Daily Archives: September 9, 2022

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Core developers have released an update to the worlds most popular Bitcoin software that will protect node operators from malicious actors introducing a fake version of Bitcoins blockchain. The revision, which developers have designated Bitcoin Core 25717, also adds defenses against various Denial-of-Service (DoS) attacks.

When a node operator downloads Bitcoin Core software for the first time, they must also download the current Bitcoin blockchain (a large, 426GB file). During this initial block download, the old software would only perform relatively rudimentary checks of block headers to check for a canonical version of the blockchain.

Bitcoin Core 25717, however, adds a long-awaited Headers Presync phase to the softwares pre-synchronization protocol. The upgrade replaces easy-to-hack, hard-coded values in Headers Presync with far more secure Proof of Work puzzles. This protects node operators from a malicious actor introducing a fake version of Bitcoins blockchain into their node.

A full node operator in Bitcoin stores the entire blockchain since inception, including every transaction that has occurred since 2009. In this way, operators can fully validate any proposed transactions on their own hard drive, without trusting anyone to guarantee that nobody double-spends coins.

In addition to addressing vulnerabilities in the initial block download, Bitcoin Core 25717s new Headers Presync adds security during synchronization. Because a new block of data is added to Bitcoin every 10 minutes, nodes must sync again after they download the 426GB file. As time goes by, nodes must also synchronize periodically, especially after power or internet outages. Bitcoin Core 25717 improves the security of these syncs.

The software update also addresses DoS attack vectors, which can prevent nodes from downloading the canonical blockchain. In addition, the update reduces memory overhead by downloading presync data before downloading the entire blockchain.

Finally, the update also adds support for transient, one-time, Invisible Internet Project (I2P) addresses. I2P is a network layer for censorship-resistant, anonymous, peer-to-peer communication.

Read more: This Twitter account documents Bitcoin eating the world

With over a decade of operation and a multi-hundred billion dollar bounty that no hacker has yet been able to steal, experts generally agree that hacking Bitcoin is becoming increasingly unlikely. Considering the sheer amount of mining machines securing Bitcoin, a 51% attack has become prohibitively expensive.

Any other attack, such as hacking the GitHub repository or compromising a Bitcoin Core lead maintainer, would have to introduce a change and get past other lead maintainers, node operators, and miners. A compromised full node that accidentally downloaded a fake blockchain would be incompatible with the Bitcoin network because the data on its blockchain would not agree with the data on other nodes.

At least one attempt to sidestep user consensus a Bitcoin fork called Bitcoin XT failed because it couldnt get enough supporters on board.

Bitcoin Core 25717 provides an additional layer of security by making it more difficult to introduce a malicious blockchain into new full nodes or to conduct DoS attacks. Bitcoin Cores update makes nodes less likely to accept malicious data or suffer silent attacks that prevent them from downloading the valid, canonical Bitcoin chain.

For more informed news, follow us onTwitterandGoogle Newsor listen to our investigative podcastInnovated: Blockchain City.

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This Bitcoin Core update will protect full node operators from hacks - Protos

For years, Ethereum proponents have pined for the hypothetical, as of now moment when ether eclipses bitcoins market capitalization: The Flippening.

What better time than Ethereums Merge? Its one of the most significant updates in the history of cryptocurrency yet, converting its energy-intensive, proof-of-work-backed consensus with its own brand of proof-of-stake.

The fusion of Ethereums Beacon Chain and its long-running mainnet is expected to trigger in six days time.

But whether its enough for ether to usurp bitcoin is another story. Bullish sentiment would propose June as the bottom for both equities and cryptoassets both have tanked about 70% from their respective November peaks.

Bitcoin is hovering around $19,000 and its market capitalization stands at just under $368 billion, representing 39% of the total digital asset market.

Ether trades for $1,600, and its nominal value is a touch over half bitcoins, at $196.4 billion, a little over one-fifth of cryptos collective capitalization.

Back-of-the-napkin math shows The Flippening would occur if ether reaches roughly $3,050 true only in the relatively unlikely event that bitcoins price holds steady.

The flippening is only really a symbolic victory for ETH maximalists, but perhaps not overly significant for the industry as a whole, Bobby Ong, co-founder of data provider CoinGecko, told Blockworks.

