Good Morning Bitcoin: Analyst Explains Recent Drop in BTC

Good morning! We have listed the latest news for you. Start the day with a bitcoin breakfast.

The United Nations (UN) writes in a report about North Korea’s involvement in cyber attacks. Cryptocurrency also plays a major role in this. The UN Security Council shares some alarming statistics showing that North Korea earns a substantial portion of its foreign exchange earnings from cybercriminal activities. $3 billion has reportedly been siphoned off through crypto hacks. The conclusion will not surprise you: there is an urgent need for better cyber security measures in the field of digital assets.

Popular macroeconomist Alex Krüger explains why he thinks bitcoin has been on the rack in recent days. In a publication on Twitter he describes the four most important reasons for the price falls in order of importance. According to him, the excessive use of leverage (investing with borrowed money) is the main reason for the misery. According to Krüger, the first and most important reason for the bitcoin crash was the use of borrowed money (leverage) for investments in the digital currency. As soon as bitcoin starts to climb you often see that people become optimistic and especially greedy. The price continues to rise and to benefit even more from these movements, people borrow money to invest what they do not have.

In the past 24 hours, Ethereum has suffered an unexpected blow following a report from Coindesk stating that the Ethereum Foundation is under investigation by the SEC. This news followed sudden changes to the Ethereum Foundation’s website, where previous mentions that the foundation was not under confidential investigation were removed without any explanation. Amid this development, $4.2 million worth of ETH has been liquidated. Which leads to the question: What will Ethereum do next? Following recent revelations, it has emerged that the Ethereum Foundation, the Swiss non-profit organization at the center of the Ethereum ecosystem, is under investigation by the SEC. This information came to light via the group’s GitHub repository, which revealed that freelance front-end developer Pablo Pettinari had made changes on February 26, 2024.