Bitcoin Price Falls Below $10,000 Amid Binance Hack Rumors and Sec Warning
The price of Bitcoin is once again making news, but this time, it may not cheer the investors of the world’s most popular cryptocurrency.
After having had a rollercoaster ride, reaching the dizzy heights of around $17,000 and falling down to $12,000, it appeared as if Bitcoin price would stay above the $10,000 mark.
But this did not happen, as Bitcoin price fell below this magic number to around $9,700. This time, however, observers attribute specific reasons for the fall in Bitcoin price; there are mainly two of them.
SEC Warning Being Taken Seriously
The United States Securities and Exchanges Commission (SEC) recently issued a statement mentioning that the federal securities laws require that any “exchange” that claims to be offering securities has to have a proper registration with the SEC.
And, in the absence of such registrations, the securities traded on such platforms do not enjoy any legal sanctity.
It is well known that investors do give a lot of importance to such issues, and the moment they come to know that the information being released by the cryptocurrency exchanges cannot be relied upon, their confidence level will drop considerably.
And that appears to have occurred with the Bitcoin price as well.
A Possible Security Breach at Binance
A reported hack targeting cryptocurrency exchange Binance, operating out of Hong Kong, is the other cause of concern for investors in Bitcoin. Such is also the possible reason for the drop in Bitcoin price.
There have been reports that a hack has been precipitated on this exchange, causing investors’ assets on the platform to have been sold without their knowledge.
The incident was supposedly initiated by hackers through phishing attacks aiming to gain access to user account credentials.
Many complaints about the issue were reported on Reddit. Soon after these posts were made, company representatives indeed confirmed the incident and later released a detailed public notice about the attempted hack.
Binance is considered the second largest cryptocurrency exchange based on the average trading volume that the exchange handles.
As such, any disturbance on the platform is bound to create ripples among those who have invested in the instruments being traded on the exchange.
Representatives from the exchange have gone on to assure the investors that the “irregular” deals that were detected have since been reversed.
A few days after the attempted hack, Binance announced it is offering a bounty of $250,000 (USD) to anyone who provides substantial information that would lead to the arrest of the hackers involved in this incident.
Additionally, the company is allotting $10 million to be offered as a hacker bounty in future hacking attempts, should they occur.
What’s Next for Bitcoin Price?
The weight of these incidents—the SEC warning and the reported Binance data breach—on impacting Bitcoin price can only be known after some time.
But for now, investors in the cryptocurrency can only hope that the downward slide in prices does not continue.