💰 Are Bitcoin Derivative Assets Fully Backed?

🧐 Concerns have been raised about the stability of bitcoin (BTC) derivatives that claim to be fully backed by the cryptocurrency. A blog post by LX Research suggests that some of these assets may not be as secure as many assume. The majority of these derivatives are BTC-pegged tokens, which represent native BTC on other blockchains like Ethereum. This market is valued at $30 billion.

🔗 The concept of "wrapped bitcoin" involves issuing a token to users after they deposit an equivalent amount of native BTC with a custodian. This token can be used for various decentralized finance (DeFi) activities, and users can later exchange it to retrieve their bitcoin. For this system to function effectively, the wrapped token must be fully backed by bitcoin on a 1:1 basis.

⚠️ However, issues arise when custodians begin to rehypothecate collateral or issue wrapped tokens backed by other derivative assets instead of bitcoin. LX Research writer Janus warns that this could lead to a bank run. He stated,

We’re not sure if all BTC-derivative assets are fully backed.

He illustrated a scenario where a custodian mints multiple tokens without adequate collateral, raising the risk of a bank run if there are simultaneous withdrawals on these tokens.

🔒 Janus also pointed out the centralization risk in the wrapped bitcoin market, where multiple projects rely on the same custodian. He noted,

It’s clear that a number of these protocols are using centralized custodians to ensure that their assets are backed 1:1.

Furthermore, there has been a surge in the number of wrapped tokens over the past year, many of which are not backed by native BTC but rather by other wrapped tokens. This creates a precarious situation akin to a house of cards.

🔍 Janus raised additional questions about the accuracy of the total value locked (TVL) for these assets and whether projects have control over the native bitcoin backing their wrapped tokens. To address these concerns, LX Research is developing a framework for wrapped derivative assets that will be released soon. Janus emphasized the importance of understanding the risks associated with BTC-backed tokens and protocols, stating,

Users of BTC-backed tokens and protocols should understand the risks when interacting with specific assets.

🚨 Whistleblower Revelations: FDIC's Alleged Role in Operation Chokepoint 2.0

🗣 Allegations have emerged suggesting that the Federal Deposit Insurance Corporation (FDIC) is significantly involved in Operation Chokepoint 2.0, an initiative reportedly aimed at undermining crypto businesses. Whistleblowers claim to have obtained recordings that reveal the agency's anti-crypto sentiments and its discussions about evading transparency measures.

📞 A social media account, FDIC Exposed, asserts it has access to tapes of internal communications where FDIC officials express contempt for crypto advocates and discuss strategies to avoid Freedom of Information Act (FOIA) requests. These strategies allegedly include mislabeling documents and involving lawyers in conversations to assert attorney-client privilege.

FDIC employees aired vendettas against crypto companies like Custodia Bank and Coinbase for not giving in to the organization’s demands,

the report states.

🤝 Furthermore, whistleblowers allege that FDIC executives contemplated “quid pro quo” arrangements with journalists to secure favorable coverage on sensitive topics like Operation Chokepoint 2.0. This raises serious questions about the integrity of the agency's communications and its commitment to transparency.

😟 The recordings also touch on the agency's fears regarding the rise of blockchain technology and its potential to disrupt traditional banking. An unnamed FDIC employee reportedly questioned the need for deposit insurance in a world where blockchain minimizes financial losses.

Who needs deposit insurance when you can’t lose money on the blockchain?

the employee allegedly asked.

📢 These revelations have sparked significant backlash from the crypto community. Senator Cynthia Lummis described the claims as “bone-chilling” and expressed her intention to collaborate with Senate Banking Chair Tim Scott to investigate the matter further.

🪙 Bitcoin and Ether ETFs Show Strong Recovery

🔄 On January 15, bitcoin exchange-traded funds (ETFs) experienced a significant rebound after four days of outflows. Bitcoin ETFs had seen $1.22 billion exit the 12 U.S. spot bitcoin ETFs, but this trend reversed with $755 million flowing back in. This shift was largely attributed to a slightly lower than expected Consumer Price Index (CPI) report and speculation about potential changes in crypto policy from President Trump, which helped push bitcoin's price back above $100,000.

