Bitcoin image.  (Source = EPA Association)

Bitcoin 4 used ‘fear’… Big step notice, Nasdaq crash, hacking, pessimism

Bitcoin image. (Source = EPA Association)

Now, Bitcoin’s ‘38,000’ is hardened. While the news of the US Federal Reserve’s (Fed) rate hike, which is predicted in the future, continues to put downward pressure on the Nasdaq, the news of the DeFi hack and the pessimism of Warren Buffett also surfaced, making Bitcoin unstable in May. started off

According to CoinMarketCap, a global cryptocurrency market tracking site on May 2, at 11:10 am, Bitcoin was trading at $38,509.75, up 1.45% from 24 hours ago. However, compared to a week ago, it is down 1.49%.

On April 21, just before the Federal Open Market Committee (FOMC), Fed Chair Powell, suggested a ‘big step’ to raise the rate by 0.5 percentage points, twice the usual rate of increase, the price of Bitcoin was 42,000. formed in dollars. However, after Powell’s remarks, it plummeted to the $40,000 level and is facing a crisis to the extent that it recently entered the $37,000 level, drawing a downward graph day after day. As of May 1st, the lowest Bitcoin transaction price was $37585.79.

The drop in Nasdaq caused by successive earnings shocks of US big tech companies is also having a negative impact on the bitcoin price. Shares of big tech companies are shaking every day, such as news of a decrease in Netflix subscribers in mid-April, Tesla stock plummeting following Musk’s takeover of Twitter, and Amazon’s recent earnings shock. The plunge in major big tech stocks led to the collapse of the Nasdaq. Recently, the Bitcoin price is showing a coupling (synchronization) phenomenon with the Nasdaq, and the Bitcoin price is also falling.

As such, while encouraging a decline in the bitcoin price in the US financial market, externally, it is an atmosphere that aggravates investor sentiment. Bad news that some decentralized finance (DeFi) exchanges have been hacked has been reported, and Warren Buffett, an ‘investment genius’, has a negative view on Bitcoin.

DeFi platform Rari Capital and Pipe Protocol admitted that they had been hacked for more than $80 million (100 billion won) at the dawn of April 30 (local time). It is reported that the hacker is being ejaculated by offering $10 million in return. DeFi is a financial ecosystem that trades cryptocurrency between individuals, not through an exchange. Unlike general cryptocurrency exchanges, it is difficult to secure transaction details, so it is not easy to recover even if an accident occurs.

On the same day, Warren Buffett held the first face-to-face shareholders’ meeting in three years in Omaha, Nebraska, USA, where Berkshire Hathaway’s headquarters is located. During this meeting, Buffett criticized Bitcoin bitterly. “People’s perception of Bitcoin is changing, but I still have no intention of investing,” he said. He also argued that Bitcoin was a ‘Ponzi scam’, explaining that Bitcoin has no value because it produces nothing.

According to various negative factors, the ‘Crypto Fear and Greed Index’ estimated by ‘Alternative’, a cryptocurrency data provider on May 2, was 28 points. Although it increased slightly from 22 points last weekend, it still maintains the ‘fear’ stage, showing a frozen fighting spirit. The index closer to 0 indicates extreme fear in the market, and closer to 100 indicates excessive optimism.

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