Bitcoin struggling to recover after the market crash, Weibo user records sold for BTC, CoreWeave joining the fight with COVID-19 and more in our weekly roundup.
Experts Predict that Bitcoin Will Need Months to Recover
Bitcoin can take months to recover, according to experts from global market research firms.
In Bloomberg’s article from March 20th, Rob Sluymer form Fundstrat Global Advisors notes that BTC is in particularly rough shape after last week’s market collapse. The world’s biggest crypto is trading about 40% below its February indicators, leaving its price action “badly compromised”.
Sluymer, however, also noted that now is the time to “give Bitcoin the benefit of the doubt”, seeing how the crypto recovered from its 2015 and 2018 major downs. With that being said, it is evident that BTC will require months to fully recover from the damage that it incurred. The turbulence in the markets left Bitcoin compromised, which can lead to customer distrust and vulnerability in the longer term.
Analysts also note a great deal of seller exhaustion. The low prices of BTC are economically tough for many miners, and hash rates have been steadily dropping. TokenAnalyst’s Ankit Chiplunkar summarized a report that shows miners switching off equipment to reduce costs to offset reduced revenue led to the average daily block time increasing by 60%.
538 Million Weibo User Records for Sale on DarkNet for 0.177 Bitcoin
What was first considered to be an overreaction on the part of the Weibo community has been proven true: approximately 538 million of sensitive user records have been leaked and listed for sale on the DarkNet for 0.177 Bitcoin.
In a now-deleted post, Weibo representatives first claimed that no users’ passwords or ID numbers were under threat. According to Luo Shiyao, Weibo’s Security Director, phone numbers were leaked as a result of brute-force matching and other personal data was crawled on the Internet.
This has since been debunked: according to Phala Network, users’ real names, IDs, phone numbers, current and old passwords, and license plate numbers can all be found in Weibo’s leak on the DarkNet. One user has bought their own personal data and found it to be accurate.
Digital Asset Hedge Fund Adaptive Ceases Operation Following Market Crash
Adaptive Capital is reportedly closing its operations after the sharp decline in BTC prices between March 12th and 13th. As of the 22nd, the company’s website has been wiped clean of any information.
According to their letter to Limited Partners, Adaptive will drop all operations and return the funds to the investors they belong to. The company stated that the dangers of working in a volatile market currently exceed any foreseeable advantages.
Adaptive’s management has further states that infrastructural insufficiencies led to their inability to cope with the massive sell-off of crypto during the market crash. A number of exchanges, platforms, and tools they partner with have also halted their operations due to the crash, which has further hindered Adaptive’s ability to react.
CoreWeave Diverts 6,000 Graphics Processing Units to [email protected]
Coreweave, the largest ETH miner in the United States, has transferred the computational power of over 6,000 GPUs to [email protected] ([email protected]), a distributed computing project that performs molecular simulations of protein dynamics that, in turn, boosts medical and scientific research.
[email protected] is an active ally in the fight against COVID-19. The project is currently performing research that will ultimately bring scientists closer to developing a working vaccine against the coronavirus. Over the last month, [email protected] has received endorsements from over 20 other platforms and companies. Golem, a decentralized computing platform, and Tezos, a blockchain company, have both endorsed the project on Twitter and organized a prize of several hundred XTZ to be awarded to the largest [email protected] donor.
Coinbase CEO Brian Armstrong Claims Bitcoin will Outperform Cash During the Pandemic
With cryptocurrency markets crashing alongside legacy markets due to the pandemic, Coinbase’s Brian Armstrong points at the potential benefits of switching to crypto entirely. Physical banknotes and coins can easily spread COVID-19, with the virus being able to live on surfaces for up to three days.
Chinese authorities are currently disinfecting and destroying any cash that has allegedly come into contact with infected individuals. The United States is, in turn, imposing a 10-day quarantine on all dollar bills coming from Europe and Asia to prevent the spread of the disease. This combined with most fiat currencies losing their value as the result of the ongoing inflation makes switching to crypto seem like the right thing to do.
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