Leading indicators have fallen again: Digital currency fell across the board, Bitcoin,Ethereum attack etc. to erased all this year’s gains
On Thursday, January 10, the digital currency plummeted across the board. The “big brother” bitcoin fell more than $400 in the morning, falling more than 10% to below $3,591. Although it has now returned above $3,700, this price is still hitting a three-week low.
Other mainstream currencies performed equally badly: Ethereum fell about 15%, prices hovered around $130; Ripple fell more than 10%; Bitcoin cash fell nearly 20%. Since then, 11 days after the opening of the year, all the above-mentioned digital currencies have been wiped out all the gains in the past year, and even fell even more fiercely.
CoinMarketCap data further shows that the total market value of the cryptocurrency market tracked by the website has been falling all the way during the year, and has now reached around $123.3 billion, a record low since the end of 2018. This figure has fallen by more than $700 billion compared to the peak of the market value of $835 billion at the beginning of last year.
At present, the reason for the wave of selling of digital currency is still unclear, but market analysts believe that the following factors are behind the scenes.
Forbes magazine quoted David Thomas, co-founder of cryptocurrency broker GlobalBlock, as saying that first, the Ethereum classic (ETC) suffered 51% of attacks (using bitcoin using computing power as a competitive condition, using the power advantage to revoke The payment transactions that have taken place on their own have raised concerns about the overall security and confidence of the cryptocurrency and blockchain technology itself.
The Scallion Blockchain has previously mentioned that as of Tuesday, January 8, ETC is still under attack, and the number of (loss) has risen to 220,000, and the attacker has profited more than a million dollars. In addition, the cryptocurrency exchange Gate.io also said that ETC lost about 40,000 ETCs with a 51% attack, worth about $200,000.
Thomas also said that the second reason may be that there is a rumor that a large household transferred 319,000 Ethereums to an exchange, and the market was shocked and triggered subsequent sales.
From a technical point of view, the publisher of the newsletter website CryptoPatterns, Jon Pearlstone, believes that:
Given that Bitcoin’s trend line support last year was $4,500, it is a reasonable expectation for Bitcoin’s uptrend to hit this price again. In the past few weeks, buyers have made countless attempts, and in the case of weak trading, they have not been convincingly accepted more than $4,000. As a result, the danger signal begins to appear. When the price level fails to break through, Bitcoin usually reverses to a lower level and retests the previous key support levels, which is what we are seeing today.
For the potential downside risks of Bitcoin, he further pointed out that the price of $3,500 has solid support. If it is below this level, Bitcoin may test the low of $3,000 in 2018 again.
eToro analyst Mati Greenspan also said that the bitcoin with the largest market capitalization of digital currency fell below the $5,000 support level, and the next support level would be $3,500.
Regarding the price movement of Bitcoin, Stephen Innes, head of Asia Pacific trading at Oanda Corp, predicted that by January this year, bitcoin prices might fall to $2,500. However, some analysts predict that Bitcoin may fall to $1,500.