Records theft of bitcoin and Ethereum Classic main events of the week
Cryptocurrencies are experiencing the post-holiday correction after sudden growth. Investors who were hoping for a holiday rally, now close out their positions, adding to the wave of decrease. In recent days, bitcoins have lost nearly 5% and trading below $3700. All major altcoins are also in the red zone, losing from 6% to 13%.
The reason for the decline could be the theft of 40,000 coins Ethereum Classic (about $200000) of the exchange Gate.io, which was conducted through attack 51%: the object has received an overwhelming amount of hashing capacity of the network, which is allowed to rewrite the transaction history and perform a double spending.
Also a major negative factor was the news about the refutation by the Japanese regulator FSA approval to launch ETFs based on cryptocurrency. In addition, shortly before the beginning of correction, it became known about the transfer of 40000 ETH on exchange with the probable purpose of selling that could cause a chain reaction of the market.
However, this is nothing more than news occasions that are unlikely to have long-term consequences.
In the current decline, we can say that the main reason still lies in the speculative dynamics. Although opponents of cryptocurrencies affirm that this is “real death” of bitcoin and the beginning of the end for all crypto market as a whole, it became known that the average daily number of transactions in the Bitcoin network over the last week approached an annual high of over 280,000. Here it is not so important what is a transaction: interest in bitcoin has not waned, quite the contrary.
Among the important upcoming events is to provide hardwork in Ethereum called Constantinople. The experts hope that ETH will rise in price after the update. In the long term “ether” is also considered a very safe bet in the cryptocurrency sector, as it will created a lot of popular projects that can improve the image of the industry and breathe new life into the blockchain.