What is happening with the new digital market?
The last few weeks have not been great for the world of cryptocurrencies and the last week of June a drop in the value of BTC was recorded along with other altcoins totalling $8bn. During this time, the value of a Bitcoin has dropped from around $7600 to around $6000 in the time of writing.
Whilst this fall is not as drastic as some others in the recent history of cryptocurrency, it does reflect a somewhat negative sentiment towards the sector and means BTC remains an incredibly volatile asset.
The most recent slump began back on June 12 after the announcement that the SEC in America will not consider Ethereum as a security. This triggered a fall in the markets that is still being felt today.
When we compare it to the highs of last December’s bull-run, it leads many investors and stakeholders to question what exactly is going on.
Naeem Aslam and regulatory concerns
On June 11th, a South Korean exchange was hacked and this was heralded as a catalyst for the sudden slump in the market. Many commentators refuted this cause and effect link and have looked for other reasons why the prices dropped but Aslam believes this is just another bit of negative news for the market.
“Exchanges are not utilising the top-notch technology to protect consumers and hackers are taking full advantage of this issue. The question is, is there any limit to these hacks? After every few months, we are seeing the same pattern emerging. This is the result of loose regulatory control and regulators must step in to protect the consumers. Anyone who wants to do with anything with exchanges should be forced to adopt high-grade security and regular security upgrades.”
The effect of such hacks reinforces the fact that investing in crypto is a big risk and this makes it a big turn off for many potential investors.
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