First Mover Asia: Why Bridges Are So Vulnerable to Exploit; Bitcoin Falls Under $19K

Bitcoin and ether continue their downward trend, with Bitcoin falling below its $19,000 support level. The housing market shows signs of weakness in the US, with housing starts declining. Global inflation remains persistent, with the UK and Canada reporting higher-than-expected increases, increasing the likelihood of aggressive interest rate hikes. Bridges in the crypto ecosystem continue to be vulnerable to exploits, leading to significant losses in the industry.

Bitcoin Retreats Below Key Support as Crypto Markets Exhibit Weakness

CoinDesk Market Index (CMI)

929.26 (-1.6%)

Bitcoin (BTC)

$18,970 (-1.5%)

Ethereum (ETH)

$1,273 (-2.4%)

S&P 500

3,695.16 (-0.7%)

Gold

$1,633 per troy ounce (-1.0%)

Treasury Yield 10 Years

4.13 (% daily close) (-0.1%)

Bitcoin, Ether, and gold prices are reported at approximately 4 pm New York time.

Bitcoin Holds Above $19K Despite Market Headwinds

Bitcoin and Ethereum continued their sideways trend on Wednesday, pressured by macroeconomic uncertainty and disappointing housing data. Bitcoin traded just under $19,000, remaining within the $19,000 to $21,000 range it has occupied for over a month. Ethereum, trading at $1,273, remained beneath its $1,300 support level.

Most altcoins declined, including XRP, ADA, and CRO. Uniswap's UNI token, which initially surged, turned negative later in the day.

Concerns over Crypto Bridges Resurface

Bridges, blockchain-based tools that facilitate the transfer of tokens and assets between different networks, have come under scrutiny due to their vulnerability to exploits. Over $2 billion has been lost in bridge attacks this year, including the $375 million Wormhole exploit and the $625 million Ronin Bridge attack.

Crypto developer Hart Lambur attributes these attacks to centralization and reliance on private key holders. He advocates for decentralized bridges that rely on dispute resolution and minimize the risk of exploits.

Traditional Markets Decline on Inflation Concerns

Traditional financial markets declined on Wednesday, with the Nasdaq, Dow Jones Industrial Average, and S&P 500 falling slightly.

Housing starts in the United States plunged 8.1% in September, indicating a slowdown in the housing market. However, housing permits increased by 1.4% over August, suggesting potential future construction.

Inflation remains a concern globally, with Great Britain and Canada reporting higher-than-expected price increases. Both countries recently raised their interest rates, and hotter-than-expected inflation increases the likelihood of further aggressive rate hikes.

Commodities Mixed

Brent crude oil hovered around $90 per barrel, while safe-haven gold declined by 1.4%.

Biggest Gainers and Losers

There were no gainers in the CoinDesk 20 today.

Biggest Losers

• Gala (GALA): -7.0%
• Cosmos (ATOM): -6.4%
• Avalanche (AVAX): -5.1%

Important Events

• 8:30 a.m. HKT/SGT (12:30 a.m. UTC): Australia's Unemployment Rate September
• 7:00 a.m. HKT/SGT (11:00 p.m. UTC): Gfk Group Consumer Confidence (October)
• 7:30 a.m. HKT/SGT (11:30 p.m. UTC): Japan's National Consumer Price Index (YoY) (September)

CoinDesk TV

• "First Mover": Bitcoin's Bounce in October Remains Elusive; Venture Capital Perspective on the Digital Economy

Headlines

• JPMorgan Appoints Former Celsius Exec as Crypto Regulatory Policy Head
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• Aptos Token Plunges in Trading Debut