OKEx to Roll Back ‘Irregular’ Futures Trades After Bitcoin Price Crashes Below $5,000
Cryptocurrency exchange giant OKEx is rolling back a series of Bitcoin futures transactions in response to an “irregular” sell-off that was localized to the trading platform.
The Hong-Kong based exchange announced on Friday that it would reverse transactions that occurred this morning between 4:47 am and 6:30 am Hong Kong Time (HKT) when Bitcoin futures inexplicably plunged as low as $4,755 on OKEx even as the global average Bitcoin price remained closer to $7,000.
The price of bitcoin is back below $7,000 and trading at its lowest price since Feb. 7.
According to CoinDesk's Bitcoin Price Index, the world's largest cryptocurrency is changing hands at $6,700, a move that follows its steady decline from around $8,000 since the start of the Mar. 29 trading session, a 15 percent dip within a day.
Stepping back, that price puts bitcoin at a 51-day low, down 42 percent from its recent high at $11,660 on Mar. 5, and 60 percent from its 2018 high of $17,144 observed on Jan. 7.
However, the 2018 low of bitcoin still remains at $5,947 on Feb. 6, according to CoinDesk's data.
3 REASONS WHY BITCOIN PRICE IS FALLING
Even the Financial Services Agency (FSA) came out with a statement that domestic cryptocurrency exchanges will be suspended causing further fall in Bitcoin price.
Here’s how this Chinese Bitcoin-mining company generated billion in profits in in 2017
SEC issued a statement last week that cryptocurrency platforms should not be called by the name of exchanges since it creates an illusion of regulated activity.
Bitcoin price when compared to last year has eroded substantially this year till date. And, the plunge hasn’t stopped yet. The fall in the prices of the digital currencies is primarily due to the two reasons. Bitcoin price was trading at $9,761.91 up 2.58 percent on Coindesk today at the time of reporting.The highest it reached today was 9,804.55. Despite these slight gains, there is still a long way to go before the virtual currency matches the highs set by it last year. Here are the three reasons behind Bitcoin price fall. Last week three negative news related with cryptocurrencies triggered their plunge.The first was related with Nobuaki Kobayashi, the Mt. Gox. Trustee, that he sold $400 million of Bitcoin and Bitcoin cash in the January and February this year. He still owns $1.7 billion worth of Bitcoins and this is adding further fears in the market.
Then there was a rumour in the market that popular crypto exchange Binance has been hacked in an attempt to influence Viacoin’s price. Securities Exchange Commission (SEC) issued a statement last week that cryptocurrency platforms should not be called by the name of exchanges since it creates an illusion of regulated activity. Investors are misguided in believing various online trading platforms to be SEC-registered and regulated marketplaces when they are not, SEC said. Even the Financial Services Agency (FSA) came out with a statement that domestic cryptocurrency exchanges will be suspended. All these factors lead to nearly 11 percent plunge in Bitcoin price.
Last month, Nouriel Roubini, the famous economist who successfully predicted the US housing crash in 2008, said that Bitcoin is mother of all bubbles and it’s also the biggest bubble in human history if you compare it to Mississippi bubble, tech bubble, and Tulip mania.