Cryptocurrencies on Pressure as Korean Exchange Hacked

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by | 11th June 2018 | 0 comments

Bitcoin, Ethereum and Bitcoin Cash dropped on Sunday following news from South Korea where a crypto exchange has been hacked. The report spurred a sell-off that started Friday after the Wall Street Journal published US regulators are investigating changes for price manipulation.

Coinrail loses $40 millions in tokens after a hack

South Korean exchange Coinrail announced that it was hacked over the weekend. The firm lost over $40 million in tokens, including $19.5 million of NPXS tokens, issued by Pundi X; $13.8 million from ICo project Aston X; $5.8 million in Dent tokens; and $1.1 million in Tron. All tokens belong to Conrail users.

Coinrail website is currently down as the company has an announcement of “system maintenance.” In the website, people can read that the firm confirms that 70% of the coin rail coin and tokens reserves are safely stored.

The company is using the freezing and cold wallets to keep funds safe. However, the exact damage is still unconfirmed, and hacking details are kept on secret as an investigation is ongoing. Coinrail will start services after stabilizing the service, according to a press release published on the website.

US regulators against price manipulation; ask data to big exchanges

US regulators demanded trading data to Bitstamp, Coinbase, itBit, and Kraken as part of a price manipulation investigation. Initially, the exchanged refused to comply, but lately, the CFTC subpoenaed the exchange for the data.

According to a WSJ report, as the CME’s bitcoin futures calculate its value from the price at the four bitcoin exchanges, “manipulative trading in those markets could skew the price of bitcoin futures that the government directly regulates.”

Bitcoin exchanges refused the first request as they considered it intrusive, and although they accepted to share data from few hours, they didn’t fulfill the demand. Exchanges opposed to sharing data as the company the CME group hired to hand that information operates a platform for cryptocurrencies.

Bitcoin collapses to a 2-month low

The crypto king opened the week with a sad tone as the BTC/USD is extending losses for the fourth day.

BTC/USD has declined 13% over the weekend as investors ran to sell their bitcoins following lousy news in US and Korea as stated above. BTC broke below June’s low at 7,370, the dynamic support at 7,210, May 29 low at 7,060, and it is trading at minimums since April 9 at 6,650.

If the pair manages to consolidate current levels, next supports are April’s lows around 6,450, then 2018 minimum at 5,870, and 7-month low at 5,510.

To the upside, BTC/USD needs to hold above the 6,600 area before thinking in a recovery. The pair needs a close above 7,060. Next resistance above that level will be at 7,250, 7,370, and 7,745.

Ethereum falls to the 500.00 area

ETH/USD Daily Chart - 11-06-18

Ethereum is perfuming on Monday its sixth negative day in a row as ETH/USD is extending Sunday decline. The pair is testing the 500.00 area.

ETH/USD collapsed around 13% over the weekend as the pair lost the 600 level to trade as low as 505.00, minimum since April 18. Ethereum is trading 0.50% negative on Monday at 522.00.

If the pair manages to extend declines, it will find buying areas at 500.00, 440.00 and 365.00. On the other side, ETH/USD needs a close above the 560.00 critical level to start thinking about some recovery.

Above that, Ethereum will find resistances at 600.00, 625.00 and the 50-day moving average at 655.00.

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