Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

In Monday’s crypto carnage, the market provided a hefty discount that people have been calling out for some time now, with the digital assets rallying hard.

The overall cryptocurrency market lost $240 billion, but since then, it has gained some $86 billion back as the prices of cryptocurrencies make a recovery.

While Bitcoin went under the $50,000 level, Ethereum went under $1,550. But what has been interesting and for some devastating, the price of Ether went to $700 on Kraken.

The cryptocurrency exchange had some wild price action on Ether as after such a discounted opportunity, it went back right above $1,700 and caught up with other exchanges soon after.

This hasn’t even been a one-time thing as popular crypto personality, CryptoCobain, tweeted, “People trading on Kraken are masochistic. Once per month they get completely fucked by the matching engine.”

While for leveraged traders, it was a disaster, this also turned out to be a perfect opportunity for spot buyers.

“Unbelievable, my fishing ETH orders below $1.2k have been filled on Kraken,” tweeted one trader, who is extremely bullish on Ether and has long been calling out for a $10,000 price target for the second-largest cryptocurrency in this cycle.

On top of the deep red market, this much price volatility sent the gas prices on the network soaring. This made trading on-chain nearly impossible, let alone allowing traders to front-run.

Exchanges were already struggling with too much activity, with Kraken reporting, “Due to heavy traffic you might experience some connectivity issues. We are working to resolve the issue as soon as possible.”

Then, this congestion due to demand spikes on the Ethereum network led to delays with ETH and ERC20 token withdrawals.

Besides Bitstamp, Binance, as usual, felt the heat and suspended withdrawals.

“Binance has temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion. Rest assured funds are SAFU, and we apologize for any inconvenience caused,” informed the leading spot exchange.

For now, things are slowly coming back to normal, ETH is currently around $1,750, and Bitcoin is back above $53,500.

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Author: AnTy

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale Ethereum Trust share price fell 48% and premium 94% despite the price of Ether surging past $1,000.

The shares of Grayscale’s Ethereum Product, ETHE, that had been trading at a premium of 270% on Dec. 22nd have now come down to just under 15%.

This premium has been coming down over the years; back in June, this premium was at about 950%, and before that in 2018, it was around 3,550% based on the demand for the product, price of the underlying asset, availability of other products, and the lock-up period of these shares.

The premium on ETHE has been on an incline since October, when crypto assets started rallying. But this week, the 6-months lock-up period for these shares ended, which pushed this premium down.

“A significant number of private placement investors have their lock-ups ending today and are receiving shares this week,” noted Joshua Frank, CEO at The TIE.

Grayscale’s ETH holdings are still at 2.94 million ETH, worth $2.94 billion, but with no new additions since Dec. 9.

Interestingly, the ETHE share price has fallen over 48% to Nov. 30 level of $12 while during the same period, the price of Ether rallied more than 75% to above $1,000.

The cause of this fall in ETHE price was a flood of new shares in the Grayscale Ethereum Trust. Besides the 47 million shares already outstanding, another 116 million were available to trade as their lock-up period ended.

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Because regulators haven’t approved an exchange-traded fund (ETF) for cryptocurrencies, Grayscale’s exchange-traded product works similar to a closed-end mutual fund. Here, a fixed number of shares are issued that can at times trade at premiums or discounts with a six-month lock-up period, but without a method to realign the prices.

“By failing to allow a crypto ETF in the U.S., the SEC has left retail investors exposed to significant risks via wide mispricing in less-efficient vehicles, while giving an advantage to accredited investors such as wealthy individuals, hedge funds and private-equity firms,” said James Seyffart, associate analyst for Bloomberg Intelligence.

The price of ETH actually went to the Jan. 2018 high of $1,000 on Coinbase on Sunday only to drop to $885 right after.

One trader expects ETHE investors to affect the price and send it crashing in the near future.

“What are boomers gonna do tomorrow when they see that ETH is up 70% and ETHE is down -50%? and then the next boomers and the next and the next? a reflexive cycle. down to the depths of namek.”

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Author: AnTy

Red Alert: Bitcoin Price Takes a Dive Below $9,400

  • Bitcoin crashes to $9,370
  • Altcoins fall even harder, except Link, which is in the green

Bitcoin price dropped hard today, falling to $9,370, the lowest point on Sept. 24, so far. We started the day at $9,780 but soon dropped down to $9,500 and then below $9,400. At the time of writing, BTC has been trading at $9,530 with 24 hours loss of 3.44%.

Trading volume, in response, surged to $893 million, rising from about $400 million seen last week.

Source: TradingView

As we come to end the Q3 of 2019, Bitcoin is finally looking to make its way to $8k that analysts and traders have been calling out for since Q2. We made a good start of the month, climbing to almost $11,000, only to drop down and struggle around $10,000.

Since last week, BTC price has been looking to finally make a move and then on the weekend, Bakkt launched its much-anticipated physically delivered daily and monthly bitcoin futures.

Before the launch, analysts have projected this week to see Bitcoin making a “big move” and decide the direction it will move in, for the coming weeks or months. Also, looks like we will finally get to see either $8,000 or much lower $7,000.

Altcoins Goes Deep Red

As Bitcoin crashes, altcoins fall even harder. EOS is leading the losses by 11.20% followed by BSV (10.88%), Stellar (10.19%), Tron (9.44%), Cardano (8.94%), and Ethereum (8.01%), as per Coincodex.

Source: Coin360

Links is the only coin among the top cryptocurrencies that is an exception to this red market, trading in the green by 5.50% at $1.95.

Total market cap is ready to break the $250 billion mark while BTC dominance has gone back to just above 70%.

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Author: AnTy