Welcome to a new Cryptonews Weekly Recap! Here we’ll tell you what happened over the past few days… and what a hectic few days they were!
Don’t you feel a Déjà vu? Cryptocurrencies crashing, companies going bust, exploits, panicked investors… We’ve all been there before. It seems that we have returned to 2022, a year to which no one would want to go back… But it is happening.
A few weeks ago, Bitcoin managed to surpass the $25,000 mark, something that was seen as extremely positive, but the rise did not last long. After that, it was all downhill in a market that is increasingly convulsed by attacks from regulators and companies that are increasingly suspected of wrongdoing.
Silvergate was one of the infamous protagonists of the week. The cryptobank, one of the most popular in the world, is on the verge of bankruptcy and the market seems to be bracing for the imminent fall. While for the first few days Bitcoin was able to hold its own amidst the altcoins’ falls, the selling pressure was so great that even the flagship cryptocurrency plummeted.
In addition to the Silvergate case, SEC Chairman Jerome Powell was again a crucial factor, as he assured that an aggressive interest rate hike could be seen again in an attempt to contain inflation. With this fear already in place, by mid-week Bitcoin fell to 3-week lows and Ethereum retreated a dangerous 12%, in what was shaping up to be an even worse ending.
It is that the perfect storm would be completed with the release of macroeconomic data from the United States, which showed worrying numbers. This was the trigger for the cryptocurrency market to take a massive tumble in the early hours of today, Friday. Bitcoin fell below $20,000 for the first time in a long time. And it could continue to fall as low as $18,000, our trading expert explains in his latest analysis.
The SEC is having a huge interference in the crypto market lately. By attacking companies in the sector and pressuring lawmakers to sanction tougher laws against digital assets, it aims to intimidate cryptocurrency enthusiasts, who are undoubtedly being persecuted.
After its ruthless attack on Kraken and Paxos, the SEC is now going after BkCoin. And it has already activated emergency actions against the Exchange and against its director for alleged fraud. It only remains to be seen who will be the next victim.
And if we talk about fraud in the crypto sector, we have to talk about one of the most significant cases of last year. We are talking, of course, about TERRA and its former director, Do Kwon, who is still in hiding in Singapore. Although this week authorities in the country stated that they are stepping up investigations to bring Kwon to justice.
To cap off what was a black week for cryptocurrencies. Hackers continue to attack DeFi platforms. During last February, cybercriminals managed to steal more than $21 million from various projects. The latest victim appears to be Hedera, which suffered an alleged exploit in its Smart contracts, forcing the platform to momentarily shut down many of its services to prevent further damage.
This week has wiped out much of the growth that the sector had been showing this 2023. In just a few days, the fragile cryptocurrency market lost almost everything it had managed to recover this new year. However, the game continues and the road ahead is long. Undoubtedly, the sector will find the path to growth sooner or later.
