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Will Bitcoin Stay Bullish Amidst a $40 Million Hacking Incident?

changpeng zhao

One of the biggest problems in today’s crypto world is the fact that there are security issues concerning cryptos. Over the years, a lot of crypto exchanges have been victimized by hackers. And one of the drawbacks for hacking is the fact that Bitcoin price goes down.

Binance, one of the world’s biggest crypto exchanges, has been attacked by hackers. Hackers were able to steal 7,000 BTC that is worth around $40 million.

The hackers were able to do it via a single transaction. However, the hackers reportedly used a number of strategies in order to steal the $40 million worth of Bitcoin from the crypto exchange. According to Binance, hackers made use of phishing and viruses in order to gain access to user data. There might be a number of other accounts that have been affected as well but Binance may haven’t identified them yet.

The good news is that there’s the Secure Asset Fund For Users which is an insurance fund that has been used in order to cover for the incident. The incident happened to the company’s hot wallet. It has around 2% of the company’s Bitcoin holdings. It is also worth mentioning that the other wallets were unharmed.

Bitcoin dropped by 3.1 percent following the hacking incident. Bitcoin was trading at $5,665 right after the incident. Zhao Changpeng mentioned that “The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time”. He also added that “We must conduct a thorough security review. The security review will include all parts of our systems and data”.

The review will be done this week. For the meantime, all the deposits and withdrawals are suspended. However, trading will be allowed in order for the investors to be able to adjust their next move. Also, users were advised to update their security settings.

Will Bitcoin Go Over $6K?

There are experts saying that there is a chance that Bitcoin is about to go beyond $6,000 in the coming days. And the primary reason for this is the diamond breakout seen on the 4-hour chart. According to Bob Loukas, Bitcoin entered the accumulation phase after the bearish market. And this is something that will follow a bull market. According to him, if the market closes green by May, there is the likelihood that there will be a full-blown bull market.

In his Twitter account, he mentioned that “#bitcoin working on 4th straight Gren Monthly candle. That only occurs in the heart of a bull market. 3 green candles are locked in. We’ve never seen that in a bear market. I bet we close May red. and that would tell me we’re in accumulation phase of the next bull.”.

In 2017, Bitcoin was able to go from around $1,000 to near $20K. Many are speculating if this is the time that Bitcoin is going to have a repeat of its 2017 bull run. Remember that Bitcoin lost more than 80% of its value following the next 12 months after reaching its peak in 2017.

The question now is if Bitcoin will be able to get to rise even more given the latest hacking incident? There is a chance that it won’t affect Bitcoin so much considering how it was able to hold its position after the Bitfinex-Tether news.

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!