Fideum Crypto News Desk #64
Introducing Virtual HODL Cards on blockbank Mobile App
blockbank has unveiled its latest update — Virtual HODL Cards, now accessible through the blockbank mobile app offering a seamless and efficient experience right from the convenience of their smartphones.
With the Virtual HODL Card, blockbank app users can now manage their card more easily than ever before. Whether it’s making transactions, checking balances, or simply keeping an eye on your portfolio, the Virtual HODL Card integration ensures that your crypto experience is smooth and hassle-free.
Get your Virtual HODL Card today by visiting the blockbank web app at https://app.blockbank.ai/
Bitcoin ETFs Accumulate BTC Worth $10 Billion, Overshadowing Grayscale’s Sell-Off
the newly launched spot bitcoin exchange-traded funds (ETFs) have shown a significant accumulation of bitcoin assets, overshadowing Grayscale’s Bitcoin Trust (GBTC) sell-off. Since the trading sessions concluded on February 9, 2024, the nine innovative ETFs — BRRR, BTCW, HODL, ARKB, EZBC, IBIT, FBTC, BITB, and BTCO — have collectively amassed 6,009.49 bitcoin, valued at approximately $288 million. This brings their total holdings to a staggering 208,878.1 BTC, worth just over $10 billion.
Leading the pack, Blackrock’s IBIT and Fidelity’s FBTC command a substantial portion of the market, holding 75.26% of the total assets among the nine ETFs. Meanwhile, Grayscale’s GBTC has experienced a notable sell-off, with a net outflow of 2,252.2 bitcoin, reducing its holdings to 466,534.79 BTC. This shift highlights a changing landscape in cryptocurrency investments, where new ETFs are capturing significant market interest, offering investors innovative ways to engage with bitcoin.
The collective assets of these ETFs now account for 44.77% of the total managed by GBTC, marking a pivotal moment in the evolution of digital asset investment vehicles.
UN Investigates North Korea’s $3 Billion Cyberattacks on Cryptocurrency Companies
The United Nations (UN) is on the brink of revealing detailed insights into a series of audacious cyberattacks attributed to North Korean hacking groups, targeting cryptocurrency firms and accumulating illicit gains upwards of $3 billion. This revelation is part of an ongoing investigation into activities that span over six years, focusing on the Democratic People’s Republic of Korea (DPRK) and its alleged involvement in cyber heists aimed at funding its weapon of mass destruction (WMD) development programs.
Unpublished UN documents, as reported by Reuters, indicate that an independent sanctions committee is meticulously scrutinizing 58 crypto-related companies that fell victim to these sophisticated cyberattacks between 2017 and 2023. These incidents not only highlight the persistent threat posed by state-sponsored cybercrime but also underscore the vulnerability of cryptocurrency firms to highly organized hacking syndicates.
The DPRK’s hacking operations have increasingly come under the international radar, with 2023 alone witnessing the theft of approximately $1 billion in cryptocurrency through 20 separate hacks, as estimated by Chainalysis. Although this represents a significant drop from the $1.7 billion reported in 2022 across 15 incidents, blockchain intelligence firm TRM Labs anticipates an escalation in the severity of these cyberattacks. Advanced tactics beyond those previously seen are expected to surface, potentially inflicting more significant damage on the crypto industry in 2024.
Despite advancements in cybersecurity protocols among exchanges and enhanced global cooperation in tracing and recuperating stolen funds, the threat landscape remains formidable. The UN’s forthcoming report, expected to be released in late February or early March, is poised to shed further light on the scale and sophistication of the DPRK’s cybercriminal activities.
Glassnode Indicates Bitcoin Market Has Entered ‘High Risk’ Phase According to On-Chain Data
Bitcoin has recently been marked by a series of on-chain indicators as venturing into a “high-risk” zone, according to the latest analysis by Glassnode. This classification signals that Bitcoin may be teetering on the edge of a bull market phase, with long-term investors enjoying a notable uptick in profitability.
