The Bitcoin price is in a tight range as investors react to the ongoing ransomware attack on thousands of computers globally. The BTC is trading at $33,678, where it has been in the past few days. This price action brings its total market capitalization to more than $634 billion. The total value of all cryptocurrencies tracked by CoinMarketCap has dropped by almost 4% in the past 24 hours.
Tougher regulations as ransomware attacks increase
The number of ransomware attacks have risen recently. In May, Russian hackers received more than $4 million from Colonial Pipeline. In June, other hackers received more than $10 million from JBS, the biggest meat company in the United States. Other ransomware attacks of smaller sizes have not made national headlines.
Another major attack that has likely infected more than 40,000 computers is currently going on. The attack, orchestrated by REvil, is the biggest of its kind and has affected hundreds of organizations. In a statenent, Kaseya confirmed that fewer thab 40 of its 36,000 costumers were affected. Still, this is a substantial number since these companies are service providers who have other clients.
Media reports say that the hackers are demanding as much as $70 million in ransom. They are demanding these ransoms in the form of cryptocurrency like Bitcoin and Monero. As such, Bitcoin price is likely falling as investors fear more regulations in the space.
American and other Western regulators have talked recently about how to regulate the industry. Some experts believe that the government should place an immediate ban on th currencies. Janet Yellen, the current Treasury Secretary, has called for regulators to curtail the coins.
Bitcoin addresses fall
The BTC price is also falling after a recent report showed that the number of active addresses was falling. In a recent note, analysts noted that the number of active Bitcoin addresses had declined by about 60% in the past six weeks. They have dropped from 1.3 million to 500k. This is mostly because many investors have sold their coins as the price reached an all-time high of more than $60,000.
At the same time, it seems like investors have moved to Ethereum, which has more wallets than Bitcoin. Indeed, Ethereum has 200k more addresses than Bitcoin.
Analysts believe that Ethereum’s market capitalization will pass Bitcoin as the network transitions from a proof-of-work consensus to a proof-of-stake consensus.
Bitcoin price prediction
The daily chart shows that the Bitcoin price formed a triple-top pattern above $60,000 in the past few months. The coin has dropped by almost 50% from its all-time high. Recently, the coin has formed a major support at the 30,000 level. It has also struggled moving above the resistance at $39,000. The BTC price also seems to be forming a bearish flag and descending triangle pattern.
Therefore, there is a possibility that the coin will soon break out below the important support at $30,000. If this happens, the next reference level will be at $25,000. On the flip side, a move above $35,000 will open the possibility of another retest of $40,000.