The valuation of the cryptocurrency market on August 1st dropped to $270 billion as the price of bitcoin went through further declines of over 7 percent from $8,300 to $7,500.
Bitcoin and other major cryptocurrencies have made slight recoveries over the past day, adding $3 billion to the valuation of the cryptocurrency market. Yet, the short-term recovery which was expected yesterday of about $£0 billion was unable to add a significant amount of volume and demand to the market, and from the look of things, a further decline is quite likely than a recovery.
Throughout last week, before the sudden decline in the price of Bitcoin and Ether on August 1st, the volume of Bitcoin, Ether, EOS, Bitcoin Cash and Ripple was still rather high with bitcoin sustaining its $5.5 billion daily trading volume.
Due to the low volume of bitcoin and the poor performances of tokens including Polymath, WaltonChain, and VeChain that made significant gains against bitcoin in early July, it is very unlikely to see a recovery above the $8,000 level.
Paolo Passeri, a cryptocurrency researcher, noted in an interview with Express that eh security crack of KickICO earlier in July indicates evident problems in the initial coin offering market and the doubt of investors towards tokens. He noted:
“Another week, another crypto company falling foul of hackers. Last Friday, ICO platform, KickICO, became one of the latest businesses to suffer a breach when 70 million KICK tokens were stolen. At the time of the attack, this quantity of tokens amounted to a cool $7.7 million, which was lifted from a number of wallets across the platform.
Until the crypto market engages in a proper mid-term rally and finds stability, Passeri emphasized that security breaches and negative events surrounding the ICO market will have an impact on the price of Ether and tokens in general.
“Although the breach was detected and further damage prevented, it doesn’t lessen the concern caused by the hijacking of the private key. Instances like this confirm to threat actors that security is still not being seen as a priority among crypto startups – a very dangerous oversight,” he added.