Crypto Catch: Crypto market rebounds after major Easter selloff

Highlights

• It’s been a rocky last couple of days for the crypto market as Bitcoin sunk to as low as US$37,500 on Monday only to recover early this morning.
• Yesterday’s bitcoin and crypto sell-off came as U.S. stock futures dipped ahead of Monday's opening.
• Beanstalk is a Stablecoin, which offers a token, called beans, which aims to offer a stable value of US$1 a coin.

It’s been a rocky last couple of days for the crypto market as Bitcoin sunk to as low as US$37,500 on Monday only to recover early this morning. Bitcoin now stands at nearly US$41,000, gaining just over three per cent in the past 24 hours.

Similarly, Ethereum, Solana, Cardano and other tokens also suffered sharp dips over the weekend, leading some analysts to warn of a major crash of the financial markets.

The majority of the top ranked coins have rebounded significantly in the past 24 hours, much to the relief of investors.

Yesterday’s bitcoin and crypto sell-off came as U.S. stock market futures dipped ahead of Monday's opening as investors prepare for first-quarter earnings announcement from top companies.

Today is tax day in the US, which could potentially result in further selloffs as traders sell off their digital assets in order to pay their due taxes.

For crypto bulls, this could be an opportunity to buy into the market if prices do indeed fall as a result of tax day.

Altcoin News

The unregulated nature of crypto has been called into question, yet again, after The Beanstalk cryptocurrency was stripped of US$180 million in reserves, after an attacker used borrowed money to acquire enough voting rights to transfer the money away.

Beanstalk is a Stablecoin, which offers a token, called beans, which aims to offer a stable value of US$1 a coin. The Beanstalk platform operates as a bank, allowing savers, known as “bean farmers” to make deposits and then using their savings to ensure that the value of a single token stays as close to $1 as possible.

On Sunday, the attacker, who has not yet been identified, borrowed US$80 million in crypto and then deposited it in the project’s silo, which gained them enough voting rights and also allowed them to pass any proposal instantly.

With that power, the attacker voted to transfer the contents of the treasury to their own account. The attacker then withdrew their money, and repaid the loan – all in a matter of just seconds.

In the normal corporate space, a move like this, where an investor buys up all the shares, would be regarded as embezzlement. However, in the crypto world, this move exists outside of any regulatory perimeters. This means that, although highly unethical, this move was technically legal.

In the immediate aftermath of the attack, the Bean token fell way below one dollar. However, the Bean token is currently back trading at one dollar, according to CoinMarketCap.

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Data Source: CoinMarketCap.com, based on top 100 cryptos.

Note: Growth from the 24 hours prior to 12:30pm AEDT

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