With increasing cryptocurrency-related crimes in Hong Kong, Bitrace has ramped up its efforts to tackle the problem.

The prominent data analysis company has reportedly conducted training sessions on on-chain fund tracking for members of the Hong Kong Police Force.

Bitrace Bolsters Efforts to Combat Crypto Crimes

The latest initiative is part of the company’s Corporate Social Responsibility efforts that aim to improve law enforcement’s understanding of blockchain technology, particularly in light of Hong Kong’s growing prominence in the cryptocurrency hub.

According to the blog post, these training sessions were specifically organized for the Cyber Security and Technology Crime Bureau (CSTCB) and Commercial Crime Bureau (CCB) which involved sharing of insights and methods for investigating cryptocurrency-related crimes.

Bitrace’s technical experts also demonstrated the usage and circulation methods of digital asset funds in activities such as online gambling, illicit trades, money laundering, and fraud.

Commenting on the development, Bitrace CEO, Isabel SHI said,

“It’s a real honor to talk with the police officers from Hong Kong. Improved legislation and enhanced prevention of crypto crimes will better promote the development of Web3.”

Crypto Crimes in Hong Kong

In the last three years, Hong Kong has witnessed a significant rise in cryptocurrency-related crimes. In fact, reported cases have surged from 1,397 to 3,415, with corresponding amounts of HKD 824 million to HKD 4.398 billion. This figure almost tripled during the period in question.

Since last September, Hong Kong’s Securities and Futures Commission (SFC) has heightened its efforts in information disclosure, according to a recent report.

These efforts entail extensive publication of information with regard to virtual asset trading platforms, such as a list of suspicious virtual asset trading platforms. The move aligns with the broader objective of offering transparent and timely information to the public.

Meanwhile, Hong Kong is currently on the verge of approving spot Bitcoin ETFs in the region. The SFC updated its virtual asset management fund company list on April 10 which features the addition of Harvest International Asset Management Company and China Asset Management (Hong Kong) Co., Ltd., two major mainland public fund companies.

The post Bitrace Trains Hong Kong Police on Crypto Crime Investigation appeared first on CryptoPotato.

TL;DR

Ripple’s XRP dropped by 20% following a market downturn, yet some analysts see this as a buying opportunity.

Several other optimistic predictions indicate a bullish outlook for the asset, with potential significant appreciation in its value expected soon.

‘XRP Dips For Buying, Not For Crying’

The cryptocurrency sector experienced a substantial correction on April 14, with its global market capitalization plunging to approximately $2.4 trillion. CryptoPotato reported that the adverse trend resulted in multi-million liquidations, mainly affecting long traders. 

Ripple’s XRP is among the notable losers in the past week, nosediving by 20% to around $0.48 (per CoinGecko’s data).

 

Source: CoinGecko

However, some analysts remain unfazed, viewing this as a buy-the-dip opportunity. One example is the X user EGRAG CRYPTO, who claimed that “XRP dips for buying, not for crying.”

Several hours before the market decline took place, the analyst argued that Ripple’s native token “finds itself in a unique position, caught between bullish sentiment and bearish pressure.” EGRAG CRYPTO believes the asset has been in a consolidation phase since August 2023, describing it as “a healthy formation.” 

“Stay steady, XRP is poised to ignite like a rocket,” the analyst concluded.

The Previous Forecasts

EGRAG CRYPTO chipped in again earlier this week, suggesting that XRP’s price trajectory has formed a so-called “three camel humps.” In their view, breaking above the major resistance zone of $0.75 may lead to a “bullish momentum” and an eventual rise to the range of $1-$1.30.

Dark Defender was optimistic, too, maintaining that XRP reached a “bouncing point” and forecasting that it “will definitely appreciate against BTC very soon.”

The most bullish predictions came from the X user Mikybull Crypto and the YouTube content creator, using the handle D.I.Y Investing. The former argued that XRP is gearing up for a rally toward $4, while the latter thinks the token’s price is ready to skyrocket to a new all-time high.

Those willing to explore some essential signs hinting that the asset is on the verge of an explosive rally this year, feel free to check our dedicated video below:

The post Ripple Price Predictions Amid the Crash: Where’s XRP Headed? appeared first on CryptoPotato.

TL;DR

The lawsuit between Ripple and the SEC, concluding with a grand trial on April 23, could significantly influence XRP’s price and market capitalization.

The asset’s value growth also depends on market dynamics and adoption by major financial institutions.

Waiting for the Judge’s Decision

The lengthy legal battle between Ripple and the US Securities and Exchange Commission (SEC) will move to a grand trial (scheduled for April 23), which is supposed to be the final chapter of the dispute. Industry participants believe the case’s outcome may significantly impact XRP’s price.

For example, a decisive win for Ripple (which already secured three partial court victories) could boost the valuation of the coin, while the opposite scenario might hamper the industry’s advancement and lead to the implementation of strict rules. 

We decided to ask ChatGPT whether XRP can surpass Solana’s SOL and become the fifth biggest cryptocurrency if Ripple emerges victorious in the aftermath.

Somewhat expectedly, the chatbot estimated that this factor is the main one affecting the asset’s future price movements:

“If Ripple wins the lawsuit, it could lead to a significant positive sentiment shift towards XRP. A victory might mean less regulatory uncertainty for XRP, potentially increasing investor confidence and leading to an influx of investment.”

Other elements to consider are market reaction and the participation of financial giants. According to ChatGPT, XRP’s ability to flip SOL depends on increased adoption by leading institutions that can contribute to its overall market cap growth. 

“However, market dynamics in cryptocurrency are highly volatile and influenced by numerous unpredictable factors, such as technological advancements, market trends, investor sentiment, and macroeconomic factors,” ChatGPT concluded.

