The cryptocurrency market has started its downward spiral gain as ‘Santa Claus” goes back to hibernation in the wake of the just-concluded Christmas celebrations. The declines have seen the market slide back in red. Bitcoin is leading the retracement closely followed by some major altcoins namely XRP, BCH & ETH. Two reasons could be coined out as major factors that affected crypto market and provided great deal of bearish influence. One is news of Japan-based internet technology company GMO’s announcement of closing their mining software while the other is news of 250 bitcoins worth over $1 million stolen from Electrum Wallet hack.
Recovery Limited Amid Low Trading Volume
The bitcoin wallet attack, revealed by Electrum developers on GitHub yesterday, used phishing to trick users into providing password information through a fake version of the wallet. People trying to access their wallets were asked to provide a two-factor authentication code—something not used by Electrum. Hackers then moved the wallet balance to another they control. The attack on wallet users began on Friday last week, December 21, and appears to have been halted after GitHub admins acted, according to Electrum developers. Bitcoin exchange and wallet hacks have previously been blamed for sudden falls in the bitcoin price however markets recovered from said downtrend once damage from security breach is contained by involved parties.
Bitcoin is hovering around $3,600 level. The first digital coin has lost over 4% so far and entered a short-term consolidation stage amid thin holiday market conditions. While the price recovered from the intraday low at $3.567, the upside momentum is nowhere to be seen as trading volume is very limited. Ethereum is changing hands at $116.43, consolidating losses after a strong sell-off in the end on Thursday. The coin has lost nearly 9% in recent 24 hours despite a subtle recovery during the Asian session. Ethereum’s market value is registered at $12.1B, while an average daily trading volume amounts to 2.5B. ETH is expected to continue suffering in short to medium term as headlines suggest ICO projects are selling off Ethereum.
This article was originally posted on FX Empire
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