The fall of Bitcoin and other cryptocurrencies can be seen as a positive move for a specific reason.
Estimated reading time: 4 minutes
The recent drop in the market cap of Bitcoin (BTC) and other cryptocurrencies has hit the $1 trillion mark of losses this year. However, on the one hand, this movement can be considered positive. In the first half of this year, ransonware attacks (a type of data-hijacking malware) dropped on a global scale.
According to a report by the US company SonicWall, in the first six months of 2022, 236 million ransonware attempts were recorded, a significant number but representing a drop of 23%.
According to researchers, this is due to the reduction in the prices of cryptocurrencies, mainly Bitcoin, which diminishes the interest of ransonware criminals. In addition, there was a greater dedication from companies and authorities in an attempt to reduce this type of attack and provide security.
In February of this year, the FBI (United States Federal Investigation) created a specific team dedicated to tracking ransonware attacks and the profits made from this type of cybercrime.
What is Ransomware?
Ransonware is a type of security attack where the hacker has access to all system data and encrypts all information as well as blocking user access. Like trading, criminals ask for payments, usually in the form of cryptocurrencies. This is digital extortion.
According to the cybersecurity company’s report, in 2021 attacks of this type reached their peak.
Bitcoin (BTC) has seen a sharp drop this year. At its all-time high, the largest cryptocurrency traded at $69,000. Currently, its value is below $30,000.
The entire cryptocurrency market has recorded negative results. This year alone, nearly $1 trillion was lost in the digital asset market. Earth (Luna), for example, collapsed in May and had its value reduced to 0.
External economic factors have also significantly affected the crypto universe. Faced with high inflation and rising interest rates, investors began to migrate their assets to less volatile, that is, safer, sectors.
In times of economic fragility, it is common for volatile markets, such as cryptocurrencies, to lose investments.
With the risk of a global recession just announced by the United States, it is necessary to be aware of the next steps of digital assets.
Shortly after the Federal Reserve (Fed) announced an interest rate hike by 0.75 percentage points, some cryptocurrencies reversed their losses. Ethereum was one of them. However, Bitcoin, although it registered an increase, was still operating in the negative when considering data from the last week.
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