Cryptocurrency prices dive again as bitcoin falls below $33,000

On June 8, Bitcoin took a sudden dive, falling below $33,000 to a low of $32,352, with an intra-day drop of 10.36% at one point

Other cryptocurrencies also fell mostly by more than 10%. Among them, Ether fell below $2,500 to $2,428 U.S., down 13.05 percent. BNB sank to $331, down about 15.38 percent; Dogcoin fell as low as $0.31, down more than 13.21 percent; and UNI fell hard to $22.65, down about 16.21 percent.

According to Bitcoin Home data, the cryptocurrency’s big dive caused nearly 154,400 people to blow up their positions, and the amount of the blowup in the past 24 hours reached $1.058 billion, or about 6.766 billion yuan.

As for the cause of the plunge, the market is widely believed to be either related to the recovery of $2.3 million in bitcoin ransom by U.S. authorities and Trump’s bitcoin bashing.

U.S. law enforcement officials said Monday they recovered $2.3 million (63.7) worth of bitcoins paid to cybercrime group DarkSide, according to foreign media reports. The cybercrime group was reportedly involved in last month’s ransomware attack on Colonial Pipeline, the largest U.S. fuel pipeline operator, and demanded that Colonial Pipeline pay $4.4 million in cryptocurrency as ransom to resume operations.

Cryptocurrency prices dive again as bitcoin falls below ,000

FBI Deputy Director Paul Abbate explained in the release that agents from the bureau identified a virtual currency wallet used by DarkSide hackers to collect money from Colonial Pipeline. “Through law enforcement agencies, victims’ funds were confiscated from the wallet to prevent DarkSide’s people from using them.”

However, the FBI declined to say exactly how it accessed the bitcoin wallet, citing the need to keep intelligence techniques secret.

Current market speculation is that the U.S. Department of Justice may have dumped their recently recovered bitcoins, which caused a sharp drop in bitcoin.

In addition, on June 7, former U.S. President Donald Trump said in an interview with Fox that “Bitcoin is a scam and it wouldn’t surprise me if it fell below $6,000.” He also said that he hates bitcoin because it is competing with the U.S. dollar and asked regulators to impose strict regulations on it.

Cryptocurrency prices dive again as bitcoin falls below ,000

Bitcoin fell in response to the news.

Notably, MicroStrategy, which has been embracing bitcoin, announced on June 7 that it intends to issue $400 million aggregate principal amount of senior secured notes due 2028 (the “Notes”) for the purchase of additional bitcoin and other crypto assets. The Notes are senior secured notes for qualified institutional investors and will mature in 2028.

There are media reports that MicroStrategy is currently negotiating with investors to issue debt at a junk bond yield of 6.25%-6.5%. This is the first-ever junk bond issuance for the purchase of bitcoin. On December 7 last year, MicroStrategy also announced a $400 million convertible bond offering and will invest the proceeds in bitcoin.

In addition, MicroStrategy said in a statement that the 92,079 bitcoins it now holds will be transferred to a newly created subsidiary, MacroStrategy. According to statistics, the average purchase price of these bitcoins is $24,450 per coin, which represents a gain of nearly 50% at current market prices.

It should be noted, however, that MicroStrategy said in a June 7 regulatory filing with the SEC that it expects to record at least $284.5 million in bitcoin-related impairment losses for the three-month period ending June 30 due to the volatility of the currency’s price in the second quarter.

Following the news of MicroStrategy’s debt issuance to buy coins, bitcoin had been encouraged by a small pull in the morning hours of the U.S. session, but the rally failed to sustain. As of press time, bitcoin was temporarily trading at $32,747.

Posted by:CoinYuppie,Reprinted with attribution to:
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