Crypto Markets Drop Amid US CFTC Crypto Price Manipulation Probe


The news about US CFTC Crypto price manipulation probe has pushed cryptocurrency markets into red territory. The US regulator has commenced an investigation into four major cryptocurrency exchanges; Bitstamp, Coinbase, itBit, and Kraken.

11 June, AtoZ MarketsCryptocurrency markets have experienced a sharp drop this weekend. This has happened due to the news that the US regulator, the US Commodity Futures Trading Commission (CFTC) has commenced an investigation into four major cryptocurrency exchanges.

Crypto Markets Drop Amid US CFTC Crypto Price Manipulation Probe

In fact, all of the top cryptocurrencies by market capitalization entered the red territory, while the total market capitalization of the crypto market has slid by about $20 billion, as per the data on Coinmarketcap. 

Bitcoin, the pioneer cryptocurrency, has dropped only 6 percent of its value, now changing hands at $6,808.35. The second biggest cryptocurrency by market cap, Ethereum, has also dropped by around 6 percent to trade at $533.89.

Total market capitalization stood at $298,036,324,325 at the press time. Following on this, Bitcoin Cash and EOS have seen the largest losses among the top 10 cryptos. The former has declined by around 8 percent to $941.73, while EOS has weakened by 14 percent to trade at $11.28.

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Cointail Hack Attempt

Such a steep drop in the value of top cryptocurrencies has been caused by the news that the US CFTC has requested trading data from four crypto exchanges: Bitstamp, Coinbase, itBit, and Kraken. According to the data from Coinmarketcap, these exchanges stand at the 21st, 14th, 45th and 13th places in terms of the trade volume in the world. 

After the launch of Bitcoin futures by the CME Group back in December 2017, the exchanges subpoenaed by the CFTC have been reporting price information for CME Group. The recent CFTC’s request has appeared as a part of an investigation into whether there is any activity in regards to these platforms that can be seen as a crypto price manipulation.

In the meantime, some of the online reports have stated that a South Korean cryptocurrency exchange Cointail is currently reviewing its system following an alleged hacking attempt. However, markets do not expect this even to have any significant impact on the price action on the markets. 

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