CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Yesterday, Bitcoin Fell $600 In 30-Minutes, Coins In The Top 10 Are Generally Down In The Range Of -10% Over The Last 24-Hours - We See The Move Lower As The Product Of Pre-Existing Downside Risk And Thin Markets
Even 15-hours later media is struggling to pin any one event on the sell-off in what has been a slow news environment.
For the last month, we have been highlighting downside risks brought on primarily by exchange stress. Almost every major trading venue in crypto is currently experiencing some kind of issue: Bitfinex is being sued by the NYAG, BitMEX is being investigated by the CFTC, Binance just underwent a BTC and data hack, Coinbase is facing a serious class-action lawsuit etc...
Historically, periods of exchange stress have had high correlations with market weakness: from the Mt. Gox issues of 2013/14 to questions around Bitfinex fiat banking in fall 2018. Furthermore, early this week had seen some of the lowest volume figures since early 2019. There is plenty of precedent in equities markets, for instance, that has shown price vulnerabilities in thin, summer trading.
While crypto markets are 24/7 and global, August has shown that they are still not immune to typical summer doldrums.