Would a Bitcoin Crash Be a Catastrophe?

Bitcoin prices dropped another 3% Monday following Friday’s 2.5% drop, but on Friday Ethereum sank 30% to $1,096.

Ethereum and Bitcoin have become the second- and third-most traded cryptocurrencies in the world. The market value of those cryptocurrencies both exceeded $100 billion in less than two months.

Bitcoin touched $7,500 on July 4, 2016 – only to crash down to $1,000. It’s been up and down since then. It hit a record $6,888.20 in mid-December 2016, but lost value in the weeks that followed.

Would a major crash happen soon?

This past week saw several data points from the Bitcoin exchange, which have attracted some critical attention. Bitcoin HitBTC is trading at a slow pace. Bitcoin services users have concerns about security and payment methods.

Further, CEO Danny Wu of BitLicense, which also offers blockchain-related resources, plans to sue BitLicense (formerly Robinhood) for improperly copying his services.

Shares of Coincheck, Japan’s second-largest cryptocurrency exchange, have fallen 70% to 65 billion yen (over $588 million USD). Several popular services such as Bitfinex and EtherDelta were already unavailable, while those that remained largely lost value.

According to Coincheck’s CEO, Hitoshi Saito, “We have seen trading volume tank by up to 80% to 100% compared to normal.”

A number of the exchanges saw a reduction in the value of bitcoin after the exchange was hacked.

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