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 decline in the market capitalization of Bitcoin (BTC) and other cryptocurrencies hit the $1 trillion mark in losses this year. However, on the one hand, this movement can be considered positive. During the first half of this year, ransonware attacks (a type of data-hacking malware) dropped globally.
According to a report by the American company SonicWall, in the first six months of 2022, 236 million ransonware attempts were recorded, a significant number but representing a decrease of 23%.
According to the researchers, this is due to the falling prices of cryptocurrencies, mainly Bitcoin, which decreases the interest of ransonware criminals. In addition, there was greater dedication from companies and authorities to try to reduce this type of attack and ensure 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 gains access to all system data and encrypts all information while blocking user access. Like commerce, criminals demand payments, usually in the form of cryptocurrencies. It’s digital extortion.
According to the report of the cybersecurity company, in 2021 attacks of this type reached their peak.
Queda do Bitcoin
Bitcoin (BTC) has seen a steep decline this year. At its all-time high, the largest cryptocurrency was trading at $69,000. Currently, its value is less than $30,000.
The entire cryptocurrency market recorded negative results. This year alone, nearly $1 trillion has been lost in the digital asset market. Earth (Luna), for example, collapsed in May and saw its value reduced to 0.
The external factors of economy have also significantly affected the crypto universe. Faced with high inflation and rising interest rates, investors began to migrate their assets to less volatile, ie 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, one must be aware of the next steps for digital assets.
Shortly after the Federal Reserve (Fed) announced an interest rate hike of 0.75 percentage points, some cryptocurrencies reversed their losses. Ethereum was one of them. However, Bitcoin, despite registering an increase, was still operating in the negative when looking at last week’s data.
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