The price of Bitcoin has been falling for sometime now with recovery attempts being rejected before they were strong enough to change the price action. For the first time since February, Bitcoin fell as low as $6,498 and this has made the cryptocurrency community anxious.
You’ll recall that the cryptocurrency market reached an all time high in December last year with Bitcoin trading as high as $19,511. So, what has changed within the last six months? Why has Bitcoin lost over half of its all time value?
In February, when Bitcoin fell to $5,900, it reached an all time low for this year. So, experts have been trying to figure out why the leading cryptocurrency is having difficulty rising.
What is Responsible for the Price Crash?
There are many possible reasons for the price crash from a reduction in transaction rate, regulatory scrutiny, to ever increasing power consumption among other things. Bitcoin has also been critiqued by some of the world’s leading investors. As if the pressure wasn’t enough the hit on Coinrail was the icing on the cake that crashed Bitcoin and other cryptocurrencies in the industry.
During the weekend, Coinrail was hacked and lost over $40 million after which Bitcoin lost over 10% of its value. The cyber attack shows that there is poor security and insufficient regulations in the cryptoverse.
The report from Coinrail is that the platform was hacked via cyber intrusion which cost it 30% of the coins that were traded on the exchange.
They could only secure 70% of the token and coin reserves in a cold wallet. On an official Twitter post, the company said:
“We were able to recover two/third of the total cryptocurrencies stolen by the hackers. Some were frozen while others were withdrawn. We are looking into getting the rest back with help from related exchanges, investigating agencies and coin developers. The police department in Korea has also launched an investigation to this effect.”
Will Bitcoin rise again? Or has the glorious reign come to an end?