyond their current capabilities. Litecoin aims to make an impact in the merchant industry. Other currencies which are worth their salt will also find their place in the market. Additionally, a lot of financial industry experts are convinced cryptocurrencies will still be a big part of the future of finance moving forward. From a long-term perspective, things are looking just fine. As such, the Bitcoin price will rebound eventually.
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