In another volatile day, cryptocurrencies dropped rapidly on Tuesday, more than reversing Monday’s gains. In the last 24 hours, Bitcoin (CRYPTO:BTC) has fallen 3%, Ethereum (CRYPTO:ETH) is down 5%, and Dogecoin (CRYPTO:DOGE) has dropped 7.6%. Momentum also appears to be pushing these cryptocurrencies lower, so the fall may not be over yet.
As usual, regular volatility is likely the biggest driver with cryptocurrencies simply selling off as investors take profits. But there are some fundamental concerns that investors are likely worried about as well.
I think the biggest concern is hackers stealing hundreds of millions of dollars in cryptocurrencies over the last few weeks. The $600 million hack of the Poly Network hit the sector a couple of weeks ago, but those funds have now been returned. It’s a lower-profile $97 million heist last week that investors may just be hearing about. Theives have reportedly already “cleaned” $20 million in cryptocurrencies that may not be recovered and it’s possible most of the stolen cryptocurrency is gone. If hacking risk grows, it could be terrible for cryptocurrencies