Bitcoin Price Regains Ground as Traders Brace for Bitfinex News

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Following a 20% decline in the price of bitcoin this week, uncertainty continues to cast a shadow on broader market activity.

Bitcoin prices fell to a low of $480 on Tuesday amidst news Hong Kong exchange Bitfinex had lost nearly 120,000 BTC in a high-profile hack. But while the price has recovered to $580 at press time, the $68m loss and the subsequent shutdown of the exchange has sent shockwaves throughout the industry.

Days after Bitfinex first halted trading, much about the path forward for the company remains unknown, including whether it will be able to reimburse investors who lost funds in the incident.

All of this is creating a difficult market for traders, according to Petar Zivkovski, director of operations for bitcoin trading platform Whaleclub.

Zivkovski told CoinDesk:

“Rumors are flying about who and how much has been stolen and what the future of Bitfinex holds. Will it continue operations? Will the exchange cover customer funds? Will it go bankrupt like Mt Gox?”

Zivkovski’s statements paint a picture of the state of mind of market observers, many of whom are concerned about whether Bitfinex, a firm that was previously vocal about the strength of its security measures, will continue to

Read more ... source: TheBitcoinNews