Global Malware Campaign WannaCry is Affecting Bitcoin's Price | Hacked: Hacking Finance
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Global Malware Campaign WannaCry is Affecting Bitcoin’s Price

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Global Malware Campaign WannaCry is Affecting Bitcoin’s Price

Introduction

This article was posted on Saturday, 17:21, UTC.

As CCN earlier reported, WannaCry has infected more than 36 000 computers. Users of affected machines are prompted with the following screen:

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The malware WannaCry automatically encrypts files on the computer and demands the user to send $300 in bitcoin to a particular bitcoin address.

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For the last weeks, we have seen a dramatic surge in cyptocurrency prices with bitcoin leading the way. The first thing I reacted to when I read other news articles about WannaCry was the press’ immediate “conclusion” that this is a targeted attack on multiple governments (even Russia is hit).

I do not believe that’s the case. I believe that the guys (and girls) behind this massive Windows-attack might be interested in one thing only, money (or rather bitcoins). I do not believe for one second that they have targeted specific companies nor countries. They have money on their mind.

Was the bitcoin price surge a part of the attack?

Then I started to wonder, what if these “hackers” are so sophisticated and powerful that they have been able to manipulate cryptocurrency prices? And then started the attack once they were satisfied with their gains? What you should consider is that bitcoin and ethereum are still small compared to other stocks and commodities; it’s much easier to manipulate cryptocurrencies than e.g. Gold.

I find it strange that the hackers have given users of the infected computers such a short timeframe to unlock the malware. There are two reasons I can think of:

  1. They want to create chaos and uncertainty for cryptocurrency holders
  2. They want to dump their coins fast

I cannot believe they want bitcoins sent to their addresses and expect “ordinary people” with no understanding of bitcoin to be able to buy and send them bitcoins within the respected timeframe. The attack seem to have started on May 12th (a Friday) and banks are closed during the weekend. It just doesn’t make any sense to me.

As you can see from the graph above, the Bitcoin price was negatively affected by the announcement of WannaCry. My guess is that there are some that have made a lot of money by shorting Bitcoin the last couple of days.

What will happen with the bitcoin price next?

I’m afraid that we have seen the highest high for bitcoin this year. I could be very wrong (and I hope I am), but something tells me these last couple of weeks have been “fishy”. There could be some very adverse effects for bitcoin and cryptocurrencies in general caused by the massive malware campaign WannaCry. Politicians and police authorities can put their combined effort into preventing malware attacks like WannaCry by implementing stronger regulations on cryptocurrencies (exchanges and withdrawals). In the worst cases, banks may be banned from accepting deposits or withdrawals from bitcoin exchanges. If they see that bitcoin can harm their economies, they will throw everything they got towards blocking and making bitcoin illegal.

Yes, I do know that cryptocurrencies will survive either way, but mass adoption might be much tougher to accomplish.

These are just my thoughts, I believe the following week(s) will give us a better idea what this major attack will do to cryptocurrencies in general.

If you got a lot of funds in bitcoin, ethereum or any other cryptocurrency, I would take my profits and wait with entering the market again until the dust settles. Be aware; I like to play it safe (and I could be wrong). At least secure some profits for now (ensure you won’t lose it all).

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Jonas Borchgrevink

Jonas Borchgrevink

Founder of Hacked.com and CryptoCoinsNews

Comments
  • user

    AUTHOR knightofone

    Posted on 6:31 pm May 13, 2017.

    This isn’t the first ransomware, i don’t see why it would affect the crypto space this much this time

    • user

      AUTHOR Jonas Borchgrevink

      Posted on 6:34 pm May 13, 2017.

      Hello, It’s probably the largest to date. But yeah, you might be right. It might not affect the price more than it already has..

  • user

    AUTHOR eko6321

    Posted on 6:53 pm May 13, 2017.

    I think weekdays we will know more better results but your article make a sense.

  • user

    AUTHOR dano5050

    Posted on 9:09 pm May 13, 2017.

    Trying to impute this or that price movement to this or that event is so contrived. If the price of bitcoin had gone up you would have said that all the folks having to rescue their computers had put upward pressure on prices.

    And then “I’m afraid that we have seen the highest high for bitcoin this year”. Really? Based on what analysis?

    Come on. We’re actually paying to read this. Try harder.

    • user

      AUTHOR Jonas Borchgrevink

      Posted on 10:26 pm May 13, 2017.

      As I explained, these are my thoughts. I’ve been into this game since 2013, I’ve seen ups and downs. Let’s see what happens the coming months. Would you buy me a beer if I’m correct? 🙂

  • user

    AUTHOR jacobcanfield

    Posted on 1:15 am May 14, 2017.

    What do you think of all the server issues that Poloniex and Kraken are having? Do you have any recommendations for where to move my funds to? I have been following your blog very closely and saw the trend patterns for Stellar and Ripple as well and it seems like it’s consolidating and following the pattern, but the lows only seem to happen with website crashes. Does it matter if the sell offs occur from a website crash or natural course of action according to your technical charting? If so, could you do another analysis in the next few days?

    Thanks!

  • user

    AUTHOR Gabriel

    Posted on 5:00 am May 14, 2017.

    Interesting take. My first reaction was to see it as a risk that people would associate bitcoin with illegal activities and be put off. But then, malware and ransomware have been around for a long time now, and the problem is not really the medium of payment but rather poor computer security across the board.

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