💰 Fidelity’s FBTC led the inflow with $463 million, followed by Ark Invest’s and 21shares’ ARKB with $138.81 million. Grayscale’s GBTC and Blackrock’s IBIT also saw inflows of $50.54 million and $31.86 million respectively. Bitwise’s BITB and Vaneck’s HODL brought in $32.69 million and $16.98 million. This influx raised the total net assets to $113.64 billion, representing 5.76% of bitcoin’s total market cap.

📊 Ether ETFs also continued their positive trend with another day of inflows. After a previous four-day outflow of $354.04 million, they saw a marginal net inflow of $1.15 million on January 14, which was further boosted by $59.78 million in inflows on the following day. Fidelity’s FETH attracted $29.32 million, while Blackrock’s ETHA, Grayscale’s ETH, and Vaneck’s ETHV brought in $19.85 million, $8.09 million, and $2.53 million respectively. The nine ether ETFs now collectively manage $12.25 billion in net assets, equivalent to 2.96% of ether’s market cap.

📈 NFT Market Sees Modest Growth Amid Cryptocurrency Surge

📊 The non-fungible token (NFT) market experienced a slight increase of 2.78% in total sales during the week of January 10–17, 2025, reaching approximately $156.13 million. This growth was driven by a significant rise in the number of buyers, which increased by 115.41% compared to the previous week.

🔝 Ethereum remained the leading blockchain for NFT sales, generating $74.61 million—a 30.40% week-over-week increase. In contrast, Bitcoin ranked third with $27.5 million in sales, reflecting an 11.43% decrease. Solana also saw a decline, with $14.24 million in transactions, down 33.13%.

📈 Throughout its history, Ethereum has achieved $44.84 billion in NFT sales, while Solana has totaled $6.15 billion. Bitcoin recently surpassed the $5 billion mark, reaching $5,031,456,727 in historical sales. The top-performing NFT collection for the week was Azuki, an Ethereum-based portfolio, which generated $14.88 million in sales—an impressive increase of 251.55% from the previous week.

🐧 Pudgy Penguins, another Ethereum-native series, earned $7.79 million during the same period, though this represented a 7.37% decline. To date, Pudgy Penguins has achieved $560,693,995 in total sales, making it the 13th highest-selling NFT collection. Bitcoin NFTs, referred to as “$?? BRC-20 NFTs,” ranked third this week with $7,595,337 in sales and a cumulative volume of $219,725,933 since tracking began.

💰 The most expensive NFT sale of the week was Cryptopunk #4940, which sold for $502,942. As Ethereum continues to grow its dominance, Bitcoin's recent milestone and Solana's decline indicate shifting dynamics within the NFT ecosystem. These trends highlight an evolving landscape characterized by increased buyer participation and ongoing volatility as NFTs solidify their role in digital economies.

🚨 Cryptocurrency Laundering: Indian Vendor Sentenced to 121 Months

🤦‍♂️ Anurag Pramod Murarka, a 30-year-old Indian cryptocurrency vendor, has been sentenced to 121 months in prison for laundering over $20 million through darknet platforms and an international hawala network. The U.S. Department of Justice (DOJ) announced this on January 17, following a ruling by U.S. District Judge Gregory Van Tatenhove.

💻 Murarka operated under aliases such as “elonmuskwhm” and “la2nyc”, facilitating transactions that masked the origins of funds linked to criminal activities like hacking and drug trafficking. He set exchange rates with clients and directed them to send cryptocurrency to specific wallet addresses. The DOJ detailed his operations, stating,

Once the exchange rate had been set, Murarka, located in India, directed his customers to send cryptocurrency to certain cryptocurrency addresses.

📦 He then utilized a complex hawala system originating from India to arrange cash deliveries to his employees in the U.S. The DOJ explained,

Murarka’s network of employees throughout the United States and overseas would collect cash from Murarka’s hawala connections and then package the cash in a variety of ways, including between the pages of books and sealed in multiple envelopes, before mailing the cash to the customer.

