Stabilizing Around $67,000... Shock from Japan Exchange Hacking [Bitcoin Now]

Japan Exchange Confirms Unauthorized Outflow of 48.2 Billion Yen
Second Largest Since 2018 Coincheck Incident
Past Hacks Led to Selling Pressure... Investors Should Exercise Caution

Bitcoin prices are hovering around the $67,000 mark. The news of a large-scale hacking at a Japanese virtual asset exchange is believed to have triggered widespread investor anxiety. Following the 2018 Coincheck hacking incident, this is the second-largest case in history, prompting investors to exercise caution.

According to the global virtual asset market tracking site CoinMarketCap, as of 11:50 AM on the 2nd (Korean time), Bitcoin is priced at $67,631.44, unchanged from the previous day. Compared to a week ago, it has dropped 1.86%, but it has risen 17.66% compared to a month ago. The year-over-year increase stands at 151.11%.

Bitcoin prices started in the high $68,000 range on the 27th of last month and even surpassed the $70,000 mark intraday on the 28th, but then quickly reversed downward. Since then, it has maintained a slightly weak trend, dropping to a low of $66,801 on the 1st, but recovered to the $67,000 level as bargain buying emerged.

The sharp drop in Bitcoin prices on the 28th is believed to be due to concerns about a decline triggered by the Japanese exchange Mt. Gox. According to The Block and others, on the 28th (local time), Arkham Intelligence and other virtual asset data companies detected that at least $9.6 billion worth of Bitcoin was transferred out from Mt. Gox’s own wallet. The market has continuously expressed concerns that if Bitcoin holdings from the bankrupt Mt. Gox are released, selling pressure could intensify rapidly.

Bitcoin prices seemed to stabilize afterward, but were hit again following news of a hacking incident at a Japanese virtual asset exchange. According to the Nihon Keizai Shimbun (Nikkei) on the 1st (local time), Japan’s "DMM Bitcoin" announced that approximately 48.2 billion yen worth of Bitcoin was illicitly leaked the previous day. DMM Bitcoin confirmed the unauthorized leak in the afternoon of the previous day. This is the first large-scale virtual asset leak incident involving a Japanese operator in about three years since 2021. In terms of amount, it is estimated to be the second-largest after the 2018 Coincheck cryptocurrency hacking incident (58 billion yen). DMM Bitcoin is a virtual asset exchange handling about 40 cryptocurrencies including Bitcoin and has approximately 370,000 customer accounts.

Typically, news of hacking at virtual asset exchanges can trigger widespread selling pressure, as seen in the Mt. Gox and Coincheck hacking cases. In fact, Mt. Gox, which was the largest virtual asset exchange at the time in 2014, suffered a hacking incident that resulted in the loss of 850,000 coins, ultimately leading to the suspension of its operations. At that time, the 850,000 coins were valued at $480 million.

According to the virtual asset data provider Alternative, the Fear & Greed Index, which measures investor sentiment, stands at 73 points (Greed) as of this date. Last week, it recorded 75 points (Greed). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.