Cryptocurrency Market News: Bitcoin Sputters After Crossing $50K

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21 Feb 2024

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Cryptocurrency Market News: Bitcoin Sputters After Crossing $50K

By KYLE TORPEY Published February 20, 2024
Alice Morgan / Investopedia

KEY TAKEAWAYS

Bitcoin has settled at around $52,000 after enjoying a strong start to the month; however, there are signs that the slow return of retail traders eventually may add momentum.
A new research paper has found theoretical attacks on the proof-of-work and proof-of-stake consensus mechanisms used in Bitcoin and Ethereum to be "economically unfeasible."
Decentralized crypto exchange Fixedfloat faced criticism related to a hack of the exchange for roughly $26 million worth of bitcoin and ether.
Ethereum Layer 2 network Starknet's new token, STRK, achieved a multi-billion-dollar market capitalization after being airdropped to millions of users.

What Happened In Crypto Markets Last Week?

After breaking the $50,000 threshold earlier this month, bitcoin has stalled at $52,000.1
Data shows that retail traders are staying on the sidelines for now, but activity related to spot bitcoin exchange-traded funds (ETFs) has remained at high levels, with spot bitcoin EFT issuer BlackRock on pace to overtake Microstrategy Inc. as the largest holder of bitcoin.

Meanwhile, a new research paper found that cyber attacks on Bitcoin (BTC) and Ethereum (ETH) would be “economically unfeasible.”2

Bitcoin Stalls After Scaling $50,000

Bitcoin soared past the $52,000 mark last week, marking its highest point in more than two years. Despite this surge, there are indications a slowdown may be looming.

Late last week, Swissblock analysts said the $52,000 level is a significant resistance point, suggesting a temporary retreat may be necessary to sustain the current bullish trend.3

Attacks on Bitcoin and Ethereum Labeled 'Unfeasible'

A recently published research paper has shed light on the robust security measures in place for Bitcoin and Ethereum, rendering 51% attacks economically impractical.2
Researchers found that these attacks aren't feasible due to the significant costs and logistical hurdles involved. These findings underscore a pivotal evolution in the security of Bitcoin and Ethereum, the researchers said.

Decentralized Crypto Exchange Fixedfloat Hacked

Elsewhere, it was reported Sunday on social media platform X that decentralized crypto exchange FixedFloat was hacked for $26 million worth of bitcoin and ether.4
The operators of the exchange have been criticized for not immediately reporting the hack, which took place earlier this month.

What To Expect From Crypto Markets This Week

A popular topic of conversation among traders this week is the potential approval of an ETH ETF by the U.S. Securities and Exchange Commission.
Notably, the latest ETH ETF application from money management firm VanEck doesn't include staking, which is a departure from previous filings from fund managers ARK Invest Management LLC and Franklin Templeton.5
6
According to research released Monday by brokerage firm Bernstein, there is a 50% chance that an ETH ETF gets approved by May and it could be "well-positioned for mainstream institutional adoption” in the crypto market.7

Separately, many analysts are tracking STRK, which is the new native token of Ethereum Layer 2 protocol Starknet.
After briefly trading as high as $5, STRK has settled around the $2 mark on CoinMarketCap Tuesday.8
It temporarily reached a multibillion-dollar market capitalization after being airdropped to millions of users in what's been called the largest such distribution this year.9
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ARTICLE SOURCES

How to Find New Cryptocurrencies for Investment

The Largest Cryptocurrency Hacks So Far

Bitcoin vs. Ethereum: What’s the Difference?

How SEC Regs Will Change Cryptocurrency Markets
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