Hackers Are Trying To Break Into This Bitcoin Wallet Holding $690 Million

For at least a year, hackers have been passing around and trying to break into a Bitcoin wallet that potentially holds around $690 million, or 69,370 BTC. This would be the wallet with the seventh highest amount of Bitcoin in circulation, according to a site that tracks wallets quantities, so if anyone could crack it, it would be quite the coup.

Ever since Bitcoin’s launch in January of 2009, people have lost the passwords to their wallets, or thrown out the hard drives where they were storing their bitcoins, effectively locking themselves out of their hard earned digital money. With the value of Bitcoin going up and down, people have desperately tried to unlock those wallets, to the point of recently enlisting a Google security engineer in an epic attempt to unlock $300,000 worth of the digital currency. There’s even a marketplace now, called All Private Keys, where people can purchase, download, and attempt to hack into Bitcoin wallets that need cracking.

On Monday, Alon Gal, the Chief Technology Officer of cybercrime intelligence company Hudson Rock, noticed that the $690 million Bitcoin wallet—whose address is 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx—was advertised on the popular hacking forum RaidForums.

“Stealing Bitcoin wallets from victims worldwide is a common goal among cybercriminals. Wallets tend to be protected by strong passwords and in the event that a cybercriminal manages to obtain a wallet and cannot crack the password he might sell it to opportunistic hash crackers who are individuals with a large amount of GPU power,” Gal told Motherboard in an online chat. “In the case of this Bitcoin wallet, it seems that it had been circulating for a while with no luck to those who attempt cracking it.”

In fact, hackers have been trading the wallet on various occasions. On June 29 of last year, someone nicknamed humerh3 tried to sell the wallet on Bitcointalk, one of the most popular forums dedicated to the cryptocurrency. Another forum member noticed a listing on All Private Keys for the $690 million wallet earlier this year as well. That listing is now gone, but another site has it on sale.

There is no guarantee, however, that this wallet.dat file that’s going around actually holds the lost Bitcoin. It’s possible that someone forged this wallet so that it would have the 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx address but not its…

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Schiff buys more Bitcoin — But there’s a twist

The vast majority of Twitter users trust 18-year-old Spencer Schiff’s investment advice over that of his father, Peter Schiff — a renowned gold bug and Bitcoin (BTC) critic.

“Against my advice my son just bought even more Bitcoin,” said Schiff, “Whose advice do you want to follow?”

According to a Sept. 7 tweet from Peter Schiff, 81% of over 46,000 Twitter users who replied to the poll would prefer the advice of an “18-year-old college freshman who’s never even had a job” over that of a man with more than 30 years’ experience as an investment professional.

The younger Schiff was quick to respond to his father’s remarks and the survey results, stating that Crypto Twitter appeared to be backing him. Others enthusiastically showed their support for Spencer on social media.

“Your son will be a multi-millionaire at least by the time he’s 57 if he keeps buying Bitcoin,” said Quantum Labs CEO Usman Majeed.

However, a few thought that a father and son favoring different assets was more of an investment strategy.

“Using your son to hedge your gold bet is a great idea,” said Morgan Creek Digital co-founder Anthony Pompliano. “Gold goes up, you benefit. Bitcoin goes up, your son benefits. Clever way to be long [on] both assets without publicly capitulating on gold.”

Pompliano wasn’t the only commentator who reached this conclusion. “Sounds like Peter is making sure he can…

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Data Shows “Smart Money” is Looking to Buy Bitcoin at THIS LEVEL

  • It has been a rough past couple of days for Bitcoin and the rest of the crypto market, with bears forcing BTC to dive as low as $10,000
  • The support found just below this price region was significant, as BTC quickly bounced and ran back towards the upper-$10,000 region
  • Bulls and bears have since reached an impasse, with the cryptocurrency consolidating as it attempts to garner some clearer directionality in the near-term
  • One analyst is pointing to data that shows whales are looking to add to their BTC positions within the $8,000 region
  • This means that a dip to here may be imminent in the coming weeks and months

Bitcoin and the aggregated crypto market have been flashing some mixed signs in recent weeks.

Despite seeing intense strength throughout the past month or so, BTC erased most of its recent gains when sellers forced it down to lows of $9,990 before it was able to rebound back into the mid-$10,000 region.

This selling pressure came about rather unexpectedly and shows that the $12,000 region remains a massive macro resistance level for the crypto.

