Newsletter 83
19th July 2024
THE MARKET THIS WEEK
SHIB and Bitcoin Trade at a 30% Loss on WazirX as a Theft Converts Stolen Property to Ether The exchange attributed the asset transfer to a data inconsistency with a custodial platform. However, well-liked individuals of the Indian cryptocurrency scene contest that story. WazirX, despite having five signers from the exchange on a wallet that held user money, claimed that the exploit was caused by an incompatibility between a digital interface and a prominent cryptocurrency wallet. A security compromise in one of WazirX’s multisig wallets occurred on Thursday, draining the exchange of nearly $100 million in shiba inu (SHIB) and $52 million in ether, among other assets.
Amidst a worldwide internet outage, Solana and Ethereum are populated by CrowdStrike and Windows BSoD meme tokens. With a market value of up to $1 million on paper, some of these currencies have liquidity of up to $50,000 worth of stablecoins. The Blue Screen of Death (BSOD) error, which causes the system to abruptly shut down or restart, affects millions of Windows users worldwide. The issue, which has affected companies like stock exchanges, airlines, and railroads, is apparently connected to a Crowdstrike software update that went wrong.
Bitcoin Mining Is Back, But This Time It’s AI Bitcoin miners are desperate for income, so they’re turning to non-mining endeavors like running AI computers to make ends meet. At least according to their stock values, it’s paying off. As a result of the sharp increase in the price of bitcoin, the stock values of four of the top five publicly traded miners have increased by double digit percentage points. Total hashrate refers to the amount of computing power used to secure the Bitcoin network.
SHIB, WRX Fall as Bitcoin and Tether Trade at Huge Discount Due to WazirX Hack On WazirX, the majority of coins, including the top-of-market bitcoin and USDT, are trading at a substantial discount. On WazirX, the majority of coins, including the top two in the market, bitcoin and tether, are trading at a substantial discount. After the attack depleted over half of the exchange’s reserves, WazirX and the platform’s native cryptocurrency saw dramatic declines in market value early on Thursday.
Investors in BlackRock’s BTC ETF continue to purchase despite the “plummeted” prognosis for Bitcoin. Santiment claims that the quantity of favorable social media conversation about Bitcoin has decreased to a third of what it was four months ago. Despite a steep decline in favorable Bitcoin commentary, investors have continued to pour millions of dollars into BlackRock’s spot Bitcoin exchange-traded fund since last Monday. On July 18, $107 million more was infused into the BlackRock-issued iShares Bitcoin Trust (IBIT), making it the ninth day in a row of inflows.
KEY METRICS
Total Crypto Market Cap : $2.65T
Bitcoin Market Cap : $ 1.32T
Ethereum Market Cap : $ 421.48B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 6 gwei
DeFi TVL : $156.94b
Fear and Greed Index : 60 (Extreme Greed)
Federal Reserve Balance Sheet : $7.20 T
BATTLE OF THE BULL AND BEAR
For the first time since late June, Bitcoin (BTC) jumped over $65,000, recovering from a dip below $63,000 earlier in the day when wallets connected to the estate of the collapsed Mt. Gox exchange moved $2.8 billion worth of BTC, perhaps in preparation for the distribution of assets to creditors in the coming days.
Bitcoin Drops to $63K Amid Increasing Speculation About Biden Dropout On the market Polymarket, Donald Trump’s chances of winning decreased as the odds increased for the now-crypto-friendly candidate Joe Biden to withdraw from the presidential campaign during the course of the last day. Together with a persistent decline in the price of US equities and conjecture regarding the outcome of the presidential election, cryptocurrency markets saw losses on Wednesday.
Hacker WazirX converts $149 million worth of SHIB and MATIC cryptocurrency into ETH. Because the native token lacks a mechanism to be frozen, blockchain security companies claim that criminals usually transfer altcoins into ether in order to get ready for money laundering. “The hacker can quickly secure their funds by switching to Ether before authorities or the issuers of centralized tokens take any preventative measures,”
Analysts predict that Bitcoin will trade for $200K or more once its bullish momentum resumes. Bitcoin may reach $220,000 as a result of the cryptocurrency’s strong advance above $65,000 and miners’ return to significant profitability. A hash ribbons chart displaying the features of miner capitulation times was shared by the analysts. The graph showed that the previous Bitcoin halving cycles’ end of miner capitulation
Top Italian Banks Take Part in ECB Trial’s 25M Euro Digital Bond Issuance on Polygon Tokenization of physical assets is the process of issuing and transferring traditional financial instruments using blockchain technology, a concept that is being investigated by asset managers and international lenders. According to a press release, CDP issued the 25 million euro ($27.22 million) bond with a four-month maturity on the Ethereum-based Polygon (MATIC) network, with Intesa Sanpaolo serving as the underwriter and the only investor. Using the “TIPS Hash Link” service from the Bank of Italy, which enables interoperability between blockchains and conventional payment rails, the cash flow was paid in euros on the same day (T+0).
WEEKLY REVIEW OF IC15
The global cryptocurrency market slipped amid reduced Bitcoin ETF inflows and broader economic uncertainties. The IC15 Index was down 1,320 points to 82,089 at 4 p.m. All the coins in the Index were trading lower, led by Shiba Inu, with 10.95% down, followed by XRP, Polkadot, Chainlink, and Avalanche in the 4–8% range.
Nigeria is reassessing its National Blockchain Policy as the National Information Technology Development Agency (NITDA) revamped the Steering Committee to include experts and expand blockchain uses. Taiwan is tightening its anti-money laundering (AML) regulations for digital asset providers following the approval from parliament.
The US Securities and Exchange Commission (SEC) approved two spot Ethereum ETFs, Grayscale Ethereum Mini Trust and ProShares Ethereum ETF, for listing on the New York Stock Exchange’s (NYSE) Arca trading platform. McKinsey & Company, in its recent report, includes blockchain technology as a top tech trend in 2024 and highlights its potential in the digital space as major financial giants are exploring blockchain for tokenization.
A Bank for International Settlements (BIS) survey reveals that 86 central banks worldwide are exploring CBDC to enhance payment mechanisms and financial stability and support monetary policy. The Bank of Israel is waiting for the European Union and other advanced economies to launch their CBDCs before introducing their own
WEEKLY SPOTLIGHT
Reduced inflows into Bitcoin ETFs and increased economic uncertainty caused the global cryptocurrency market to decline. At 4 p.m., the IC15 Index had dropped 1,320 points to 82,089 points. Every currency in the Index was experiencing a decline in value, with Shiba Inu leading the way at 10.95% down, with XRP, Polkadot, Chainlink, and Avalanche following in the 4–8% range.
As the National Information Technology Development Agency (NITDA) reorganized the Steering Committee to include specialists and broaden blockchain applications, Nigeria is reevaluating its National Blockchain Policy. With parliament’s assent, Taiwan is strengthening its anti-money laundering (AML) laws for companies that provide digital assets.
Two spot Ethereum ETFs, Grayscale Ethereum Mini Trust and ProShares Ethereum ETF, have been cleared by the US Securities and Exchange Commission (SEC) for listing on the Arca trading platform of the New York Stock Exchange (NYSE). In a recent research, McKinsey & Company listed blockchain technology as a top technological trend for 2024 and emphasized its potential in the digital sphere, given that large financial institutions are investigating blockchain technology for tokenization.
In order to improve payment systems, maintain financial stability, and support monetary policy, 86 central banks worldwide are looking into CBDC, according to a Bank for International Settlements (BIS) survey. The Bank of Israel is holding off on implementing its own CBDCs until the European Union and other developed economies have launched theirs.
