Cryptocurrencies Advance on Tuesday, but a New Hack Knocks It Again

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by | 20th June 2018 | 0 comments

Cryptocurrencies closed Tuesday with gains as investors were selling traditional assets amid trade war concerns and buying bitcoins at a premium. However, digital assets declined on Wednesday following news about a new hack worthy $30 million.

Bitcoin rallied to 6,829 on Tuesday, but the pair is down on Wednesday. The same history with Ethereum, which unit jumped to test the 550.00 level and Bitcoin Cash that value reached the 933.50 area by the unit.

Bithumb hacked for $30 million

South Korean exchange Bithumb has been hacked in the last hours for an amount of $30 million worth in cryptocurrencies. The company twitted it at 12:49 UTC on June 19.

“[Notice for the suspension of all deposit and withdrawal service] We checked that some of cryptocurrencies valued about $30,000,000 was stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet,” said the tweet.

First, the company said they would temporally suspend deposits due to a change in wallets; however, 12 minutes after the announcement, they said they were suspending all deposit and withdrawal services due to a hack of more than $30 million.

The company quickly moved all assets to cold wallets storages to cut down any further risk.

Circle CEO says all currencies will become cryptos

It is a matter of time that all currencies will be turned on cryptocurrencies according to Jeremy Allaire, co-founder and CEO of Circle.

In an interview with CNBC, Allaire affirmed that his “view is that all fiat currency will be crypto,” including the US Dollar.

Circle announced its interest to launch anew cryptocurrencies pegged to the US dollar, the USD Coin. Thought, it wouldn’t be the first fiat currency that becomes a crypto asset.

“Stablecoin,” fiat currencies turned into cryptos, will be something normal in the next years. “Our focus with fiat stablecoins is we really think of it as a core building block for a crypto native global digital economy,” Allaire finished.

More than 15% of deposits on a bank are cryptos!

The New York Metropolitan Bank reported that over the 15% of deposits are now made by cryptocurrency investors, and they are taking crypto technology very serious.

The commercial bank is very serious about technology, and they are interested in expanding its print on crypto assets.

Bitcoin down on Wednesday after two positive days

The crypto king is trading negative on Wednesday as investors are concerned about the latest news about a hack in South Korea. BTC/USD is falling 1.70% so far today with the unit moving at 6,621.

The pair rallied to 6,830 on Tuesday, but the cross got a rejection, and it is now testing short-term dynamic support coming from June 13.

Technically, BTC/USD remains bearish with moving averages pointing to the south. Momentum is confirming the downtrend, at least in the daily chart. The pair is getting slightly overbought.

To the downside, if bitcoin extend declines below 6,380, it will find next support at the 6,000 level with a focus on the critical 5,870 line. Below, only the 5,550.

To the upside, the pair needs a close above 6,800 to cheer bulls to buy. Then, a break above 6,900, will open the doors to the 7,200 and 7,300 levels.

Ethereum’s advance capped at 550.00

ETH/USD Daily Chart - 20-06-18

Ethereum is trading down on Wednesday after the pair got a rejection at the 550.00 area, close to the 20-day moving average. ETH/USD is pricing 3.20% negative on the day at 521.20.

To the downside, if the pair closes below the 500.00 level again and it falls below the 450.00, Ethereum will find support at 430.00. Then, the last frontier lies at 400.00.

To the upside, Ethereum needs a close above 530.00 before making bulls believing at all. Above that, 560.00 is the natural resistance and then 630.00.

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