🚓 After Murarka's arrest, the FBI took over his laundering operation to further dismantle the network. This undercover effort recovered millions in cryptocurrency, prevented financial account takeovers, and led to the seizure of counterfeit drugs and equipment. U.S. Attorney Carlton S. Shier, IV remarked,

The defendant provided his assistance to countless other criminals as they tried to conceal their stolen money and illegal drug proceeds.

⏳ Murarka is required to serve at least 85% of his sentence and will be under probation supervision for three years after his release.

🪙 Chinese New Year: A Potential Catalyst for Bitcoin's Price Surge

📈 Historical data suggests that increased user interest in bitcoin during the Chinese New Year celebration could lead to another significant price increase for BTC. According to Matrixport, bitcoin has experienced considerable price increases during the Chinese Spring Festival in 11 of the past 12 years, with an 83% chance of rising. This seasonal pattern is considered one of the most reliable in bitcoin's history.

📊 Statistics show that bitcoin has risen by 26% and 23% over the last two years during this period, averaging more than 21% increase during the Spring Festival. This trend is closely linked to a surge in customer interest in bitcoin.

🔄 Currently, BTC is navigating a complex landscape of conflicting signals. While weekly indicators suggest that BTC is still overbought, daily reversal indicators reached oversold levels last week, indicating potential support.

⚖️ On the macroeconomic front, the Federal Reserve's hawkish stance and tighter liquidity present challenges. However, optimistic factors such as the pro-crypto Trump administration and the anticipation of a U.S. bitcoin reserve offer support. Rising bitcoin funding rates also indicate a resurgence of activity. This dynamic has kept bitcoin in a phase of consolidation.

🗓 The report emphasizes that the Chinese New Year is a crucial trigger for bitcoin's seasonal performance. Beginning on January 29, this period is statistically the most favorable 20-day timeframe for bitcoin and could present a significant opportunity for long holdings.

🛡 Trump's Tradefare: Tariffs as a Diplomatic Tool in the Colombia Crisis

🇺🇸 The Trump Administration recently showcased its diplomatic strategy by leveraging U.S. spending power to resolve a crisis with Colombia. This incident arose when Colombian President Gustavo Petro refused to accept two repatriation flights carrying what Trump described as a "large number of illegal criminals." In response, the U.S. swiftly imposed 25% tariffs on all Colombian imports, threatening to increase this to 50% the following week.

✈️ The Colombian government quickly capitulated, issuing a statement that they would accept the returned flights to uphold the rights of their citizens. This marked a significant moment as it was the first instance where tariffs were effectively used as a 'tradefare' tool by Trump to resolve an international diplomatic issue.

🌍 Colombian migrants have been part of a larger trend of individuals seeking better economic opportunities in the U.S. In 2023, a record 170,000 Colombian nationals were arrested for irregular entry. Following the resolution of the Colombia situation, Trump also secured an agreement with China for the repatriation of deported Chinese migrants. Chinese Foreign Ministry spokeswoman Mao Ning stated,

China will receive people who are confirmed as Chinese nationals from the mainland after verification.

📈 These developments illustrate that Trump's "tariff scare" policies can yield results, although their implementation against larger economies like China may lead to unforeseen repercussions.

📈 Altcoin Season Approaches: A Surge in the Altcoin Season Index

📊 Following January 30, 2025, the Altcoin Season Index (ASI) from blockchaincenter has experienced a significant increase of 28.26%, rising from a low of 46 to 59. This upward movement suggests that the anticipated 'Altcoin Season' may be nearing. Crypto commentators on social media platforms like X are increasingly optimistic about this cyclical financial event.

📈 Between January 27 and January 30, the ASI rose from 46 to 59, hinting at the impending Altcoin Season. A brief glimpse of this season was observed from December 1-9, 2024, but it was not as significant as the rallies seen in previous years like 2017, 2018, 2021, and 2022.

