"Hacking, Selling, and even a Meme ETF all exploded at once"...Triple Whammy of Bad News and Unprecedented Variable Shaking the Market

▲ Cryptocurrency crime, hacking, cyber attack/AI generated image

As the virtual asset market faces increased downward pressure due to a hacking incident at a Bitcoin ATM operator and selling pressure from the Ethereum Foundation, an unusual issue, the application for a Pepe spot ETF, is simultaneously emerging.

According to reports from a virtual asset specialized media on April 9 (local time), Bitcoin Depot, the world's largest Bitcoin ATM operator, recently had approximately $3.7 million worth of Bitcoin stolen in a hacking attack. The company views the attack as targeting specific system vulnerabilities and has initiated a comprehensive security review. The industry assesses that security risks have re-emerged, given that virtual asset infrastructure companies are becoming prime targets for hackers.

The Ethereum market is also under pressure. The Ethereum Foundation sold off a portion of its holdings to cover operational costs, and as this fact became known, the price fell below key support levels. Analysts suggest that the timing and scale of the Foundation's sales are contributing factors to dampened investor sentiment.

Simultaneously, unexpected movements have been observed in the institutional market. Asset management firm Canary Capital has submitted registration documents to the U.S. Securities and Exchange Commission (SEC) for a spot ETF based on Pepe (PEPE). This marks the first time a spot ETF application has been made for a meme coin, rather than Bitcoin or Ethereum. Canary Capital emphasizes the product's competitiveness based on high trading volume and community activity.

The market is noting that contradictory trends are unfolding simultaneously. On one hand, traditional negative factors such as hacking and selling continue, while on the other hand, experimental attempts to introduce new investment products are emerging.

Bitcoin Depot's hacking incident is assessed as another instance revealing the structural vulnerabilities of centralized services. Simultaneously, the Ethereum Foundation's selling is met with conflicting views: some see it as an unavoidable choice for ecosystem operation, while others view it as a burden on the market.

Going forward, the market is expected to seek direction based on the follow-up measures to the hacking and the regulatory authorities' decision on ETF approval. Investors are simultaneously monitoring changes in the security environment and institutional fund flows, responding to the phase of increased volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*