Crypto market turns down ahead of Consensus conference
Analysts blame recent news and trading cycles for the 15% drop.
Despite rising anticipation for CoinDesk’s annual Consensus blockchain technology summit in New York City next week, the cryptocurrency markets turned south this week.
For bitcoin, the drop started in earnest just after midnight on Sunday, sliding about 10% over three days, and then accelerated again mid-day Thursday. As of today, the descent has stretched as much as 15% below Saturday’s two-month high just under $10,000.
For other cryptocurrencies, the retreat has been worse, including a one-day loss of about 22% for EOS.
Cycle analysts and technical traders have been warning of a correction for weeks. Weiss Ratings has been alerting its Twitter followers since at least April 26, when it issued this tweet:
We said #crypto market was due for pullback, and it’s here. Meanwhile, commentators seem to always peg the “cause” on some news headline. This time, they say it’s a bug in ERC20 tokens (on the #Ethereum network). #cryptocurrency #ETH #btc #bitcoin
— Weiss Ratings (@WeissRatings) April 26, 2018
And it reiterated the warning just before the heavy damage last weekend:
— Weiss Ratings (@WeissRatings) May 4, 2018
Meanwhile, news reporters credited the correction to rumors of a secret SEC meeting and Warren Buffett’s comments against bitcoin early in the week, as well as further Mt. Gox bitcoin sales and the South Korean raid on UPbit within the last few days.
As bitcoin hovers around multi-week lows, Weiss anticipates the cryptocurrency’s “next bottom is probably week away”.
That could still produce a rebound on the heels of Consensus, which runs Monday through Wednesday. The conference is expecting to see more than 4,000 attendees from across the industry – a 50% increase over 2017’s numbers – and twice the number of featured speakers. The broader Blockchain Week NYC has events scheduled through next Saturday, May 19.
Check out the lineup of upcoming events in our guide to bitcoin and blockchain conferences around the globe.
Disclosure: At the time of writing, the author holds DRGN.