Bitcoin Price Rally Runs out of Steam, LTC Keeps Surging

Bitcoin, the flagship cryptocurrency, has recently seen its price drop to little over $3,900, as the rally that saw it rise well over 10% in a few days has seemingly started stalling. Some analysts believe remaining at this level would still be a bullish sign.

According to CryptoCompare data, BTC has recently managed to surpass the $4,000 mark for the first time in six weeks, but its price started dropping soon after. At press time, BTC is trading at $3,950 after losing 0.6% of its value in the last 24-hour period.

Bitcoin's price performance in the last 24-hour period

Other cryptocurrencies, including Litecoin, EOS, Bitcoin Cash, and Ethereum, have also seen their prices rise this week. What exactly was behind the crypto market’s rally is unclear. Some have claimed mainstream investors are entering the market, while others have pointed to JP Morgan’s JPM Coin as a reason for the rally, claiming it was a delayed reaction.

Institutional investors are believed to enter the market once a bitcoin ETF is approved. Currently, the SEC has two proposals on the table. The rally, however, is noticeably stalling, as most cryptos are down for the day, with the exception of a few, including Binance Coin, thanks to the launch of the Binance DEX’s public testnet.

Litecoin, a cryptocurrency seen as the silver to bitcoin’s gold, is notably up over 6% in the same period. Behind its rise appear to be groups on Chinese social media platform WeChat, which have reportedly been constructing a narrative around Litecoin’s halving event, expected to arrive in 168 days.

Although the crypto market rally is losing steam, most appear to remain bullish. According to a poll conducted by eToro senior market analyst Mati Greenspan, out of 355 respondents 30% believe cryptocurrencies will continue surging, while only 14% see it sustain current levels.

About 27% claimed the crypto market will retrace back to its lows, while 29% admitted they don’t know what’s going on, or just voted to see the results. Speaking to CryptoGlobe, Greenspan noted he also isn’t sure where the market is going.

Nevertheless, he noted that a retracement would be normal after such a price rise, although sustaining current levels for a few days would be a “very bullish sign.”

After this type of price move a retracement would certainly be normal, but if it even just sustains these levels for a few days it would be a very bullish sign indeed.

Despite the recent pullback, positive news have kept on coming. Elon Musk, a co-founder of PayPal and the CEO of Tesla and SpaceX, has recently revealed he believes bitcoin is “quite brilliant,” and also gave Ethereum some merit. Bitcoin’s rally has seen it get on track to record the first green monthly candle in over six months.

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.

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