Analysts say bitcoin is due to revisit its highest high this year, and JPMorgan changes its stance on crypto exchanges.
- Analysts predict $20k bitcoin happens this year
- Coinsquare hack was an inside job designed to embarrass the company
- JPMorgan signs two crypto exchange customers
Bloomberg analysts are predicting bitcoin will match its all-time high this year. The prediction is based in part on price fluctuations of the past 2.5 years, which roughly mirror the conditions that led to bitcoin’s record high value in December 2017. That year bitcoin broke $20,000, but lost 75% of its value shortly after.
Last year, bitcoin saw substantial gains, but hit resistance around the $10K mark. Now, following the bitcoin halvening, demand seems to be outstripping supply. Factors such as increased interest in futures and bitcoin-based exchange traded instruments also contribute to this trend. Coronavirus-related stimulus efforts could also have an impact.
“So far this year, its increasing AUM has consumed about 25% of new Bitcoin-mined coins vs. less than 10% in 2019. Our graphic depicts the rapidly rising 30-day average of GBTC AUM near 340,000 in Bitcoin equivalents, about 2% of total supply. About two years ago, it accounted for 1%,” Bloomberg said.
Additionally, the unprecedented monetary and fiscal stimulus lifelines launched by central banks and governments across the globe to counter the coronavirus-induced economic crisis and joblessness is widely expected to push up inflation, leading to a further increase in demand for bitcoin.
Impacted cryptocurrency exchange Coinsquare recently received news of a further threat, when a hacker told Motherboard they plan to use stolen user information in SIM swapping attacks. In a SIM swapping attack, a hacker takes control of a target’s phone number so they can request website password resets or change a victim’s two-factor authentication code. According to the exchange, the data was initially obtained from the inside, as the result of employee theft. Coinsquare is now taking steps to prevent further damage.
In another recent incident, a hacker revealed stolen data and plans with Motherboard in order to “prove a point.” Motherboard allowed the hacker an anonymous platform to speak openly about criminal activity. Vice notes that this incident is similar, shedding light on the vulnerabilities tech companies face from internal employees and contractors.
Coinsquare said the data came not from a hack of its systems, but rather a now former employee stole the information. “The data was obtained as the result of employee theft of information contained within a client relationship database used for prospecting,” Stacey Hoisak, Coinsquare’s general counsel, told Motherboard in an email.
“Since we were made aware of this issue last year, Coinsquare has replaced internal sales management systems, re-written data management policy and upgraded its internal controls, and we are not aware of any breach or additional employee thefts since that time,” she continued.
Just three years ago, JPMorgan chief executive Jamie Dimon called bitcoin a “fraud,” but times seem to have changed. The bank recently added its first crypto exchange customers and Dimon has reportedly been meeting with Coinbase chief executive Brian Armstrong since 2018.
JPMorgan approved the two bitcoin exchanges’ accounts last month and is already processing transactions — potentially signalling the end of the crypto industry’s banking woes.
The bitcoin and cryptocurrency community has complained for years that banks including JPMorgan have denied them services and blocked accounts that dealt with crypto businesses….JPMorgan launched its own answer to bitcoin last year, JPM Coin. Unlike bitcoin, JPM Coin is pegged to the dollar and aimed at speeding up and reducing the costs of global payments.
That’s the roundup for June 6, 2020. Check in next week for the latest news of cryptocurrency innovation and regulation around the world!
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