Post-halving News from Around the World
Bitcoin price, Steem security breach, Liquidations on BitMex, and 50 BTC moved from “Satoshi’s” wallet. The week of May 18-24 in the BTCMEX recap.
Only 95 blocks were generated on the Bitcoin blockchain last Sunday, May 17, which means the hash rate fell to the lows of 2017. Analysts relate this to the third Bitcoin halving, which cut the generated block reward for mining to 6.25 coins, that took place on May 11, 2020. Around 100-120 blocks were produced daily in the post-halving week, until the Sunday drop. BTC transaction fees have seen anomalous volatility amid the halving, increasing over 800% in one month.
BTC has rejected the $9,900 key resistance, and dropped down 5% on May 20, with the price gradually slipping down for the rest of the week. A day earlier, on May 19, the price made the last attempt to break through 10k, but didn’t last long and pinned below $9,800.
The selloff started on Thursday, May, 21, and pushed the value even further down. Bitcoin is currently trading at the range of $9,300 with the RSI slightly above 50.
BitMex went down causing mass Liquidations
The error put the trading engine of the biggest crypto derivatives exchange BitMex down on May 19. The system went offline for about an hour causing massive liquidations of long positions on the platform. BitMex released an announcement claiming that “all funds are safe, delayed orders will be rejected, and no liquidations will occur during downtime.” The system went back only cancel orders available initially, and trading was fully resumed in about an hour. Traders relate the event with the lawsuit for racketeering, money laundering, wire fraud and unlicensed money transmission, filed by BMA LLC in the United States District Court for the Northern District of California on May 16.
Satoshi moved his coins?
50 Bitcoins – roughly $486,000 worth – mined back in 2009 were moved to two different wallets on Wednesday, May 20. The transaction caused speculations about the Bitcoin creator Satoshi Nakamoto making the first transaction in 11 years.
The early wallet contained a coinbase transaction generating 50 BTC, which were mined on Feb. 9, 2009. Very few people are known to have been mining using the original Bitcoin client so early in Bitcoin’s history. Theories on the possible owner of these funds include Hal Finney’s family, Martti Malmi, and even Satoshi Nakamoto himself. Fran Finney has confirmed later that recent transactions from a 2009 Bitcoin wallet were not her husband’s coins.
According to the evidence, the transaction address – 17XiVVooLcdCUCMf9s4t4jTExacxwFS5uh, was listed in a court document in the Kleinman vs Wright case, in which Craig Wright listed it as his own, but Wright has denied moving the coins.
Steem Hard Forked with security breach
Steem made a decision to freeze $5 million in tokens held by the Steemit network validators and stakeholders, associated with Hive Hard Fork supporters. Following weeks of conflict between the Steem community and Justin Sun, taking over the network, the community-led Hive Hard Fork happened earlier in March.
Steem’s latest Hard Fork, dating May 21, 2020, has been completed but almost $6 million of STEEM due for seizure was ‘rescued’ in a mysterious transaction to Bittrex exchange. The Hard Fork planned to transfer the funds of 64 Steem accounts to another Steem account named community321. Shortly after the funds were transferred to the community321 account as planned, the STEEM tokens worth about $5.7 million were sent to Bittrex exchange.
It appears that Justin Sun failed to maintain basic key security on this account, experts say. Steem denies his involvement in the latest Fork, but continues fighting against Hive.
Digital Euro successfully tested in France
The central bank of France has announce the first success in testing the CBDC on May 20. The sale of securities was tested on digital euro network earlier on may 14, according to the French fin regulator. Though the bank’s announcement did not go into great detail, it did indicate that the current pilot program is focusing on wholesale rather than retail uses for a digital euro. Retail CBDCs would operate open to regular consumers à la Bitcoin or Apple Pay.
Around the world
The president of Iran, Hassan Rouhani, is calling the government to develop incentives for mining and crypto industry in the country. The president ordered the Central Bank of Iran (CBI), energy department and information and communication technology ministries to renew the national approach to mining.
Earlier this year, the administration of U.S. President Donald Trump raised concerns that Iranians might use cryptocurrency to outwit the sanctions. Iran was one of the first countries to officially recognize cryptocurrency mining as a legitimate industry back in July 2019.
Meanwhile, cryptocurrency usage spikes in Africa, which reported $14.6 million in weekly peer-to-peer Bitcoin trading volume, with Latin America, Asia Pacific, and Western Europe posting significant declines after the halving.
According to the latest Arcane Research report, Africa currently shows the highest rates of cryptocurrency adoption in the world, with Uganda, Nigeria, South Africa, Kenya, and Ghana feature in the top-10 countries searching for the term “cryptocurrency” on Google.