Bitfinex scandal crashes BTC

April 29, 2019   Bitcoin

Cryptocurrency assets fell sharply in price late last week. Bitcoin dropped to $ 5,320, Ethereum declined to support $ 160, and XRP reached a key level of $ 0.3000. The total capitalization of the cryptocurrency market fell to a level of 173 billion dollars. Last week, Bitcoin decreased by 3.4%, losing all its growth. The price of the first cryptocurrency on April 23 broke the $ 5,500 mark, updating the five-month high at $ 5,627, but the sharply negative news background allowed the bears to seize the initiative and drop quotes to $ 5,200.

The sharp decline in cryptocurrency on Friday April 26 was due to the charges of the Bitfinex cryptocurrency exchange. According to the prosecutor's office of the state of New York, Bitfinex concealed the fact of the loss of $ 850 million and the use of the Steetbloine Tether to cover the damage. According to prosecutors, in the past, the company and its clients had problems with payments due to the loss of $ 850 million by the company and its clients. Representatives of the exchange said that the court order was made without any warning or preliminary discussions with the company. According to Bitfinex, the documents contain false claims, including the loss of $ 850 million. Nevertheless, the publication of the news led to a sharp drop in the price of Bitcoin below the level of $ 5,200.

Analyst and trader under the name MAGIC predicts a short-term fall of Bitcoin to the level of $ 4,100. In his opinion, the negative trend will dominate the cryptocurrency market so far. Investors were hit by news of Bitfinex’s loss of more than $ 850 million.

A shock for traders was the fact that information about the loss of such a large amount was carefully hidden, and the platform administration tried to cover the shortage by infusing Tether’s reserves, writes coinspot. The largest cryptocurrency extremely painfully responded to this information, in just one hour losing about 6% in value.

Shortly after the publication of the news about the accusation, Bitcoin totaled $ 220 million at current rates, Ethereum worth almost $ 100 million and other altcoins from unknown cold addresses to the Bitfinex exchange wallet. The funds were transferred to a number of unknown addresses, and to the wallets of the Binance, Bitstamp and BitMEX trading markets. It is not known by whom these transactions were initiated, by the exchange itself or its users. According to the cryptocurrency community, the reason for the movement of funds was the accusations against the exchange, published shortly before. It is likely that large investors holding significant amounts on Bitfinex decided to withdraw them.

In our forecast for Monday, we expect Bitcoin to grow to levels of 5350, 5375 and 5400 dollars, Ethereum to marks 162, 164 and 165 dollars, and XRP to levels of 0.3030, 0.3050 and 0.3130 dollars.

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