🔍 To officially declare an Altcoin Season, blockchaincenter requires that 75% of the top 50 cryptocurrencies outperform bitcoin over a 90-day period. Currently, with the index at 59, many cryptocurrencies have surpassed bitcoin's performance.

🚀 Notable performers include HBAR with a 636.7% increase, BGB at 555.3%, XRP rising by 375.7%, and OM up by 301.6%. Additionally, lesser-known tokens have shown remarkable growth, such as fartcoin (FARTCOIN) which surged by 3,851.16% over the past three months.

📈 Other significant gains include AI16Z with a 3,355.13% increase, XCN up by 2,420.59%, AIXBT appreciating by 1,747.62%, and FAI expanding by 1,388.87% against the U.S. dollar in the same period. Recently, ethereum (ETH) has outperformed bitcoin (BTC), a sign often interpreted as a precursor to Altcoin Season.

💬 Crypto influencer Lark Davis stated,

ETH breaking out is good signs for the entire altcoin market. With Feb historically being a bullish month, we could see a full-blown alt season play out soon.

Another user on X, Asuka, noted,

Charts are showing the potential for an imminent ‘Altcoin Season.’ The effect will be the same as bitcoin skyrocketing, the accelerated arrival of a new Global Financial Crisis bigger than 2008.

⚖️ As the Altcoin Season Index approaches its critical threshold, the surge in altcoins indicates a potential shift in the crypto hierarchy, challenging bitcoin's dominance. While historical trends and optimistic forecasts suggest transformative changes, the rapid rises of lesser-known tokens highlight the inherent volatility of the market. The outcome of this situation remains uncertain.

💰 Money and Property: A Constitutional Debate

🤔 A recent dispute between the U.S. Department of Labor and a landscaping company has sparked a controversial statement from the Department of Justice (DOJ): "money is not necessarily 'property' for constitutional purposes." This assertion, made in the case C.S. Lawn & Landscape v. U.S. Department of Labor, left Rob Johnson, a senior attorney at the Institute of Justice, baffled.

💫 The District Court of Columbia elaborated on this claim, stating that the government creates fiat money and can retake it through taxation without it being considered a deprivation of property. The court further argued that viewing money as 'property' complicates the debate over Congress's power to spend money for the general welfare, as outlined in the constitution.

💭 Johnson expressed concern over the implications of this argument:

If your money is not your property, what is to stop the government from just seizing all of it tomorrow—for any reason it gives?

He emphasized that this perspective could set a precedent for the government to seize money without a trial.

🔍 Despite the flawed nature of these arguments, Johnson believes they prompt a reevaluation of the current monetary system. He advocates for holding at least some wealth in gold or cryptocurrency. The case is set to be elevated to a federal court soon, and Johnson anticipates that this notion will be retracted.

How Much Are Crypto Exchanges Really Worth?

The valuation of cryptocurrency exchanges like Binance, Kraken, and others is gaining attention in global media. A new approach has been introduced to estimate their market worth—not just based on trading volumes but through a broader set of key metrics.

This method considers six important factors:

🔍 Transparency – How openly exchanges share information about their operations.
📊 Activity – User engagement and trading volumes.
💰 Capital – Financial strength and available reserves.
🛡 Security – Measures in place to protect users and funds.
✅ Compliance – Adherence to regulatory standards.
📈 Proof of Reserves – Verification of solvency and financial backing.

By analyzing these elements, the formula offers a structured way to assess exchanges beyond surface-level figures. While not a definitive valuation model, it provides useful insights into how different platforms operate and manage risks in the crypto space.

Read more in the article 👉 https://coincodex.com/article/58281/unveiling-the-metrics-understanding-the-market-value-of-leading-crypto-exchanges/

🌐 UAE Ministry of Energy Partners with Shiba Inu for Web3 Solutions

🤝 The United Arab Emirates (UAE) Ministry of Energy and Infrastructure (MOEI) has announced a partnership with Shiba Inu to enhance public services through Web3 technologies. This collaboration aims to improve efficiency in energy and infrastructure sectors while promoting green initiatives and citizen engagement.

