Crypto Currencies

Crypto Currencies Investing, Mining and Trading news & updates

Hackers swipe $100 million in cryptocurrency from blockchain bridge Harmony – CBS News

  1. Hackers swipe $100 million in cryptocurrency from blockchain bridge Harmony CBS News
  2. Hackers Steal Another $100 Million In Crypto From A Blockchain Transfer Protocol, Total Lost In 2022 Above $1 Billion Forbes
  3. Hackers steal $100 million in cryptocurrency The Washington Post
  4. Hacker exploits Harmony blockchain bridge, loots $100M in crypto TechCrunch
  5. FBI investigating $100 million theft from blockchain company Harmony The Record by Recorded Future
  6. View Full Coverage on Google News

DARPA Report Finds Vulnerabilities in Blockchain Tech, Non-secure Crypto Transactions – Nextgov

  1. DARPA Report Finds Vulnerabilities in Blockchain Tech, Non-secure Crypto Transactions Nextgov
  2. DARPA study challenges assumptions about distributed ledger (and Bitcoin) security The Register
  3. Blockchain isn’t as decentralized as you think: Defense agency report Cointelegraph
  4. Blockchains Vulnerable to Centralized Control, DARPA Finds Gizmodo
  5. DARPA, Research Firm Unveil Study on Blockchains & Related Cyber Vulnerabilities Executive Gov
  6. View Full Coverage on Google News

Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted?

by Staff

By Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock

Bitcoin plummeted over the weekend below the ATH reached in 2017, at around $19,600. Coinglass, a trading and information platform, shows that there were $600 million in liquidations as Bitcoin dropped to a low of $17,600 approximately. Bitcoin suffered around $300 million in liquidations whilst Ethereum endured $200 million.

Despite this downward price action, Bitcoin closed the week strong above $20,000 and some on-chain metrics suggest a macro bottom, or temporary bottom, could be close.

Why are many altcoins showing strength against Bitcoin and Ethereum?

We are not seeing a similar cascade in liquidations for altcoins relatively, and they have generally shown strength over the past week or so. This is because Bitcoin and Ethereum are the primary uses of collateral for leveraged positions, and the fact we can see on-chain the various liquidation prices means that a cascade lower can be premeditated. I also think one of the main reasons why we have not seen buy pressure for Bitcoin and Ethereum over the past two weeks is because major buyers can see other peoples’ liquidation levels.

What do on-chain metrics suggest about the recent drawdown?

Glassnode’s on-chain analysis shows that the liquidation cascade over the weekend resulted in the largest USD denominated realised loss in Bitcoin’s history. There were over $7.325 billion in Bitcoin losses locked in by investors, and approximately 555k Bitcoin changed hands between $18,000 and $23k. Investors with 1 year old coins capitulated as data from Glassnode shows an impulse higher for ‘Revived supply last active 1+ years BTC’.

Lastly, as Bitcoin reached the low of $17,600, just 49% of the supply was in profit. We can see in this chart from Glassnode that historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit.

Based on historical data, all of these indicators either suggest Bitcoin may have reached a temporary bottom or it has started a bottoming process for this bear market. It is important to note when looking at this historical data, that Bitcoin has not gone through a period of persistent inflation. We may be edging closer to a generational bottom as more forced liquidations occur, but we can not be confident of a sustained uptrend until inflation convincigly slows down.

#blockchain #crypto, #decentralized, #distributed, #ledger

Federal Reserve’s Plans to Hike Interest Rates Spooks Traders into Selling Crypto

by Wieke Beenen

Bitcoin is crashing again, temporarily plunging it to below $20,200 earlier today, as spooked traders have frantically been selling off the cryptocurrency before the US Federal Reserve is expected to do something it hasn’t done in 28 years — increase interest rates by three-quarters of a percentage point.

In response to soaring inflation and volatile financial markets, the central bank will hike the rate that banks charge each other for overnight borrowing to a range of 1.5%-1.75%.

BTC and ETH has fallen to trade just above $20,000 and $1,000, respectively, as the selloff across broader crypto markets continued. This means the total value locked (TVL) of tokens across all blockchains declined by over 8% in the past 24 hours.

Mikkel Morch, Executive Director at crypto/digital asset hedge fund ARK36, is closely following the price movements, he says, “Bitcoin has been really caught in the crossfire these past few days. There is still a huge gap between nominal rates and real rates so there is much more room for the Fed and other central banks to hike in the months to come. Investors can’t realistically expect risk assets to have a more sustained uptrend until the Fed pivots.

Additionally, some parts of the broader crypto ecosystem are facing a rather harsh reckoning. As the reality of the bear market starts to settle in, the hidden leverages and structural weaknesses of projects that only worked when the prices went up are finally brought to light. In the long term, tokens with strong use cases and utility will survive – as they did in the previous bear markets. But some companies within the space have had unsustainable business models and now present a contagion risk.

So Bitcoin is hit with a double whammy and it is more than likely that we are going to see sub-$20K prices soon. Some are calling for $12K – and while this can happen, we think that this price tag has a relatively low probability for now. Today, all is in the hands of the Fed. A 75 basis point rate hike would likely take us to $16-18K. On the other hand, a 50 basis point rate hike could result in a substantial bounce – likely to the $24K resistance levels.”

#blockchain #crypto, #decentralized, #distributed, #ledger

Bitcoin Plummets but is there More Downside Ahead?

by Staff

By Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock

Despite the Nasdaq bouncing 0.21% yesterday and both the S&P 500 and Nasdaq futures showing gains this morning, Bitcoin continues to plummet. What are the factors contributing to this extreme sell off?

Systemic issues in crypto infrastructure companies such as Celsius

Celsius are one of the biggest lenders and could potentially become insolvent. The Celsius on-chain liquidity crisis has become healthier over the past 24 hours, as they have added to their collateral across the board for 3 main positions. One of these positions involving a Maker wBTC Vault now has a liquidation price of $14k, which was once around $22,500. This is because they have paid down more of their DAI debt.

There is a clearly a high level of uncertainty right now, in regard to the significant exposure Celsius has to stETH in proportion to the Curve pool size.

I think many people are waiting for more information with their stETH position, so they can have confidence to buy again – if a Celsius deal is reached and publicised this could lead to a relief rally.

Insolvency of crypto hedge funds like 3 AC (Three Arrows Capital)

This is one of the biggest crypto hedge funds, and one of the biggest borrowers. At its peak, it owned over 5 billion dollars of assets and hundreds of thousands of ETH. If they collapse, this will mean that lenders would incur drastic economic risk. The Profit-Loss difference between how much they owed versus what they get in liquidating their collateral is at risk.

Lenders will be forced to protect themselves by withdrawing credit from the system and result in further de-leveraging of crypto assets. I think it is likely that more people need to de-lever still.

Unwind of liquidity in global markets due to rate hikes and QT

QE has led to global markets and crypto rising over the past couple of years, but the opposite has meant that investors are forced to unwind their positions, particularly in risk-on assets. We have the Federal Reserve interest rate decision today at 7pm UK time, which will be determine how aggressive they decide to be and therefore the outlook over the next 6 months. I think a very aggressive Federal Reserve might be the best way forward for markets, so that the Federal Reserve will be able to resume QE sooner.

#blockchain #crypto, #decentralized, #distributed, #ledger