Bitcoin

Why was the price of Bitcoin virtually unaffected by the Kucoin hack or legal action against BitMEX?

BitMEX recently faced significant legal action in the US and KuCoin suffered a serious hack. All of this happened within a few days. But why didn’t these events negatively affect the price of Bitcoin? Aleks Svetski, CEO of Amber, a bitcoin investment app, He said this had to do with several factors including the big players buying Bitcoin (BTC).

“The price of Bitcoin is a function of global demand in the face of a tight and steady supply and a declining calendar,” He told Cointelegraph about the coin supply of the asset and the halving of mining premiums.

“As more and more people, especially large corporations, want to buy some, this will not only create a reserve price, it will also increase pricing pressure.” he explained, adding: “And finally, all of these new players have taken their Bitcoin off the exchanges and are therefore not available in the market.”

Why was the price of Bitcoin virtually unaffected by the Kucoin hack or legal action against BitMEX?
Why was the price of Bitcoin virtually unaffected by the Kucoin hack or legal action against BitMEX?

During this year A number of big players in mainstream finance have gone public with big Bitcoin purchases, including MicroStrategy, Paul Tudor Jones, and Square.

In contrast to the bullish action, the cryptocurrency exchange, KuCoin suffered a hack that stole more than $ 100 million in total. A few days later, The US government authorities have taken legal action against the large derivatives exchange BitMEX. Arrest one of their leaders.

However, Neither of these events caused Bitcoin to slide into a downward trend. Bitcoin did not fall significantly on the KuCoin news and only suffered a small decline after the BitMEX news was released. a relatively tiny response to such important news. Vice versa, After several days of sideways price movements, the asset began its upward movement away from its consolidation level. Svetski added:

“This is an extraordinary run and no exchange hack, stimulus delay or government policy will stop it.”

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