The Latest Developments Surrounding the Lawsuit

Ripple and the US SEC both need to comply with necessary court rules before the beginning of the trial. The regulator recently filed its brief with respect to remedies, while the firm’s opposition letter should come no later than April 22. 

The entities also filed a joint motion seeking the authorities’ approval “to govern sealing issues relating to the upcoming remedies-related briefing.” 

It is worth noting that the start of the trial does not necessarily mean the case will be resolved anytime soon. Earlier this year, ChatGPT estimated that the outcome might occur in 2026 due to delays and appeals from both sides.

The post ChatGPT Analyzes if XRP Can Flip SOL if Ripple Wins Against the US SEC appeared first on CryptoPotato.

Despite venture capital activity declining across the board, funding for Bitcoin startups more than quadrupled in 2023, according to a new report.

Research from Trammell Venture Partners (TVP) shows that the number of Bitcoin-native pre-seed deals ballooned 360% last year, while the number of funded Bitcoin companies rose by 56.9%.

VC Funding Explodes On Bitcoin

As explained in TVP’s Friday report, a “Bitcoin native company” is a firm whose product’s success is mutually aligned with that of the Bitcoin network and which is founded on the principle that BTC is the “global monetary asset of the future.”

That includes early-stage startup companies but discounts late-stage firms, Bitcoin miners, and “crypto” oriented companies.

While the absolute number of Bitcoin venture dollars invested fell -12.5% to $305 million in 2023, the count of Bitcoin venture deals rose 69.2%. By contrast, the equivalent numbers for the crypto industry were -64.5% and -35.3%, respectively.

Crypto venture deals still outnumber Bitcoin ones by about 20:1, though the uptick of the latter last year was substantial. Some of last year’s big investors included General Catalyst, Y Combinator, and Draper Associates – the early-stage VC firm run by long-time Bitcoin bull Tim Draper.

“While 2023 was a challenging year for the broader venture capital landscape, the Bitcoin-native sector not only weathered the storm but emerged stronger,” wrote TVL to X on Friday, “The future looks bright for Bitcoin-native startups.”

Rise In Bitcoin Development

The surge in funding coincides with a revival of developer activity on Bitcoin over the past year, sparked by new technological capabilities discovered on the network. These include the NFT protocol Ordinals, the Bitcoin computing paradigm BitVM, and the upcoming “Runes” protocol – which will allow for efficient tokens to be issued on Bitcoin.

Ordinals activity began to surge again this week, as did the average cost to transact on Bitcoin. Rising fees have more developers in search of ways to build more effective Bitcoin layer 2 solutions to enable more efficient transfers, and funding is moving in that direction.

“Anecdotally I’ve never seen more bitcoin startups in my career,” said CoinMetrics co-founder Nic Carter on Friday. “Pace right now is at least an order of magnitude greater than it’s ever been.”

The post Venture Capital Interest in Bitcoin Startups Has Exploded: Research appeared first on CryptoPotato.

The cryptocurrency market saw a massive correction in the past two days, starting with a red Friday and followed by a Saturday massacre.

While the reasons are still debated, even though they seem to be external and not related to the industry itself, the fact is that the total market cap shed over $400 billion at one point.

With the next Bitcoin halving, an event typically regarded as a catalyst for future price increases, just around the corner, the question arises whether this was the last substantial correction before the block production is reduced by another 50%.

Was This Correction Normal?

As reported during the weekend, Bitcoin’s price first tumbled from $71,000 to $65,000 before another leg down drove it south to a multi-week low of around $61,000. The first decline was blamed on the latest US Federal Reserve statements, while the latter was related to the escalating tension in the Middle East and Iran’s retaliation against Israel, in particular.

The reasons are whatever they are, but the fact is that BTC slumped by about ten grand. The altcoins suffered even more, with numerous double-digit losers on a 24- and 48-hour scale. The total crypto market cap plunged by roughly $460 billion since Friday morning to the low on Saturday evening.

History shows that BTC’s price had corrected ahead of previous halvings as well, and some analysts called it “normal.” BitMEX’s founder, Arthur Hayes, also envisioned something similar transpiring.

#BTC is down 16% from the highs.

So far, this is a normal drop. In fact, we’ve had several 20-22% drops this cycle.

BUT

This time it could develop into something more.

Thread pic.twitter.com/Y1hanTHwvl

— Benjamin Cowen (@intocryptoverse) April 13, 2024

Recovery?

This is not BTC’s first such reaction amid escalating geopolitical tension between two nations. Recall that the asset slumped hard over two years ago when Russia invaded Ukraine. According to Willy Woo, the cryptocurrency recovered almost all losses “within days.”

#BTC down 10% immediately at the outbreak of the Iran – Israel war.

Pulling up this old chart I did at the outbreak of the Russia-Ukraine war, also down 10%. Recovery happens within days. pic.twitter.com/PmusLrbtRZ

— Willy Woo (@woonomic) April 14, 2024

Alex Kruger believes Bitcoin’s upcoming price movements are strongly related to what Israel (and Iran) will do next. BTC could recover swiftly if the conflict is put down, but he warned that “we are going much lower” if an all-out war breaks out.

Iran attacked Israel. Wild volatility again . This is not about neither charts nor fundamentals. This is about war, headlines, and managing risk smartly. If war escalates, we are going much lower. If there is no follow-up from Israel, we recover the entire dump. Hard to imagine… pic.twitter.com/BqYtVCORrG

— Alex Krüger (@krugermacro) April 13, 2024

Looking Ahead

This substantial correction allowed certain savvy investors to strengthen their BTC stash. Lookonchain data shows that whales have been particularly active, with one withdrawing nearly $40 million worth of BTC. They have been quite active in the past month, perhaps loading up ahead of the upcoming halving.

