Crypto Market Review, August 4
Cryptocurrency is back in the green after the market recovered from a series of bridge hiccups
The cryptocurrency market is facing a recovery as the industry recovers from a series of bridge hiccups and issues with the Solana network. Fortunately, the security of blockchains was not the issue behind the string of wallet hacks.
Bitcoin stays successful
Despite all the negativity in the cryptocurrency market, Bitcoin successfully held up against the selling pressure we saw yesterday and managed to defend the $22,000 threshold yesterday, even reaching $23,000 at one point today.
Unfortunately, in the last seven days, Bitcoin has had seven consecutive red lights showing that the market is not yet ready to push the digital gold’s value up or to allow more inflow into the industry.
In the past week, institutional investors brought about $80 million to the cryptocurrency market, which can be considered a pittance for the $1 trillion market. However, we saw a fifth consecutive week of inflows, totaling $0.53 billion. Unfortunately, on June 26, we saw nearly $450 million worth of outflows from the market.
Advertisements
Solana developers wash their hands
With more details coming out about the latest Solana blockchain “hack” emerging in the industry, it has become clear that the network’s security was not the problem behind the users’ losses.
Responsibility for the hack reportedly lies with a Slope wallet provider that stored the seed sentences and private keys of Solana users in a plain text file, which is one of the most irresponsible things a crypto project that interacts with thousands of users could have done. .
After an investigation by developers, ecosystem teams and security auditors, it appears that affected addresses were at some point created, imported or used in Slope mobile wallet applications. 1/2
— Solana Status (@SolanaStatus) 3 August 2022
Once hackers gained access to Slope’s centralized servers, they almost immediately found the file that would grant full access to the wallets of all users who imported their seed phrase into the Web3 solution.
This fact also explains why some users lost funds unrelated to the Solana network, including Ethereum-based tokens or ETH coins themselves. Currently, we know that the largest part of the victims used Trust and Phantom wallets.
Is Crypto Oversold?
Over the past seven days, the cryptocurrency market has mostly faced selling pressure from investors, which could be a sign of an upcoming reversal next week or even weekend.
In addition to being oversold on shorter time frames, Bitcoin has reached the local support level, which is the 21-day exponential moving average, which acts as the short-term basis for a price movement.
The cross between the aforementioned moving average and the 50-day moving average is used as a proactive indicator of a reversal. On July 27th, we saw a crossover between the two lines after Bitcoin gained over 15% in value.
At press time, Ethereum is trading hands at $1,600, while Bitcoin is still consolidating around the $23,000 threshold.
