Cryptocurrencies are in decline, falling under pressure following the release of two particularly negative news stories, the first being the revelation that Nobuaki Kobayashi, the Mt. Gox. Trustee, sold off $400 million of Bitcoin and Bitcoin Cash in the last few months. What’s most alarming is that he still has at his disposal $1.7 billion worth of Bitcoins.
This news was followed by rumours of a hack of popular crypto exchange Binance in an attempt to influence the price of Viacoin.
The second news story that has affected the price of Bitcoin is the SEC comment regarding cryptocurrency platforms, namely that they shouldn’t be called exchanges since this term creates the illusion of regulated activity. “The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not”, the SEC said.
What’s more, the Financial Services Agency (FSA) announced that it is suspending domestic cryptocurrency exchanges, while recently hacked Coincheck has been ordered to improve its risk management.
These factors triggered a 11% drop in Bitcoin, with the cryptocurrency falling to $8,800. Major altcoins quickly followed, displaying two-digit decline.
The sheer number of sellers on the crypto market is particularly notable. Yesterday we observed an increase in volume amid falling prices, which might be a sign of increased interest in selling, that often precedes further decline.