Its unlikely for ether to rise past bitcoin in the next 12 months, Ong said, as both bitcoin (BTC) and ether (ETH) have been moving in similar directions due to the macro environment, dogged by inflation.

Ether is eyeing another run at yearly highs against the price of bitcoin, indicating markets are assigning value to the Merge.

But ether was much closer to flipping bitcoin more than five years ago, the early innings of the last bull-bear cycle. On June 12, 2017, the market capitalization of ETH was almost 84% that of BTC, with just $7.16 billion separating the two, according to TradingView data.

That figure is currently around 52% (with more than 100% indicating a flippening). In January 2020 at the bottom of the last bear market the situation was far worse, with ETH at just 11% of BTCs value ($15.4 billion to $146.7 billion).

Still, market values dont tell the full story.

Comparing on-chain metrics including transaction count, protocol fees and the number of active addresses across networks can also provide insight into their growth.

Ethereum is ahead in terms of transaction count and protocol fees, CoinGeckos Ong said, and in major dapp development. Its also steadily catching up to Bitcoin in terms of daily active addresses.

But the number of total bitcoin users active or not vastly outpaced ethers at the height of the previous bull run.

Bitcoin users grew 37.5% between July and December 2021, from 128 million to 176 million, according to a Crypto.com report published earlier this year. On the other hand, only 23 million users held ether, a statistic which only grew by 1.4% over the same period.

Ethereums switch to proof-of-stake could help boost those numbers. Not only is the Merge expected to cut Ethereums energy consumption by more than 99% replacing its GPU miner-based issuance model to one based on crypto-collateralized validator nodes (read: servers) it also lays the foundations to scale the networks base layer more effectively, proponents say.

This might help spur further ecosystem development and present an attractive investment opportunity to eco-conscious investors, even institutional ones, so goes the bull case.

We expect not only renewed interest from building projects on the platform but also from an investment perspective, Lachlan Feeney, founder of Australias largest blockchain consultancy Labrys, told Blockworks.

Yet, big money institutions are still concentrating their exposures, for the most part, to bitcoin.

This advantage cannot be understated as the influence of institutions grows within the market, said CoinGeckos Ong. Whether ETH, or any other crypto, can challenge its market share in this space remains to be seen.

Bitcoin and Ethereum differ significantly in primary use cases, diverging their value propositions. Bitcoins application scope is narrow: Its censorship-resistant money, propelled by peer-to-peer payments.

But Bitcoins architecture by design does not support smart contracts, unlike Ethereum and a raft of layer-1 competitors. This essentially restricts bitcoins usage to micropayments and tips. (Remember the Lightning Network-powered Pollofeed?)

Indeed, even with Lightning, Bitcoin is less applicable to the broader Web3 crypto ecosystem.

This magnetizes Bitcoin to its store of value sales pitch users should rather hold their bitcoin than spend it in the same way as ether and other Ethereum-bound assets.

Some argue the Bitcoin development community prides itself on an unwillingness to iterate as quickly as Ethereum, bucking the move fast, break things tradition of Silicon Valley lore.

The early abdication of Satoshi Nakamoto, Bitcoins pseudonymous founder, contrasts Ethereum co-founder Vitalik Buterins persistent gravitas within Ethereum crowds another potential boon to its value prop.

Vitalik actually stepped away from doing a lot of work on Ethereum at the end of the ICO craze, but he still sets the roadmap and he still gets a lot of input, Katie Talati, director of research at Arca, told Blockworks.

Added Talati: And obviously, his opinion means a lot. Hes not necessarily dictating the day-to-day, but I think it does help having a bit of a guide.

Another effect of Ethereums proof-of-stake plan is that it will eventually turn the token into a deflationary asset, which industry participants say would likely generate significant interest.

Bitcoins supply limit is famously hardcoded to 21 million, while ethers floats. The protocol modifies ETHs issuance rate and supply constantly, with the network currently burning transaction fees rather than paying them to validators.

Sometimes, more ether is burned inside a block than issued, temporarily switching the cryptocurrency from inflationary to deflationary a phenomenon expected to occur more frequently post-Merge.

Bitcoins issuance slowly decreases, halving every four years but its supply will never formally decrease. This, at best, imbues anti-inflationary properties, although they are amplified once block rewards reduce to zero next century.

