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The price of bitcoin fell on Tuesday, a day after U.S. officials announced they had managed to recover most of the bitcoin that had been paid as a ransom to Colonial Pipeline hackers.
Bitcoin traded almost 12% less than Tuesday. The crypto was trading hands at around $ 31,800 per coin at noon ET.
Other cryptos such as Ether, Binance Coin, Cardano, and Dogecoin also saw double-digit declines. And shares in crypto exchange Coinbase fell more than 4% at midday.
Tuesday’s losses put bitcoin about 50% below its peak at the start of the year.
Anthony Denier, CEO of the Webull trading platform, said the Justice Department’s announcement that they were able to recover the ransom payment was hurting the price of bitcoin.
He noted that it is not clear how the government got the crypto back, but regardless, “it shows that bitcoin is not as secure as a lot of people believe,” Denier said. at The Post.
“Criminals are using bitcoin because of governments’ supposed inability to do it, but if the United States gets the money back, it destroys that claim,” he said. “This could be a very big problem for people who are trying to withdraw money from countries with poor economies. If governments can get it back, that undermines its appeal. “
It is not clear that the market decline was motivated solely by the announcement from the Department of Justice.
The Dorsey Junction station at the Colonial Pipeline in Woodbine, Md., Which was attacked.
Brock Pierce, chairman of the Bitcoin Foundation, said other factors such as “broader regulatory concerns and global taxation” are also pushing the price of bitcoin.
The ransom recovery could actually be viewed positively, meaning the government is resorting to hold bad actors accountable for their actions, he added.
But the Justice Department’s announcement that they were able to recover 85% of the colonial 75-bitcoin ransom pipeline handed over to DarkSide, the Russia-based cybergang behind the hack, also raises questions about bitcoin’s traceability. and other cryptos.
One of the key attributes of bitcoin hailed by enthusiasts is that it is decentralized and untraceable, while fiat currencies like the US dollar are regulated by a central bank and transactions are tracked by government agencies.
Federal investigators, led by a specialized ransomware task force set up by the Biden administration, said on Monday they were able to gain access to the password of one of the hackers’ Bitcoin wallets and recover the cryptocurrency.
Dan Roberts, editor-in-chief of Decrypt, which covers blockchain technology and cryptocurrencies, said there was no indication that the U.S. government was able to “hack” bitcoin or in any way track bitcoin. another crypto. He noted that an insider may have leaked the password to officials.
“You can’t really hack the Bitcoin blockchain. I mean, that’s the whole value proposition and allure of the bitcoin blockchain, ”he told The Post, adding that the headlines were pushing the price of crypto nonetheless.
U.S. Deputy Attorney General Lisa Monaco announces recovery of millions of dollars in cryptocurrency following Colonial Pipeline Co. POOL / AFP ransomware attacks via Getty Images
He said various factors were pushing the price down, such as growing regulatory concerns even as enthusiasm for the crypto market remains strong, as evidenced by the recent Bitcoin conference in Miami which drew around 50,000 attendees. .
Internal Revenue Service Commissioner Charles Rettig on Tuesday asked Congress for the power to regulate cryptocurrencies, especially when it comes to large transactions, during a Senate finance committee hearing.
And last month, Chinese authorities called for their own crackdown on crypto mining and trading.
Recent tweets from Tesla CEO Elon Musk have added to the foam. The price of bitcoin fell last week after Musk posted a meme of a couple breaking up and added #Bitcoin and a heartbroken emoji. Two hours later, Musk posted a Miss You meme.
Musks’ tweets drew thousands of angry, stressed and disgusted responses, with many accusing him of manipulating the price of the volatile cryptocurrency.
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