Bitcoin Hacker Moves $30M BTC, Another Market Dump Incoming?

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As an experienced analyst, I believe that the recent news of a hacker transferring stolen Bitcoin from the DMM exchange and the subsequent market sell-offs by governments, miners, and whales have created a perfect storm for Bitcoin price volatility. The fear of a potential market dump from the hacker’s liquidation of the stolen funds has only added to the uncertainty.

A new wave of excitement swept through the cryptocurrency world on Thursday, June 27th, as reports surfaced about the transfer of 500 Bitcoin (BTC), believed to be stolen, worth around $30 million. The hacker behind this transaction is allegedly connected to the recent DMM Bitcoin heist. This development has sparked fears of a massive sell-off in the market due to the substantial amount involved and the recent significant sales by governments and miners.

DMM Bitcoin Breach & Hacker’s Transfer Of Stolen Funds

As a crypto investor, I’ve come across a concerning development: a hacker allegedly stole 500 Bitcoins from X exchange, as reported by Peck Shield Alert in their latest post. This news has ignited fears of a potential market dump due to the Bitcoin price volatility. However, upon closer inspection of the on-chain transactions, I don’t see any clear signs that the stolen BTC is being sold on exchanges yet.

Bitcoin Hacker Moves $30M BTC, Another Market Dump Incoming?

Despite this, the concern persists that the hacker might sell off their holdings to realize greater gains. This action could become apparent when Bitcoin experiences another surge in value, prompting the hacker to prepare for maximizing their profits through price increases.

Around the beginning of June, on the 3rd specifically, DMM Bitcoin, a prominent cryptocurrency exchange based in Japan, announced a significant security incident. This event led to the loss of approximately 4,502.9 Bitcoins, which were valued at more than $300 million when the news broke.

As a security analyst, I’ve identified that an unauthorized intrusion into DMM Bitcoin’s exchange wallet revealed substantial weaknesses in their security framework. Following this incident, I spearheaded immediate countermeasures to fortify their defenses against future unauthorized intrusions.

The exchange has temporarily halted the creation of new accounts, the processing of crypto asset withdrawals, and the acceptance of new orders for spot trading transactions. Furthermore, all spot purchases have been restricted on the platform. Please note that withdrawals in Japanese yen could take longer than normal to process.

The Japanese Financial Services Agency (FSA) has directed DMM Bitcoin to conduct a comprehensive investigation into the security breach that occurred. Moreover, the FSA has instructed the exchange to take necessary steps to protect clients from any potential harm in the future. In a public announcement, DMM Bitcoin reassured its clients that their Bitcoins were secure.

DMM Bitcoin assured customers that their Bitcoins (BTC) would be fully reimbursed. They would obtain the equivalent amount of Bitcoin that was lost with help from their affiliated companies. DMM Bitcoin expressed regret for any trouble caused to their clients.

June BTC Dump

Concurrently, the wider Bitcoin market has been witnessing substantial selling waves. Notably, the German government announced the sale of its Bitcoin stash, transferring an additional 595 coins to prominent crypto exchanges. This latest disposal is part of a larger plan as the German authorities have offloaded over 2,000 BTC in recent times.

I. Mimicking Germany’s actions, the US government transferred a significant amount of 4,000 BTC, equivalent to $241 million, into Coinbase Prime on June 26.

As a researcher studying the cryptocurrency market, I’ve observed that recent extensive sell-offs have caused Bitcoin’s price to remain precariously above the crucial $60,000 support level. From a technical perspective, Bitcoin is currently trading beneath the 50-day simple moving average (SMA), yet it remains above the 200-day SMA. This ambiguous market condition suggests an ongoing internal struggle between bullish and bearish forces within the market.

In the midst of market turbulence, I’ve noticed that short sellers have outpaced long buyers today as Bitcoin experienced a slight bounce back. Based on data from Coinglass, short sellers racked up $18.01 million in liquidations. These traders are projected to purchase more BTC to minimize their losses, which could fuel additional gains for the cryptocurrency. However, long positions also showed significant resistance with over $10 million worth of liquidations during the same time frame.

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2024-06-27 17:17