Risk Off — September 21

Chart of the Day

What we witnessed in the early hours of Monday is only the beginning — Bitcoin’s sell-off deepens as global equities suffer the steepest declines in months, with the implosion of the Chinese real-estate sector and angst over the U.S. Federal Reserve tapering to blame. The price of Bitcoin pierced through the 200-day moving average and settled near $42k, between two significant on-chain volume nodes. The immediate on-chain price wall sits near the $39k-40k range, but it looks like we might have a choppy week ahead amid a risk-off environment. As always, liquidity across major exchanges saw significant deterioration in the days that led up to the sudden collapse, but not as severe as the previous major correction, where cascading liquidations wiped out over $3 billion in a matter of hours. 

Talk of the Town

Another cross-chain DeFi protocol was under attack. An unidentified hacker has exploited a bug in pNetwork’s codebase to steal 277 pBTC, a version of wrapped BTC worth approximately $12 million, from the protocol’s bridge on Binance Smart Chain. The governance token of pNetwork, PNT, dropped over 18% post-attack. The network is currently offering a $1.5 million bug bounty to the attacker in exchange for stolen funds.