Proceedings of The 3rd International Conference on Business, Management and Economics
The Fluctuations of Bitcoin Price during the Hacks
Jiarun Hu, Qian Luo and Brain Jiaen
Security breaches of the cryptocurrency exchanges usually cause the price fluctuation in the market. Approximately one hundred cryptocurrency thefts, including hacks and scams, has occurred since 2012 to 2018, half of which are hacks of Bitcoins. Based on the thirty Bitcoin hacks, this study portrays the general price pattern during the hack. And it illustrates the link between the size of the hack and the subsequent price change of Bitcoin. The tests reveal that the larger the volume of the hack, the stronger the price drop. However, a similar obvious relationship does not exist for the recovery of the price. The study might be the first piece of research focus on the hacks and the price pattern in a short time period.
Keywords: Bitcoin price, price fluctuation, Bitcoin hack, cryptocurrency thefts.