Glassnode’s analysis, revealed in a series of posts this February, pinpoints the movement of Bitcoin’s long-term valuation metrics into territories that historically precede bullish trends. The market value to realized value (MVRV) ratio, a critical indicator used to gauge Bitcoin’s valuation relative to its perceived “fair value,” has notably advanced into the high-risk band. This shift suggests that Bitcoin is currently overvalued when considering the prices at which long-term holders have transferred their holdings.
The significance of this move cannot be overstated. Seven out of ten indicators analyzed by Glassnode are now flagged as high or very high risk, including the MVRV, supply profitability state, and net unrealized profit/loss metrics. These indicators collectively imply that despite the recent price surges in the cryptocurrency market, the levels of profit realized by investors remain strikingly low.
However, it’s not all cause for alarm. Glassnode’s findings also highlight areas of low risk, particularly in the demand for Bitcoin block space and the behaviors of short-term investors, suggesting a balanced sell-off following the approval of spot Bitcoin ETFs in the United States. This dynamic has played a crucial role in tempering the broader market risk.
The recent price trajectory of Bitcoin underscores the pertinence of Glassnode’s analysis. With a significant increase from $42,317 on February 4 to $48,582, Bitcoin’s valuation has been bolstered by diminishing outflows from the Grayscale Bitcoin Trust (GBTC) and a remarkable $9.1 billion influx into nine newly launched spot Bitcoin ETFs. This influx of capital, especially a record $541 million net inflow into the ETFs on February 9, illustrates a burgeoning confidence in Bitcoin as a viable investment vehicle.
In Argentina, Ravaged by Inflation, Residents Turn to ‘Crypto Caves’ Over Bitcoin
In the face of crippling inflation and stringent currency controls, Argentines are turning to clandestine peer-to-peer exchanges, dubbed “crypto caves,” to preserve their wealth. These underground networks have become vital for locals seeking refuge in U.S. dollar stablecoins, particularly as the Argentine peso continues to plummet in value. This phenomenon underscores a broader trend of individuals in high-inflation economies gravitating towards digital assets as a means of financial security, albeit through unofficial channels.
Crypto caves offer an alternative to the traditional financial system, enabling Argentines to bypass official exchange rates that are significantly lower than those available in the black market. Guillermo Escudero from CryptoMarket reveals that these hidden exchanges facilitate transactions primarily in USDT (Tether), providing a more stable store of value compared to the volatile Argentine peso. These exchanges operate in secrecy, often requiring prior confirmation for transactions, as they navigate the murky waters of Argentina’s financial regulations.
The emergence of crypto caves is a modern iteration of the “financial caves” that appeared in the 1980s following the imposition of currency controls. These entities, which once served as public money exchanges, adapted to the changing regulatory landscape by going underground. Today, they offer a lifeline to Argentines by enabling access to the “blue dollar” rate, which significantly surpasses the official exchange rate.
The backdrop to this underground economy is an inflation rate that soared to a 32-year high of 211.4% in 2023. The desperation to escape this economic vortex has led many to seek solace in digital dollars, a trend supported by crypto payroll firms like Bitwage. Ramiero Raposo from Bitwage emphasizes the long-term savings potential of digital dollars amidst the rapid devaluation of the local currency.
Interestingly, the Argentine government’s stance on cryptocurrency is evolving. In December 2023, the country took a significant step by legalizing Bitcoin as a payment method for contracts, aligning with President Javier Milei’s promise to overhaul the economy. However, the practicality of using Bitcoin for contracts in such a high-inflation environment remains questionable, with concerns over its volatility.
The preference among Argentines for USDT on the Tron network over Bitcoin underscores a strategic choice for stability over volatility, highlighting the critical role of digital currencies in providing a semblance of financial stability. As Argentina grapples with its economic challenges, the crypto caves and the broader digital currency landscape offer a fascinating glimpse into the innovative ways people are fighting to preserve their wealth and autonomy.
