- Colonial Pipeline hack behind Bitcoin price dip
- How authorities recovered Bitcoin ransom from hackers
Although Bitcoin price has been trading lower over the past week, it has not faced any severe plunge recently like it did in the past 12 hours. The recent plunge in Bitcoin price results from fears that US authorities' hacked' the Bitcoin network.
Despite acknowledging that these are hard times for Bitcoin and other cryptocurrencies, the number one crypto shed another eight percent from its value after news emerged that the FBI and DOJ recovered a portion of hacked funds in the Colonial Pipeline hack. From these funds denominated in Bitcoin, the authorities recovered a sizable amount which Colonial Pipeline Co paid in ransom to hacker.
However, reports that the hacker's Bitcoin wallet was hacked are false. Instead, an FBI affidavit reveals that authorities were able to trace the ransomed Bitcoin using a block explorer to a specific address containing 63.7 digital tokens. They then seized control of the private key linked to this address, thus accessing the ransomed Bitcoin. However, Bitcoin price has taken the hit and dropped from its near $40,000 level to $33,000. It is currently trading at $32,000 which coincides with 100% fibonacci extension level. If it fail to support the price, Bitcoin may revisit 19 May low around $29,700.
