Markets Update: Crypto Prices Show Strong Recovery After Binance Loss
Cryptocurrency markets are doing much better the day after the digital asset exchange Binance lost roughly 7,000 BTC ($40 million). Immediately after the trading platform officially announced the multi-million dollar loss, the cryptoconomy shed billions but since then most digital assets have recovered and markets are doing surprisingly well.
Cryptos Recover After Dropping a Few Percentages Following the Binance Loss of $40M
May 7 was a crazy day for crypto enthusiasts when the exchange Binance announced the loss of $40 million worth of BTC. The company claims it was hacked and has been forced to suspend deposits and withdrawals for one week. After the official announcement began to virally spread across social media, bitcoin core (BTC) markets tumbled from Tuesday’s high of $5,900 per coin to a low of $5,751 according to Bitstamp’s data. Many other coins followed suit with BTC and shed some percentages on May 7 as well. For at least 4-5 hours, markets consolidated but soon after that the crypto bulls have pushed prices back up and most coins have regained what they lost on Tuesday.
Today, on May 8 the entire market capitalization of all 2,000+ digital assets hovers around $184 billion. BTC is priced around $5,917 per unit at press time and has a market cap of around $104.6 billion. Ethereum (ETH) markets are up 5% for the week but because of yesterday’s chaotic action, ETH is down 2.4%. One ETH is swapping for $168 and the entire market valuation is roughly $17.8 billion. The third largest market cap is ripple (XRP) at $12.6 billion today and each XRP is trading for $0.30. Lastly, litecoin (LTC) markets are down 1.9% and each LTC is trading for $73 at the time of publication.
Bitcoin Cash Market Action
Bitcoin cash (BCH) markets are down 1.4% after yesterday’s losses but over the last seven days, the digital asset is still up by 5.1%. Trade volume is around $1.49 billion and each coin is trading for around $283. The top five exchanges trading the most bitcoin cash include Coinbene, Lbank, P2pb2b, Bitmart, and Binance. The leading trading pair with BCH today is tether (USDT) with 56% of all trades. This is followed by BTC (28.8%), USD (6.8%), KRW (4.5%), and ETH (1.5%), while EUR and JPY trail behind the top five pairs. BCH has a market valuation of around $5 billion and it’s the sixth most traded currency by volume on May 8.
Looking at the 4-hour chart on Kraken shows BCH bulls are steadily trying to surpass upper resistance. Currently, the short term Simple Moving Average (SMA) is still above the longer term 200 trendline. This means for now the path toward the least resistance is still toward the upside. Most momentum oscillators are currently suggesting a selloff and the Relative Strength Index is around ~55 which is somewhat impartial.
MACd levels show strong sell signals at the moment and the Stochastic is hovering around 66.76 at press time. Order books indicate that there will be some tough resistance between now and the $300 zone. Moreover, there will be tougher sell walls to beat between $315-330. If bears manage to outpace the bulls then they will be stopped by buy walls around all the way until $270 and then again at the $240-250 region.
The Verdict: Crypto Markets Continue to Remain Unphased After Bad News
Despite the dips, cryptocurrency markets seemingly look as strong as they did the day prior, before the Binance loss was revealed. Exchange issues have become an increasing concern for crypto advocates with the recent Quadriga CX loss, and the Bithumb hack. Alongside this, traders have been leery about the issues between the New York Attorney General and Bitfinex. Crypto markets lost 10% after the initial injunction on April 24 but had regained most of the losses. After the Binance news, markets have reacted in a similar fashion by seemingly shrugging off the bad news in less than 24 hours.
Where do you see the price of bitcoin cash and the rest of the crypto markets heading from here? Let us know what you think about this subject in the comments section below.
Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
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