Crypto Markets Sink Again

Crypto Markets Sink Again

about 4 years ago2 mins

Cryptocurrency markets had a bad start to the week, with big daddy bitcoin’s price sinking 8% between Monday and Wednesday lunchtimes to sit at its lowest level since May. And all this negativity has coincided with a few product reshuffles from big crypto firms… 🤔

Bitcoin accounts for 66% of the value of all cryptocurrencies (Source: CoinMarketCap)
Bitcoin accounts for 66% of the value of all cryptocurrencies (Source: CoinMarketCap)

What does this mean?

In the absence of any other obvious developments, several observers pinned the blame for this week’s downturn on news from Chainalysis, the crypto research firm which has itself been struggling of late.

In an excerpt from a forthcoming crypto crime report, Chainalysis claims that 2019’s massive PlusToken Chinese “Ponzi scheme” (check out our Pack on Spotting Scams for more on these) has left $140 million of bitcoin and $100 million worth of ethereum tokens in the hands of scammers – and that sales of the stolen cryptocurrency may be driving down prices 😱

Indeed, ethereum’s value fared even worse early this week, falling 14% to its lowest ebb since February. While the blockchain behind ethereum recently got its third makeover this year, all that chopping and changing isn’t doing it any favours: Coinfloor, the UK’s oldest crypto exchange, this week decided to drop the token, claiming that keeping up with all its technical complexity wasn’t worth the trouble.

Ethereum’s price is looking gloomy... (Source: Coindesk)
Ethereum’s price is looking gloomy... (Source: Coindesk)

Why should I care?

Ethereum’s blockchain is gearing up for a major shift next year – but then again, so is bitcoin’s. Opinion is divided as to whether May’s “halving” of the reward for miners will do much for bitcoin’s price; but its drop this week has fans of “technical analysis” (check out our Packon that too) spooked 👻

Coinfloor isn’t the only crypto company mixing things up, meanwhile. Fallen exchange giant Circle revealed on Tuesday that it had sold its remaining trading operations to erstwhile rival Kraken, focusing instead on stablecoins in 2020. ErisX, however, is pinning its hopes on “physically settled” bitcoin futures. So who’s on the money?

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