The valuation of the global cryptocurrency market dropped by $20 billion from $960 billion yesterday to $946 billion as of this Friday, signaling a slight bearish correction in the market. Bitcoin fell below $20k today as trading volume for both cryptocurrencies fell, while Ethereum maintained support above the $1,300 mark. Let’s examine recent news that has impacted the markets relating to Finance, Bitcoin, and Ethereum.
Key Notes:
- The market value of cryptocurrencies is now $940 billion, down $20 billion from yesterday.
- Hackers gained access to $100M in funds through the Binance Smart Chain Bridge attack, which BSC node validators swiftly froze.
- The market is in extreme fear, but things are better than last week, according to the fear and greed index, which is at 23.
- Today’s drop in trade volume is a bearish outlook for this weekend as Ethereum continues to retain support at $1,300.
Crypto Market News Update
The $100 million exploit for the BNB Smart Chain today is most likely to blame for the bearish momentum. Fortunately, Binance released a blockchain upgrade that essentially froze the hackers’ accounts, preventing them from withdrawing the money and causing more damage to BNB and the wider crypto community.
Changpeng Zhao, CEO of Binance, released additional information about the exploit, assuring traders and investors that their money is SAFU:
An exploit on a cross-chain bridge, BSC Token Hub, resulted in extra BNB. We have asked all validators to temporarily suspend BSC. The issue is contained now. Your funds are safe. We apologize for the inconvenience and will provide further updates accordingly.
— CZ 🔶 BNB (@cz_binance) October 6, 2022
The tweet explained that the exploit was caused by a flaw discovered on the BSC Token Hub cross-chain bridge, which led to the bridge releasing excess BNB and allowed the hackers to abuse the system and effectively siphon millions of dollars worth of bitcoin across the bridge.
Fortunately, the Binance staff could address the situation and freeze the hacker’s accounts before he could withdraw the funds. The funds have been frozen, which has prevented a catastrophe, despite a minor 4% fall in BNB’s price during the past 24 hours.
Bitcoin And Ethereum News Update
This Friday doesn’t have any significant Bitcoin news because everyone is focused on the Binance Smart Chain and BNB as the team deals with the fallout from the exploit.
The fear and greed index is at 23, indicating extreme fear, although not as terrible as last week at 20 points.
This Friday doesn’t bring any noteworthy Ethereum-related news. The market does well as ETH maintains support over the $1,300 mark. This Friday’s trading volume has decreased significantly, but that was to be expected given that the weekend is quickly approaching.
The price of ETHUSD may rise toward $1,400, but we probably won’t see any significant price movement until next week. Due to the limited trading volume, ETH may even sink to the upper $1,200 region before regaining its previous level of $1,300.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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