CRYPTO NEWS

Bitcoin holds above $23K despite crypto hacks – analyst explains why

Bitcoin (BTC/USD) continues to hold above the $23,000 price level despite recent hacks that have seen malicious actors drain millions of dollars from two crypto platforms.

BTC price, which recorded its best monthly performance since October 2021 with over 17% in 30-day returns and hit its highest price level since mid-June, is poised around $23,300 as at the time of writing.

Crypto analyst on BTC strength despite hacks

The outlook suggests bulls are strengthening above a key level that has previously provided the base for fresh momentum. Even then, the resilience comes amid a new wave of crypto hacks.

This week alone has seen two major heists – an attack on crypto swap platform Nomad bridge on Monday saw hackers steal nearly $200 million in user funds, and on Tuesday, Solana (SOL) was exploited to leave over 7,000 wallets compromised. More than $5 million had been stolen by Wednesday.

But according to Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, Bitcoin continues to suggest strength above $23k despite the exploits. He explained why this could be the case, noting:

Despite these hacks, the illicit activity relative to fiat currencies remains low,” a scenario the analyst says is supported by South African professor Steven Sidley’s recent remarks that illicit transactions involving fiat currencies were 50x that experienced in crypto.

BTC above key level

Sotiriou also notes that Bitcoin is trading above the critical level presented by the 200-week moving average. A look at the charts show that the level is currently around $22,900, and bulls’ ability to hold above it could prove important to a new leg up, the analyst noted.

The chart below shared by Documenting Bitcoin via Twitter shows Bitcoin price return to the 200-week MA.

In a note to clients published on Wednesday, Sotiriou adds that Bitcoin’s show of strength above the 200-Week MA also comes as data indicates short Bitcoin funds recorded higher outflows this past week – the first such outflows for the inverse BTC product in the US over the past five weeks.

Also importantly, inflows into Bitcoin funds jumped in July to $474 million, up from outflows of $481 the previuos month.

This is the biggest monthly inflow of 2022. As these funds are typically purchased by institutions and high net worth individuals, this is a signal that smart money is very interested in buying crypto at these prices,” Sotiriou said in emailed comments.

The post Bitcoin holds above $23K despite crypto hacks – analyst explains why appeared first on CoinJournal.

Solana Wallet Slope Says no Evidence Linking Security Flaw to $4 Million Hack

Solana mobile wallet provider Slope Finance, said to be responsible for the recent multi-million dollar incident, has admitted to a security vulnerability while adding that there is no evidence linking the security flaw to the hack. This is despite the fact that Solana Labs researchers have fingered the wallet provider’s security lapses as the cause::Listen

Solana mobile wallet provider Slope Finance, said to be responsible for the recent multi-million dollar incident, has admitted to a security vulnerability while adding that there is no evidence linking the security flaw to the hack.

This is despite the fact that Solana Labs researchers have fingered the wallet provider’s security lapses as the cause of the over $4 million hack that occurred earlier in August.

  • Slope issued a statement on Thursday (August 11, 2022), revealing details of its own investigation into the matter. This was done in collaboration with cybercrime company TRM and auditors OtterSec and SlowMist.
  • According to Slope, there is “no conclusive evidence” linking the vulnerability in its system to the hack. Slope stated that only 1,444 of its wallet addresses were confirmed to be drained during the attack.
  • However, there are 9,232 affected wallet addresses, as stated in multiple reports about the hack and collated in this Dune Analytics dashboard.
  • Slope’s statement added that the security vulnerability was behind an encrypted server. Access to this server also required a three-factor authentication protocol. The wallet service did admit that such a vulnerability should not have existed in the first place.
  • Solana Labs researchers earlier pointed to a flaw in Slope’s security architecture. This flaw saw wallet seed phrases being stored in plain text. Seed phrases in crypto are mnemonic strings of 12 or 24 words that are generated when a user creates a wallet. This phrase is needed to access funds in the wallet.

“We found no additional vulnerabilities during the investigation and intense scrutiny by multiple parties,” Slope stated in today’s blog post, adding that “therefore, we believe the latest patched version of Slope Wallet is safe to use. The Slope team will continue to obtain regular audit reports and work with security professionals on a rolling basis.”

The post Solana Wallet Slope Says no Evidence Linking Security Flaw to $4 Million Hack appeared first on CryptoPotato.

Bitcoin holds above $23K despite crypto hacks – analyst explains why

Shopping cart
There are no products in the cart!
Continue shopping
0