The cryptocurrency market has recorded a loss of over $17 billion in the past 24 hours, triggered by the loss of major cryptocurrencies including Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS.
Bitcoin never got close to $7k and has shed 5% over the past day declining to an ominous $6,407 at the time of writing. Ethereum, after a couple of days of good gains, has fallen harder with 7.6% losses on the day back to around $487. Predictably altcoins have suffered worse with almost the entire top 50 losing ground.
Probable reasons for Sell-off?
It was speculated that the cryptocurrency market is still going through a Bear cycle and the prior correction was just part of a corrective rally and not Bull rally. But the attack on Bitthumb has terminated the corrective rally and providing a short-term decline in the cryptocurrency market.
Prior to the Bithumb hack, the market had shown significant correction, as Bitcoin rebounded to $6,700 from $6,300. But, the breach of the most widely utilized digital asset trading platform in South Korea, the third biggest cryptocurrency market behind the US and Japan, led investors to panic, even though the outcome was not particularly detrimental.
In our previous article, reporting Bithumb Attack, we confirmed that more than $30 Million was stolen and Bithumb along with KISA (Korea Internet and Security Agency) is looking in the matter while providing refunds to the customers.
As per Bithumb’s official Statement, “After the incident occurred on June 20, Bithumb quickly followed the procedure to immediately report [the] incident to KISA announcing that about 35 billion Korean Won worth amount of cryptocurrency was stolen. However, as we undergo recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence, we expect that the overall damage will be less than the amount we initially expected.”
Bithumb also confirmed that with company funds, valued around $450 million, the exchange will be able to compensate its investors fully with ease, as the stolen amount only accounted for around 6 percent of company funds.