The Bitfinex Hack is Still Scaring Away Bitcoin Traders
Bitfinex’s hack continues to cast a shadow.
While the price of bitcoin had a relatively quiet month in September (one characterized by low volatility and lackluster trading), the Bitfinex hack continued to serve as a drag on the world’s largest digital currency market.
Arthur Hayes, CEO and co-founder of bitcoin trading platform BitMEX, noted that the sideways price movements that took place during the month were most likely a direct consequence of the Bitfinex hack. He argued that with 120,000 BTC removed from the market, the event continues to “suffocate bitcoin interest and sentiment”.
But even though trading volume was tepid during September, speculation was high, and these market conditions combined to fuel some rapid and aggressive long and short squeezes.
Overall, bitcoin prices rose 6.3% during September, which represented the smallest monthly change observed since March, CoinDesk USD Bitcoin Price Index (BPI) data reveals.
While this figure was slightly smaller than July’s 6.93% drop and August’s 8.56% decline, it was sharply lower than the fluctuations experienced in May and June, when bitcoin prices surged 21.70% and 26.46%, respectively.
This post was published at Coin Desk on October 21, 2016.