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Cryptocurrency Market loses $17 Billion in 24 Hours as Ethereum Falls 7%

Before 22nd June, the cryptocurrency market experienced a grave fall in a period of 24 hours, recording a massive $17 billion worth of losses. This was recorded due to loss of major cryptocurrencies, including EOS, Bitcoin Cash, Ripple, Ethereum, and Bitcoin.

Out of the lot, EOS demonstrated the maximum of 10% loss while others including Bitcoin Cash, Stellar and Ethereum followed suit with just over 7% of the fall.

Why the sudden slump?

It was noted by multiple crypto analysis platforms and experts that the market was still in a bear cycle and was exhibiting a corrective rally instead of a bull. In mid-June, the market did experience some stability before South Korea’s biggest digital asset trading platform Bithumb got hacked, resulting in $30 million worth of assets getting stolen.

Prior to the Bithumb hack, the market had shown quite a momentum with Bitcoin rebounding from $6300 to $6700. The attack itself had a bare minimum effect on the market. But it definitely led investors to panic, leading them to withdraw on large scale and increasing liquidity in the market.

Bithumb said that the amount was stolen from their hot wallet on June 20th. By June 21st Bithumb had started cooperating with Korea Internet and Security Agency, a subordinate of Ministry of Science and ICT, to lower the $30M figure.

“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,” the Bithumb team said.

Bithumb said that their company valuation is at $450M and that they can easily compensate every user for the lost assets. The value of lost assets amounts to just 6% of the total company valuation of Bithumb.

It is easily concluded that it was not really the loss that was actually detrimental but the end of the optimistic corrective rally due to the panic in investors that led to the massive fall.

 

What is next for Ethereum?

Ethereum experienced the most destructive fall after EOS and it’s pretty evident that small coins follow the trend of bigger ones like Bitcoin and Ethereum, hence, the short-term tracking of Ethereum is essential to do.

It is being anticipated to be neutral for a while. ETH’s Relative Strength Index (RSI) is at 40.5 and the MACD of ETH is demonstrating a buy signal. Neutral signals for ETH in a downward spiral could mean its decline could be prolonged to the higher end of the $400 region, from the current price of ETH at $503.

Various momentum indicators indicate 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.

Featured Image from Getty Images

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