Where it trends next may somewhat depend on whether or not bulls can reclaim $11,000 – as this level was previously strong support for the benchmark crypto.

Data suggests that whales are waiting for it to see significantly lower lows before it ascends higher.

Bitcoin Shows Signs of Weakness Despite Present Stability 

At the time of writing, Bitcoin is trading up just under 3% at its current price of $10,500. This is around the price at which it has been trading throughout the past 24-hours.

Following the intense selloff seen yesterday morning, BTC was able to find some stability around its current price region, and sellers have yet to retest its crucial $10,000 support level.

If buyers are unable to push it back above $11,000, however, there’s a high likelihood that lower lows are imminent.

“Smart Money” is Looking to Buy BTC at $8,800 

One indicator that lower lows could be imminent for Bitcoin is the presence of heavy bids from whales in the upper-$8,000 region.

This indicates that they anticipate the crypto to dip towards these lows.

“Nice to see you again Bitfinex Whale. Smart money has their bids sitting at $8800. I expect the bottom will likely be around there,” one analyst explained while pointing to the below chart, highlighting the bids in the region.

Bitcoin

Image Courtesy of Cole Garner.

The upcoming weekend will likely prove to be a pivotal time for Bitcoin.

Featured image from Unsplash.
Charts and pricing data from TradingView.

Source: Bitcoininst

The Price of Bitcoin Plunges

  • After facing some slight turbulence yesterday, Bitcoin incurred a massive rush of selling pressure today that sent its price reeling down to lows of $10,700
  • This movement came about in the form of a sharp selloff following a prolonged bout of sideways trading within the lower $11,400
  • Analysts are now noting that the market is now at serious risk of seeing further downside
  • This comes as multiple large BTC mining pools begin offloading their holdings concurrently, which is likely the main reason behind this movement

Bitcoin and the aggregated cryptocurrency market have seen some mixed performance in recent weeks, with the benchmark digital asset rallying as high as $12,200 just a few days ago before consolidating within the lower-$11,000 region.

Analysts are conflicted as to where the market may trend in the near-term, as some are noting that the latest decline struck a major blow to its technical strength.

This comes as selling pressure from miners heats up, which is a traditionally bearish sign that indicates downside may be imminent.

Bitcoin Shows Signs of Weakness as It Reels to $10,700

At the time of writing, Bitcoin is trading down 5% at its current price of $10,850.

This marks a slight rebound from its daily lows of $10,700, but it remains well off of its recent highs of $12,200 that were set just a few days ago.

Where it trends in the near-term should depend largely on whether or not bulls can catalyze a move back up to $11,000. If surmounted, this level will be crucial support for BTC.

BTC Miners Place a Massive Amount of Selling Pressure on BTC 

The likely suspect behind this latest selloff is miners, as data from CryptoQuant shows that some of the largest pools have been selling their holdings in tandem.

“Miners are moving unusually large amounts of BTC since yesterday. Poolin, Slush, HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange,” the analytics firm noted.

The CEO of the firm spoke about this data in a recent tweet, noting that this coordinated selling is an “unusual situation” that has led him to reduce his long exposure to BTC.

“I did knife catching yesterday and longed, but closed the position an hour ago. I think these miner outflows are a pretty unusual situation.”

Where the market trends next may depend on how intense this selling pressure is in the near-term.

Source: Bitcoininst

Bitcoin Recovers From Crash After Another $12K Rejection

Bitcoin bulls were met with another wave of intense selling pressure at the psychological $12,000 yesterday, which sent prices reeling $900 all the way back to the $11,160 level.

This is the third time in under a month that BTC has experienced a strong rejection at this critical level of around $11,100.

In the previous analysis from yesterday, we anticipated that Bitcoin breaking into the overbought region on the 4-Hour RSI would create some intense selling pressure against the uptrend. This was likely one of the main catalysts for initiating the trend reversal.

According to Datamish, over $58.3 million worth of BitMEX longs were also liquidated during the crash. This significant squeeze will have almost certainly assisted in driving Bitcoin’s price down further once the breakdown began.

So far, $25 billion has departed from the crypto market in the last 24 hours, as panic and fear take hold of traders once again.

Price Levels to Watch in the Short-term

On the 4-Hour BTC/USD chart, we can see that the price has managed to return to the safety of the $11,400 support zone (first green area), where it is now consolidating.

Running parallel along the top of this support zone is the 0.236 Fibonacci level ($11,436), which will likely act as the first resistance against any intraday recovery.

