Bitcoin, the largest cryptocurrency by market capitalization, trader higher Friday, flirting with the $3,900 area, a day after reports broke that hackers pilfered a substantial of bitcoin from digital wallets. The attack lasted nearly a week.
“A hacker (or hacker group) has made over 200 Bitcoin (circa $750,000 at today’s exchange) using a clever attack on the infrastructure of the Electrum Bitcoin wallet,” reports ZDNet. “The attack resulted in legitimate Electrum wallet apps showing a message on users’ computers, urging them to download a malicious wallet update from an unauthorized GitHub repository.”
While bitcoin’s current levels are well off its lows for 2018, some market observer’s believe the prospects for a bitcoin rally in 2019 are murky.
Until the cryptocurrency that was once the toast of the town can resuscitate itself and get out of its latest correction, it calls to mind market bubbles of the past that elevated investors into a state of euphoria before unceremoniously popping and crashing down to earth.
Trying To Go Mainstream
One of bitcoin’s biggest issues has been mainstream acceptance, but that scenario could be changing, according to the Wall Street Journal.
Among the issues plaguing bitcoin this year are the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
“Citing data from research firm Excalibur Pro Inc., the WSJ states that the top cryptocurrency has traded at a 0.84 correlation to gold over the past five days, where -1 indicates complete inversion and +1 perfect correlation. Moreover, Bitcoin has traded at a 0.77 correlation to the Chicago Board of Options Exchange’s Volatility index (VIX), a benchmark index for the United States equity market volatility,” reports CoinTelegraph.
Improvements to the blockchain and other crypto infrastructure as well as increased adoption of the asset class by high-level investors could bolster digital assets.
“As reported, the crypto space continues to undergo far-ranging transformation; major developments on the horizon include the launch of the Bakkt Bitcoin futures exchange from Intercontinental Exchange, the launch of investment giant Fidelity’s digital assets business, and the continued influx of stalwart investors such as Yale, Harvard and Stanford Universities,” according to CoinTelegraph.
For more information on the cryptocurrency market, visit the Bitcoin category.