This whale withdrew 598 $BTC ($37.78M) from #Binance again after the market dropped.

Since the $BTC price dropped from its peak on Mar 14, this whale has withdrawn 10,158 $BTC ($680.83M) from #Binance at an average price of $67,026.

Address: 1L7gnfBJhK9ZwUcw2Lx93BPHmcd1tsxeTs pic.twitter.com/rgspysCSWc

— Lookonchain (@lookonchain) April 14, 2024

The event takes place at every 210,000 blocks (appr. four years) and reduces the block production by 50%. The next one, which should be completed on April 19, will see the rewards decline to 3.125 BTC per block.

Once the production rate of a certain asset declines, its price should go up if the demand for it remains the same or increases. Perhaps this is why Bitcoin has headed north after each of the previous halvings and why the community anticipates upcoming bul runs as well. Most predictions see BTC soaring to somewhere between $150,000 and $200,000 within the next year or so.

Nevertheless, we should know that history is no indication of future price performances. What we know for certain is that Bitcoin dropped by $10,000 just five days ahead of its halving – what remains to be seen is whether that is a ‘buy-the-dip’ opportunity or just the start of an even bigger retracement.

The post Was BTC’s $10K Weekend Crash the Last Correction Before the Next Bitcoin Halving? appeared first on CryptoPotato.

On April 12, Coinbase’s legal counsel filed a brief asking the court’s permission to seek an interlocutory appeal in its case.

The controlling question was whether an “investment contract” requires something contractual. Coinbase believes it does, whereas the SEC disagrees.

An interlocutory appeal occurs when a ruling by a trial court is appealed while other aspects of the case are still proceeding.

Coinbase Fights Back

Coinbase chief legal officer Paul Grewal said that the SEC’s action against the company and other crypto firms “goes way beyond the legal authority granted by Congress and puts an unjust cloud over US digital asset innovation.”

The SEC sued Coinbase in June 2023, alleging that its provision of crypto asset trading constituted operating as an unregistered securities exchange and broker-dealer.

Today @Coinbase filed a brief asking the Court’s permission to seek an interlocutory appeal in our @SECGov case on this controlling question: whether an “investment contract” requires something contractual – we think it does, the SEC disagrees. 1/5 https://t.co/M5HgMQxCLF

— paulgrewal.eth (@iampaulgrewal) April 13, 2024

Coinbase moved to dismiss the alleged violations, arguing that the digital asset transactions at issue did not involve “investment contracts” under the Howey test because the SEC did not allege any post-sale obligations or contractual undertakings by the issuers.

Coinbase is now appealing, questioning whether digital asset transactions without post-sale obligations can be considered “investment contracts” and thus securities subject to SEC regulation.

Grewal added that Coinbase is not alone in its line of thinking since “The SEC itself has made the identical arguments.”

“In the Ripple case, they said specifically there is ‘controlling question[] of law to which there are substantial grounds for difference of opinion’ and noted ‘industry-wide significance’ of the question presented.”

In April, the court ruled in favor of Coinbase in a partial victory, confirming that secondary sales of crypto assets on the exchange do not violate the Securities Exchange Act.

War on Crypto Continues

The SEC’s war on crypto has not abated with the regulator issuing an intent to take legal action against the decentralized exchange Uniswap on April 10.

“Uniswap is a poster child for crypto decentralization – instead of celebrating Hayden Adams as a generational entrepreneur, they’re taking him to court,” said Ryan Sean Adams from Bankless, who added:

“A war on crypto is a war on the internet.”

In March, the SEC targeted the Ethereum Foundation with a subpoena in a probe to determine whether ETH is a security.

According to SEC chair Gary Gensler, Ethereum’s switch to proof-of-stake consensus could bring it under jurisdiction as an “investment contract.” However, he has yet to confirm one way or the other when questioned.

The post Coinbase Files Appeal Over ‘Investment Contracts’ in SEC Battle  appeared first on CryptoPotato.

Bitcoin Layer 2 solutions have gained significant traction this year but have also drawn their fair share of criticisms. Mempool founder Mononaut has strongly criticized them and pointed out several drawbacks from a technical standpoint.

Interestingly, Mononaut’s stance gains support as Bitcoin Ordinals founder Casey Rodarmor.

Bitcoin Layer 2 Under Fire

The main objective of Bitcoin Layer-2 networks – which serve as secondary protocols built on top of the Bitcoin blockchain – is to improve scalability and transaction efficiency. This is achieved by offloading transactions from the main blockchain, leading to faster transaction processing and decreased congestion, ultimately resulting in lower fees across the Bitcoin network.

Layer 2s also enable developers to integrate smart contract functionalities on the blockchain, thereby extending the capabilities of the protocol.

Facts. https://t.co/DuEOB4dXlN

— Casey (@rodarmor) April 11, 2024

However, not everyone is a fan of this concept. Mononaut, for one, has found various aspects of these implementations faulty. In a series of tweets, the Mempool founder argued that if a Bitcoin Layer 2 solution lacks support for the unilateral exit, it essentially functions as a multi-signature system rather than a true Layer 2 solution.

Mononaut also criticized Layer 2 solutions that involve venture capital investors and introduce their own tokens, calling them similar pump and dump schemes.

He also said those that offer “reciprocal rewards” based on deposit amounts are no different from pyramid schemes while simultaneously warning the Layer 2s that are backed by upgradeable Ethereum contracts and controlled by a single entity. He views these to be potential rug pulls waiting to happen.

According to Mononaut, Layer 2s that incentivize locking up coins for extended periods are similar to previous scams such as Hex 3.0. Moreover, Mononaut cautioned against these solutions that claim to be Bitcoin-native but are actually Ethereum multi-signature systems, labeling them as affinity scams.

He went on to highlight the danger of these systems that lack comprehensive technical documentation, equating them to the infamous Bitconnect scam disguised with superficial information.