Above that, we will likely see the next significant resistance around the critical $11,600 area / 0.382 Fibonacci level. On the 1-Hour chart, it’s clear that the final leg – which saw the leading crypto tank an additional $430 – occurred just as BTC fell beneath this vital point.

This zone is also reinforced by the 50 and 100 EMA lines right now (blue and red, respectively), which should make it even harder to overcome.

Looking below, we should expect to see additional support along with the $11,100 and psychological $11,000 levels, if panic continues to drive prices lower. Once again, the unfilled CME gap way down at the $9,925 level is looking like a potential target if Bitcoin takes another sudden dive.

After strong reactions like this, however, it’s more common to see the price action push sideways as traders wait for more certainty.

Total market capital: $383 billion

Bitcoin market capital: $211 billion

Bitcoin dominance: 55.0%

Data by Coingecko*

Bitstamp BTC/USD 4-Hour Chart

btc usd trading bitcoin
BTC/USD chart via Tradingview

The post Bitcoin Recovers From $900 Crash After Another $12K Rejection (BTC Price Analysis) appeared first on CryptoPotato.

Source: Crypto Potato

“Wise to Exit” Bitcoin Long Positions If This Happens

A bullish Bitcoin technical pattern that has held firm since October 2019 flashed once again this week.

It is an uptrend–an ascending channel–wherein BTC/USD’s momentum indicator is making higher highs and higher lows. The so-called Relative Strength Index reverses its uptrend after its tests the upper trendline of the Channel. Similarly, it bounces back after testing the lower trendline of the Channel.

On August 25, the RSI fell towards the Channel support once again. The index changed directions to the upside later, confirming itself as “a great entry” for traders that are looking to secure medium-term gains. A similar strategy has earlier played out profitable for bulls – on four separate occasions.

But there is still a catch.

A pseudonymous analyst explains that a renewed selling pressure in the Bitcoin market risks pushing the daily RSI below the lower trendline. He is the same daytrader who accurately spotted the fractal when the RSI was hanging near its upper trendline in early August 2020.

“If the support is tested again and does not hold and the trend is broken, it will be wise to exit,” he said on Tuesday.

Risks

Bitcoin has sustained its bullish bias for 2020 despite crashing by more than 60 percent in mid-March. The Federal Reserve has reduced the appeal of holding long-term Treasurys by keeping its interest rates lower near zero. Meanwhile, the US central bank’s massive quantitative easing exercise has burdened the US dollar.

As a result, perceived safe-haven assets have recovered impressively. BTC/USD now trades more than 200 percent higher than its mid-March nadir of $3,858.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy

Bitcoin sustains its upside bias despite failing to hold $12K as support. Source: TradingView.com

But the benchmark cryptocurrency now faces competition from the emerging decentralized finance sector. Traders that are looking for explosive short-term returns of investments are looking into lending and custodian projects after their tokens surged by a minimum of 1,000 percent this year.

At least that is what the founder of one of the DeFi projects says. Synthetix’s Kain Warwick noted that traders are treating Bitcoin as a tunnel to enter the DeFi space, which means it has very little chance of exploding higher amid the running bull market.

“The days of BTC as an on-ramp to crypto are over, it’s being bypassed almost completely as new money comes in primarily via stablecoins,” he tweeted.

Optimism for Bitcoin Sustains

But to many, Bitcoin remains the answer to the confirmed fears of inflation, now as even the Fed admits to it. Last week, the central bank’s chair Jerome Powell unveiled a new strategy, which could see the rate of inflation rising slightly higher than the decade-long target of 2 percent.

Meanwhile, investors have perceived that the Fed would keep its interest rates lower near zero. It has triggered a sell-off in dollar, raising appeal for safe-havens like Bitcoin.

Public traded company MicroStrategy has diversified $250 million of its cash portfolio to Bitcoin. Billionaire hedge fund investor, Paul Tudor Jones, has also gone long in the Bitcoin futures market.

The market expects BTC/USD to hit $20,000 by the end of this year.

As long the pair’s daily RSI holds the lower trendline!

Source: Bitcoininst

A Radical New Crypto Just Blew Past The Bitcoin Price All-Time High—Up A Shocking 3,500% In Just One Month

Bitcoin and cryptocurrency markets have been dominated by decentralized finance, often shortened to DiFi, over recent months.

The bitcoin price, up around 40% since the beginning of 2020, has been left in the dust by the gains made some DeFi project tokens—including yearn.finance (YFI) that’s up a staggering 3,500% in just a little over a month and has surged past bitcoin’s late-2017 $20,000 all-time high.

