First event: flash crash on 21 Jun, price goes from $320 to $0.10 and back to $300 in a few seconds, this flash crash made someone a millionaire.
Second event: Ethereum was around -5%, Vitalik Buterin (founder of Ethereum) declared dead, price ETH reacts to this rumor and falls double digits, all the other cryptocurrencies follow

For me these 2 events show that the market is oversensitive right now and the smallest event can cause a crash. The market needs to become stronger in several ways. There is still a lot of space for improvements in the market mechanism.

Articles:
http://www.cnbc.com/2017/06/26/us-stocks-banks-oil-in-focus.html
http://www.ubergizmo.com/2017/06/ethereum-crash-wiped-out-and-minted-millionaire/
https://steemit.com/bitcoin/@oryn/ethereum-founder-vitalik-buterin-presumed-dead-in-a-car-crash-rumors
https://boards.4chan.org/biz/thread/2608981
https://cointelegraph.com/news/proof-of-vitalik-ethereums-buterin-immutably-counters-death-rumors

———————————————————————————————————————————————————–

Follow me on Steemit:
https://steemit.com/@younginvesting

Follow me on Facebook:
https://www.facebook.com/YoungAndInvesting1

Cryptocurrency investing Facebook group: https://www.facebook.com/groups/480785485606417

———————————————————————————————————————————————————–

If you’re feeling generous, donate to me here:

Bitcoin: 3ENm2XRVACaaEEwRqMZNYt9Zf1K1yWicUX
Ethereum (& ERC 20 tokens): 0x8cb2838f3F5e43FCCeEF696D3570D3762968F118
Ripple: rDsbeomae4FXwgQTJp9Rs64Qg9vDiTCdBv
Litecoin: MB9Z1bZHf72qNa3439nDoEcdHdUWMAshbq
Dash: XrucvJa2F3GLfqn3h8MQPww16i9rHN5Lae
NEO: APPViiDBuQn8NcKqgzX31jQ2ySaP2kW47L

source

16 COMMENTS

  1. The rumour wasn't necessarily started in order to move the market. Rumours start for all sorts of reasons, usually for no clear reason at all. Could have been that someone made a joke that someone took seriously; they told some other people, one of whom had a social media following… Chinese whispers basically.

  2. I don't believe that this particular crash would have anything to do with the false news. But I'm wondering that is this crash a correction of the whole cryptomarket because of long bull run of the whole cryptospace? Or are most altcoins just following a crash of Bitcoin and Etherium? My main question is that if Bitcoin would fall, let's say 90%, would most of the altcoins fall 90%? In my mind they shouldn't be connected… but are they in reality?

  3. anyone who trades stocks, fx or cryptos on margin these days is going to get wrecked hard.

    Also if you look at many cryptos in terms of their fiat price, they look very overbought and similar to Bitcoin at the end of 2013. It's just a natural part of the cycle when a flood of new money comes in, there will inevitably be a big sell off to a more sustainable level.

  4. Ethereum didn't crash due to the fake death rumors. Ethereum was in a correction before this rumor, and some sick/greedy people who had just sold their Ether wanted the price to fall further, so they likely created the death rumor, hoping to buy back Ether at much lower prices.

LEAVE A REPLY

Please enter your comment!
Please enter your name here