Main Reasons for the Decline:
1. Major Security Breach at Coinbase: Coinbase, the largest cryptocurrency exchange in the United States, announced that it suffered a cyberattack that resulted in the theft of personal data of up to 97,000 customers. The hackers gained access to this data by bribing external support agents and demanded a ransom of $20 million in Bitcoin, which the company refused to pay. Coinbase expects to incur losses ranging between $180 and $400 million as a result of this breach.
2. Increasing Regulatory Concerns
Coinciding with the security incident, concerns have increased regarding anticipated regulatory legislation in the United States, especially with Coinbase's upcoming listing on the S&P 500. These concerns relate to ongoing investigations by the U.S. Securities and Exchange Commission (SEC) into the company's past practices, adding further pressure on the market.
3. Psychological and Market Impacts
News of the breach and regulatory concerns has led to a state of panic among investors, especially given the recent high valuations of cryptocurrencies. This psychological tension contributed to increased selling, negatively impacting the prices of many currencies.
Performance of Major Currencies:
Despite these challenges, cryptocurrencies still maintain their long-term appeal. It is important for investors to monitor security and regulatory developments and make investment decisions based on accurate information and reliable analyses.