Prior to the highly anticipated presidential debate between Donald Trump and Joe Biden, many on social media were speculating whether the topics of Bitcoin and cryptocurrency would come up. However, as the debate concluded, it was clear that neither candidate made any mention of these emerging digital assets or technologies. The absence of any discussion […]
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Vitalik Buterin Responds to Criticism on the Institutionalization of the Crypto Space: We’re Still Here
Vitalik Buterin, one of Ethereum’s co-founders, answered the criticism regarding the new institutional focus of blockchain and cryptocurrency projects. Buterin told Joe Weisenthal, co-host of Bloomberg’s financial podcast Odd Lots, that crypto culture “idealistic hippies” were still in the space, and that projects in this regard have moved forward quite a bit, citing Lens and […]
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Were Bitcoin Miners Behind The BTC Price Crash Below $60,000?
The price of Bitcoin fell drastically towards the ,000 mark in the days leading up to the just concluded halving. On-chain data has shed light on what could very well be the reason for this price dip in the middle of all the excitement around the halving.
Particularly, data has revealed that some miners have been selling their holdings in the days leading up to the halving event, with the entire BTC holdings of miners hitting a 12-year low.
Miners’ Bitcoin Holdings Hit 12-Year Low
On-chain analytics platform IntoTheBlock noted this interesting trend amongst Bitcoin miners. According to the platform’s “Miners’ Bitcoin Holdings,” the collective BTC reserve across various miners has now dropped below 1.9 million BTC, its lowest in over 12 years.
Interestingly, the metric shows that miner reserves have been on a continued trend of outflows since the beginning of the year, just after the approval of Spot Bitcoin ETFs. This means the outflow from miner wallets can be linked to increased demand from the various Bitcoin ETF wallets, with the latter now controlling over 4.27% of the total circulating wallets.
As Bitcoin goes into the halving, miners’ BTC holdings hit 12 year low. This indicates that miners have been net sellers leading up to the halving. pic.twitter.com/WNi74RkluG
— IntoTheBlock (@intotheblock) April 19, 2024
At the time of writing, CryptoQuant data puts the total number of miner reserves at 1.818 million BTC, a decrease of 22,000 BTC from 1.84 million on January 3. Additionally, this outflow from the miner reserves was exacerbated in the days leading up to the halving, as noted by IntoTheBlock.
“This indicates that miners have been net sellers leading up to the halving,” IntoTheBlock said in a social media post.
The persistent selling pressure exerted by miners may have been a contributing factor in Bitcoin’s stagnant pace between ,000 and ,000 over the past weeks. This outflow of BTC from miner wallets into the market seems to have flooded the market with more than enough BTC, which in turn contributed to a crash to ,000 during the week.
What’s Next For Bitcoin?
The practice of Bitcoin miners selling their holdings in the days leading up to the halving is not unusual, as demonstrated by their actions in past halving events. At the time of writing, Bitcoin is trading at ,978, up 8% after rebounding up at ,000. The much anticipated fourth Bitcoin halving has now been completed and the industry looks forward to its effect over the next few months.
The halving is ultimately a balancing act for miners. Although miners’ revenues are cut in half, the reduced Bitcoin supply and possible price increase can help offset some of the losses over time. According to a report, Bitcoin miners could sell up to billion worth of BTC after the halving, with the price of the cryptocurrency potentially falling to ,000.
Featured image from Pexels, chart from TradingView
Ethereum Price Grinds Higher, Is This The Start Bulls Were Waiting For?
Ethereum price is attempting a fresh increase above the ,550 level. ETH could continue to move up unless there is a drop below the ,525 support.
- Ethereum is attempting a fresh increase above the ,520 level.
- The price is trading above ,520 and the 100-hourly Simple Moving Average.
- There is a connecting bullish trend line forming with support at ,540 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move up if it clears the ,600 and ,620 resistance levels.