The price of yearn.finance tokens have soared from under $1,000 per YFI since it was created in mid-July to over $30,000 this weekend, passing the bitcoin price on Friday. The yearn.finance price came close to $40,000 on some bitcoin and cryptocurrency exchanges before falling back.

YFI is the governance token of DeFi protocol yEarn, designed to aggregate yields from other lending protocols. DeFi is the idea cryptocurrency technology can be used to recreate traditional financial instruments such as loans and insurance.

YFI holders can use their tokens to vote on proposals for network upgrades and it can be earned by putting cash into yEarn, a practice known as yield farming.

“The yearn.finance coin has become the altcoin star recently,” Alex Kuptsikevich, FxPro senior financial analyst, said via email.

“In a month it has shown twentyfold growth, living proof that ‘unicorns’ still exist, at least in crypto. The rapid growth of the coin also reflects the popularity of the decentralized financial sector. The creators of the project decided to follow the bitcoin path, limiting the issue of only 30,000 YFI coins. Such limited supply spurs rapid price growth.”

This price growth was not something planned by the YFI creator, however. Yearn.finance tokens were described as…

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High Inflation and Gold Issues Could Send Bitcoin Price to $500,000, The Winklevoss Twins Say

Gold, oil, and even the US dollar, which have served as a reliable store of value for years, could soon lose that status, according to the Winklevoss twins.

According to them, Bitcoin is the value to substitute and when this comes, it could facilitate a surge in its price to $500,000 and beyond.

The Major Problems With USD

In a comprehensive post, the Winklevoss twins discussed the past, present, and plausible future of finance, global economies, safe haven tools such as gold, oil, and USD, and Bitcoin’s potential role in the entire equation.

The post explored in detail the approach taken by the US government towards its own currency. The USD, which has served as the global reserve fiat currency for several decades, has begun decreasing in value and status partly because the government “was spending money like a drunken sailor, cutting taxes like Crazy Eddie, and printing money like a banana republic,” even before the COVID-19 pandemic.

Instead, those in power should have run a budget surplus during the so-called pro-business cycles. Meaning, the government should have been “spending frugally, saving prudently, or some combination thereof – and printing money sparingly.”

However, “what began as a shot in the arm during the credit crisis of 2008, never stopped, despite the US economy being out of the woods for years.” These actions, which the twins have named as pure “addiction,” had disrupted the stock markets as well, as every time the Fed tried quantitative easing (QE) even before the COVID-19, the markets “recoiled viscerally and became combative.”

“And if stock market gains are your measure of success, you will choose not to upset the apple cart, even if it’s widely untethered to reality. You will naturally avoid a painful intervention and rehabilitation and continue to kick the can down the road as long as you can.”

The actions taken by the Fed to alleviate some of the economic pain caused by the pandemic resulted in the printing of “two-thirds as much money in the last six months as it did over the prior 11 years.” The Fed’s balance sheet has exploded after committing to a “YOLO whatever it takes QE posture going forward.”

US Fed Balance Sheet. Source: fred.stlouisfed.org
US Fed Balance Sheet. Source: fred.stlouisfed.org

Ultimately, all of this means that the “specter of inflation (or hyperinflation) is staring down on us,” and the USD is and will keep decreasing in value and status compared to other assets.

Issues With Oil And Gold

The twins asserted that “oil is no longer a reliable store of value.” They based their conclusion on the events around the pandemic when oil prices went into negative territory because of the storage and lack of demand issues.

Although they have recovered since then, the brothers believe that the technological advancements in the sector have dramatically increased the supply of oil, while global forces are reducing the demand with renewable energy initiatives and political pressure to decrease carbon footprints.

Gold, on the other hand, is currently a reliable store of value and is regarded as the classic inflation hedge. However, it has potential problems as well, such as its supply. The supply of gold is unknown, even though the precious metal is scarce on Earth. Nevertheless, as the founders of the Gemini cryptocurrency exchange recently pointed out, gold can be harnessed from space.

The “Space Gold Rush” has begun with NASA’s Psyche mission scheduled for 2022 with Elon Musk winning the contract to launch it. And, despite NASA claiming that it doesn’t plan to mine metals from asteroid yet, the organization (or others) could have a change of heart soon, which may plummet gold’s value.

