Bitcoin has been on a fantastic bull run over the past few weeks, with the price reaching all time highs of nearly $1900. But like most good things, they have to end at some point. And at the end of last week, the price started to drop dramatically as the price corrected and the bull run seemingly started to end.
However, as the price was dropping on Friday, news broke that a global ‘cyber-attack’ was underway infecting thousands of machines around the world. The attack called “WannaCry” was apparently using the dirty work of an NSA created cyber tool which leaked (or was stolen), which exploited Microsoft operating systems allowing hackers to lock down machines and ransom the victims in order to have their files unlocked.
Unfortunately for the victims, the ransom that the hackers demanded must be paid in bitcoin. The image above via Politico shows a hacked screen where there is a timer on the left, and on the bottom it is demanding payment in Bitcoin.
According to CNN the attack spanned 150 countries and infected more than 200,000 machines worldwide. Due to the magnitude of the hack, it has brought more coverage on Bitcoin (both good and bad). Additionally because payment is required in bitcoin, victims are having to buy and pay the hackers in the digital currency.
Although the price of Bitcoin started to correct on Friday, due to the hack and unprecedented size of the hack and victims, this single event has helped to provide additional buying pressure on the market driving the price back up over the weekend. It’s more than likely the price will continue to rise as the work week begins and more victims discover the Wannacry hack and have to pay in bitcoin.
You can see in the chart above that on Friday the price dropped significantly. When the hack was discovered, the price began to rise and continued to rise all weekend with a slight drop Sunday evening. As of this writing and the work week has begun (Monday morning), the price has began to rise again.