- An infamous hacker has once again stirred the crypto community by transferring over $30 million worth of Bitcoin (BTC), fueling fears of a significant market dump.
- The recent activity comes after the hacker’s breach into Japanese crypto exchange DMM Bitcoin earlier this month.
- Such moves often trigger market volatility, especially with the recent large-scale sell-offs by governmental bodies and crypto miners.
Speculations arise as hackers and government sell-offs intertwine, potentially affecting Bitcoin’s stability.
Hacker’s Activity Post DMM Bitcoin Breach
In a notable security breach on June 3, Japanese cryptocurrency exchange DMM Bitcoin lost over 4,500 BTC, worth more than $300 million at the time. The breach has highlighted severe vulnerabilities in the exchange’s security measures, prompting immediate action from DMM Bitcoin to protect its users’ funds.
Massive Transfer Sparks Market Concerns
On June 27, the hacker orchestrated the movement of 500 BTC, valued at around $30 million, to a new address. This act has led to widespread speculation about a potential market dump, coinciding with Bitcoin price fluctuations. Despite the significant amount of BTC moved, current on-chain data does not indicate an imminent cryptocurrency exchange dump. However, the possibility of the hacker cashing out for profit remains high.
Response from DMM Bitcoin and Regulatory Bodies
Following the breach, DMM Bitcoin swiftly implemented measures to prevent further security infringements. The exchange temporarily halted new account openings, cryptocurrency withdrawals, and the acceptance of new buying orders for spot trading. Additionally, they have restricted all spot purchases on the platform and cautioned users that withdrawals in Japanese yen may be delayed. The Japanese Financial Services Agency (FSA) has mandated an in-depth investigation into the breach and instructed DMM Bitcoin to adopt measures protecting its customers against potential damages.
In an official statement, DMM Bitcoin reassured its customers, stating, “All Bitcoin deposits will be fully covered. We will acquire the equivalent amount of BTC compromised with the assistance of our group companies,” while issuing an apology for the inconvenience caused.
Broader Market Impact
The broader Bitcoin market has been experiencing additional turbulence with significant sell-offs from different entities. Recently, the German government liquidated 595 BTC, part of a larger strategy that has seen over 2,000 BTC sold in recent days. The U.S. government also shifted 4,000 BTC, worth $241 million, to Coinbase Prime on June 26, which led to a Bitcoin price drop of 1.5% to below $61,000.
Bitcoin miners are also under pressure, having sold over 30,000 BTC worth approximately $2 billion to mitigate losses due to falling hash prices. Additionally, Bitcoin whales have joined the sell-off fray, offloading assets totaling over $4 billion earlier this month.
Current Market Trends
Collective sell-offs have caused Bitcoin’s price to hover around the crucial $60,000 support level. Technically, Bitcoin is trading below the 50-day simple moving average (SMA) but remains above the 200-day SMA, suggesting a period of market indecision between bullish and bearish outlooks. Amid this volatility, short liquidations have surpassed long positions, evident from a recent $18.01 million liquidation of shorts. Traders buying back their BTC to limit losses could drive a brief rebound, although longs saw a $10 million liquidation in the last 24 hours.
Conclusion
The crypto market remains on edge as the hacker’s activity, government sell-offs, and miner movements stir volatility in Bitcoin prices. Observing these developments, market participants prepare for potential downturns and brief rebounds, emphasizing the need for robust security measures and a cautious approach to trading. The upcoming weeks will likely reveal whether the speculated market dump will materialize or if Bitcoin will stabilize, marking another chapter in its highly volatile journey.