Bitcoin Layer 2 Explosion This Season?

Prominent Bitcoin educator Dan Held, who is also one of the most vocal proponents of Layer 2s on Bitcoin, expects an explosion of such solutions as the bull run unfolds.

In an interview with CryptoQuant, Held said that the existing Layer 2s, such as Lightning Network, Liquid, and the lesser-known Rootstock, have their own inefficiencies but still believes that the latest resurgence could pave the way for many new players.

“We are seeing a lot of contenders coming out of the woodwork. When we look at how this will play out, I don’t think there’s going to be a winner-take-all-all. There are a lot of different Ethereum L2s, some more successful than others, but I don’t think there’s a winner beat all. We’re going to see a whole spectrum of different types of surface area for design and market strategy. We’ll see an explosion of Bitcoin L2s and probably some of these will be tens of billions of dollars market cap.”

The post Mempool Founder Mononaut Raises Red Flag Over Bitcoin Layer 2 Implementations appeared first on CryptoPotato.

In yet another eventful and painful evening trading on Saturday, Bitcoin’s price tumbled by another five grand to a multi-week low of around $61,000.

The alternative coins were hit even harder, with numerous double-digit price declines. The main culprit for this crash was the rising tension between Iran and Israel.

BTC’s Rollercoaster Continues

It was just 48 hours ago when BTC’s price hovered calmly above $70,000, and it even challenged $71,000, but to no avail. Yet, the landscape changed for the worse on Friday evening after speeches from high-ranking officials representing the US central bank that said the Fed has no plans to start lowering interest rates anytime soon.

In a matter of minutes, the primary cryptocurrency’s price slumped by five to six grand and dropped to $65,000. Interestingly, almost all financial markets went downhill on Friday, as even gold’s price dropped by about 4%.

Bitcoin managed to recover some ground on Saturday morning and jumped to just over $67,000. However, then came the quickly escalating tension between Iran and Israel and the cryptocurrency’s price plunged once again.

This time, the asset fell to a multi-week low of just over $61,000 (on Bitstamp), leaving more than $700 million in liquidations. It has bounced off rather nicely and currently sits above $64,000, but the risks remain, given that it is the only market opened for trading today.

Its market capitalization has declined by about $130 billion since Friday and is down to $1.270 trillion. Its dominance over the alts, though, has soared by approximately 2% within the same timeframe.

BTCUSD. Source: TradingView Alts Were Battered

As it typically happens when BTC heads south hard, so do most altcoins. In fact, they plummeted even more in the past 48 hours or so.

Although many have bounced off as well, the landscape is quite painful for a second day straight. As the graph below shows, there are quite a few double-digit price declines, while SOL, XRP, DOGE, TON, ADA, AVAX, SHIB, DOT, and ETH are still deep in the red.

The total crypto market cap dropped from nearly $2.8 trillion on Friday morning to about $2.330 trillion yesterday evening. It has recovered around $100 billion since then, but it is still 5% down on the day.

Cryptocurrency Market Overview. Source: QuantifyCrypto

The post Crypto Markets Lost Over $400B as Bitcoin (BTC) Slumped by $10K in 2 Days (Weekend Watch) appeared first on CryptoPotato.

The highly anticipated Dencun fork on March 13th has significantly boosted the adoption of Layer 2 solutions on Ethereum. This was evidenced by the surge in increased activity post-upgrade.

Intotheblock’s latest analysis revealed a similar trend as it noted a surge in the number of transactions on Ethereum’s layer 2 solutions after the Dencun upgrade. The statistics indicate a staggering 196% rise in transactions settled on the leading layer 2 platforms, climbing 5.67 million transactions.

Among these, Base has emerged as the primary contributor, handling approximately 57% of the transactions. Following closely are Arbitrum and Optimism, processing 31% and 11%, respectively.

This substantial uptick not only highlighted the growing adoption and demand of Layer 2 scaling solutions but also that ‘Base Spring’ has arrived as per ITB’s previous analysis.

Just last week, Base’s transaction volume climbed above $1.6 billion million for the first time even surpassing already established players like Optimism as a result.

The number of transactions on ETH layer 2s has skyrocketed following the Dencun upgrade.

The number of transactions settled on the top L2s has increased by 196% to 5.67M.

Base currently processes ~57% of these transactions, followed by Arbitrum and Optimism with 31% and 11%… pic.twitter.com/tKnL4HXWIZ

— IntoTheBlock (@intotheblock) April 9, 2024

Besides, Base has experienced a notable increase in network activity over recent months, primarily fueled by a growing frenzy surrounding memecoins.

According to data compiled by DefiLlama data, the total value locked (TVL) on the Base network soared to a record high of $1.5 billion on April 9th, reflecting a whopping 235% rise since the start of the year, driven by the influx of meme coin frenzy into the network.

Over the past couple of months, Layer 2 networks have noted significant expansion, with Dencun playing a pivotal role in their adoption.

VanEck analysis even predicted that these scaling solutions could potentially reach a $1 trillion market capitalization by 2030.

The post Ethereum Layer 2 Transaction Explosion: 200% Surge Post-Dencun Upgrade appeared first on CryptoPotato.

On April 9, the EigenLayer team announced that the platform’s EigenDA, the first Available Validator Service, had launched on the Ethereum mainnet.

The team added that over 4.1 million ETH had been restaked on EigenLayer, and over the past few weeks, 70% of all new Ethereum validators restaked to the platform.

Moreover, restakers can now delegate their entire stake to an operator that has opted in to run available validator services like EigenDA.

