Cryptocurrency Prices See Slight Drop After Nasdaq’s ‘Worst Day Since 2011’

The price of most cryptocurrencies has dropped slightly in the last 24 hours, after Nasdaq had its worst trading session since 2011, dropping nearly 4.5% in a day before traders helped the market recover after hours.

According to CryptoCompare data bitcoin, the flagship cryptocurrency, dropped about 0.5% in the last 24-hour period to about $6,470, while Ethereum’s ether, the second largest crypto by market cap, dropped about 1% to $201. Most other top altcoins are in the red by anywhere between 0.5% and 1.6%.

Bitcoin fell slightly after the equities selloff

Notably he cryptocurrency market’s negative performance dwarfs that of the equities market, which recently faced a major sell-off related to a potential China-US trade war and the European Union officially rejecting Italy’s budget.

As CNBC points out, on October 11 bitcoin’s price fell more than 4% and both ETH and XRP dropped 11% when the stock market dipped at the time, which saw some question whether cryptocurrencies could be used to hedge against financial instability.

Speaking to the news outlet Joe DiPasquale, the CEO of crypto hedge fund BitBull Capital, stated at the time that uncertainty around stocks had “blend into crypto markets.” He said:

"When we saw equity markets crumble, there was some fear in the cryptocurrency market as well. I think there was an initial jolt due to larger market activity and the sell off"

The October 11 dip notably also coincided with the release of a report by the International Monetary Fund (IMF) that argued crypto assets could lead to financial vulnerabilities. In the report it was noted that attacks and digital breaches “represent an additional source of risk.”

Cryptocurrency prices have recently seen slight gains when the equities market started dipping this week after Bakkt, the platform that’s set to be launched by the Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), revealed it was going to launch its daily bitcoin futures contracts later this year.

Moreover, as CryptoGlobe covered, sources at the Chicago Board Options Exchange (CBOE) revealed “approval confidence” for a bitcoin ETF is “high,” as VanEck and SolidX reportedly solved all the issues the US Securities and Exchange Commission (SEC) had.

On the regulatory side, Albania’s government has recently revealed it’s “assessing and working” on drafting cryptocurrency regulations in a bid to become a regional hub and attract “well-paid” job opportunities to the country.

Bitcoin has been bound to a range over the past few months, and a break above its 200-day moving average at $7,200 could see it start surging again, according to analysts. In the long run, some are still extremely bullish. Jim Blasko, the founder of Bitcoin Talk Radio, has predicted BTC could hit $200,000 by 2020.

Ravencoin Vulnerability Allowed Attackers to Increase Total Supply by 1.5%

Attackers have exploited a vulnerability found in Ravencoin, an open-source fork of Bitcoin that launched in 2018, to generate extra RVN tokens “beyond the coinbase of 5000 RVN per block.”

According to a Medium post published by Ravencoin lead developer Tron Black, community members from the CryptoScope team reached out to the Ravencoin team with the findings. Both teams then worked together to stop the exploit from being leaked, and started “code review to detect, isolate, and fix the issue.” The post reads:

A community code submission caused a bug that has been exploited. Law enforcement has been notified and is working with us. The vulnerability does not allow the stealing of RVN or assets that you own and control, but the minting did create RVN that should not exist.

In total, the extra coins that were minted beyond Ravencoin’s total 21 billion supply are the equivalent of 44 days worth of mining, or about 1.5% of the RVN tokens that will ever exist. Black’s suggestion on the post was for the community to absorb the economic cost of the extra tokens, or to move the halving 44 days earlier.

He added the minted RVN tokens were moved to an exchange and traded, and as a result were mixed with other circulating RVN tokens. This means that trying to burn the tokens, even if with community backing, will “cause irreparable harm to innocent victims.”

The burden, Black added, is currently being shared across all RVN holders in proportion to their holdings in the form of inflation. The developer urged users to keep trading to a minimum until a fix is issued. Details on the vulnerability will not be revealed until the fix is implemented.

Featured image by Tyler Quiring on Unsplash.