Bitcoin Crash: BTC price drops after hacker attacks. Here’s what you need to know.
After soaring to a record high Sunday, cryptocurrency bitcoin is falling, and just dropped its lowest level in June. CNBC reported that overall digital currencies fell by more than $17 billion during the week.
The bitcoin's value is volatile, as the currency remains vulnerable to cyberattacks. In the past few days alone, there have been cyberattacks on at least two major bitcoin exchanges: Bitfinex on Tuesday and Wednesday, and BTC-e on Monday. The two breaches were denial-of-service attacks, which do not affect a clients' funds.
"Investors with assets on centralized cryptocurrency exchanges should be careful," Benjamin Roberts, cofounder and CEO of digital currency trading startup Citizen Hex, told CNBC. "The track records of these organizations are not good, and as the assets on the exchanges grow, so does the bounty for attacking or hacking them."
Experts have weighed in on the digital currency’s future. According to Bloomberg, Goldman Sachs analysts recently issued a note warning that "bitcoin was poised for a reversal," while Morgan Stanley analysts reported the cryptocurrency "needs government acceptance and regulation in order to keep climbing."
As far as governments are concerned, a Senate bill introduced in May aimed at combating money laundering and terrorist financing also addresses the role of cryptocurrency.