Sharp drop in Bitcoin price
The price of the digital currency "Bitcoin" fell by about 3.18 percent in Friday's trading, recording $77,700, affected by a major security breach at the "Binance" platform that led to the freezing of assets worth about $3 billion. This decline came amid investor fears of the incident's repercussions on exchange-traded funds linked to the currency, which weakened institutional demand for it.
Details of the hack and its repercussions
The "Binance" platform announced on Thursday that it had been hacked, noting the temporary suspension of withdrawal and deposit operations and the freezing of assets to limit the repercussions. The platform clarified via its account on the "X" platform that preliminary investigations indicate that the hack resulted from a laptop belonging to one of the development engineers being compromised, which allowed attackers to execute unauthorized withdrawals.
The platform clarified that the total estimated impact of the incident is about $6.3 billion, while approximately $3 billion was frozen on the blockchain network. The incident comes at a time when observers' concerns are growing regarding the impact of the rapid development of artificial intelligence models' capabilities on encryption systems and information technology security protocols.
Global market context
Thus, "Bitcoin" recorded its lowest level in the past six weeks, despite market optimism about the decisions of the US Federal Reserve. The price of "Bitcoin" closed last week at $80,000. The decline comes amid fluctuations in global energy and financial markets due to the repercussions of the war launched by the United States and Israel against Iran on February 28.
Reports indicated that this war contributed to rising oil prices and inflation levels, as well as a slowdown in global economic growth rates, which negatively affected the performance of digital assets and risk-taking in financial markets.
Source: Anadolu Agency
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