Bitcoin’s price crashed yesterday but it was bitcoin cash that grabbed headlines. The bitcoin rival's price spiked after it was introduced in online wallet Coinbase’ exchange. The sudden price increase of as much as 174% for bitcoin cash is being investigated at Coinbase as a case of insider trading. (See also: Coinbase Investigates Possible Insider Trading Before Bitcoin Cash Announcement.)
While trading volumes for other currencies on GDAX, Coinbase's exchange for institutional investors, are available, bitcoin cash trading activity is not yet known. Bitcoin Cash's price started rising after it announced an integration with BitPay, a payment processor for bitcoins, this week. Its enthusiasts point to recent developments as signs of greater traction within the cryptocurrency ecosystem.
The price of a single bitcoin, which had almost touched $20,000 over the weekend, dipped to as low as $15,643.21 this morning before recovering. At 13:37 UTC, bitcoin was trading at $17,708.60, unchanged in the last 24 hours. Bitcoin futures at CME and CBOE settled at $18,200 and $17,555, respectively. It remains to be seen whether yesterday evening’s volatility is reflected in today’s futures price actions.
Not surprisingly, bitcoin cash racked up the highest gains among the top 10 most-traded cryptocurrencies. It was trading at $3,580.52, an increase of 51.41% in the last 24 hours. IOTA, Dash, and Bitcoin Gold were the other cryptocurrencies with significant double-digit gains.
Other cryptocurrencies were in the red, as of this writing, with the exception of NEM, that rose by 4.85% in the last 24 hours. There might be some price action around Litecoin today after news emerged that its founder Charlie Lee has sold all of his holdings to absolve himself of "conflict of interest." The overall market capitalization for cryptocurrencies was $631 billion at 13:50 UTC.
A Day Full Of News
The Coinbase fiasco garnered headlines at the end of a news-filled day for cryptocurrencies. Some publications have compared the news deluge yesterday to a similar one that occurred right before the dotcom crash of 1999.
South Korean exchange Youbit filed for bankruptcy. But overall losses stemming from the bankruptcy are said to be less than 17%, thanks to insurance as well as the fact that 75% of its assets can be withdrawn. The SEC halted trading for The Crypto Co., a company whose shares have risen by 2,700 percent in the last month. Among other things, the agency cited concerns about “accuracy and adequacy” related to the company. This is the second such case of cryptomania after LongFin Tech, a Singapore-based company, surged 2,600% in one week after purchasing a microlender that uses digital coins for transactions.
And, bitcoin ETFs received an additional push from the CBOE. The agency filed for permission to list two bitcoin-related ETFs - The GraniteShares Bitcoin ETF and GraniteShares Short Bitcoin ETF - on its CBOE BZX exchange. But the chances that they will be approved are unlikely. (See also: Bitcoin ETFs Are Next In Line After Futures.)
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