Bitcoin Declines; Bitfinex Makes Important Announcements

Four days after we suggested that Bitcoin would add on more gains following the Bitfinex hack, the price rose more than 8 percent to $598. However, a couple of disappointing announcements from Bitfinex is again putting pressure on bitcoin as the bulls are steadily reducing their exposure.

Since yesterday, the price has plummeted from $598 to $584. Below $580, we expect to see $570 immediately.

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Source: TradingView

The Hong Kong-based digital currency exchange had made a couple of public announcements in the past two days.

On August 6, the exchange said that due to the indiscriminate nature of the attack, users will share the losses by a percentage of 36.067%. The Bitfinex team will make another announcement soon to explain how they arrived at this number, but this has clearly panicked the bitcoin community as the price rolls down.

The notification also said that in order to compensate the users for their losses, they are planning to issue a new token – BFX – to each customer equal to the amount of discrete loss.

The exchange is also engaging investors in talks to raise capital.

On August 7, Bitfinex announced that users can access the site to log into their accounts to check their balances, reset their passwords, reset their 2FA (if applicable), but trading, depositing and withdrawing options will remain disabled for the time being.

It also said that the trading of the BFX tokens – restricted for US customers – will likely begin next week. All API keys have been revoked, but the creation of new API keys will be re-enabled within the next 48 hours.

Although the management refrained from giving a clear timeframe on the full platform functionality, it said that progress is being made in steps. Readers are strongly advised to keep themselves abreast with the latest announcements from the exchange.

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