Announcing: EigenLayer EigenDA Mainnet Launch pic.twitter.com/bTp5BfnsKE

— EigenLayer (@eigenlayer) April 9, 2024

Restaking Narrative Grows

Restaking allows users to stake the same ETH on both Ethereum and other protocols. Platforms such as EigenLayer leverage Ethereum’s validators and staked tokens, enabling smaller and newer blockchains to benefit from its security and trust system.

EigenLayer also faces a tradeoff between neutrality, allowing free market behavior, and decentralization, thus preventing dominance by a single staking provider.

Moreover, EigenDA provides hyper scalability, cost flexibility, and ease of integration for rollups. It aims to be the endgame solution for data availability on Ethereum.

Rollups can onboard to EigenDA mainnet after the operator set and delegations stabilize, it said.

“Over the next few weeks, we expect high operator turnover in the top 200 active set as new operators, delegations, and AVSs come online.”

In-protocol payments from AVSs to operators and slashing mechanisms are not included yet, but will be added later in 2023, the announcement noted.

An AVS is essentially a middleware or service that runs on top of the EigenLayer protocol to provide specific functionality. AVSs act as a layer between Ethereum’s execution layer and the various rollups, blockchains, and networks built on top of the L1 network.

EigenLayer total value locked is currently $13.3 billion, having skyrocketed 1,100% since the beginning of this year, according to DeFiLlama.

Ethereum Staking Outlook

The Ethereum staking ecosystem is extremely healthy, with around 27% of the total circulating supply currently staked.

This works out at 32.2 million ETH, according to Dune Analytics, worth around $112 billion at current spot prices. Ethereum also has just over a million validators, making it one of the most secure blockchains in the crypto space.

Lido remains the dominant liquid staking provider, with 29% of the total amount staked, or $33.2 billion worth of ETH.

The post Ethereum Restaking Platform EigenLayer Launches EigenDA to Mainnet appeared first on CryptoPotato.

While the past several weekends went quite calmly for Bitcoin and the entire crypto market, this time, things are significantly different.

Whether propelled by yesterday’s announcements by a few presidents of the US Federal Reserve or today’s reports of Iran preparing an attack against Israel, the reality is that BTC’s price has tumbled hard, and the altcoins have shed even more value.

This seems like the perfect opportunity for a perma-bear like Peter Schiff to open up another can of bash fest. But, keep in mind that gold’s price also dropped yesterday, when the markets were opened.

Bitcoin just flash crashed to just above $61K. That’s just 26 ounces of gold. At its peak 2.5 years ago one #Bitcoin was worth 37 ounces of #gold. That’s a decline of 30%. Digital Fool’s Gold is clearly in a bear market when priced in real gold.

— Peter Schiff (@PeterSchiff) April 13, 2024

CryptoPotato reported the market crashes from yesterday and today, which in total took Bitcoin’s price down by about ten grand. The altcoins have it even worse, with massive price declines across almost all charts.

In total, the cumulative market cap of all crypto assets has plummeted by more than $400 billion in just over 24 hours and is down to $2.350 trillion on CoinGecko after aiming at $2.8 trillion yesterday morning.

The red Friday was blamed on the US Fed as a couple of high-end officials said there are no plans to lower the interest rates anytime soon.

Today’s crash also seems to be linked to external events – this time, the rising tension between Israel and Iran.

Reports emerged a few weeks ago that Israel had killed a senior Iranian commander in an embassy annex in Damascus. Then, news came out that Iran was preparing a counter-strike, and the nation’s navy seized an Israel-linked cargo ship earlier today.

Israel’s army has been placed on full alert since yesterday, while certain activities have been called off. The country’s chief military spokesperson, Rear Admiral Daniel Hagari, warned that dozens of combat planes were airborne.

The US is also on alert after President Biden returned to the White House sooner than expected from a weekend stay in Delaware. According to the Pentagon, the US defence secretary, Lloyd Austin, is in direct communication with Israel to “discuss urgent regional threats.”

The post Peter Schiff Takes a Dig at Bitcoin as BTC Price Tumbles Amid Rising Iran-Israel Tension appeared first on CryptoPotato.

Wally Adeyemo, Undersecretary of the U.S. Treasury, released an official statement saying Russia is increasingly resorting to alternative payment methods, such as the stablecoin Tether (USDT), to evade sanctions and sustain its military operations.

The hearing, titled “Countering Illicit Finance, Terrorism, and Sanctions Evasion,” marks the committee’s second discussion on the topic within the last six months.

Russia Employs Tether to Evade Sanctions

In his testimony, Ademayo shed light on the exploitation of crypto assets by terrorist groups and rogue states to obscure their financial activities.

He noted instances like al-Qaeda’s Bitcoin use and transactions between Islamic Revolutionary Guard Corps-Quds Force and Hamas. There was also concern about Russia’s increased reliance on stablecoins such as Tether, which challenges the effectiveness of sanctions.

Adeyemo stressed that the Treasury needs to expand efforts to counter bad actors even though it has made strides in combating illicit finance. He added that they should note that “illicit actors” will continue to use crypto and digital assets to move things since they cannot stop them and do not have the necessary tools.

Adeyemo urged additional secondary sanctions tools within the Treasury, specifically targeting digital asset providers. He also called on Congress to pass legislation that would widen the agency’s jurisdiction to cover key players and core activities in the digital asset ecosystem. In addition, he emphasized the importance of laws addressing regulatory challenges posed by foreign crypto companies for effective oversight.

Debates Continue on Crypto’s Use Among Criminal Networks

During the hearing, Senator Elizabeth Warren of Massachusetts pointed out that it’s not just terrorist organizations like Hamas using cryptocurrency for financing. She added that North Korean ransomware groups, drug traffickers, and distributors of child sexual abuse materials are also utilizing crypto as a means to move funds.

