Bitcoin prices have held up following the announcement that South Korean exchange Bithumb was hacked to the tune of roughly 35 billion won (approximately $31.6 million).
The market-leading digital currency dropped to as little as $6,561.79 at 01:15 UTC, according to the CoinDesk Bitcoin Price Index (BPI).
At this point, Bitcoin had fallen 2.6% from its price of $6,737.41 at the start of the day, additional BPI figures show.
Bitcoin later bounced back, recovering all of its losses and trading at $6,777.14 by 14:00 UTC, additional BPI data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Several analysts weighed in on Bitcoin’s minimal response to this latest hack.
Investors ‘Increasingly Desensitized’
The industry has not become significantly more effective at addressing these attacks, said Yazan Barghuthi, CEO of Jibrel Network.
“Investors have just become increasingly desensitized to this type of news,” stated Barghuthi.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, offered a different perspective.
“The Bithumb hack was smaller than several other recent hacks, which may have reduced its impact on the spot price.”
He emphasized that “Bitcoin’s price is already hovering slightly above proven support levels in the low to mid-$6,000 range.”
“If this hack had taken place when Bitcoin was starting to mount a comeback – say in the mid $7,000 range – then a sell-off would have been more likely. As it stands, the crowd that is purchasing Bitcoin at this price seem to be more resilient to bad news than the band-wagon crowds that a run up in price tends to attract.”
When explaining why Bitcoin prices changed little following the hack, one analyst noted that the digital currency has been following a downward trend as of late.
“A hack is yesterday’s news and the market has been pretty well downtrodden,” said Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare.
Hayter cited “negative pressure,” stating that it has “pushed the market down.”
After enjoying a very strong rally in 2017, Bitcoin has fallen sharply, losing roughly two-thirds of its value since peaking at nearly $20,000.
Marius Rupsys recently emphasized these losses, stating that by falling from $20,000 to its recent low of nearly $6,100, Bitcoin had fallen approximately 70%.
A Strong Position
In spite of all this, it is worth noting that Bitcoin’s price has made great progress over the years.
Bitcoin is still far higher than it was during the beginning of 2017, a year when digital currencies enjoyed sharp gains.
Having started the year around $420, Bitcoin is up more than 1,500% from this value by trading close to $6,800 at the time of this writing.
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.