Big Uptick in 1k BTC Addresses Shows Institutions Bought the Dip

Big Uptick in 1k BTC Addresses Shows Institutions Bought the Dip; Goldman Sachs says Still Just 1% of Institutional Money

Despite the healthy pullback, more correction cannot be ruled out yet but $30k will be protected because many institutional investors bought around this level.

Bitcoin is taking a breather and hovering around $35,000 after the deep pullback earlier this week. This profit-taking at an ATH of $42,000 was expected after Bitcoin rallied more than 1,000% from the March 2020 lows.

“There’s signs that retail investors are taking profit,” said Ryan Rabaglia, OSL’s global head of trading. “Heightened volatility is often correlated with an uptick in retail participation.”

The market is particularly focusing on the US Dollar Index right now, which has been gaining strength, currently hovering around 90.

“We think a pullback is healthy,” said David Grider, the digital strategist at Fundstrat Global Advisors. According to him, the recent price action doesn’t indicate that Bitcoin has topped out.

However, further losses can’t be ruled out either, with miners continuing their selling while no significant stablecoin inflows in the picture. No outflows are seen from Coinbase either; as a matter of fact, BTC is flowing into exchanges.

On the basis of this, “We might have second dumping,” said Ki Young Ju, CEO of data provider CryptoQuant.

Still, $30k will be protected, and in the event of a dip, we might not go down below $28k because “there are many institutional investors who bought BTC at the 30-32k level,” Young Ju added.

These institutions were actually into buying the dips that came on Sunday and Monday. The large amounts of BTC holders that can be seen as a proxy for institutional adoption “increased significantly” since the start of 2021. This jump in address with at least 1,000 BTC shows that this institutional adoption is here to stay.

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However, according to Goldman Sachs’ Jeff Currie, the level of institutional investment in the market is still very small though “the market is beginning to become more mature.”

“The key to creating some type of stability in the market is to see an increase in the participation of institutional investors, and right now they’re small,” said the investment bank’s head of commodities research on CNBC., adding that the investment in BTC is, “roughly 1% of it is institutional money.”

While for institutions, Bitcoin is a hedge against fiat debasement and risk of inflation, as it emerges as a store of value, for some, it is a way to fix economic injustice as well.

“For the first time in history, we have a Plan B option to the current financial system which has seen years of redlining, racial discrimination and other egregious acts by retail banks to the Black community,” said Isaiah Jackson, author of “Bitcoin & Black America.”

According to him, Bitcoin gives Black people an opportunity to not only shift their money but also their mindset because the world’s leading digital currency is unconfiscatable and has no barrier to entry.

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Author: AnTy

Over 12,000 BTC Moved to Coinbase’s Custody Wallet; Bitcoin Active Addresses Climb to 1.1M

Over 12,000 BTC Moved to Coinbase’s Custody Wallet; Bitcoin Active Addresses Climb to 1.1M

While Bitcoin’s adoption grows at a fast pace, “BTC veterans continue to hold strong.”

It’s been over a week now that the price of Bitcoin has been keeping above the 2017 high of $20,000. The BTC price continues to hold above $23,000 but is in red today with $4.77 billion in ‘real’ volume.

Price-wise, Bitcoin is trading in a range between $23,300s and $24,000. Trader Josh Rager said,

“A break above $24,000 would lead to bullish continuation but looks like liquidity was grabbed with fake-out. Further pullback with close below $22,550s likely lead to back down to $20k.”

The ongoing strong institutional adoption, however, spells only bullish momentum for BTC. Today, 12,006 BTC flowed out from Coinbase and were transferred to the “custody-looked-like wallets,” which makes Ki-Young Ju, CEO of CryptoQuant “very bullish on BTC.”

CryptoQuant

Source: CryptoQuant

The biggest benefactor of this price action on the bitcoin network has been the fees, transfer value, and the market cap of the digital asset.

Last week, the network transferred $4.3 billion in adjusted value, up from $0.8 billion at the start of 2020. Much like this, in January, the average fee on the network was 2 cents which have now increased substantially to $12.

Amidst this price action, the active BTC addresses have hit a new yearly high.

The number of active addresses, 7-day average, on the Bitcoin blockchain is currently at 1.1 million, fast approaching the December 2017 record high of 1.13 million active addresses.

These addresses have been increasing consistently throughout this year to reach the levels that haven’t been seen since late 2017. At the beginning of this year, the number of active addresses was about 500k on average which went to 1.14 million just this week.

While the number of bitcoin daily active addresses doubled over the course of 2020, those holding at least 0.01 BTC grew by more than 700k during the same period.

“While adoption grew, BTC veterans continued to hold strong,” noted Coin Metrics.

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Author: AnTy

Dutch Crypto Exchanges Want a Screenshot of Your Wallet to Prove the Legitimate Ownership of BTC

Bitcoin exchanges in The Netherlands are taking additional verification measures regarding BTC addresses in reference to the Dutch Central Bank (DNB)’s Sanction Act.