🌱 Under the agreement, Shiba Inu's operational system will facilitate governance models focused on citizens and streamline the ministry's operations. Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at MOEI, expressed enthusiasm for the partnership, stating,

We’re delighted to deepen our commitment to cutting-edge digital services.

He emphasized the goal of setting a global benchmark for innovation through the use of emerging technologies.

🌍 Shytoshi Kusama, Lead Visionary for the Shiba Inu team, praised the UAE energy ministry's choice, noting that it showcases Shiba Inu's potential for innovative solutions. He highlighted the partnership's aim to transform business and civic collaboration via a transparent and environmentally conscious digital platform.

📰 This Week in Review: Bitcoin, Satoshi's Vault, and XRP Surge

🗣 David Sacks, known as Trump’s “Crypto Czar,” has suggested that the U.S. sovereign wealth fund could potentially hold Bitcoin. Arkham Intelligence recently revealed a massive $108 billion stash of BTC attributed to Bitcoin’s creator, Satoshi Nakamoto. In other news, blockchain expert Zachxbt uncovered a blunder by North Korean operatives who mishandled a 46,300 XRP transfer despite their reputation for sophisticated cyber heists.

📈 Meanwhile, XRP experienced a remarkable 280% surge in Q4 2024 due to ETF momentum and regulatory shifts. Experts also predict that Wall Street’s inflows could disrupt Bitcoin’s traditional four-year cycle with trillions of dollars potentially entering the crypto market.

💡 Arkham Intelligence unveiled its discovery of $108 billion in BTC held within Satoshi’s vault. This revelation adds to the intrigue surrounding Bitcoin's mysterious creator.

🧐 In a recent report, Zachxbt highlighted the irony of North Korean operatives making a simple error in a cryptocurrency transfer despite their usual expertise in hacking.

🚀 Ripple’s latest XRP Markets Report showcased a stunning 280% surge for XRP in Q4 2024 driven by eased regulations. However, it's worth noting that XRP has faced some challenges recently, sitting approximately 15% down from earlier in the week.

💰 Lastly, experts warn that while market crashes can be alarming, it's crucial to remain calm as trillions are poised to flow into the crypto market following significant changes.

📈 Onyxcoin's Impressive Surge: Analyzing the Next Steps

🚀 Onyxcoin (XCN) has made waves in the crypto market with a staggering 2,656% increase since late December. Recent analysis from AMBcrypto highlights a descending triangle pattern on XCN's price chart, which often precedes significant price movements.

📊 This pattern features lower highs converging towards a horizontal support level, indicating a potential breakout. Currently, XCN is breaking above the resistance line, positioning itself for a possible surge. The Exponential Moving Averages (EMAs) at 9 and 26 periods are also converging, suggesting rising momentum. A bullish EMA crossover within the triangle could signal an upcoming surge if resistance is breached.

📈 If XCN's price surpasses the upper boundary, it could trigger another substantial rally. Analyzing Bybit's XCN Futures Open Interest (OI) data reveals a steady increase in outstanding derivative contracts, particularly after the recent price surge. Open Interest measures the number of unsettled futures contracts and tends to rise when traders anticipate significant price movements. This sustained interest indicates that market participants are actively positioning for XCN's next breakout, reinforcing the bullish sentiment.

📊 Trader sentiment also plays a crucial role. The Aggregated Futures Bid & Ask Delta shows a balanced market sentiment, with periodic buying pressure spikes indicating accumulation and bullish intent. The current positive delta suggests that buy orders slightly outweigh sell orders, reflecting mild optimism among traders. However, with a substantial OI, traders remain engaged, indicating a consolidation phase. If buying pressure continues to rise while the price stabilizes, it could signal a potential breakout.

🔮 In conclusion, Onyxcoin appears poised for a decisive move based on technical indicators and market sentiment. If the price breaks above the descending triangle's resistance, bullish momentum could drive a strong uptrend. With a compelling technical setup and increasing market interest, XCN is a key asset to watch. The descending triangle pattern, rising OI, and periodic buying pressure surges suggest that the next move could be significant. Whether XCN continues its upward trajectory or faces resistance, closely monitoring these key indicators will be essential for navigating its next phase.

