Bitcoin (BTC) Surges Nearly 6% in 12 Hours to Move Past $6,700

Avi Rosten

The price of bitcoin (BTC) has surged nearly 6% in under 12 hours - climbing to over $6,700 - as cryptocurrency markets across the board have shown signs of recovery.

minute_CryptoCompare_Index_BTC_USD_289_51537521048448.pngSource: CryptoCompare

Unclear What’s Behind Surge

The biggest BTC news for the last few weeks came last night as the US SEC announced it was once again postponing its decision on the highly-anticipated VanEck-SolidX Bitcoin ETF until December 29th.

This news however is likely unrelated to the recent surge. The last time the SEC made a similar postponement announcement on August 8th – bitcoin dropped over 7% in price - although it is possible that investors expecting an outright “no” were somewhat encouraged.

Changpeng Zhao: Stablecoins and $6k Support Level Are Positive Signs

While such price movements are most probably attributable to short-term trading activity, taking a broader view on the state of the market yesterday – Binance CEO Chanpeng Zhao offered some reflections on the year as a whole while talking to CryptoGlobe at Consensus Singapore.

We asked him about the proliferation of stablecoins - such as Gemini’s recently launched GUSD – a development Zhao believes is very positive:

Stablecoins are huge, I think people don't understand the impact of a regulated stablecoin... If people understood what the impacts are bitcoin price would be going up now because of all the stablecoins. They are a very good channel for fiat money to come in and spread around the crypto space. I think it’s a very, very positive thing

Moreover, Zhao was keen to look at the general support level for BTC this year:

If you look at the chart, we have seen a very strong support level at $6,000 in 2018, whereas in 2014 it was $200. I never trade myself, I buy and hold. Any minute the bull market will return, historically October to December are the good months... But I don't make predictions we just react to markets

 

day_CryptoCompare_Index_BTC_USD_366_11537524721284.pngSource: CryptoCompare

Decentralized Crypto Exchange Bisq Exploited for $250,000 in BTC and XMR

Decentralized cryptocurrency exchange Bisq, which allows for peer-to-peer trading, has halted trading on Tuesday after uncovering a “critical security vulnerability.”  The vulnerability led to the loss of at least $250,000 in BTC and XMR.

At the time the exchange didn’t go into the situation, but merely advised users to not make any transactions. It used an alert key functionality to halt trading, but as it’s a decentralized exchange it can be bypassed by users.

About 18 hours after initially halting trading, Bisq revealed it was exploited by a hacker who managed to steal “approximately 3 BTC and 4000 XMR” from seven different users on the platform. The only affected market was the XMR/BTC one, and affected traders occurred over the past 12 days, Bisq revealed.

The vulnerability was created after an upgrade meant to help further decentralized the platform, by removing arbitrators with a third key in the multisig escrow used when trading funds. The arbitrators were replaced with mediators and arbitrators with no keys in the escrow, and to make up for the removal of a trusted third party, Bisq moved BTC trade funds to a so-called “donation address” after a time limit in order to solve abandoned trades.

Per the exchange, a flaw in the way the traders were carried out allowed a hacker to change the address the funds would be sent to for his own, netting around $250,000 in crypto.

This donation address is set by the Bisq DAO and approved by DAO stakeholders. Bisq software did not verify that the payout address for trades was actually the Bisq donation address set by the DAO before signing and sending the time-locked payout TX to the trade counterparty.

On Bisq’s forums, users pointed to a bitcoin address the funds moved through, which has seen a total of 19.6 BTC ($143,000) flow through it. Blockchain data shows the funds have since then hopped through various addresses, likely to conceal their origin and throw off sleuths.

Bisq’s DAO, the exchange’s funding mechanism, is reportedly going to create a proposal to repay the seven known victims of the hack using future trading revenues.

Featured image via Pixabay.