Vivek Raman, head of proof-of-stake at BitOoda, believes Bitcoins faults give Ethereum an edge in creating sustainable monetary policy, complete with high network revenue to inspire longevity.

Its almost like a mathematical inevitability, Raman said about the possibility of Ethereum flippening, estimating it could happen possibly a year after the upgrade. He argued bitcoin enjoys its status due to an early-mover advantage, backed by the idea of a pristine digital asset immaculately concepted by Nakamoto.

According to Raman, Bitcoins proof-of-work may ultimately work against its value prop, especially considering mining rewards halve every four years.

While tapering issuance hasnt threatened its security model so far, with enough miners on the network despite lower rewards, theyre still paid less over time. This means theres less and less incentive to mine every four years, Raman said.

So, what are the tell-tale signs of an impending Flippening? Surging open interest on ether futures has been floated as one indicator: Theres currently $12.8 billion in BTC open interest compared to $8.6 billion for ETH, per CoinGlass.

But Raman suggested open interest is mostly a short-term signal. And in any case, rising levels of open interest on ether futures could simply reflect appetite for Ethereums decentralized finance (DeFi) protocols.

Ethereum has decentralized finance sitting on top of it. So, it has an economy running on it because of that, theres more leverage, Raman said. If theres more leverage in the system, youre gonna see a lot more open interest from futures and options. But thats just a function of more speculators, more participants.

With no clear indicators and a suffocating macro backdrop, predicting the Flippening is a tricky undertaking.

It doesnt seem likely to occur around the Merge or even within the next year but its clear the two networks, and their native digital assets, are poised to diverge in a big way.

David Canellis contributed reporting.

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The Flippening: Will Ether Flip Bitcoin in the Next Year? - Blockworks

In this week's episode of Market Talks, we welcome Ray Salmond, head of markets at Cointelegraph.

The main topic of discussion with Ray will be the recent crypto market pullback and whether there is a possibility of the price of Bitcoin (BTC) going all the way down to $15K. We take a look at the charts to analize the price movements and figure out important price levels to keep an eye on.

Some might see the falling crypto prices and see an opportunity. We ask Ray how this market could be a potential opportunity for some. We also get his take on why the price of Bitcoin keeps dropping so consistently.

Miners are an integral part of the Bitcoin ecosystem, but what happens when mining Bitcoin is no longer profitable and miners suffer huge losses? Will we see a capitulation event? What will that do to the price of Bitcoin and the whole crypto market? We try to get a sense of the Bitcoin miners' sentiment.

The EthereumMerge is all over the news recently. We ask Ray for his insights about the matter and whether his outlook is bearish or bullish. Also, what's his strategy for trading the Merge? The markets are getting increasingly volatile at the moment and you might be wondering what is the best strategy right now buy, sell, hodl or trade? Make sure you stay till the end of the show to find out.

Tune in to have your voice heard. Well be taking your questions and comments throughout the show, so be sure to have them ready to go.

Market Talks with Coffee 'N' Crypto's Tim Warren streams live every Thursday at 12 pm ET (4:00 pm UTC). Each week, we feature interviews with some of the most influential and inspiring people from the crypto and blockchain industry. So, be sure to head on over to Cointelegraphs YouTube page and smash those like and subscribe buttons for all our future videos and updates.

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Is Bitcoin heading to $15K? Why are the markets suddenly pulling back? - Cointelegraph

Yuri Molchan

Peter Schiff has sold his bank to U.S. company that plans to expand its use in Puerto Rico

Vocal Bitcoin opponent Peter Schiff, CEO of Euro Pacific Bank, has tweeted that his deal on selling his bank is over. This happened after, earlier this summer, he agreed to sell the bank and accept Bitcoin as payment for it.

Schiff took to Twitter to announce that he has managed to sell his bank - but not quite in the way he planned. Instead of a total sale to Texas-based Qenta fintech company, the firm has acquired all of Euro Pacific's assets from its receivership.

Clients' deposits will be shifted to Qenta's subsidiary in the UAE. Initially, Qenta planned to acquire the troubled bank and "greatly expand its operations in Puerto Rico."

In a tweet on July 9, he confessed that he was even prepared to accept the leading cryptocurrency, Bitcoin, as payment for his bank if Puerto Rican regulators approved the deal. The foremost task for him is to protect his clients. However, today Schiff did not mention whether he got paid in Bitcoin.