📉 Market Volatility Triggers Major Outflows from Bitcoin and Ether ETFs

📊 Between February 10 and 14, bitcoin exchange-traded funds (ETFs) experienced a significant net outflow of $581.23 million, while ether ETFs saw a smaller net outflow of $26.3 million. This trend indicates a cautious sentiment among investors amid ongoing market volatility.

Despite a last-weekday inflow, the prevailing trend indicates a preference for risk aversion in the current conditions.

💫 The 12 U.S. spot bitcoin ETFs collectively lost $581.23 million, with Fidelity’s FBTC facing the largest outflow of $282.12 million. This downturn was characterized by four consecutive days of outflows, interrupted only by a single day of inflows. In contrast, ether spot ETFs experienced a net outflow of $26.3 million, primarily driven by Grayscale’s ETHE, which saw an exit of $56.46 million over two days of outflows.

💼 The significant outflow from bitcoin ETFs suggests that investors are adopting a cautious approach, likely due to recent market fluctuations and macroeconomic uncertainties.

This mixed behavior could be attributed to ether’s ongoing network developments and upcoming upgrades, which continue to attract interest despite broader market apprehensions.

📈 On the other hand, ether ETFs displayed a more balanced activity with three days of inflows despite being outweighed by outflows. This indicates that some investors still have confidence in ether’s potential, possibly due to its ongoing network developments and upcoming upgrades.

💰 As of February 17, bitcoin is priced at $96,167 (a slight decrease of 0.9%), while ether is trading at $2,747 (a modest gain of 2.1%). These price movements correspond with the observed ETF flows, where bitcoin’s decline aligns with significant outflows, and ether’s stability is reflected in its relatively steady ETF activity.

💰 Ether ETFs Attract $19.02 Million Inflows; Bitcoin ETFs Face $71.07 Million Outflows

📈 On February 18, crypto exchange-traded funds (ETFs) showed divergent trends. Ether ETFs saw a net inflow of $19.02 million, largely due to Fidelity’s FETH, while bitcoin ETFs experienced a net outflow of $71.07 million, with significant withdrawals from Fidelity’s FBTC and Valkyrie’s BRRR.

Ether ETFs attracted net inflows totaling $19.02 million with Fidelity’s FETH leading the positive trend.

💚 Fidelity’s FETH led the way by attracting $24.47 million in new investments. Despite Grayscale’s ETHE facing an outflow of $5.45 million, ether ETFs ended the day positively. This marked the fourth consecutive day of inflows for ether ETFs, indicating a preference among investors for ether over bitcoin in the current market.

🚫 In contrast, bitcoin ETFs had a tough day, recording a net outflow of $71.07 million. The majority of this was from Fidelity’s FBTC, which saw a withdrawal of $48.39 million. Other significant outflows included Valkyrie’s BRRR at $9.27 million, Ark and 21Shares’ ARKB with $8.65 million, and Vaneck’s HODL experiencing a $4.77 million exit. Notably, no bitcoin ETFs reported inflows during this period, suggesting a cautious sentiment among bitcoin investors.

This contrasting movement between ether and bitcoin ETFs highlights the evolving trading patterns of crypto investors.

📊 Since February, ether ETFs have seen nine days of inflows compared to just two days of outflows. As of now, net inflows for ether ETFs in February stand at $480.84 million, while net outflows for bitcoin ETFs are at $63.41 million.

🚨 Kanye West's Alleged X Account Sale Sparks Meme Coin Controversy

👀 Kanye West, also known as Ye, is reportedly preparing to launch a meme coin called YZY. Speculation has arisen that he may have sold his X account, which boasts 32 million followers, to a member of the Doginals crew.

📺 Bitcoin News recently covered Ye's YZY meme coin launch and an X spaces livestream hosted by the Doginals NFT crew. During the livestream, accounts Tall and Barkmeta discussed the upcoming YZY launch and debated its potential platforms, BNB or Solana.

