Cryptocurrency markets have been in a period of decline as they continue to suffer from the series of hacks that has occurred over the last few weeks.
The “stock market crash history” is a good article that discusses how sharp market decline has been caused by multiple exchange hacks. The article also includes the weekend roundup.
Bitcoin has broke free from the mid-$50,000 level after weeks of hesitation. Bitcoin and the larger digital asset market went into freefall late Friday, which was bad news for investors anticipating a solid start to December. The following are some notable events over the last few days that might have influenced this behavior.
Cryptocurrency exchange hacks are nothing new. Countless burglars have made off with billions of money throughout the years. While digital assets have progressed significantly over the years, security measures have not followed up. The following hacks resulted in a total loss of over $350 million in only a few days.
Over the weekend, hackers were able to steal about $200 million by exploiting what is known as a ‘hot wallet breach.’
A total of over 20 separate chains’ tokens were taken in this incident. The procedure was characterized as “quite straightforward: transfer-out, switch, and wash” by PeckShield, the business that initially uncovered the theft.
While it is doubtful that BitMart would be able to recover the bulk of the monies it has lost, consumers who have been impacted will not be held liable for the theft. “BitMart will utilize our own cash to cover the problem and reimburse impacted users,” said BitMart CEO Sheldon Xia. We’re also speaking with a number of project teams to determine the most cost-effective options, such as token swaps. There will be no damage to user assets.”
A few days before BitMart suffered the events mentioned above, decentralized platform MonoX was hacked for more than $30 million.
In this case, hackers were able to steal cash by exploiting a flaw in the MONO smart contract, which allowed for token price manipulation and inflation. These tokens were then used to buy others at normal prices once they had been inflated.
If two hacks in a week wasn’t terrible enough, BadgerDAO also suffered a $120 million loss. According to the current situation, BadgerDAO has engaged Chainalysis to investigate and discover the reason of the theft.
BadgerDAO has placed the following note in an attempt to appeal to the thieves’ good nature.
“To the Actor — You have stolen monies that are not yours, but we are ready to work with you and pay you for uncovering this system vulnerability.”
We’re giving you a direct channel of contact so you may talk about a peaceful settlement without engaging anybody else. Contact us for more information and to do the right thing for the community.”
While this may seem to be a stretch, a hacker returned $600,000,000 in stolen assets earlier this year when the exchange in question made a similar request.
This breach, in particular, impacted not just ordinary investors but also huge corporations. Celsius, a lending behemoth, lost more than $50 million of its own money.
Metrics and Market Reaction
While things weren’t looking good heading into the weekend, no one anticipated the crash that followed. Bitcoin lost nearly $7000 in value in less than an hour, momentarily hitting the $45,000 barrier.
With all of this recent activity, many traders have began to express/experience dread about the market’s next move. As a result, the popular ‘Fear and Greed Index’ has shifted from Greed to Extreme Fear in only a few weeks.
Despite the dramatic drop and shift in mood, most observers think that Bitcoin is still in a bull market – although one that is dangerously close to entering bear territory. What is the best way to predict where the market will go from here? No one knows for sure.
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The “market crash coming” is a phrase that has been used in the crypto community for a while. The sharp market decline this weekend could be an indication of what’s to come.
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