Ethereum Price Holds Support
Ethereum price remained well-supported above the ,450 level. ETH outperformed Bitcoin and started a fresh increase above the ,500 resistance zone.
There was a move above the ,550 resistance and the 100-hourly Simple Moving Average. The price even broke the ,600 level before the bears appeared. A high is formed near ,614 and the price is now correcting gains. There was a minor move below the 23.6% Fib retracement level of the upward move from the ,471 swing low to the ,614 high.
Ethereum is still trading above ,520 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at ,540 on the hourly chart of ETH/USD. It is close to the 50% Fib retracement level of the upward move from the ,471 swing low to the ,614 high.
On the upside, the price is facing resistance near the ,600 level. The next major resistance is now near ,620. A clear move above the ,620 level might start a decent increase. In the stated case, the price could rise toward the ,665 level.
Source: ETHUSD on TradingView.com
The main breakout zone is now forming near the ,710 zone. A close above the ,710 resistance could start another major increase. The next key resistance is near ,780. Any more gains might send the price toward the ,880 zone.
Fresh Decline in ETH?
If Ethereum fails to clear the ,620 resistance, it could start another decline. Initial support on the downside is near the ,550 level and the trend line.
The next key support could be the ,500 zone. A downside break below the ,500 support might send the price further lower. In the stated case, Ether could test the ,450 support. Any more losses might send the price toward the ,350 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,540
Major Resistance Level – ,620
Study: Venture Capital Investments in Top Ten Web3 Projects Were 70% Lower in 2023
In 2023, the top ten Web3 projects collectively raised .78 billion in funding, a figure which is 70% lower than the .87 billion raised in the previous year, the findings of a new study have shown. The findings also show that Web3 projects were able to attract billion in capital with infrastructure projects accounting for 36.5% of the total.
Most Capital Raised in the Latter Half of 2023
According to a study conducted by the crypto exchange Binance, venture capital investments in the top ten Web3 projects saw a significant downturn in 2023, with only .78 billion raised. This total is 70% lower than the .87 billion raised in 2022.
As explained in the study report, the fundraising fortunes of the top ten projects are a reflection of the bearish market conditions that prevailed in much of 2023. Despite this sharp drop in capital flows, all the top ten Web3 projects were still able to raise more than 0 million.
“Notably, most of the significant funding occurred in the latter half of the year, with six out of the 10 largest fundraises happening in this period. Among these, Phoenix Group, a Bitcoin mining service provider, and Ramp, a non-custodial payment infrastructure company, led the pack with US0 million and US0 million in the amount raised, respectively,” the study report said.
Infrastructure Projects Account for Just Over a Third of Capital Raised
Meanwhile, the study findings show that Web3 projects attracted investments totaling billion, with infrastructure projects accounting for 36.5%, while centralized finance (cefi) and decentralized finance (defi) platforms accounted for 13.3% and 8.6%, respectively. Decentralized autonomous organizations (DAOs) saw the least amount of capital investment, with a share of only 0.47% of the total.
As noted in the report, venture capital (VC) firms’ sentiment towards Web3 projects remained largely negative until the end of Q3. However, after reports of institutional investors’ interest in spot Bitcoin exchange-traded funds (ETF) surfaced, this sentiment turned bullish.
Since then, the crypto market has rallied with bitcoin touching prices last seen nearly two years ago. This rally has in turn laid the foundation for increased VC investments in 2024. Commenting on this likely scenario, the report said:
“Moving into 2024, it would not be surprising to see an uptick in investment activities. This anticipated growth is not only due to the low base period from the previous year but also driven by the increasingly bullish sentiment permeating the market.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Coinbase Ending ‘Givecrypto’ Initiative — ‘We Were Unable to Create a Lasting Impact’
Crypto exchange Coinbase is winding down Givecrypto, a nonprofit set up to provide crypto to those in need. “Over the years, Givecrypto distributed cryptocurrency to thousands of individuals in need,” Coinbase said. However, the exchange admitted: “We were unable to create lasting change purely through unconditional cash transfers.”
