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Bitcoin Tops $6,000 Despite Binance Hack

May 9, 2019 at 12:50 by Matt Jackson

Bitcoin prices have topped $6,000 for the first time in 2019, reaching an annual high and seemingly becoming oblivious to bad news, as the rise coincided with news that Binance had been hacked and had $40 million of Bitcoin stolen. Other cryptocurrencies have also seen green in the past few days, and some analysts are pointing to the promise of a Facebook cryptocurrency for one of the reasons for the positive move, although most warn that there is considerable resistance ahead as the digital gold attempts to reach $6,500. Some pullback is expected in the coming days.

In the past year or so, Bitcoin prices have responded negatively to any bad press. The volatile investment opportunity has been known to drop 5% or even 10% on rumours of hacks and bots. However, in what could be seen as a turning of the tide of confidence, news of a hack on the world’s biggest exchange, Binance, barely caused a ripple in Bitcoin’s upward march.

On May 7, Binance announced that it had been hit by a “large scale security breach” and went on to say that the thieves had got away with 7,000 Bitcoin, value at roughly $42 million. The company announced that it would suspend deposits and withdrawals while they investigated the security threat.

This represented the 6th largest hack in cryptocurrency history and could have caused a major downturn in trend. When the breach was announced, Bitcoin dropped between 3% and 4%, but very soon recovered, and has now reached 2019 highs. The exchange has said that the loss has been covered by their SAFU fund, although Justin Sun, of cryptocurrency Tron, offered to deposit 7,000 Bitcoin to help cover the losses; an offer that Binance said was unnecessary.

Some analysts have pointed to the announcement that Facebook is quickly moving towards launching its own cryptocurrency as being one of the drivers behind the recent uptick in prices. Reports suggest that their currency is only months away from being complete, and that they have a dedicated team working on blockchain and cryptocurrency.

Another company that is currently looking into Blockchain is digital payment processor PayPal. Although most company executives have said that they do not believe that Bitcoin can be called the future of currency yet, they do have a dedicated team looking into the technology behind the currency.

Bitcoin (BTC) is currently trading at $6,016.27 while Ethereum (ETH) is $169.48, Ripple is (XRP) $0.299, Bitcoin Cash is (BCH) $284.57 and Litecoin (LTC) is trading at $73.84 at 13:20 GMT.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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