In the last two days(5/11/2018), two events have made the Cryptocurrency market fall by a significant margin. One is Mt.Gox selling another 8200 BTC and another is that South Korean Officials have raided and are investigating the large Crypto Exchange, Upbit. I’m not sure why the first one would have such an effect on the price of Cryptocurrencies because the supply of Bitcoin is over 16,000,000 and 8200 does not represent a huge chunk of the supply. The daily volume at the largest exchanges is several times 8200 BTC. I think people are just suddenly panicking over the liquidation by a whale but everyone who has been in the game for any amount of time knew this was coming by Mt. Gox. They said last time they sold that they were looking to sell more to cover costs. I think the shock from this will soon be recovered.
The more serious news is South Korean Authorities are investigating Upbit, probably to see if anyone is money laundering or evading taxes using the exchange. I don’t think that much will come out of this investigation and it will blow over. It could just be the government and banks trying to put some handcuffs on the growth of cryptocurrency because it threatens their power and dominance over the financial system. Eventually I do believe that stuff like this will cost countries like South Korea and Japan the business and money of large exchanges like Upbit and Binance and drive them away to countries like Malta, which are much more welcoming. At some point these governments are going to realize that all their doing is driving business and money away from their countries and will have to relax the regulations on Crypto exchanges. Even if the authorities find something wit Upbit, I think it will still just be a temporary setback and the market will recover fairly quickly.
That is the wrap on today’s news.