Cryptocurrency markets had been showing weakness lately on a variety of different reasons. Bitcoin had been trending slightly down, while Ether and Litecoin were also losing strength for different reasons. Then came the Bitfinex attack and the slight downward trend turned into a complete debacle. Ether was among the hardest hit cryptocurrencies, losing about a third of its value over the past 2 days, and the slide is bound to continue.
It is not the first time that a hacker or a group of hackers stealing cryptocurrency have managed to shake the markets, but this time the story is different. Not only did the hack come at a critical junction for some currencies, but the target of the attack was one of the most important bitcoin exchanges in Asia. Hong Kong based Bitfinex is also a unique exchange, offering margin trades and leveraged investment in cryptocurrency markets. This runs contrary to the principles of a sizable sector of cryptocurrency enthusiasts around the world.