On the other hand, some Republican committee members argued that Democrats, particularly under the Biden administration, are overly focusing on cryptocurrencies in discussions about combating illicit financial activities. Senator Tim Scott of South Carolina criticized framing the conversation solely around digital assets, viewing it as a scapegoat for larger issues related to illicit financing.

Bipartisan bills addressing sanctions evasion and crypto began surfacing in 2022 amid concerns about Russian actors turning to digital assets as a loophole. Senators Warren and Roger Marshall of Kansas reintroduced the Digital Asset Anti-Money Laundering Act of 2023 last summer. This legislation aimed to subject “crypto participants,” including wallet providers, miners, and validators, to compliance requirements.

Another bipartisan effort, the Crypto Asset National Security Enhancement Act of 2023, was introduced in July, sponsored by Senators Jack Reed of Rhode Island, Mark Warner of Virginia, Mike Rounds of South Dakota, and Mitt Romney of Utah. However, neither bill has progressed beyond the committee markup stage.

The post US Treasury: Russia Turns to Tether (USDT) to Evade Sanctions appeared first on CryptoPotato.

The cryptocurrency markets plummeted on Friday evening, and the same violent scenario was repeated once again on Saturday.

The entire market has bled out, with another $200 billion leaving the space. The total liquidations have skyrocketed to $700 million after the $900 million last night.

BTCUSD. Source: TradingView

It was all going well for the primary cryptocurrency until Friday evening, as the asset had calmed at around $70,000-$71,000. However, the situation changed following the latest US Fed speeches that didn’t hint at any significant changes in the central bank’s monetary policy in terms of interest rate reduction.

In a matter of minutes, BTC slumped by five to six grand, dumped to $65,000, and left approximately $900 million in liquidations from almost 300,000 traders.

While that market crash also harmed other asset classes, like Wall Street and gold, today’s developments are only for crypto, given that it is an open market that never stops trading.

Bitcoin, for instance, had recovered some ground and traded at around $67,000. However, it dumped once again, this time to a multi-week low of around $61,000 in the past few hours.

The altcoins have bled out even more. Double-digit price losses are evident from almost all of them, including SOL, XRP, BNB, DOGE, SHIB, AVAX, and many more.

The total crypto market capitalization has declined by around $200 billion in a day and more than $400 billion since Friday morning.

These price fluctuations have liquidated another 220,000 traders in the past 24 hours. The total value of wrecked positions is at $800 million in the same time frame, according to CoinGlass.

It seems the latest price crash has come to fruition after the escalating tension between Israel and Iran.

The post Another $700 Million in Liquidations as Bitcoin (BTC) Dumps to $61K, Altcoins Bleed Out appeared first on CryptoPotato.

Despite network outages, Solana has witnessed a flurry of projects launched on top of its blockchain. Such a trend typically depicts a growing demand. But the latest report paints a different picture.

These fraudsters were found to be capitalizing on users’ heightened risk appetite, fueled by FOMO amidst a market-wide resurgence.

In a report shared with CryptoPotato, blockchain security company Blockaid revealed that 50% of recent pre-sale token launches on Solana have been malicious. The strategies employed by fraudsters within the popular Layer 1 ecosystem closely resemble those observed in other cryptocurrency platforms.

This includes leveraging social engineering platforms such as Telegram, Twitter, and Discord to trick users into engaging with malicious addresses or websites.

The ongoing meme coin frenzy as well as the potential for quick profits amidst market volatility further exacerbated the vulnerability of inexperienced and novice users to these scams.

“Scammers capitalize on the excitement surrounding meme coins to lure investors, exploiting fear of missing out (FOMO) and the promise of lucrative returns.”

Presale Token Scams. Source: Blockaid

Firstly, in February and March of this year, Blockaid’s threat intelligence team observed a significant surge in the uptake of pre-sale tokens, which quickly increased from a few tens to hundreds of purchases.

This surge was largely driven by the exponential growth of legitimate meme coins.

The team also claimed that Solana’s ecosystem may lack adequate security measures, essentially leaving it vulnerable to exploitation by scammers.

In fact, the security firm’s data indicates that even popular projects have been targeted by these groups, highlighting the continued threat posed by pre-sale scams within the cryptocurrency industry.

The post 50% of Solana’s Recent Token Launches Revealed as Malicious Scams: Report appeared first on CryptoPotato.

Over the past decade or so, countries around the world have resorted to seizing cryptocurrencies. The United States government stands at the forefront, boasting crypto holdings of almost $15.27 billion.

This substantial stash includes 212.847k BTC and 45.654k ETH.

US Leads with Holdings of $15.27B

Silk Road is perhaps the most infamous case where the US government seized approximately 144,336 BTC in 2013. Silk Road was an online black market known for facilitating the sale of drugs and other illegal goods using Bitcoin.

Another popular darknet marketplace called AlphaBay was targeted by the US authorities in 2017. While the exact amount of seized cryptocurrencies is not known, it was previously reported that the stash included Bitcoin, Ethereum, and Monero, among other tokens.

Three years later, the US Department of Justice seized approximately $3.6 million worth of Bitcoin as part of an investigation into alleged money laundering and fraud involving the cryptocurrency exchange Bitfinex and its affiliated stablecoin issuer, Tether.

Following closely behind the US is the British government, which holds 61.245k BTC, valued at around $4.34 billion, according to the data compiled by Arkham Intelligence.

Meanwhile, the German government currently possesses 49.859k BTC, with an approximate value of $3.53 billion.

Notably, the Salvadoran government has emerged as an active participant, with holdings of 5.718k BTC, valued at approximately $405 million, largely attributed to proactive purchases.

Crypto Seizure

The majority of these countries’ crypto assets stem from confiscation for several reasons. This includes criminal investigations during which cryptocurrencies are used in illicit activities such as money laundering, drug trafficking, terrorism financing, and cybercrime. Law enforcement agencies seize crypto assets as part of investigations to disrupt criminal operations and hold perpetrators accountable.