Coinbase Drops Givecrypto
Cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Friday that it is winding down the Givecrypto initiative, a nonprofit funded by its CEO, Brian Armstrong, to provide crypto to those in need. The announcement details:
Despite the positive impact it has had, we were unable to create lasting change purely through unconditional cash transfers.
Givecrypto has been one of Coinbase’s charitable programs dedicated to “increasing economic freedom worldwide,” the firm described, emphasizing: “After much consideration, we have recognized that we need to take a new direction.”
Armstrong introduced Givecrypto in June 2018. The executive described in a blog post at the time that its mission “is to financially empower people by distributing cryptocurrency globally.” He added that “Initial recipients will be people living in emerging markets, especially those going through financial crisis.” However, a Fortune article published in September 2022 details how “Coinbase’s billion crypto philanthropy ambitions left a trail of disappointment and workers in the lurch.”
Coinbase’s Friday announcement explains:
Over the years, Givecrypto distributed cryptocurrency to thousands of individuals in need, with measured short-term improvements in their outcomes. We also validated how cryptocurrency makes it easier to send small amounts of money across borders, directly to the intended recipient instead of through middlemen.
“Unfortunately, we were unable to create a lasting impact with recipients, who returned to the same baseline after payment ceased,” the crypto firm stressed.
According to Coinbase, all remaining Givecrypto funds will be donated to Brink and Givedirectly. The exchange noted: “Brink is working to strengthen the Bitcoin software and protocol and Givedirectly is better equipped to ensure crypto donations reach those who need them most and will experience sustained benefits.”
What do you think about Coinbase winding down its Givecrypto initiative? Let us know in the comments section below.
JPMorgan CEO Jamie Dimon Says He’d Close Crypto Down if He Were the Government
JPMorgan Chase CEO Jamie Dimon told U.S. senators in a congressional hearing that he would close down crypto if he were the government. Emphasizing that he has always been “deeply opposed” to crypto and bitcoin, the executive stressed that the true use case of crypto is criminals, drug traffickers, money laundering, and tax avoidance.
Jamie Dimon Wants to Shut Down Crypto, Bitcoin
The chief executive officer of global investment bank JPMorgan Chase shared his view about crypto and bitcoin on Wednesday during the Senate Banking Committee’s annual Wall Street oversight hearing.
Responding to U.S. Senator Elizabeth Warren’s question about why cryptocurrencies are an attractive tool for criminals, Dimon stated:
I’ve always been deeply opposed to crypto, bitcoin, etc. You pointed out the true use case for it is criminals, drug traffickers, anti-money laundering, tax avoidance.
“That is a use case because it is somewhat anonymous, not fully, and because you can move money instantaneously because it doesn’t go through all these systems built up over many years: Know Your Customer [KYC], sanctions, OFAC [Office of Foreign Assets Control] — they can bypass all of that,” the JPMorgan boss emphasized, adding:
If I were the government, I’d close it down.
“Today’s terrorists have a new way to get around the Bank Secrecy Act — cryptocurrency,” Senator Warren claimed. “I’m not usually holding hands with the CEOs of multibillion-dollar banks, but this is a matter of national security.”
Dimon has always been skeptical about crypto and bitcoin. He previously said crypto tokens are “decentralized Ponzi schemes.” In January, he called bitcoin “a hyped-up fraud” and likened the cryptocurrency to a pet rock. He also believes that Bitcoin’s pseudonymous creator Satoshi Nakamoto could remove the cryptocurrency’s supply limit.
Responding to Dimon’s testimony, crypto proponents expressed on social media platform X that if he thinks he can shut down bitcoin, he doesn’t understand it. Many pointed out that banks and fiat money are used more heavily by criminals than crypto. Vaneck’s director of digital asset strategy, Gabor Gurbacs, commented: “Since 2000, regulators fined banks 7,400+ times totaling to fines of 0+ Billion. Banks should stay silent.” He added:
JPMorgan Chase parent company is the second most penalized financial institution with close to billion in fines for 272 violations since 2000. Jamie Dimon is in no position to criticize bitcoin with this sort of track record. They should start the hearing with these stats.
