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Bitcoin Unfazed Even after Bithumb’s attackers made away with $30 mln in Crypto

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All over mainstream media, the safety issue of crypto funds has been the talk of town especially after the recent attack on Bithumb. Bithumb, the South Korean crypto exchange, was hacked in a series of events that saw the exchange platform, ranked in the top ten crypto exchanges in terms of trading volume, lose over $30 million in cryptocurrencies.

Previous attacks and how the market reacted

However, despite the attack, the market only responded mildly with no flash crash as experienced with previous attacks on exchanges. For instance, Coincheck was hacked earlier on in 2018 in what was the biggest coin heist ever such that Bitcoin’s price dropped by 10 percent almost immediately in response to the hack.

When Coinrail was hacker a few weeks ago, the market also experienced a flash crash where prices dropped by over 12.25 percent even as some believe that the crash was unrelated to the attack on the small exchange (Coinrail).

In contrast, when the news about Bitthumb broke out, Bitcoin remained pretty much unfazed only dipping by 2 percent after which its price recovered by 3.14 percent. In response to the hack, Bithumb managed to move quickly and halted deposits and withdrawals while moving all funds to offline cold storage. Furthermore, the company has also promised to refund users who lost their money in the process.

Has the market become inured to attacks?

Well, what stands out form all this is the fact that this time, the market has managed to stay afloat in light of the series of bad news that has been circulating. To most crypto experts, this could actually be a sign f a bull run that is just around the corner.

According to Brian Kelly, a trader with CNBC’s Fast money, the fact that Bitcoin’s price has remained unfazed by the Bithumb hack is a sign of a bull market on the rise.  He said that “things are different for Bitcoin this time around” while explaining that Bithumb’s fast reaction to secure funds, reimburse loses and the fact that the market is exhausted are reasons for the somewhat stable price movement.

In light of Kelly’s analysis of Bitcoin’s price movement after the attack, it seems convincing to conclude that the market has become inured to news about attacks on Bitcoin exchanges. After all, an attack on the wallets of an exchange is not necessarily an attack on Bitcoin.

As Charlie Lee, the founder of Litecoin puts it,

It’s like if a bank gets broken [into] and gold gets stolen, does that affect the price of gold? It shouldn’t. So same with Bitcoin. If the exchange doesn’t protect their coins well enough and it gets hacked, it doesn’t really change the fundamentals of the coin they’re protecting.”

What does Lee think about Bitcoin’s Current bear run?

The fact that the market has not reacted rapidly to the attack on Bithumb as compared to previous attacks could also mean that retail traders who previously would panic with news of an exchange being attacked are more educated with the understanding that it is always a bad idea to leave your funds on an exchange.

Additionally, Lee also pointed out that crypto enthusiasts, traders, and investors should take the responsibility to protect their own funds. In regards to whether Bitcoin will ever recover from the bear rally, Lee believes that Bitcoin’s price in the market is actually disjointed from the level of development on the Bitcoin network. According to him, the platform is progressing “really well” and a bull rally could be anytime soon.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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