Bitcoin prices looked to recover from a tough weekend moving into trading action on Monday, June 11. Here's what you need to know in cryptocurrency as the week begins.
Prices Hit 2-Month Low
Bitcoin prices slipped below $6,700 Sunday, June 10, registering a two-month low for the largest cryptocurrency by market value. Bitcoin took a swift hit, with about $500 of value wiped out in a single hour around midday. Prior to the weekend, bitcoin had not tallied a daily low under $7,000 since April 12. Trading volume rebounded some as prices fell Sunday, with daily volume totaling more than $5 billion for the first time since May 31. Year-to-date, bitcoin has lost more than 52% of its value. In the last month, the cryptocurrency has handed back more than 23% of its value.
Many experts attributed weekend losses to news that Coinrail, a South Korean cryptocurrency exchange, was hacked. Coinrail announced it had suffered a "cyber intrusion" but did not disclose what kind of coins or how many were stolen from its platform. According to Coindesk, some experts believe the losses could total as much as $40 million. Coinrail has suspended its services and announced that 70% of its reserves are safe and have been moved to a cold wallet that's not accessible through the internet. Coinrail also added that, among the 30% of coins that could have been compromised, roughly two-thirds are currently frozen.
CFTC Subpoenas Data
The Commodity Futures Trading Commission (CFTC) has reportedly subpoenaed data from four separate crypto exchanges as part of an investigation into market manipulation, the Wall Street Journal reported. The CFTC is said to have demanded data from Bitstamp, Coinbase, itBit and Kraken, which together serve as the base for bitcoin futures prices listed by the CME Group. CME had reportedly been lobbying the exchanges for access to their data to no avail, prompting the CFTC to get involved. CME first requested trading data from the exchanges in January after its first futures contracts settled, but the exchanges said the request was too intrusive and refused to comply.
Former FDIC Chair: Fed Should Consider Coin
Sheila Bair, former chair of the Federal Deposit Insurance Corp. (FDIC), said the Federal Reserve should start to get serious about the possibility of issuing a central bank-backed cryptocurrency. Bair offered her sentiment in an op-ed published on Yahoo Finance, adding that, "If [the Fed] does not stay ahead of this technology, not only could banking be disrupted - but the Fed itself could also be at risk." Bair continued, "Presumably, a central bank-issued digital currency (CBDC) would be as stable as traditional fiat currency, while reducing the risk of financial crises and improving monetary policy tools." Bair noted that a hypothetical CBDC would also serve as a better tool for implementing monetary policy and addressing fluctuating economic cycles.
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