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American Bitcoin Reports Loss

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American Bitcoin posted a quarterly loss as declining cryptocurrency prices weighed on performance across the digital asset sector.

The company, which focuses on large-scale bitcoin mining and reserves management, reported negative results following a period of market volatility that affected token valuations.

During the quarter, bitcoin experienced a significant price drop, influencing the financial position of firms that maintain holdings as part of their operational strategy.

While revenue increased compared to the previous year, overall profitability was impacted by the broader market downturn.

The company continues to expand its bitcoin reserves, underscoring its long-term approach to asset accumulation despite near-term price fluctuations.

The results highlight the sensitivity of mining operations to shifts in cryptocurrency markets.

Bithumb Blames System Flaws for $40 Billion Bitcoin Error

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South Korea’s crypto exchange Bithumb said serious internal system flaws allowed an erroneous transfer of more than $40 billion in bitcoin during a promotional event last week, prompting regulatory scrutiny and market volatility. The exchange accidentally distributed about 620,000 bitcoins to customers instead of 620,000 won ($426), triggering a sharp 17% drop in bitcoin prices on its platform.

Chief Executive Lee Jae-won told lawmakers the error was exacerbated by a roughly 24-hour processing lag that delayed balance updates. The mistaken transfer amounted to roughly 15 times the exchange’s bitcoin holdings. Internal safeguards—including checks comparing transfer volumes with actual reserves—failed, and the assets were not earmarked in a separate account to ensure transaction safety.

Most of the bitcoins have since been recovered, though regulators said 1,786 coins were sold before accounts were frozen. Authorities stated that customers who sold the mistakenly credited assets are legally required to return them. The incident has sparked criticism in parliament over oversight failures in one of the world’s most active crypto markets.

The head of the Financial Supervisory Service said the episode underscores the need for stronger regulatory frameworks, adding that virtual asset platforms should ideally face oversight similar to banks, though current laws do not yet provide that authority.

Bitcoin drops below $70,000, erasing post-Trump rally

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Bitcoin slid below the $70,000 mark on Thursday, extending a sharp selloff that has erased gains made since Donald Trump’s 2024 election victory. The world’s largest cryptocurrency fell as much as 3.8% to $69,858, its lowest level since November 2024.

Bitcoin is down nearly 8% this week and almost 20% so far this year. Ethereum also weakened, slipping close to 2% to around $2,090 and posting year-to-date losses of roughly 30%.

Analysts said the latest leg down was triggered by concerns over the nomination of Kevin Warsh as the next chair of the Federal Reserve. Warsh is viewed as favoring a smaller central-bank balance sheet, a stance seen as negative for liquidity-sensitive assets such as cryptocurrencies.

“The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer, noting that reduced liquidity would offer little support for digital assets.

The global crypto market has lost about $1.9 trillion in value since peaking in October, according to CoinGecko, with institutional investors pulling billions from exchange-traded funds. Analysts at Deutsche Bank said persistent ETF outflows point to waning interest among traditional investors.

Bitcoin’s decline has also tracked weakness in technology stocks, as fears of AI-driven disruption ripple through markets. Jefferies warned that further price drops could pressure crypto miners and risk forced liquidations, amplifying volatility.