The value of bitcoin traded within a narrow range Saturday, as the market stabilized after a high profile security breach triggered a large selloff of the digital currency at the start of August.
The BTC/USD was trading around $586.00 on Saturday, according to CoinDesk. The digital currency was trading in the middle of its daily range.
Prior the August price collapse, bitcoin was enjoyed a period of relative stability rarely seen during its tumultuous history. Prices spiked to a two-year high in June amid changes to its code and growing buying interest among Chinese investors looking to diversify away from yuan-denominated assets.
However, prices have yet to respond to the July 9 bitcoin halving event, which is expected to tighten supply of the cryptocurrency by creating less incentive to mine new coins.
Bitcoin was in the news this week after the World Economic Forum gave a highly bullish assessment of blockchains in a report that was published Friday. While the report failed to meniton bitcoin, it referred to “distributed ledger technologies” that underlie the cryptocurrency.
The report found that 80% of banks are expected to initiate distributed ledger technologies (DLT) projects by 2017 and that over $1.4 billion in investments have already been made over the past three years. Over 90 central banks are already engaged in DLT discussions, a figure expected to increase as more policymakers explore the potential of blockchains.
Response to the Forum’s report has so far been muted as traders continued to digest the fallout from the Bitfinex cyber security breach that resulted in the loss of around $70 million worth of bitcoins. Bitfinex, a Hong Kong-based exchange, recently announced that it would “socialize” the losses among its members, taking a little more than 36% from each trading account.
Lawyers familiar with the cryptocurrency have said that customers may have legal recourse against Bitfinex.
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