Cryptocurrency Tether Hacked but Bitcoin Rebounds Higher than Anticipated

*$8,362.30 was an all-time high for Bitcoin

*Hackers stole approximately $30 million from investors of a start-up cryptocurrency that was backed by dollars. This did not affect Bitcoin who had a stellar year, rising more than 730 percent.

Another cryptocurrency was hacked, but bitcoin prices recovered quickly and reached a record high on Tuesday.

Bitcoin hit, $8362.30, and traded 0.4 percent higher at $8,266.84 around 2:14 p.m. New York time, reported CoinDesk.

However, bitcoin fell more than 5 percent overnight and ended up lower than $8,000 below the mark when CoinDesk informed the cryptocurrency world that Tether, a recent start-up offering digital tokens that are dollar-backed, was hacked for more than $30 million.

Bitcoin 1-day Chart (content/images/2017/11/bitcoin-rebound-after-tether-hack.png) from CoinDesk.

Tether reported via its website (a now deleted post), “malicious actions by an external attacker” lead to the theft.

Tether further said in the removed post that they were trying to recover stolen tokens to prevent them from entering the cryptocurrency market.

According to Sean Walsh, partner at Redwood City Ventures trading trends, traders “have become conditioned to sell first and ask questions later.” Walsh also noted that Tether plays a very small part in the cryptocurrency market. Tether will “have zero fundamental impact on the health, strength, and security of the Bitcoin network, which has been operating successfully since 2009.”

Bitcoin had a spectacular year and left other cryptocurrencies in the “dust.” Right now, Bitcoin is up more than 730 percent. As a note, the S&P 500 is up by 15%.