Total crypto market cap lost $23.1 billion of its value since Monday, June 3 and dropped down to $252.3 billion. After registering double-digit losses during the previous two days, top ten currencies are mostly in green for the last 24-hours with Bitcoin SV (BSV) and Stellar (XLM) being the exceptions with 7.3 and 1.2 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $7,835 on the Bitstamp daily chart, while ether (ETH) stands at $246 and Ripple’s XRP hovers around $0.403.
Bitcoin lost 7 percent of its value on Monday, June 3 and started the new week with a heavy loss. The long awaited price correction became a fact as the most popular cryptocurrency formed a large red candle and lost $600 of its value to stop at $8,097.
On Tuesday, June 4 it dropped further to $7,663 and threatened to break below the uptrend channel we drew last week. The 5 percent loss suggested we are in for a consolidation around $7,000 or even $6,500 before continuing the run towards $10,000. On the other hand, the fact that the uptrend is still active means we might be seeing just a larger form of price taking activities.
The BTC/USD pair bounced back on June 5 and climbed to $7,786.
The biggest news of the week without a doubt is the United States Security and Exchange Commission (US SEC) targeting the cryptocurrency startup Kik. In an announcement from June 4, the government body informed it will be suing the company for illegal offering of digital assets worth approximately $100 million in 2017. According to the official press release, Kik “sold the tokens to U.S. investors without registering their offer and sale as required by the U.S. securities laws.” The messaging app startup raised $55 million from U.S. investors by selling their Kin token with a discount.
The Ethereum Project token followed the general cryptocurrency market trend and lost 7.5 percent of its value on Monday, June 3. The ETH/USD dropped down to $248, but was still managing to keep above the important price level of $245.
On June 4, the ether moved even lower, this time to $240, but avoided a more severe correction. Bulls were able to regain positions on the next day, June 5 and formed a green candle to $246.
It will be of critical importance for bulls not to remain below $245 for a long period of time in order to prepare for another attack of the levels between $250 and $300 in the short-term.
Ethfinex, the Ethereum-based trading platform started by cryptocurrency exchange Bitfinex launched a “trustless…Over-The-Counter service” on June 3. According to the company, users will be able to trade any ERC-20 token, not just the ones listed making the platform one of the most innovative in the industry.