Bitcoin and Crypto Prices Tumble as Markets Signal Risk-Off
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![Bitcoin's sharp drop, Exactly Protocol's $12M exploit, Coinbase's USDT suspension & Mastercard's CBDC collaboration highlight a volatile crypto week.](https://cdn.prod.website-files.com/636e894daa9e99940a604aef/64e06be06c35b16f4e27cd7b_Bitcoin%20Price%20Tumbles%20in%20Risk%20Off%20Move%20(3).webp)
Bitcoin and Crypto prices tumble as markets signal risk-off
Last night, Bitcoin's price took an abrupt 8% tumble within 10 minutes, dipping to lows not seen since June 20. This decline, partially attributed to the market's waning confidence in a U.S.-approved Bitcoin ETF, was also connected to reports that SpaceX sold some of its BTC holdings and China's Evergrande Group's bankruptcy filing. The dramatic drop pushed Bitcoin's market cap below $500 billion and resonated across the broader crypto market, underscoring the volatility and unpredictability tied to various global and industry-specific factors.
The ramifications of Bitcoin's fall had a domino effect on other cryptocurrencies like Ethereum, reflecting the market's heightened sensitivity to significant trades and global economic uncertainties. Factors such as rising U.S. interest rates and diminished trading volumes have fostered a landscape where price shifts occur more readily, indicating a less stable market environment.
Despite the alarming downturn, Bitcoin remains 60% up since the start of 2023, highlighting the asset's overall resilience.
Exactly Protocol hit by a $12 million exploit
A bridge exploit, valued at up to $12 million, has been directed towards Exactly Protocol. This decentralized credit market operates on the Optimism network. According to De.Fi, a blockchain security firm, the hacker utilized an exploiter contract on Ethereum. This contract facilitated the transfer of deposits to Optimism before ultimately returning stolen funds back to Ethereum.
Coinbase Canada to suspend USDT trading
On Thursday, Coinbase sent an email to its users in Canada, notifying them that their ability to trade the stablecoin Tether would be suspended by the end of August. According to a spokesperson from Coinbase, they regularly review the assets on their exchange to ensure they meet listing standards. Based on their most recent evaluations, trading for RAI Reflex Index (RAI), Dai (DAI), and Tether will be temporarily halted in Canada on August 31 at around 12 pm ET. This decision was communicated via email to Blockworks by a representative from Coinbase.
Mastercard forms a CBDC cooperation with Ripple
Mastercard, a global leader in payments, is joining forces with Ripple and Consensys, a blockchain development firm, to establish a program for central bank digital currency (CBDC). This exciting initiative aims to promote collaboration among industry leaders in the blockchain and payment services sectors.
Raj Dhamodharan, Mastercard's head of digital assets and blockchain, expressed the company's commitment to fostering innovation through this new CBDC program. By bringing together established players in the space, Mastercard is poised to play a crucial role in shaping the future of digital currencies.
ETH whale dumps $41 million worth of ETH before the market crash
Just days prior to the market downturn, a significant holder of Ether in the cryptocurrency realm made a shrewd move by selling off $41 million worth of the asset. By doing so, they managed to avoid a potential loss amounting to $5 million. This particular transaction was brought to light by Lookonchain, an analysis platform that monitors and highlights trades deemed intelligent or well-timed. On August 18th, this crypto whale transferred approximately 22,341 ETH onto Binance and subsequently withdrew around $41 million in Tether.
Other breaking news
- Shibarium resumes block production after a brief pause
- Celsius creditors to vote on Bankruptcy plan
- $1.5 billion in open interest sapped from markets
- BTC ordinals trading volume plunged 97% since May
- Cosmos devoted funds to boost DeFi activity
Wrapping up
Wrapping up, this edition of Datawallet Daily underscores a notably volatile week in the crypto arena. With events such as Bitcoin's precipitous fall, a $12 million exploit on Exactly Protocol, unexpected suspensions in Coinbase Canada, and innovative alliances like Mastercard's cooperation with Ripple, the market's complexity is ever evident. These developments serve as stark reminders of both the opportunities and risks inherent in the rapidly evolving digital asset landscape. Your continued engagement and awareness are essential in effectively navigating these dynamics. See you in our next issue!