Governments may seize cryptocurrencies from individuals or businesses suspected of evading taxes by not reporting crypto-related income or transactions. Seizures serve as a means to enforce tax compliance and ensure that taxpayers fulfill their obligations.

Additionally, cryptocurrency exchanges and other platforms may be subject to regulations related to anti-money laundering (AML) and know-your-customer (KYC) requirements. Seizures may occur when entities fail to comply with these regulations or engage in fraudulent activities.

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TL;DR

Bitcoin’s market cap may reach $3 trillion post-halving, driven by several important factors.

Opinions on BTC’s future value vary, with optimistic projections as high as $100K, alongside broader industry growth expectations led by figures like Ripple’s CEO.

The Halving’s Possible Impact

Bitcoin’s market capitalization recently reached an all-time high of over $1.43 trillion, with the figure currently standing at around $1.32 trillion.

The asset’s price performance has been quite impressive in the past month, with many industry participants expecting further gains in the following months based on the upcoming halving. As such, we decided to ask ChatGPT whether BTC’s market cap could hit the $3 trillion milestone once the event takes place.

The popular chatbot said such a scenario is in the cards, but it depends on a variety of factors. The main one is the impact of the event. While it has historically been a precursor for a BTC bull run in the past, the situation seems rather different this time since the price of the cryptocurrency started rallying months before the halving.

Fred Thiel – CEO of Marathon Digital – thinks the rally influenced by the event has already priced in and does not expect any significant surges in the near future.

Many others, though, remain bullish, anticipating record peaks for BTC’s valuation after the halving. One example is Robert Kiyosaki – the author of the best-seller “Rich Dad, Poor Dad” – who predicted that the asset could reach the $100K mark by September this year.

Additional Factors

ChatGPT estimated that the future market dynamics, including institutional adoption, regulatory environments, and macroeconomic elements, will also play a role.

Last but not least, it claimed that a BTC market cap surge to $3 trillion will be possible only if positive investor sentiment is in place.

“While a halving could contribute to an increase in Bitcoin’s price due to reduced supply and historical precedents, predicting a specific market cap like $3 trillion involves substantial speculation. Economic conditions, market sentiment, technological developments, and regulatory changes will all play critical roles in determining its future value,” the chatbot concluded.

The Forecast of Ripple’s CEO

One person who recently predicted a bright future for the cryptocurrency industry is the CEO of Ripple – Brad Garlinghouse. He believes the global market capitalization of the sector may exceed $5 trillion sometime this year. 

BTC currentluy accounts for approximately 50% of the total share, meaning a future market cap of more than $2.5 trillion (should Garlinghouse’s prediction turn true).

The post We Asked ChatGPT if Bitcoin’s (BTC) Market Cap Can Hit $3 Trillion After the Halving appeared first on CryptoPotato.

Crypto market analytics platform CryptoQuant believes the effects of Bitcoin halvings have been diminishing and that the upcoming event will have an even smaller impact on BTC’s value.

In the latest edition of the firm’s weekly crypto report, analysts said the effect of the halving has been reducing because the new issuance of BTC keeps getting smaller in relation to the number being sold by long-term holders, signaling that demand will be the key driver of prices post-halving.

Bitcoin Halving Effect on a Decline

According to the report, Bitcoin monthly issuance has fallen to 4% of the total BTC supply available. Before the first, second, and third halving events, Bitcoin issuance represented 69%, 27%, and 10% of the available BTC supply. Last year, Bitcoin issuance averaged 28,000 per month, compared to the 417,000 BTC offloaded by long-term holders within the same timeframe.

Demand from permanent BTC holders has also surpassed issuance for the first time in history, with this cohort of investors adding roughly 200,000 BTC to their balances monthly, a far cry from the 28,000 BTC issuance.

Analysts believe long-term holder Bitcoin spending correlates with the price cycle because BTC bottoms at low long-term holder spending periods and peaks at extremely high spending levels relative to the total supply. At the time of writing, long-term holder spending is at low levels.

After the Bitcoin halving on April 20, the monthly issuance will decline to approximately 14,000, leaving demand growth to drive BTC prices to higher levels.

The Impact of Large BTC Holders

In previous cycles, the rise in Bitcoin demand growth from large holders and whales fueled the post-halving price rallies. With the current demand growth hovering around 11% month-on-month, its highest ever, it is evident that this factor has been the primary catalyst behind BTC surges.

CryptoQuant’s claims are substantiated by Bitcoin reaching a new all-time high before halving for the first time last month. The rally was driven by surging demand for the spot Bitcoin exchange-traded funds launched in January.

Meanwhile, analysts believe the selling pressure from OG BTC holders (those with coins 5+ years old) will increase after the halving.

“Spending from OG Holders is currently at around 8% annualized and historically has been 1.1%, while current issuance (orange area) stands at 1.8% annualized and will drop to ~0.8% annualized after this month’s halving,” the report stated.

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TL;DR

Shiba Inu (SHIB) has recently dropped in value but is predicted to rebound strongly due to favorable technical signals and recent breakout patterns.

Positive signs for the meme coin include a decrease in exchange netflows, advances in its Shibarium layer-2 solution, and a significant increase in its burn rate.

Where is SHIB Headed?

The cryptocurrency market experienced a severe correction on April 12, with the prices of numerous digital assets dropping to multi-week lows. Shiba Inu (SHIB), for one, has nosedived by 6% on a weekly scale and 20% in a month.

However, there are plenty of analysts who believe the negative trend will soon be followed by a substantial upswing. 

