Bitcoin Loses 8%, Altcoins Plummets too

Bitcoin shed eight percent amid news of US law enforcement recouping some of the Bitcoins in the Colonial Pipeline ransomware attack. The leading crypto asset now trades at under $33,000 at the time of this report. The reason for the selloff is linked to increasing fear in the crypto community. 

Colonial Pipeline, a petroleum firm fell victim on May 7 to a cyberattack that affected its billing system. Operations were frozen by the company to prevent further damage which led to fuel shortages within the region. However, the authorities have been able to recoup $2.3 million of the ransomware. 

The recovery was initially reported to have been made by hacking the attacker’s BTC wallet but this doesn’t seem to be the case. An affidavit from the FBI indicates that the recovery was made by matching the public and private wallet keys of the hacker. Although a successful procedure was conducted, the crypto market couldn’t be held from plummeting. 

Crypto Market Situation in the Past 24 Hours

The cryptocurrency market recorded liquidations to the tune of $200 billion in the past 24 hours. This is the lowest the market has fallen since the May capitulation. Bitcoin dumped over $4,000 in a few hours and altcoins followed suit as expected. 

In the past 24 hours Ethereum is down by 10.3 percent, Dogecoin went down by 13.3 percent, and Solana by over 18.9 percent. Bitcoin liquidations shot well over $1 billion in hours with Ether trailing behind. Other cryptocurrencies were also largely affected. 

Is Elon Musk Responsible for the Recent Crypto Bloodbath? 

Crypto analyst and trader “Capital Rekt ” has gone ahead to blame Elon Musk and Tesla for the recent turmoil in the cryptocurrency market. Musk is infamous for his cryptic tweets that often affect the crypto market largely. However, the Billionaire hasn’t made a likely remark to crypto in the past 24 hours. 

The latest turnaround appears to be influenced by the fears of regulations in the US. Following the ransomware attack, US government officials have seen more reasons to berate cryptocurrencies. The BTC fear and greed index is currently at its lowest since 2020.

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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