🤔 It is suggested that West partially sold admin access to his X account to meme coin trader Barkmeta. Crypto influencers have raised concerns about this development. Ye's now-deleted X posts included a pinned Community Note claiming that Barkmeta and Tall are the same person who purchased his account. The note stated:

Kanye sold access to his account to @barkmeta, the account he follows (@tall_data) is barks alt account.

🚫 Barkmeta has denied these claims while continuing to post on X. He stated,

Imagine the whole space telling us we’re scammers when it would’ve been so easy to rinse like $20M doing a fake Kanye coin today.

Despite his dismissal of the accusations, many influencers continue to caution 'crypto Twitter.'

🗣 Dave Portnoy, a crypto supporter and founder of Barstool Sports, tweeted about Ye's alleged X account sale. He wrote,

Kanye West sold his account to the Barkmeta Doginals crew for $17M—they’re gearing up to scam the entire space.

This warning post has garnered over 19,000 likes and 4,700 re-posts.

⚠️ With the uncertainty surrounding Ye's alleged X account sale and the warnings from crypto influencers, potential buyers should proceed with caution. The combination of deleted posts, pinned warnings, and conflicting statements creates a confusing situation. Whether this is a marketing strategy or a cash grab, anyone considering investing in the YZY meme coin should think carefully before proceeding.

📉 Bitcoin Price Drops Below $84,000 Amid Record ETF Outflows

📉 The price of Bitcoin (BTC) has fallen below $84,000 as spot Bitcoin exchange-traded funds (ETFs) experienced record outflows. As of 2:30 p.m. (ET), Bitcoin was trading at $84,378, marking a significant decline.

📉 Over the past day, Bitcoin fell to a three-month low, with spot Bitcoin ETFs registering a record $1 billion in outflows. Earlier in the day, Bitcoin was trading at $87,670, reflecting a 0.77% decline since yesterday and a 9.10% drop over the past week.

📉 In terms of market performance, Bitcoin has fluctuated between $83,365 and $89,351.20 in the last 24 hours. The trading volume for the past day stands at $56.38 billion, indicating a 31.70% drop from the previous day. Bitcoin's total market capitalization is currently at $1.73 trillion, showing a slight increase of 0.12%.

📉 Yesterday's record ETF outflows significantly impacted Bitcoin's price. This capital flight suggests a shift in investor sentiment towards Bitcoin, although it remains uncertain whether this shift will be permanent. Additionally, Ether ETFs also recorded a net outflow of $50 million, contributing to the overall bearish sentiment in the crypto market.

📉 Looking ahead, Bitcoin's ability to maintain its position above $80,000 will be crucial. The recent decline in futures open interest and trading volume indicates that traders are adopting a more cautious approach. If Bitcoin can reclaim the $90,000 mark, it may signal a short-term relief rally targeting $92,500 as the next resistance level. However, if selling pressure increases and Bitcoin falls below $83,000, it could lead to a retest of the $82,000 to $80,000 support zone.

📉 With ongoing ETF outflows affecting market sentiment and participants closely monitoring macroeconomic developments, Bitcoin's price remains in a fragile state. Investors will likely keep an eye on trading volume, derivatives positioning, and institutional activity for signs of a potential trend reversal in the coming days. Just before 3 p.m. (ET) on Wednesday, Bitcoin was trading at $83,827 per coin.

🦠 Gitvenom: The Stealthy Malware Campaign Hijacking Crypto Wallets on Github

🔍 A newly discovered cyber campaign called Gitvenom is targeting Github users by embedding malicious code in fake open-source projects. Researchers from Kaspersky, Georgy Kucherin and Joao Godinho, uncovered this operation where cybercriminals create fraudulent repositories that imitate legitimate software tools.

💫 The Gitvenom campaign has seen the creation of hundreds of Github repositories containing malicious code. These include an automation tool for Instagram, a Telegram bot for managing bitcoin wallets, and a hacking tool for Valorant. To make these repositories seem credible, attackers use AI-generated README.md files, add multiple tags, and inflate commit histories.