“It seems entirely plausible that Elon Musk will be able to put a machine on an asteroid, drill a hole, and retrieve the extractions back to Earth within his lifetime. Even a semi-credible effort that foreshadows this long-term inevitability will crater the price of gold.”

Other potential problems with the precious metal include its portability as it’s “hard to move gold during a pandemic, during a war, and if there’s a change in government attitude towards your property rights. It’s hard to move gold, period.”

The Answer Could Lie In Bitcoin

The Winklevoss brothers noted that several, different in essence, goods have served as money throughout history – shells, beads, metal, paper backed by metal, paper not backed by metal, and more. Money is “whatever we all agree it is,” and it could be an asset purpose-built for internet usage, working the same way as the email does. Enter Bitcoin.

“Bitcoin is not just a scarce commodity; it’s the only known commodity in the universe that has a deterministic and fixed supply. As a result, Bitcoin is not subject to any of the potential supply shocks that gold (or any commodity for that matter) may face in the future.”

Bitcoin Vs. Gold Qualities. Source: WinklevossCapital
Bitcoin Vs. Gold Qualities. Source: WinklevossCapital

By referring to the chart above, the twins highlighted all of BTC’s superiorities over gold. Those include the scarcity (21 million bitcoins ever to exist), durability, portability (BTC can be sent anywhere in the world and it requires just an internet connection), divisibility, storage, and counterfeit difficulty. A recent example showcased that despite indeed being difficult, it’s not impossible to counterfeit gold.

One measure that gold is massively outperforming Bitcoin is the total market cap of the two assets, which could actually present an opportunity for BTC to skyrocket in price. The twins said that the TMC of “above-ground gold is conservatively $9 trillion.”

“If we are right about using a gold framework to value Bitcoin, and Bitcoin continues on this path, then the bull case scenario for Bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of Bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 per bitcoin.”

Although such a massive price sounds quite optimistic, to say the least, the brothers believe that it could even exceed it if we take into consideration “some portion of the $11.7 trillion of fiat foreign exchange reserves held by governments” and insert it into BTC.

The post High Inflation and Gold Issues Could Send Bitcoin Price to $500,000, The Winklevoss Twins Say appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin Pops and Drops After Powell Introduces Average Inflation Targeting

Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.

The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk’s Bitcoin Price Index.

The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.

The negative correlation between the dollar and…

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Ethereum

Ethereum Isn’t Clear of Danger Yet, But Analysts are Eyeing a Bullish Move

  • This movement came about in tandem with a similar decline seen by Bitcoin and has sent shockwaves throughout the aggregated crypto market
  • Analysts are now noting that ETH may be poised to see further near-term weakness, but its bull case remains strong
  • One trader is noting that Ethereum has yet to break below a crucial trendline, making a highly bullish pattern still valid in the near-term

Ethereum saw an influx of selling pressure that caused its price to shatter below $400 overnight.

This movement wasn’t isolated to ETH, as Bitcoin and most other major altcoins also witnessed a similar selloff.

It now appears that the cryptocurrency may be in a precarious position as bulls struggle to defend $390. That being said, a recently surmounted descending trendline suggests $380 is the crucial level to watch in the near-term.

As long as Ethereum remains above this level, it may be prone to seeing upside in the near-term.

One analyst even believes the next move higher could lead it towards $500 due to the confluence of a few factors.

Ethereum Shows Signs of Weakness Following Sharp Overnight Decline

At the time of writing, Ethereum is trading down over 4% at its current price of $390. This marks a notable decline from daily highs of $410 that were set yesterday.

These highs came about after bulls started building momentum following the crypto’s break above $400, which came about just over a day ago.

Prior to yesterday’s fleeting breakout, Ethereum had been caught within a bout of sideways trading between $380 and $400. Now that it is once again trading within this range, which of these price levels is broken first should reveal its mid-term outlook.

Analyst: ETH’s Market Structure Suggests a Move to $500 is Possible

Prior to the overnight selloff, one analyst noted that a confluence of factors suggested that a rally towards $500 could be in the cards for Ethereum in the near-term.

Despite this selloff, the crypto still remains above its key support at $380, which appears to make the analysis put forth by the trader still valid.

“Short term downtrend broken on eth, it successfully had everyone flip bearish over the weekend, now it needs to flip these 50 and 100mas on 4h and its clear skies to $500. Not out of danger just but its looking much nicer,” he explained.

 

As long as Ethereum continues holding above this crucial support level, bulls may remain in control of its mid-term trend.

Source: Bitcoininst