The most well-known digital coin in the crypto world, also known as Bitcoin, can’t seem to catch a break and continue with its rapid price growth. Multiple events are to blame for the latest price slip after a brutal sell-off happening among cryptocurrencies. We cannot be certain what triggered it, but it may be linked to rising concerns over cryptocurrency security.
One of the events that might have influenced the latest slippage could be the U.S. officials managing the recovery of the Colonial Pipeline ransom money paid to hackers. This article will explain what caused the latest Bitcoin downward price movement.
The U.S. Recovers Most of Colonial Ransom
Some of the court documents made public suggest that the investigators gained access to the Bitcoin wallet of one of the hackers’. The money was recovered in Bitcoin form by a specialized task force created by the government due to the rise in cyberattacks. An acceleration in the Bitcoin price slide was noticed, making it fall below the $32k mark. A slight recovery followed, and at that point, Bitcoin was trading 9 percent lower. Other, smaller coins followed Bitcoin’s lead; Ether fell by about 8 percent, and XRP tanked more than 7 percent.
Back in April, it seemed that 2021 was a gateway to crypto stardom for Bitcoin, with BTC topping the $60k mark. The recent plunges in crypto prices are creating tectonic shockwaves in the crypto market. Bitcoin sank for half of its all-time high, reaching the $30k mark. The currency is currently 12 percent higher since the beginning of the year, although it still tripled in size in the past year.
The Federal Bureau of Investigation seized $2.3 million in Bitcoin when it comes to the recovered ransom money, paid to a cybercriminal gang named DarkSide. They performed a paralyzing cyberattack on Colonial Pipeline. Bitcoin is a perfect choice of currency for ransom payments tied to hackers. DarkSide had received as much as $90 million in BTC before it shut down. The business model they used is called “ransomware as a service.” Hackers design and later market ransomware tools and then sell them to associates who then attack.
Ransomware isn’t the only issue with cryptocurrency. Several problems seem to pop up constantly, including recent Elon Musk tweets and fears of regulatory crackdown. China is the first country to use the authorities to call for a crackdown on trading and mining. The China officials forbid a fundraising method called initial coin offerings and shut down local exchange.
In the meantime, Elon Musk shifted his endless support for Bitcoin and seemingly broke up with the digital currency, changing his opinion in a matter of months. His electric car company stopped accepting Bitcoin as a viable payment option, which resulted in a crypto market sell-off. The power Musk has over the market comes as no surprise, given that he already started crypto trends before; Dogecoin is a perfect example of that.
Weird things have been happening in the world of crypto lately, and the most prominent Bitcoin conference in history is one of these things. Thousands of Bitcoin supporters gathered in Miami to celebrate the all-star digital currency. We can mention many bizarre highlights, one of them being the president of El Salvador announcing that the country plans to accept BTC as legal tender. It remains unknown what the future holds for cryptocurrency, given the recent downward trends. All we can do is sit back, look at the charts and wait for the market to show its cards.