Shares of cryptocurrency and blockchain-related companies faced a significant drop during early trading hours on Tuesday as bitcoin, the world’s largest cryptocurrency, reached a six-week low. The decline came in the aftermath of a hack at Curve Finance, a platform that enables users to borrow and trade in cryptocurrencies.
Bitcoin experienced a 2% decrease, reaching $28,870 in value. Curve Finance, a victim of the hack, confirmed the incident in a post on messaging platform X, formerly known as Twitter, last Sunday. According to media reports, the losses resulting from the hack are estimated to exceed $40 million.
The repercussions of the hack affected the stocks of various crypto-related entities. Coinbase, a renowned crypto exchange, saw its stock fall by 6.6%. Additionally, Bitfarms, a blockchain-farm operator, witnessed a drop of approximately 7% during early trading.
Crypto miners were also impacted by the market downturn. Riot Platforms and Marathon Digital, along with U.S.-listed shares of Canada’s Hut 8 Mining, experienced declines ranging from 3.5% to 5.4%.
The cryptocurrency industry is currently navigating a crucial juncture, with two major players, Binance and Coinbase, facing scrutiny from the U.S. Securities and Exchange Commission (SEC). These regulatory challenges are adding to the uncertainties surrounding the market.
Furthermore, the recent rate hikes initiated by the U.S. Federal Reserve have introduced additional pressure on risky assets, including cryptocurrencies. Investors are closely monitoring the impact of these rate adjustments on the volatile crypto market.
As the situation unfolds, industry participants are closely observing bitcoin’s performance and the overall market sentiment to understand the potential implications for the broader cryptocurrency ecosystem.