Crypto Market Dumps as Binance & Coinbase Crash While Bithumb Exchange is Seized
After a good start of September and the week that saw Bitcoin surging back above $12,000 and Ether making a new 2-year high, today it all turned red.
The markets suffered losses after the leading digital asset failed to sustain above $12k level and dropped to $11,155 today on Bitstamp. However, bitcoin has been slowly making its way upwards and is now back above $11,300.
Also, it hasn’t been anything that bitcoin didn’t see last month. In the first three weeks of August, bitcoin broke above $12,000 only to dump back down to about $11,000 level. So, bitcoin is just ranging.
“Nothing lost for the bulls yet, close above $11770 and I'd expect mega moon. Close significantly below and sells into the $11700 area become very attractive,” said analyst DonAlt. “Lose $11k and it's macro pullback time, as long as it holds assume we're gonna go further up.”
Altcoins meanwhile, reacted to bitcoin like always and the top cryptos are down between 6% to 10% except for Tron which is up a whopping 15% trading at $0.0358. Also, Tendies is still up 44.84% today.
Today’s biggest loser is Acute Angle Cloud, down by 90% with notable mentions including Ampleforth (42%), UMA (22%), TOMO (17%), Curve (16%), LOOM (15%), and Synthetix, Aave, Swipe, and OMG Network all down over 14%.
Taking Down Exchanges With it
As the market went down, so did the cryptocurrency exchanges.
Today, Binance also faced technical issues that have started to irk customers as the exchange has been experiencing a lot of overloading issues lately.
ABSOLUTELY FANTASTIC GUYS, GREAT! pic.twitter.com/Phx48C4c1O
— Crypto Michaël (@CryptoMichNL) September 2, 2020
“Weird day. Pure coincidence, but definitely feel less lonely in a screwed up way. We are aware of some new choke points and have a plan to fix it quickly,” commented Binance CEO Changpeng Zhao (CZ) on both the exchanges going down in sync today.
Binance informed on Twitter that there has been “temporary difficulty accessing the website,” but assured the community that they are working on it. The exchange has also been having issues with ETH and ERC20 withdrawals due to traffic hitting ATH, ETH network congestion, and other unmentioned reasons.
“Things seem to be more calm now. Even our automated Chat Bot crashed due to overload earlier. So many places to improve on. Binance is still a young platform. Your understanding and support is much appreciated,” tweeted CZ.
But Not Because of an Exchange
Today, one of the biggest crypto exchanges of South Korea by trading volume of about $365 million, Bithumb’s headquarter was raided by the authorities related to a $25 million token sale that was hosted on the platform but didn’t materialize, as per the local reports. Reportedly, some investors lost millions participating in the sale of BAX tokens.
The company's chairman Lee Jung-hoon is also under investigation for fraud, illicitly sending funds overseas, and escaping property.
It has been the second raid in just a week, as just last week, police seized another exchange, Coinbit, for faking its trading volume.
Bithumb’s raid reports came around the time BTC price crashed, leading many to speculate that it is the reason behind the price dump.
“Even though it's possible some people may have sold some coin on the reports that @BithumbOfficial was raided by SK police, there isn't any fundamental reason that such an event should push prices down,” said analyst Mati Greenspan.
Some exchange nobody even has an account on got taken down
Lol, long, bought spot
— moon is tweeting (@MoonOverlord) September 2, 2020
“Bithumb seized is big news. But a levered market full of euphoric traders does not need a reason to dump,” noted trader and economist Alex Kruger.