In the current forecast of the cryptocurrency market made today SFOX, his status was downgraded from moderately bullish to uncertain.
In the report it was noted that the cryptocurrency rebounded significantly last month, but the overall mood of the stock market is at a turning point and it is unclear how much of the market growth due to the trend of FOMO.
SFOX actually repeated the recent findings made by the founder of Digital Currency Group, Barry Silbert, who said that the rally Bitcoins (BTC) may have been connected with the events of the trade war between the US and China.
Identification of new causes of volatility
According to the report, hacking Binance last month, in which hackers managed to steal 7000 BTC seems to have had little impact on the price of Bitcoin, however, is selling 5 000 BTC at a price of $6200 on Bitstamp, which was much below market quotations, it could be a possible cause of “sudden failure” of the market.
“The fact that the hacking Binance not brought down the price of BTC, suggests that the infrastructure of bitcoin has grown since the major hacks such as Mt. Gox, but the sell order on Bitstamp shows that the market still have a third-party way the huge impact of even one exchange asset class from the point of view of volatility.”
Overall, the price of BTC increased by 57% during may, in respect of the other five scriptaction tracked SFOX, including Ethereum (ETH) and Litecoin (LTC), observed a similar trend of growth.
SFOX analysts add that further trade events and expiration of futures on Bitcoin, unable to the end of June “to have a potential impact on market volatility, more than usual.”
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