Bitcoin made a comeback despite crashing after a recent hack on a South Korean exchange, and two cryptocurrency traders explained why it rebounded.
Charlie Lee, the founder of Litecoin, a global decentralized currency that is based on blockchain technology, said it was to be expected.
“Whenever there’s an exchange hack, people get scared and the price drops,” Lee said on “Fast Money” Wednesday. “It happens all the time.”
“Whenever there’s some bad news like an exchange hack, the prices drop like 5 percent,” he said. “Five percent is a lot in the stock market world, but it’s like nothing in the crypto space.”
Bitcoin, the largest digital coin by market cap, fell from $6,718.35 to $6,561.79 Wednesday after news that the South Korean cryptocurrency exchange Bithumb was hacked and $30 million of coins were stolen.
By Wednesday evening at 5:30 p.m. ET, Bitcoin had rebounded to more $6,700 in what Kelly called a “mini uptrend.”
The two traders explain why.