Bitcoin (BTC) took a downward turn on Sunday, reaching its lowest point in the past two months following reports that a small crypto exchange in South Korea has been hacked.
South Korean exchange Coinrail announced through a post on Twitter?s microblogging platform that it had been hacked and that it affected less popular coins such as Pundix (NPXS). However, the price of Bitcoin quickly started dropping from around $7,600 to around $6,700. This is the first time in a few weeks that the price of the cryptocurrency has fallen below the $7,000 mark and analyst believe that the decline was fueled by the threat on the South Korean exchange.
Decoding the trend
This is not the first time that the Price of Bitcoin has taken a dive as a result of the hacking on Coinrail while others believe that it has something to do with the crackdown on trading services in China. The past few months have been rather tough for cryptocurrency exchanges as they have been facing a lot of scrutiny over various issues including price manipulation, hacking and money laundering.
Coinrail has also released a statement on its website saying that it is reviewing its platform as a result of hacking attempts. The South Korean crypto exchange also reported that it has managed to move the exposed digital coins into a cold wallet. Some of the coins include Pundix, ATX, and Nper (NPER). The executives in charge of Coinrail have not released further statements explaining the situation.
Coinrail allows more than 50 cryptocurrencies to be traded on its platform and it has a daily trading volume of around $2.65 million. The impact on Bitcoin comes just days after renewed hopes about the ETFs backed by Bitcoin after it was reported that ETF providers namely SolidX and Van Eck have been seeking authorization from regulators.
Bitcoin has been stuck below the $9,000 mark for the past few weeks and investors have been optimistic about its performance. However, the recent decline continues to cast a shadow of doubt about the price of the cryptocurrency amid forecasts that it would surge above $10,000 by mid-June.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at firstname.lastname@example.org.