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As reported by U.Today earlier, the operations of Euro Pacific Bank run by Peter Schiff were suspended as it failed to comply with the requirements of the local law in Puerto Rico regarding the net minimum capital held in the bank.

In connection with that, customers' accounts were frozen. Besides, regulators wanted to shut the bank down over tax evasion and money laundering accusations, while no evidence of either crime was spotted.

Schiff did admit, though, that his bank was new to the country and did not hold the minimum amount of money required by the law. Thus, it was costing Schiff a lot of money to run, with hardly any profits coming from it.

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Bitcoin Opponent Schiff Sells His Bank's Assets After Agreeing to Take BTC as Payment - U.Today

Apart from data analysis done alone or in cooperation with private companies, authorities may request information from centralized exchanges. Due to regulation, centralized exchanges may also be obligated to share such information. However, not all cryptocurrency exchanges collaborate with authorities.

A centralized exchange is a cryptocurrency exchange that is run by a single entity, such as Coinbase. To become a licensed operator in a certain country or territory, centralized exchanges need to comply with regulations.

For instance, to decrease cryptocurrency anonymity and the illicit use of cryptocurrencies, most centralized exchanges have incorporated Know Your Customer (KYC) checks. KYC is meant to verify customers’ identities alongside helping authorities to analyze activity on the blockchain. In practice, individuals need to submit a range of documents and their data before they are allowed to trade, invest and transact.

After KYC has been conducted, exchanges may be requested or may be obligated to share that data with law enforcement agencies. Since the exchange has individuals’ personal data and transaction data, so may the government. By using information obtained from centralized exchanges, the IRS can identify unknown Bitcoin wallets using KYC checks and corresponding personal information. 

Nonetheless, not all exchanges use KYC. For example, it is difficult to make decentralized exchanges (DEXs) comply with regulations because they lack a headquarter and are not run by a centralized company or a small group of individuals.

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Can the government track Bitcoin? - Cointelegraph

While decentralized finance (defi) has created a plethora of protocols that make it so crypto assets can gather a yield, ten and a half years ago a bitcoin exchange called Bitcoinica introduced the first interest accruing system for bitcoin deposits. Despite being the first to test the waters, Bitcoinica eventually went bust after a series of hacks that saw roughly 62,101 bitcoin stolen from the exchange, and interest-bearing crypto accounts did not return until eight years later.

These days, interest-bearing accounts and yield-gathering defi protocols are all the rage in the world of cryptocurrency, but most people dont know that the idea was introduced more than a decade ago. In mid-February 2012, the now-defunct bitcoin exchange, Bitcoinica, developed an idea that allowed bitcoin deposits on the exchange to gather interest. The idea was announced by the 18-year-old Zhou Tong, a bitcoin enthusiast who founded the exchange the year before. Bitcoinica saw 3,724.12 BTC, worth $71.56 million today, traded during the trading platforms first 24 hours of operation.

By September 2011, Bitcoinica was the second-largest bitcoin trading platform by volume behind Mt Gox. We are glad to announce that we have started the public test run of our interest system, the Bitcoinica founder wrote on February 13, 2012. We are the first website to offer interest for Bitcoin deposits. This post is intended to explain how the system works Assuming you deposit $10,000 with us and the interest rate is always 4.17, you will get $4.17 every day or $1,644 every year (with compound interest).

A great deal of todays interest-bearing protocols stems from the world of decentralized finance (defi), which is a whole lot different than Bitcoinicas interest-bearing account offering. Bitcoinicas concept is similar to what centralized crypto exchanges like Coinbase, Crypto.com, and many others offer today, as Bitcoinica was a centralized bitcoin trading platform.

Bitcoinica was similar to Celsius, in a sense, as it offered interest-bearing payments but eventually went under from financial difficulties. Bitcoinicas interest accounts were calculated every hour, and payouts were distributed after each day ended. Bitcoinica has been running great for the last [five] months, and were the fastest growing bitcoin business ever, Zhou Tong wrote at the time.

After the Bitcoinica interest-bearing accounts were introduced, the very next month Bitcoinica was hacked and lost 43,554 bitcoins worth $837.17 million using todays exchange rates. Then more than a month later, on May 11, 2012, Bitcoinica was hacked again losing 18,547 bitcoins, worth roughly $356.50 million today.