Lawyer John Deaton called Dimon a hypocrite. “Who’s the criminal Jamie Dimon? Let me ask you a question: In the last 5 years when JPMorgan has been fined over thirty-five billion dollars (,000,000,000) for illicit and fraudulent activities, did any of your staff use bitcoin or crypto?” he asked.
Even X’s “readers added context” pointed out that people might want to know: “Less than 1% of the trillions transacted annually in crypto are illicit. The UN estimates that annually between 2% to 5% of global GDP (0 billion – trillion) is used for illicit activities and money laundering through the traditional banking system and cash.”
What do you think about JPMorgan Chase CEO Jamie Dimon wanting to shut down crypto and bitcoin? Let us know in the comments section below.
Arthur Hayes: CZ and Binance Were Punished for Challenging the Pax Americana Establishment
Arthur Hayes, the former CEO of Bitmex, has explained what he thinks led to the billionaire settlement between Binance, its former CEO Changpeng ‘CZ’ Zhao, and the U.S. Department of Justice (DOJ). He detailed that the growth of Binance, a structure that was outside the control of the economic and political establishment of the Pax Americana, led to the historic deal.
Former Bitmex CEO Arthur Hayes: Binance Upended the Pax Americana Establishment
Arthur Hayes, co-founder and former CEO of Bitmex, gave his take on the recent .3 billion settlement between Binance, one of the biggest cryptocurrency exchanges, and the U.S. Department of Justice (DOJ). According to Hayes, the treatment of Binance, a company that grew to its current size in less than ten years, had to do with the insurgent characteristics of its owners, who were not part of the economic and political elites of the country.
Hayes stated:
The problem for the financial and political establishment was that the intermediaries facilitating flows into and out of the industrial revolution named blockchain were not run by members of their class.
He further explained that these elites were upset by the form in which Binance, as a crypto exchange, used the tools of the state to disintermediate the institutions of the Pax Americana, resulting in legal actions against Binance and its former CEO Changpeng ‘CZ’ Zhao.
Crypto: ‘One of the Most Important Political, Financial, and Technological Developments’
Hayes then comes to compare Binance’s settlement with the DOJ to other historical corruption and money laundering cases and the institutions that allowed them to happen, like the 1MDB case, a billionaire scheme enabled by the actions of Goldman Sachs employees, or HSBC’s involvement in allowing Mexican cartels to launder money. Hayes argued that none of these institutions’ CEOs were treated like Zhao is currently being treated.
He declared:
Obviously, the treatment of CZ and Binance is absurd, and only highlights the arbitrary nature of punishment at the hands of the state.
Hayes also stressed that this situation highlights the importance of crypto as “one of the most important political, financial, and technological developments in civilized human history,” allowing individuals outside of the centers of power to reach financial freedom with “just a few swipes on a smartphone.”
In 2022, Hayes was sentenced to six months of home detention and two years of probation for violating the Bank Secrecy Act after failing to implement AML and KYC programs when he served as CEO of crypto exchange Bitmex. Also, he agreed to pay a million fine.
What do you think about the U.S. DOJ’s treatment of the Binance situation? Tell us in the comments section below.
SEC’s Crypto Chief Signals Ramp-Up in Enforcement: ‘We’re Going to Continue to Bring Those Charges’
According to David Hirsch, head of the U.S. Securities and Exchange Commission’s (SEC) Crypto Assets and Cyber Unit, more enforcement actions against firms that haven’t properly registered with the regulator are expected. Hirsch discussed crypto assets and exchanges Tuesday at an SEC forum in Chicago.
