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Bitcoin Rallies Despite Hack, European Inflation Hits 13-year High & Oil Price Nears 3-Year High

Bitcoin rallies despite Coinbase hack

Bitcoin rallied to start the month of October, despite news reports showing that hackers had infiltrated the Coinbase exchange.

After having its worst month since May, prices of BTCUSD rallied by as much as $4,000 in today’s session.

This comes despite the fact that Coinbase had confirmed that close to over 6,000 customers had their accounts hacked, with crypto being stolen.

💡 This isn’t the first crypto hack
This isn’t the first Crypto hack this year. Back in August, hackers attacked PoluNetwork and stole millions in cryptocurrency. The online pirates claim to have done the attack “for fun” and say that they were actually keeping the funds safe after spotting a bug in the PolyNetwork’s crypto code.

The company confirmed that the hack took place during March – May, and stated that, “We immediately fixed the flaw and have worked with these customers to regain control of their accounts and reimburse them for the funds they lost”.

BTCUSD hit an intraday high of $47,814, its highest in 10-days.

Euro rebounds as inflation hits 13-year high

The Euro rallied on Friday, as data from the Eurozone showed that inflation had climbed to its highest level in 13-years.

News of this comes as energy prices surged in the continent, as a result of bottlenecks in global supply, leading to increased demand.

According to data for September from Eurostat, inflation was recorded at 3.4% last month, its highest level since September 2008.

💡 Why is the European Union facing these levels of inflation?
This comes as energy prices hit their historic levels in the economic bloc. This continues to be a deepening concern among policymakers. The front-month gas price at the Dutch TTF hub, a European benchmark, has risen almost 400% since the start of the year.

This comes as consumer prices in Germany rose by 4.1% in September, which was the highest level in close to 30 years.

EURUSD hit an intraday high of 1.1607, after spending most of the session trading below 1.15. Germany’s DAX40 also closed lower on the news.

Oil price near 3-year high

Prices of Brent oil were trading close to 3-year highs on Friday, as markets anticipated next week’s OPEC meeting.

OPEC and its allies which include Russia are set to meet on Monday, where some expect the cartel to maintain curbs, despite recent increased levels of demand.

It is believed that the short-term rise in oil demand was due to bottlenecks in the supply chain, rather than an actual increase in consumption.

Brent rose to an intraday high of $79.61, close to its 3-year high of $80.70, which it hit earlier this week.

WTI crude was also higher, trading at $75.72.

“An investment in knowledge pays the best interest.”

– Benjamin Franklin

Eliman Dambell

Senior Market Analyst