The interest-bearing accounts via Bitcoinica never really saw traction after the controversy that surrounded the Bitcoinica founder Zhou Tong and the mysterious hacks. Bitcoinica was eventually taken offline and by August 2012, the company entered into liquidation. Interestingly enough, the very day Zhou Tong announced the BTC interest-bearing account concept, one of the first comments asked the founder to assure the community that their funds were safe.

Soothe our fears and tell us why Bitcoinica will not be hacked, and tell us about how our money will not be stolen out of thin air? the individual asked the Bitcoinica founder. While Zhou Tong pledged to keep the exchange safe, the trading platforms two breaches were considered some of the most controversial hacks in crypto history, besides the scandals surrounding Mt Gox.

It took more than eight years to see crypto interest-bearing accounts finally take hold in the digital currency industry. Moreover, with defi protocols, yields can be earned in a private and noncustodial fashion without holding crypto assets on a centralized exchange.

However, much like Bitcoinica, interest-bearing crypto platforms can fail, and Celsius is one such lender that went bankrupt in recent times. While Celsius and Bitcoinica were centralized, defi platforms can go under too, like when the Terra blockchain ecosystem imploded.

When UST de-pegged from the $1 parity, defi users leveraging the lending application Anchor Protocol they had to deal with the bank run that followed. Other defi applications have been hacked or have seen rug pulls, and defi users looking to gain interest have lost all their money.

What do you think about the first bitcoin interest-bearing accounts offered by Bitcoinica more than a decade ago? Let us know what you think about this subject in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Interest-Bearing Accounts Were Conceived Over 10 Years Ago, but the Idea Took 8 Years to Catch On Featured Bitcoin News - Bitcoin News

The onset of the festive season sees an increase in investments in assets like gold. Bitcoin is often referred to as digital gold by supporters who feel it can provide a store of value just like bullion. Similarities like limited supply and worldwide acceptance show that Bitcoin is on the path to becoming an attractive option but it has to undergo its own trajectory to emerge as a strong competitor to gold.

Earlier this year, Goldman Sachs in a note made a strong pitch by comparing Bitcoin to gold. The note said Bitcoin could be the new gold and in the coming years, it has the potential to grow 2.5 times its current value. The note further added that the organisation sees Bitcoin as having applications beyond a store of value. By definition, a store of value is an asset that has the potential to maintain its value over time, such as oil and precious metals.

It is important to understand why Bitcoin is being compared to gold in the first place.

Both gold and Bitcoin are in limited supply. While gold has been in use for centuries, it is available in a finite supply. Similarly, the total number of Bitcoins that can be mined is exactly 21 million, ensuring its perpetual scarcity as demand rises.

According to JP Morgan, both Bitcoin and gold share other common characteristics such as durability which make them hard to destroy, portability which makes them easy to store and transport along with verifiability as both have recorded transactions. As an asset, both have a part to play in times of need.

If you look at the history of gold, it has withstood the test of time. Gold has been used for 1000s of years, has become a world standard and as an asset, it is known to maintain its worth. Since the 1870s, it has been used as the basis for the international monetary system. In comparison, for Bitcoin, it has only been 14 years and a year or two since a few countries have started using it as a standard thus making its use limited.

Over the last month, Bitcoin has seen changes that are a part of the bull and bear cycle showcasing frequent changes. Coins like Bitcoin and Ethereum have also been showing strong linkages with NASDAQ-listed technology stocks that are both responding to changes in the global geopolitical situation along with inflation-related macro news.

Bitcoin as a technology is currently developing and in fact, is still early in its maturity curve. Unlike gold which is known to be broadly non-volatile, stable, true value of money and has borderless acceptance, Bitcoin still has to go through a lot of testing in areas like security. There is every possibility that in the future Bitcoin is more stable than gold but every technology needs time to mature and stabilise.

(Prashant Kumar is Founder and CEO at weTrade.)

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Can Bitcoin be the new gold that funds your future? - Economic Times

The founder and CEO of crypto asset fund Pantera Capital, Dan Morehead, is expressing bullish sentiment on Bitcoin (BTC).

Morehead says in a Bloomberg interview that Bitcoin bottomed out in June and is on the cusp of a bull market as it has now surpassed the average period of a bear cycle.

