Despite the hack of Japan's Liquid Exchange, Bitcoin's price is hardly changed at $44,000

Even after Japan's Liquid exchange claimed a hacker stole millions of dollars in cryptocurrency during Asia's trading hours, Bitcoin remained over $44,000.

The world's biggest cryptocurrency by market capitalization is down 2% on the day after hitting a 24-hour high of approximately $45,986. Bitcoin was trading for approximately $44,400 at the time of publication.

Bitcoin has dropped back below the 200-day moving average, invalidating a previous break out that occurred on Aug. 13.

“The line in the sand for short-term momentum is $44,000 and $42,000,” says Jon de Wet, CIO of digital asset company Zerocap.

The company believes that the instability in Afghanistan caused by the US military's departure, as well as worries over the COVID-19 delta version, are bolstering safe-haven flows.

While headwinds in China, such as a weakening economy and a crackdown on the IT industry, are affecting the crypto markets, the Liquid breach has had minimal effect thus far. According to the company, this is an indication of continued optimistic sentiment.

“A daily fall below $42,000 would give the bears some confidence, but we think [the] price will stay above this level for the next week,” De Wet added.

As so-called smart-money flows out of exchanges continue to rule supreme, on-chain indications hint to bitcoin holding above that level, at least in the near term, according to Glassnode statistics.

According to Zerocap, “smart money” dominates trade flows in general. When bitcoin leaves exchanges, it may signal a desire to keep it. When bitcoin goes into exchanges, on the other hand, it may signal a desire to sell.

Ethereum is much more so, with exchange balances at an all-time low this week,” added de Wet. “Despite the macroeconomic environment, leverage is not excessive in this market right now, which is all very encouraging of a strong week ahead.”

On a 24-hour basis, other prominent cryptocurrencies in the top 20 by market size were mixed, with cardano, terra, and internet computer seeing the most increases and uniswap, polygon, and chainlink seeing the most losses.

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