🛠 The method of embedding malicious code varies by programming language. In Python projects, the payload is hidden using long lines of whitespace followed by a script decryption command. In Javascript projects, malware is concealed within a function that decodes and executes a Base64-encoded script. For C, C++, and C# projects, a hidden batch script is placed in Visual Studio project files to ensure it runs during project build.

📥 Once executed, these scripts download additional malicious components from an attacker-controlled Github repository. This includes a Node.js-based stealer that extracts credentials, cryptocurrency wallet data, and browsing history before sending it to attackers via Telegram. Also included are open-source remote access tools like AsyncRAT and Quasar backdoor, along with a clipboard hijacker that replaces copied cryptocurrency wallet addresses with attacker-controlled ones.

🌍 The Gitvenom campaign has been active for at least two years, with infection attempts detected globally, especially in Russia, Brazil, and Turkey. Kaspersky researchers warn about the increasing risks of malicious repositories, stating that as code-sharing platforms like Github are used by millions of developers, threat actors will continue to exploit fake software as an infection lure.

⚠️ They emphasize the importance of carefully handling third-party code:

Before attempting to run such code or integrate it into an existing project, it is paramount to thoroughly check what actions it performs

. As open-source platforms are increasingly targeted by cybercriminals, developers must remain vigilant to protect their environments from compromise.

🕵️‍♂️ Coinbase Investigates SEC's Crypto Actions Costs

🔜 Coinbase, a leading cryptocurrency exchange in the U.S., has initiated an investigation into the financial implications of the Biden administration's actions against the crypto industry. The company aims to uncover how much taxpayers have contributed to the Securities and Exchange Commission's (SEC) efforts against crypto, particularly through a Freedom of Information Act (FOIA) request.

🔍 Paul Grewal, Coinbase's Chief Legal Officer, explained that the investigation seeks to understand not only the impact of these actions on the crypto industry's progress in the U.S. but also the monetary costs involved. The FOIA request demands detailed information about all activities related to digital assets, including enforcement actions, employee involvement, and third-party contractor expenses.

It may take time to get the full picture, but I think we’ve shown that we will do what it takes for as long as it takes

Grewal emphasized.

⚖️ Coinbase has previously faced legal challenges from the SEC, which accused it of providing access to unregistered securities for U.S. customers. However, the exchange successfully defended itself, leading the SEC to drop this case and others against various crypto entities.

📊 The investigation also aims to shed light on the “Crypto Assets and Cyber Unit,” a division within the SEC's Enforcement branch that played a significant role in these actions under former chair Gary Gensler. Grewal stated that Coinbase seeks to understand the unit's budget, employee count, and associated costs.

🔗 Through this FOIA request, Coinbase demonstrates its commitment to transparency and accountability regarding government actions affecting the crypto sector.

📉 NFT Market Faces Decline: Dappradar Report

📉 The NFT market is experiencing a significant downturn, with global sales dropping by 40% and trading volumes decreasing by 35%, as reported by Dappradar. This decline indicates a return to the "NFT winter" conditions last observed in 2022. The researchers attribute this downturn to fading hype, macroeconomic pressures, and shifting consumer priorities.

📉 Even high-profile collections such as Cryptopunks and Bored Ape Yacht Club (BAYC) experienced significant sales contractions of 52% and 47% respectively. This trend highlights a broader market correction where traders are increasingly prioritizing utility-driven projects over speculative assets. However, it is noted that the current downturn is less severe than the 2022 crash which saw a 60% drop in sales over six months.

📈 Despite the overall decline, niche sectors like art and music NFTs have shown resilience. Dappradar reported a 15% increase in art NFT sales, driven by collaborations with traditional artists and galleries. Music NFTs also rose by 12%, reflecting a growing interest in fan engagement models.

🔮 Looking ahead, Dappradar researchers caution against viewing the current slump as a permanent decline. They predict that innovation in gaming, decentralized identity, and AI-driven content will reignite growth in the market. The report concludes that the 2025 NFT winter is a necessary phase for sustainable development. While speculative excesses are being trimmed, strategic innovation and real-world applications will ultimately define the market's future.