You know weve been doing this for 10 years and weve been through three big bear market cycles. And, on average, they lasted 220 days. Thats basically what weve just had.

I think we hit the lows in June. Well see. And then were on to the next bull market. And it might be rocky and might take a while to get going. But I think that were on to the next leg of a rally.

Asked to reveal his end-of-year and five-year price target for Bitcoin, the Pantera Capital CEO says that the flagship crypto asset is likely to maintain the average annual growth rate of 150% for a while.

Bitcoin as a proxy for the industry has averaged 2.5x a year for eleven years. So thats always kind of my standard forecast is that it will probably keep going at that same growth rate for a while.

Morehead, however, says that crypto assets other than Bitcoin and Ethereum (ETH) are outperforming the two biggest digital assets by market cap.

Bitcoin is no longer everything. There was a time Bitcoin was 100% of the market and, for a while, Bitcoin and Ethereum were essentially everything.

Now there are many really important projects. And youve seen Bitcoin rally a bit but the real story is projects other than Bitcoin and Ethereum are rallying more.

Pantera Capital currently has $4.5 billion in assets under management.

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CEO of $4,500,000,000 Crypto Fund Says Bitcoin Has Bottomed Out and Is Ready To Rally Here Are His Targets - The Daily Hodl

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Athena Bitcoin (OTCMKTS:ABIT) stock is climbing higher on Friday as a rally of Bitcoin (BTC-USD) pushes shares up.

Lets start real quick with whats happening with BTC. As of Friday afternoon, the crypto is up 11.5% over the prior 24-hour period. That comes alongside a 21% increase in trading volume for the token.

Thats big news for fans of BTC as the crypto is now trading above $21,000 per token. Its been a couple of weeks since Bitcoin last reached that price and traders are likely hoping the rally will continue over the weekend.

Considering Athena Bitcoin is so closely tied to the crypto as to have it in its name, it makes sense its shares would rally today as well. As of this writing, more than 58,000 shares of the companys stock have changed hands. While that may not seem like much, the companys daily average trading volume is only about 13,000 shares.

Of course, with such a low average trading volume, as well as a price sitting at around 55 cents per share, investors will want to be careful with ABIT stock. Those two factors put it firmly in the penny stock range. That means volatility is likely as traders can more easily influence its stock price.

ABIT stock is up 48.7% as of Friday afternoon.

Theres plenty more stock market news traders can read up on below!

InvestorPlace is home to all of the hottest stock market news for Friday! A few examples of that include why shares of Nio(NYSE:NIO), Lyft(NASDAQ:LYFT), and Digital World Acquisition(NASDAQ:DWAC) stock are moving today. You can get all of that news from the following links!

On Penny Stocks and Low-Volume Stocks:With only the rarest exceptions,InvestorPlacedoes not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. Thats because these penny stocks are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand thatInvestorPlace.comswriters disclose this fact and warn readers of the risks.

Read More:Penny Stocks How to Profit Without Getting Scammed

On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

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What Is Going on With Athena Bitcoin (ABIT) Stock Today? - InvestorPlace

Yuri Molchan

Bitcoin so far remains stable, but twice this year, this measure has made it crash

CNBC has just announced that the European Central Bank has experienced thebiggest rate hike in its history, lifting the interest rate by 75 basis points.

Earlier this year, in early May and mid-June, the U.S. Federal Reserve took similar steps, raising the interest rate by half a percentage point and again by 75 percentage points. Those were the largest hikes in periods of over 20 and nearly 30 years.

The biggest digital cryptocurrency, Bitcoin,remained stable both timesand even demonstrated 1%growth on that news.

Now, the ECB has joined the policy of rate hikes started by the Fed. So far, BTC is up by nearly 1%. However, both interest rate hikes were followed by a sharp price fall.

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On June 15, when the second hike was introduced, Bitcoin plunged from above the $22,500 zone to $17,744.

As reported by U.Today earlier, the Federal Reserve has been discussing another 75%rate hike to be made soon, according to The Wall Street Journal. Besides, on Aug. 26, Fed Chairman Jerome Powellannounced that the U.S. Central Bank intends to continue its hawkish policy in an attempt to break the backof the inflation.

At the time of writing, Bitcoin is changing hands at $19,256,per CoinMarketCap.

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Bitcoin May Face Another Crash Due to This ECB Move: Details - U.Today