The X user with almost half a million followers – Rekt Capital – recently noted that SHIB’s price has reached the same level as the one from early 2022. The trader assumed that the meme coin’s value could skyrocket by triple digits should it cross the ongoing resistance level. The crypto content creator Jake Gagain was bullish, too, claiming that “fading” Shiba Inu “is a major mistake.” 

The X user CRYPTO SHERIFF also chipped in earlier this week, suggesting that a SHIB “breakout” has happened. The analyst predicted this could lead to a 350% price rally in the near future.

Which Factors are Worth Considering?

Several key factors indicate that the second-largest meme coin by market capitalization could experience a significant price surge in the short term. One crucial factor is SHIB’s exchange netflow, which has been negative in the past week according to CryptoQuant’s data. This shift from centralized platforms to self-custody methods is seen as a bullish sign, as it reduces immediate selling pressure.

SHIB Exchange Netflow, Source: CoinGecko

The progress of the layer-2 scaling solution Shibarium and Shiba Inu’s burn rate are also worth noting. The number of total blocks on the network recently exceeded the 4 million mark, and there has also been a significant resurgence in terms of daily transactions. 

Those willing to dive deeper into the matter can take a look at our dedicated video and understand Shibarium’s main purposes and specifics:

For its part, the burn rate exploded by almost 50,000% earlier this week, resulting in millions of SHIB tokens being removed from circulation. The mechanism’s ultimate goal is to reduce the circulating supply of the asset, making it scarcer and potentially more valuable in the future.

 

The post Top Recent Shiba Inu Price Predictions: Where is SHIB Headed in 2024? appeared first on CryptoPotato.

Bitcoin’s price took a massive turn to the worse yesterday with a decline that pushed it south by about five grand in hours.

The altcoins’ losses were even more significant, which is evident by the rising BTC dominance. Many meme coins dumped by over 20%.

BTC’s Crash

The business week was actually going relatively well for the primary cryptocurrency. The asset had a strong start on Monday when it pumped to a four-week peak of over $72,500 amid the growing demand for the spot ETFs.

It failed to maintain its run and retraced to $67,500 on Wednesday after the US announced the March inflation data, which was actually higher than expected. Nevertheless, the cryptocurrency recovered some ground in the next few days and even challenged $71,000 on Friday.

However, it didn’t see much success there. Just the opposite, the latest US Fed speeches regarding the central bank’s monetary policy started a violent correction that drove BTC south by about five grand, leaving nearly $1 billion in liquidations.

Bitcoin has managed to regain some traction and now stands above $67,000. Still, its market capitalization has plummeted ty $1.330 trillion on CG. The silver lining is that Bitcoin’s dominance has soared to 51.7% – gaining over 1% in a day.

Also, this crash harmed other financial markets, including gold, and you can read more about it here.

BTCUSD. Source: TradingView Alts Turn Red

The increasing Bitcoin dominance amid this correction means only one thing – the altcoins have performed even worse. Although many have recovered some ground since the lows from yesterday evening, the 24-hour charts are still quite painful.

The biggest losers from the larger-cap alts include XRP (-11%), SOL (-13%), DOGE (-13%), ADA (-13%), AVAX (-18%), SHIB (-12.5%), BCH (-10.5%), DOT (-13.5%), LINK (-14%), and many more.

The meme coins were also hit hard, with losses of up to 30% in some cases.

The total crypto market cap declined by over $200 billion at one point, and even though it’s slightly up since that low, it is still way below $2.6 trillion.

Cryptocurrency Market Overview. Source: QuantifyCrypto

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The cryptocurrency market is known and critiqued (by some) for its enhanced volatility, a good example of which it witnessed in the past 12 hours or so when prices tumbled, leaving nearly $1 billion in liquidations.

Bitcoin was among the least affected assets, but its price still tumbled from around $71,000 to $65,000 before it recovered to approximately $67,000.

Volatility Across All Markets

The altcoins, however, plunged hard, with numerous double-digit declines within hours. Yet, price declines were evident even in more mature industries, like the US stock markets, where the S&P 500 fell from over 5,210 to under 5,100 in minutes, and so did the Dow Jones Industrial Average and the Nasdaq Composite.

Even gold, arguably the asset best known for its stability amid crisis and lack of volatility, decreased by 4% in hours from its all-time high of $2,433 to $2,333.

Before that, the precious metal was on a roll, especially since it decisively broke above $2,000 earlier this year. The geopolitical tension in Europe and the Middle East propelled further gains, but Iran’s inclusion resulted in massive price increases that drove gold to its aforementioned highest price against the dollar.

XAUUSD. Source: TradingView

However, all markets were seemingly impacted by the latest comments coming from various US Federal Reserve high-ranking officials. Raphael Bostic, the President of Atlanta’s Federal Reserve Bank, as well as San Francisco’s President – Mary Daly – were among those who forecasted a delay in the central bank’s potential pivot from its current monetary policy.

Both branch Presidents were quick to refute the rumors that the Fed would start cutting interest rates anytime soon. Daly indicated that “there is still a lot of work to do” and that there is “absolutely” no urgency to reduce the rates.

Crypto Market Outlook

Although these comments should indeed lead to volatility in riskier markets like crypto, or even Wall Street, gold should actually be spared. Furthermore, given its status as safe haven, its price against the dollar might increase following such comments.

However, the greenback actually rose against other currencies. This is because higher interest rates lead to fewer loans and less cheap money, at least in theory.

Nevertheless, the crypto market is still deep in the red on a daily scale but has recovered some ground since the lows seen last night. After all, more than $250 billion left the market within hours at one point, but there are some promising signals for the next few weeks. Most importantly, the Bitcoin halving is scheduled to take place in just days, an event highly regarded as a catalyst for a new bull run, at least historically.

The post Not Just Bitcoin: Gold’s Price Dropped 4% in Hours After Fed’s Latest Rate Cuts Comments appeared first on CryptoPotato.