Bitcoin has reached its lowest value since February
A hack on a South Korean exchange appears to have knocked investor confidence, causing the cryptocurrency market to continue to dip in value.
A popular exchange named CoinRail suffered an attack on Sunday, which has resulted in a predicted loss of $28million altcoins.
Altcoins are a lesser known version of bitcoin, built on the basic framework provided by bitcoin.
In 2018 so far, the cryptocurrency market has suffered huge blows, losing more than 50 percent of its value.
The past three days alone have seen bitcoin and Ripple suffer losses of 10 percent.
Is Bitcoin still falling?
As of 10am (BST) bitcoin was valued at $6,569.15, with competitors Ethereum sitting at $489, Ripple at $0.554110 and Litecoin traded for $99.42.
As of 9.30pm, bitcoin was trading for $6,240.12, which is a loss in value from this morning of just over five percent.
Hackers targeted CoinRail and have stolen Altcoins
Ethereum’s price stood at $468.84 whilst Ripple is at $0.5188 and Litecoin $91.94.
The value Ethereum is trading at has declined four percent throughout the day.
Why are cryptocurrencies slumping in value?
Whilst difficult to attribute a single reason to the plummet in prices, some analysts have blamed the recent hack at South Korean exchange CoinRail.
The attack on CoinRail was announced on Sunday, with several altcoins having been stolen by hackers.
Despite altcoin being a lesser known cryptocurrency, investors may have felt a threat to the cryptocurrency market, resulting in prices dropping.
This has caused a 70-day low for the cryptocurrency market, with each currency losing an average of 10 percent over the weekend.
The slump has continued throughout the day, with Litcoin losing 7.5 percent through today alone.
This could be a knee-jerk reaction to the hacking in South Korea
It remains to be seen as to whether this is a continuing trend for cryptocurrency or a knee-jerk reaction to the hacking.
Ran Neu-Ner, a cryptocurrency trader, told CNBC’s Fast Money: “We keep going down, and we’re testing new lows.”
Prices are the lowest the market has seen since February, declining well below 2017’s average peak of $19,500.
However, eToro senior market analyst Mati Greenspan thinks recent hack on CoinRain should not be taken out of context.
He said: “The narrative that such a small hack caused such a large price reaction has definitely been overplayed.”