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Cryptocurrency Market Experiences Loss of Over $17 Billion in 24 Hours

 

CCN has reported that in just 24 hours, the cryptocurrency market lost over $17 billion, as a result of losses incurred by major cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Ripple, and EOS. The largest loss in assets was incurred by EOS, showing a loss beyond 10% overnight, records show. Bitcoin Cash, Bitcoin, Ethereum, Litecoin, Cardano and Stellar fell behind EOS, dropping by slightly over 7%.

 

The cryptocurrency market appeared to be more stable in mid-June than any other period throughout the past two months. Things however took a different turn when Bithumb, South Korea`s biggest and busiest cryptocurrency exchange was hacked and cryptocurrencies stolen thus terminating the corrective rally of the market and resulted in major digital currencies experiencing decline in the short-term.

 

The market has shown immense potential for growth prior to Bithumb`s hack, as Bitcoin rebounded from $6,300 to $6,700. However, the hacking of a platform that has earned the reputation for being the most widely utilized digital asset trading platform in South Korea and the third biggest cryptocurrency market behind the US and Japan resulted in investor-fright. This was in spite of the fact that the outcome was not that tragic.

 

According to a June 21 report from CCN, Bithumb confirmed $30 million was stolen from its hot wallet and is fully cooperating with the Korea Internet and Security Agency (KISA), a sub organization of the Ministry of Science and ICT, to ensure that its losses are as minimal. The Bithumb team has indicated the future possibility for losses to decline from the initial $30 million figure even as a variety of recovery efforts are instituted by both KISA and Bithumb security experts.

 

The Bithumb team stated: “After the incident occurred on June 20, Bithumb quickly followed the procedure to immediately report [the] incident to KISA announcing that about 35 billion Korean Won worth amount of cryptocurrency was stolen. However, as we undergo recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence, we expect that the overall damage will be less than the amount we initially expected.”

 

Bithumb reportedly confirmed that with company funds, valued around $450 million, the company is financially well positioned to provide compensation packages for its investors with very little difficulty, as it is estimated that the amount stolen by hackers accounts for only about 6% of company`s funds.

 

The eventual result of the Bithumb security breach was not that injurious as to initiate a 6% cryptocurrency market correction. Instead, it brought to a closure an optimistic short-term corrective rally activated by Bithumb that resulted in the cryptocurrency market experiencing a minor correction.

 

Ethereum is reported to have experienced the biggest loss amongst major digital currencies presently, in concert with EOS, and given that smaller digital currencies and tokens tend to follow the trend of BTC and ETH, the trend ETH in the short term ought to be observed.

 

Various momentum indicators point to a neutral zone for ETH. The Relative Strength Index (RSI) of ETH is at 40.5 and the MACD of ETH is demonstrating a buy signal. But, a neutral signal for ETH, in a strong downward trend, could mean that its decline could be prolonged to the higher end of the $400 region, from the current price of ETH at $503.

 

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