One such exchange Bitonic announced on Monday that it is now “forced” by the DNB to provide additional details regarding the intention behind BTC purchases and the kind of wallet you are using. As such, Bitonic is now,

“Obligated to verify that you are the legitimate owner of the given bitcoin address by requesting you to upload a screenshot from your wallet, or by signing a message.”

As per the Sanction Act, released in Nov. 2019, no funds are to be made available to the individuals and entities that are on the Dutch and EU sanction list by the crypto service providers.

In the event of an actual hit in a sanctions list, the institution needs to notify DNB and either freeze any assets, block the transaction, or do both.

The exchange is against the measure and has pleaded with Bitonic to drop the requirement as it is ineffective and disproportionate. Bitonic is inviting its customers to send their complaints to [email protected] as an “opportunity to formally object to these additional measures and the registration of this data.”

According to the exchange, the Netherlands is currently the only country in the European Union to demand such “far-reaching measures.”

Reportedly, Switzerland also mandates such information from the cryptocurrency exchanges.

Earlier this month, 39 crypto companies, including exchanges and custodial wallet providers, applied for registration with the Dutch central bank to provide crypto services.

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Author: AnTy

Bitcoin Millionaire Addresses Reaches Highest Level Since January 2018

As Bitcoin’s price holds strong at $13,000, the number of Bitcoin millionaire addresses are also hitting levels not seen since the last bull run.

Those addresses that have been holding more than $1 million worth of BTC have surpassed 20,000, the highest level since January 2018, as per Glassnode.

These numbers have been increasing since March when the sell-off pushed these addresses from about 17,500 to nearly 7,500.

In August, these numbers took a big leap when it added about 5,000 new addresses. Now, it has reached levels that we came close to in the middle of last year.

The number of addresses with more than $1 million of Bitcoin reached its all-time high at just above 28,000 at the top of the market in December 2017 when BTC price hit $20,000.

According to Bitinfocharts, while 20,554 addresses are richer than $1 million, only 2,754 addresses have $10 million worth of BTC.

Meanwhile, more than 25 million addresses have $1 worth of BTC, close to 9.7 million addresses have more than $100 of BTC and 3.64 million has $1,000 worth of Bitcoin.

The number of addresses richer than $10k worth of BTC is moving to 990k, and 182,414 addresses have $100k BTC.

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This has been as Bitcoin works towards solidifying its role as digital gold, a store of value. Recently, a team of analysts at JP Morgan also touted the leading digital currency to be in “intensive” competition with gold, suggesting a “doubling or tripling” in its price if this trend continues.

“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” read the research note.

The analysts also added that Bitcoin’s long-term prospects could further improve because of its utility as a payment mechanism.

In that regard, just yesterday, a BTC wallet holder moved over 88,857 BTC, worth about $1.15 billion for a fee of mere 0.00027847 BTC, worth less than $4.

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Author: AnTy

Data Breach at Popular Hardware Crypto Wallet Ledger Affects Million; Trezor Fires Shots

Popular crypto hardware wallet Ledger reported the leak of 1 million email addresses and 9,500 detailed personal information of its customers.

Ledger’s competitor, Trezor, took this opportunity to advertise, “After 90 days, we get rid of all sensitive data about your order in our e-shop database (even e-mail addresses),” complete with promo code “DATAPRIVACY” to offer a discount on its products. But it’s limited to 9500 users.

The company came to know of the data breach on July 14th when a researcher participating in Ledger’s bounty program made them aware of it; Ledger shared in its official report. Ledger immediately fixed the breach and conducted an internal investigation.

Now, a week after patching the breach, the company discovered the vulnerability had been exploited on June 25th by an unauthorized third party. The entity accessed Ledger’s e-commerce and marketing database through an API key, which has now been deactivated and is no longer accessible.

The database access, which has been used to send order confirmations and promotional emails, including mostly email addresses along with contact and order details such as first and last name, postal address, email address, and phone number.

Approximately 1 million email addresses were affected, and a subset of 9500 customers was exposed for first and last name, postal address, phone number, or ordered products.

“Your payment information and crypto funds are safe,” as the data breach has no link and impact on hardware wallets, crypto assets, or Ledger Live security, ensuring the company.

The company has since then informed all of its customers about the situation, and those whose detailed personal information is exposed have been sent dedicated emails.

Ledger has also notified the CNIL, the French Data Protection Authority, which ensures that data privacy law is applied to the collection, storage, and use of personal data.

Last week, they partnered with Orange Cyberdefense to assess the situation and are actively monitoring the evidence of databases being sold on the internet.

The company is now extending the scope of its security and organizational program to e-commerce, which initially focused on Products (HW and Vault). Further steps are taken to meet the requirements listed in ISO 27001.

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Author: AnTy

Twitter Found the Solution to Bitcoin Scams, No More Cryptocurrency Addresses Allowed

That’s right!

It was this easy, just not let anyone post cryptocurrency addresses on Twitter, no more crypto scams.

When trying to post a tweet containing a cryptocurrency address, Twitter prompts the message “Something went wrong, but don’t fret — let’s give it another shot” in a glaring red strip.

Well, given that hackers are smart and always one step ahead of companies, it won’t be long before they find a solution. They don’t even need addresses; their one-page website seems to do the trick already. Soon, deep-fakes are expected to “revolutionize the scam market” already, as reported by the Crypto Whales in its report.

