News
Bitcoin stutters after surpassing $50,000
Key points
- Bitcoin stabilized around $52,000 after enjoying a good start to the month; However, there are signs that the slow return of retail traders could eventually provide momentum.
- A new research paper has deemed theoretical attacks on the proof-of-work and proof-of-stake consensus mechanisms used in Bitcoin and Ethereum to be “economically infeasible.”
- Decentralized cryptocurrency exchange Fixedfloat has faced criticism related to a cyber attack on the exchange involving approximately $26 million worth of bitcoin and ether.
- The Ethereum Layer 2 network’s new Starknet token, STRK, has reached a multi-billion market capitalization after being distributed to millions of users.
What happened in the cryptocurrency markets last week?
After crossing the $50,000 mark earlier this month, Bitcoin stopped at $52,000. Data shows retail traders remain on the sidelines for now, but activity related to bitcoin Exchange Traded Funds (ETFs) remained at elevated levels, with spot bitcoin EFT issuer BlackRock on pace to overtake Microstrategy Inc . as the largest bitcoin holder.
Meanwhile, a new research paper found that cyber attacks on Bitcoin (BTC) and Ethereum (ETH) would be “economically unfeasible”.
Bitcoin crashes after climbing to $50,000
Bitcoin surpassed the $52,000 mark last week, marking its highest point in more than two years. Despite this surge, there are indications that a slowdown may be imminent.
Late last week, Swissblock analysts said that the $52,000 level is significant resistence point, suggesting that a temporary pullback may be needed to sustain the current uptrend.
Attacks on Bitcoin and Ethereum labeled ‘unfeasible’
A recently published research paper has shed light on the robust security measures in place for Bitcoin and Ethereumrendering 51% attack economically impracticable.
Researchers have found that these attacks are not feasible due to the significant costs and logistical hurdles involved. These findings highlight a fundamental evolution in the security of Bitcoin and Ethereum, the researchers said.
Fixedfloat Decentralized Cryptocurrency Exchange Hacked
Elsewhere, it was reported on social media platform X on Sunday that decentralized cryptocurrency exchange FixedFloat was in use violated worth $26 million in bitcoin and ether. The exchange’s operators have been criticized for not immediately reporting the hack, which occurred earlier this month.
What to expect from the cryptocurrency markets this week
A popular topic of conversation among traders this week is the potential approval of an ETH ETF by the U.S. Securities and Exchange Commission.
Notably, money management firm VanEck’s latest ETH ETF call does not include episodewhich deviates from previous statements from fund managers ARK Invest Management LLC and Franklin Templeton.
According to research released Monday by brokerage firm Bernstein, there is a 50% chance that an ETH ETF will be approved by May and could be “well positioned for the mainstream.” institutional adoption” in the cryptocurrency market.
Separately, many analysts are tracking STRK, which is new native token of Ethereum Layer 2 Starknet protocol.
After briefly trading as high as $5, STRK stabilized around the $2 mark on CoinMarketCap on Tuesday. It temporarily reached a multibillion-dollar market capitalization after rolling out to millions of users in what was called the largest such distribution this year.