The Big Q: Was Bitcoin’s Dive Really Caused By a “Hack”?
At the weekend the price of Bitcoin hit a 2-month low on the Bitfinex exchange and bounced a bit.
The Big Q: Was the cause of the dive really a ‘hack’?
The Big A: Some think that the hack on a SKorean exchange was responsible, others say a correction was due in here.
Sunday, a SKorean cryptocurrency exchange, Coinrail, said it had been the target of an attack. And reports suggested as much as $40-M of tokens had been lost.
Note: Bitcoin was not among the assets reported stolen.
The price correction
Sunday, Bitcoin dropped around 10%, and traded down about 5.4% Monday. Bitcoin has been ranged within $7,000 to $7,800 for the last 2 weeks after touching a 3-month peak at $8,900 in early May.
SKorea has taken a hard regulatory line on cryptoassets and exchanges.
ICOs (Initial coin offerings) are banned there, and the government came close to banning exchanges too.
This loss is sure to increase SKorea’s concern about digital assets and how they are traded. A company official from Ripple has said that the SKorean government should not impose tighter restrictions on the market there:
“We just think it needs to be a regulation that balances the need to protect consumers without stalling or prohibiting innovation. We’ve seen that in other countries and in other technologies where you found a balance. Frankly if you think back to the early age of the internet, there were some people that only looked at the negative aspects of the internet saying we should shut it down for a while until we figure out what’s going on, and what is good and what is bad.”
Currently, Bitcoin is trading at 6,771.1948, -5.7202, or -0.08%, as of 11:48p BST, the market is open.