Bulls Are Back In Town: Bitcoin Bounces Back From ETF Slump to Regain Over 4%

Avi Rosten

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Bitcoin (BTC) has had a turbulent day.

Dropping over 5% in price this morning to fall below the $8,000 level -  it seems that the slump was prompted by the SEC’s (US Securities and Exchange Commission) rejection of the Winklevoss twins’ bitcoin ETF application for the second time.

The cryptocurrency however, has almost completely bounced back to its former heights at the time of writing – regaining over 4% to approach the $8,200 mark - as the title chart from CryptoCompare shows.

All About ETFs

With many suspecting that the current mini-bull run is largely motivated by anticipation surrounding the SEC’s proposals from VanEck and SolidX – it is likely that investors took the rejection of the Winklevoss’ ETF has a bad sign ahead of the SEC’s decision – expected in mid-August.

While there are numerous other bitcoin-related ETF proposals currently lodged with the SEC, those of VanEck and SolidX have generated by far the most attention – with several hundred comments submitted regarding the proposals on the SEC website.

For comparison, the proposals filed by Boston-based ETF provider Direxion Investments at the time of writing have prompted only three comments.

With bitcoin in the latter half of July bucking the generally bearish trend, investors will be encouraged by the resilience shown in the face of ostensibly bad news. A truer test of market sentiment however, will likely emerge when the SEC’s decision on the more hotly-anticipated bitcoin ETFs arrives.

Error in Time-Locked Bitcoin Contracts Allows for Miner 'Fee-Sniping'

Michael LaVere
  • Crypto researcher 0xb10c discovered an error in bitcoin "time-locked" transactions that could be used as an attack vector.
  • Miners can take advantage of the program to carry out "fee-sniping" and steal funds from one another. 

Users have discovered an error in bitcoin “timelocked” contracts that could potentially allow miners to steal BTC from one another. 

Anonymous crypto engineer 0xb10c reported discovering more than one million “time-locked” transactions made between September 2019 and March 2020. In a post, 0xb10c detailed how these special bitcoin transactions were not being accurately enforced by the network. 

As opposed to normal transactions, time-locked transactions prevent recipient bitcoin from being accessed after sending. Users must wait for a specific number of blocks to be added to the network in ten-minute intervals before gaining control of their bitcoin. 

0xb10c claimed the errant time-locked transactions provided an attack vector for miners to steal transaction fees  from one another via “fee-sniping.” According to the engineer, the backlog of time-locked transactions were being purposefully designed for a “potentially disruptive mining strategy” involving the theft of miner fees. 

In an interview with CoinDesk, 0xb10c said time-locked transactions represented a “low-priority” problem at present that could eventually balloon to involve the wider network. He explained that fee-sniping would become more lucrative in a few years as the majority of miner income shifts towards transaction fees. 

He continued, 

A fix for this has been released in early 2020. However, it will take a while before all instances of the currently deployed software are upgraded.

Featured Image Credit: Photo via Pixabay.com