SEC Crypto Head Forewarns Tougher Enforcement
While the crypto community has focused on the XRP case and lawsuits against Coinbase and Binance, the U.S. Securities and Exchange Commission may target more violators soon. David Hirsch, head of the SEC’s Crypto Assets and Cyber Unit, made the statements, as reported by Coindesk.
On Tuesday at the Securities Enforcement Forum Central in Chicago, Hirsch said the SEC will “continue to bring those charges.”
“We’re going to continue to be active as to intermediaries,” Hirsch told the audience. “That can be brokers, dealers, exchanges, clearing agencies or any others who are active in this space, are within our jurisdiction and not meeting their obligations, either through registration or failure to provide adequate or complete disclosures.”
The SEC has cracked down on several high-profile crypto companies such as Binance, Bittrex US, and Coinbase. More recently it has been focused on a couple of non-fungible token (NFT) projects that raised millions without disclosure.
Hirsch insists more enforcement is coming. “We’re going to continue to conduct investigations, we’re gonna be active in the space, and adding the label of [decentralized finance] is not going to be something that’s going to deter us from continuing our work,” the SEC official remarked.
The SEC official noted the regulator has significant ongoing litigation. Beyond enforcement actions against exchanges and brokers, the market capitalization of crypto coins that the SEC claims are crypto securities stands at .4 billion.
What do you think about the SEC’s crypto chief and his statements at the forum in Chicago? Share your thoughts and opinions about this subject in the comments section below.
A Long Con: CoinsPaid Says Systems Were Under Attack For Six Months
In a new report, Estonia’s preeminent crypto payment and personal wallet provider, CoinsPaid, has revealed the intricate workings of a hacking incident that led to a colossal loss of million.
This audacious breach was reportedly the culmination of a six-month saga marked by calculated maneuvers and sophisticated tactics, orchestrated by none other than the notorious Lazarus Group.
Collaborating with Match Systems, CoinsPaid embarked on a comprehensive inquiry, unearthing the modus operandi of the hacking group and exposing the subsequent laundering of pilfered assets in a post.
Elaborate 6-Month Operation By Lazarus Group
The ploy, characterized by an extraordinary level of meticulousness, spanned half a year, revealing the calculated and relentless nature of the hack. Employing a blend of social engineering and technical strategies, the hackers engaged in a series of Distributed Denial-of-Service and brute-force attacks.
Their calculated approach culminated in a July 22 breach with the manipulation of a CoinsPaid employee, ensnaring them through a falsified job proposition. The ordeal began innocently enough, as a CoinsPaid employee embarked on a video interview for what appeared to be an enticing career prospect, facilitated via LinkedIn.
Little did they know that the seemingly innocuous task of downloading a technical assessment was part of an elaborate ruse orchestrated by the hackers. This single act granted the hackers access to CoinsPaid’s systems, allowing them to exploit software vulnerabilities and authorize unauthorized withdrawals from the company’s hot wallets.
The hacker executed a swift sequence of unauthorized withdrawals, swiftly depleting the company’s coffers in less than an hour of operation. In total, CoinsPaid lost .3 million in the attack.
CoinsPaid Moving Forward From The Incident
CoinsPaid’s exhaustive post-mortem report reveals invaluable lessons extracted from the breach. The report highlights the importance of training employees to identify social engineering tactics, including job offers that might be a ploy to gain access to internal systems.
The report also explains the adoption of principles like the Separation of Duties and Least Privilege, advocating for the implementation of robust monitoring and alert systems to detect suspicious activities.
Following the report, CoinsPaid will be hosting a roundtable discussion involving blockchain-based entities, aiming to collectively address the escalating threat posed by hacking incidents.
In the wake of the exploit, the payments platform assured customers that none of their funds were affected. The company also resumed all activities less than a week after the hack took place.
The Lazarus Group is believed to have stolen over .8 billion in digital assets from crypto exchanges and decentralized finance (DeFi) services since it became active.