- All major coins are nursing losses on Wednesday.
- Quadriga FUD is gaining traction.
Cryptocurrency market is in red on Wednesday. All major digital assets – except for Binance Coin – are nursing losses from 1% to 10%. The total capitalization of all digital assets in circulation dropped to $111.4B from $113.5B on Tuesday.
There are no clear reasons that might explain the sudden decline; however, the FUD around Canadian cryptocurrency exchange Quadriga seems to be gaining traction in mass media and social channels.
The Indian authorities confirmed the death of Quadriga’s CEO. The ailing company claims that he was the only one who had the key to the cold wallet with C$180M ($137.13M) in cryptocurrencies.
The creditors of the company – including 115,000 users that lost their money – filed a lawsuit. However, Halifax judge Michael Wood put the suit on hold for 30 days.
Market overview
Bitcoin (BTC) is changing hands at $3,371, down 1/6% since the beginning of Wednesday. The largest digital asset came close to critical short-term support around $3,350. A sustainable move lower will open up the way towards $3,200 and 2018 low at $3,127.
Ripple’s XRP is hovering above $0.29 handle, down about 2% on a day-over-day basis. This is the second largest coin with the current market value of $12B. XRP/USD has reached a critical support zone, strengthened by the lower boundary of the daily Bollinger Band. If it is cleared, the decline may be extended towards $0.2832 (January 28 low).
Ethereum (ETH) is changing hands at $102.50, down 4%since this time on Tuesday. The coin may be on the verge of a broader collapse if $102.00 handle gives way. The next barrier is created by psychological $100.00, which is followed by 2018 low at $82.02
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