Why are Bitcoin, Ethereum and other coins dropping? Facts and Sentiments now!

Today at 16:14 UTC, Bitcoin was back to trading at $10,600 and business was back to usual with BTC in its comfort zone around $10K. Post 16:14 UTC, within an hour by 17:17 Bitcoin was trading at $9,600, losing about $1000 in a flash.

One Hour Flash Bitcoin Crash

One Hour Flash Bitcoin Crash

There are two major news that broke out earlier today that had a very big influence on the prices:

  1. Trustee of Mt. Gox selling half a billion dollars worth Bitcoin and Bitcoin Cash – In between December 2017 and February 2018, the trustee sold 2000 bitcoins on December 18th, later sold 6000 bitcoins on December 22nd and continued to sell major chunks of Bitcoin and Bitcoin cash at regular intervals whenever the market seemed to recover again.
    • This event shouldn’t have particularly affected the current prices since it happened over a month ago. Market sentiments (as seen in the interview below) reveal that investors amateur or veterans do not trust the nature of the market right now especially when a trustee of Mt.Gox who was close to the market sold his bitcoins.
  2. The Binance team temporarily disabling withdrawals after unconfirmed reports of unauthorized selling – A reddit user just 2 hours ago complained about the unauthorized selling of his portfolio which might be part of a larger unauthorized sell-off resulting in the entire market crashing. All markets including Bitcoin, Ethereum and others have dropped considerably in the past hour.

A reddit user shocked by unauthorized selling of his funds

A reddit user shocked by unauthorized selling of his funds

The sudden sell-off of funds also surprisingly resulted in a crazy spike of above 1000% in a token called Viacoin. There were certain users on the same reddit thread who complained about their accounts being ‘hacked’ and the portfolio suddenly buying Viacoin. One reddit user says,

“Wtf??? All my coins got sold and i brought via coin? Did i just get hacked?”

Another Reddit user, Ashish says,

“Many accounts got hacked I think, then they pumped VIA price using other’s money. I saw the pump myself some twenty mins back, it rose from 3500 to 18000 in a matter of two mis or so. I was panicking then I realised it’s a PnD but didn’t know these groups could be this strong. Today I witnessed it though. And so many accounts getting hacked at the same time tells me they used these acounts’ balances to pump”

There were other frustrated Binance users, one of them says,

“Seems pretty damn obvious what happened. It got hacked by a group of people via insecure API (ironically) on Binance side. The group used all accounts they were able to access via backdoor to pump their 100K+ VIA bags by putting fake buy orders that inflated the price artificially, hackers are left with lots of BTC.”

There were suspicious telegram group messages that suggested that there could be a Viacoin pump today.

The two straight spikes just around the same time the tokens were sold

The two straight spikes just around the same time the BTC/ETH were sold

What now?

To understand what markets feel AMBCrypto spoke to investors and influencers alike.

Chandra Dhawan a cryptocurrency investor who trades through Binance says,

“Thankfully nothing happened to me but yes this has happened and the Binance team says they are looking into this. It is very interesting to see how an altcoin which is not even known to anyone got pumped, I’m sure Viacoin has received its fair amount of PR, it will shoot up soon. I don’t think Binance sell-off could be so big that it affects the price by a $1000. Have to wait and see. If Binance accounts caused it then we will be back up again at $10K soon”

Denny Cho, an Investment banker from Chicago says,

“This drop was just too dramatic, either someone like the trustee from Mt.Gox made another big ‘cashing in’ or its just panic selling triggered by today’s news. It looks like we should recover from it soon, I can already see Bitcoin climbing back up”

Josh Gamage, a veteran Bitcoin and altcoin trader from New York says,

“This sudden drop will trigger another drop, remember no matter how strong you are, there are weak hands out there. We will face another drop which would be a fall out of this current drop that we witnessed. I’m expecting anything between $8800 – $9000”

Bitcoin, as we were finishing up this article has already climbed back from $9400 to $9800 but the market seems tense. Bitcoin volumes have spiked up again and it definitely seems like an anxious 24 hours from now.

The post Why are Bitcoin, Ethereum and other coins dropping? Facts and Sentiments now! appeared first on AMBCrypto.

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