09/05/2022 12:00
The sell-off of bitcoin and other major cryptocurrencies does not stop. Bitcoin and Ethereum both lost 14% in the last week highlighting once again a strong correlation with the equity mood and thus paying for the general flight from riskier investments.
The largest digital token in the world fell as low as $ 33,170 today (Coin Desk data), a breath away from its January 2022 lows and not far from lows since July 2021. Bitcoin travels to values more than halved compared to the historical peaks above the 69 thousand dollars reached last November. For its part, Ether has sold over 4% in the last 24 hours, slipping well below $ 2,500, close to the 2022 lows reached in the first month of the year.
Bitcoin has recorded a negative balance of over 27% since the beginning of the yearsignificantly underperforming equities (around -10% MSCI World) with investors worried about the prospect of a very aggressive Federal Reserve in rate hikes to counter inflation.
Towards testing at $ 30,000
“The downward trend is likely to continue for the next few days,” notes Edul Patel, CEO of Mudrex, an algorithm-based crypto investment platform. According to Mudrex, bitcoin could test the $ 30,000 level.
“The cryptocurrency market is closely following the equity market, with Bitcoin also seeing five consecutive weeks of corrections. “While there is no clear conclusion to this correlation, the forward-looking nature of the market is worth remembering,” explains Gabriel Debach, market analyst at eToro.
Meanwhile yesterday there was a new one $ 3 million theft in Fortress Protocol. One attacker managed to steal 1,048 ETH (approximately $ 2.65 million) and 400,000 DAI from the DeFi Fortress Protocol platform in what appears to have been an Oracle manipulation attack. “Market manipulation and insider trading have always been the main threats in traditional markets. In recent years, the problem has spread to cryptocurrency markets, becoming more and more common. The Oracle manipulation attack consists of manipulating the very origin of the data on an external resource that feeds a smart contract, thus deceiving the prices received by the platform, ”comments Debach.