Fxpips.com – The price of Bitcoin has taken a huge hit across exchanges overnight, falling below $700 as of June 21, dipping more than 10 percent in an aggressive correction to recent advances.
The main factor for the price retreat was the Bitfinex exchange, as it took a hit from an unscheduled downtime. Take note how this is the biggest digital currency exchange in terms of US dollar trading volume, widespread worries quickly became evident as a result.
Based on the CoinDesk USD Bitcoin Price Index data, Bitcoin’s decline occurred just a day after it breached the $780 mark, soaring to a new 28-month peak. But while this may be perceived as a good sign for the cryptocurrency, investors have a different view.
Questions and uneasiness are now flooding the Internet. What caused the sudden crash?
Some sectors believe that a technical glitch at Hong Kong-based bitcoin exchange Bitfinex – one of the market’s biggest exchanges – as the culprit behind the currency’s decline past $700, while others say it’s the hacking issue at DAO.
When markets are on a strong movement bitcoin players usually point to several factors and prompt them to look for reasons outside of their comfort zone.
Based on a BPI data, when the Bitfinex website divulged the outage at around 9:30 UTC, bitcoin was falling almost 3 pct for the day. But, by around 13:40 UTC, Bitcoin had dropped to $649.47, more than 11 pct below the session’s opening price.
While the technical problem likely was to blame for the day’s latest scoop, others look at a more complicated situation in which major price indicators proved vulnerable to changes in the general public’s eye.
One such transformation came in the form of a change in the forecast for the “Brexit”, the moniker for the ongoing argument over whether the United Kingdom should succeed from the European Union.
Based on a survey conducted by market research agency Survation on June 17, 46 pct of voters in the United Kingdom want their country to remain in the European Union, while 41 pct want it to exit, findings that showed that sentiment seems to have changed in favor of staying in the EU.
Despite the strong sell-off today, the present correction may continue for several weeks and draw deep, but the general consensus remains the same: trade with more caution and with much attention to detail and risk – and keep your trading funds for the second half of the year.