Moreover, companies are not proactive, it takes several attempts to report a scammer, and it still doesn’t get it down.

Twitter’s latest ban of crypto addresses altogether from the social networking platform could be just a fix before they find the solution, which comes after last night’s major Twitter accounts including the likes of Elon Musk, Jeff Bezos, Bill Gates, Barack Obama, Joe Biden, Kanye West and many more getting hacked and used to promote bitcoin-related scams.

Twitter is currently investigating the hack, which is believed to be a “coordinated social engineering attack” by using the “internal systems and tools.”

All the accounts hacked asked people to send them bitcoin in order to get it double, and the hacker was able to swipe nearly 13 BTC, worth about $120,000.

These kinds of scams aren’t anything new. They have been going on for a long time, given that the scammer was able to get only 13 BTC out of it.

As we reported, in just the first six months of 2020, scammers made off with about $24 million in BTC, which is predicted by Crypto Whale to reach $50 million by this year-end, over twenty-fold since 2017.

Also, BTC giveaways bearing the name of Tesla CEO and the founder and CEO of SpaceX, Musk has already been raking in more than $2 million in a matter of months.

Earlier this year, Musk called out the scams saying, “the crypto scam level on Twitter is reaching new levels,” in response to such a giveaway scam.

He urged people to “report [the scam] as soon as you see it,” and encouraged Twitter to delete the bots and scammer accounts.

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Author: AnTy

Cardano Founder Fires Shot at Ethereum; “I’m Ready to Fight & We’re Gonna Win This”

A version of Daedalus for the Shelley testnet is released while 56% of the addresses holding ADA are in profit.

It was in last month that Cardano prices started showing signs of life after a long time. The price of the cryptocurrency jumped more than 50% to climb to nearly $0.90 in early June.

Since then, the market has slowed down and ADA is currently trading at $0.080 but still up 139% YTD and at the tenth spot by market cap.

However, the cryptocurrency is still down a whopping 94% from its all-time high of $1.33.

These gains in the past month have been on the back of the announcement of much-anticipated Shelley’s launch date.

As the Shelley hard ford approaches, Cardano continues to show signs of strength. At its current prices, 56% of the addresses holding ADA are “In The Money” which means if those addresses were to sell their position today, they would make a profit.

Also, 53% of ADA holders have been holding for more than a year, as per IntoTheBlock.

First version of Daedalus for Shelley testnet

This week, IOHK released a version of Daedalus for the Shelley testnet which is designed exclusively for stake pool operator testing. It will eventually be the wallet that ADA holders will use on the mainnet and it’s just one of the many releases that are to come.

The latest news came just two weeks after the Shelley testament was opened to all stake pool operators.

The Haskell-optimized wallet comes only with basic functionality that allows stake operators to create, delete, and restore Shelley wallets. One can also transact on the network.

For now, Daedalus is only available on IOHK’s GitHub repository as the company is looking for feedback for the following version of Daedalus that will be released during the Shelley rollout with new features like delegating stake and checking rewards.

All that we’ve been working on are coming together

A day after the Daedalus wallet release, Charles Hoskinson, founder of Cardano and CEO of IOHK talked about the upcoming Cardano conference in July where they will be sharing the roadmap and what’s to come.

“I think people are gonna be very pleasantly surprised about our progress… we have a few surprise announcements that we’re kind of holding in our back pocket that we’re super excited about,” Hoskinson said in the interview with Messari.

They also have papers coming out soon where they have solved the proof of stake problem to get parity with proof of work. Also, they can make the protocol faster and layer the protocol with different capabilities like sharding if wanna go down that road “but it’s not even necessary.”

Hoskinson who is also the co-founder of Ethereum, which he doesn’t like to be referred to just acknowledged, fired shots at the second-largest network saying the “biggest lie ever told” in crypto space is that “Ethereum has achieved the network effect consensus.”

“They say we’re the dominant platform which is like saying you’re the biggest fish in a very tiny pond next to the ocean,” Hoskinson said.

According to him, everyone is still fighting and no one has won. To win, one has to solve real problems and think in terms of utility and experiences and what is actually going to help your user, he said. Adding,

“I’m ready to fight and I think we’re gonna win this one, all the things we’ve been working on for five years are just coming together all at once.”

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Author: AnTy

Major Crypto Projects Help Launch, PayID, An Open Source Payment Tech Simplifying Sending Money

  • The challenges of double, triple confirming crypto addresses could be solved by the new PayID system launched by the Open Payments Coalition – Ripple’s Xpring developers, Blockchain.com and Brave.
  • The platform aims at enhancing sending money, making it to be as easy as sending an email number.
  • The platform will replace the long alphanumeric wallet address with simpler, memorable, and human-readable addresses/ IDs.

Over the years, users have lost their funds over a human error in typing or copy-pasting their lengthy blockchain wallet IDs. With this new technology, all users will need is an email like username to send money across blockchains and later fiat currencies as well. An official Xpring developer account tweeted,

“Sending money should be as easy as sending an email. With #PayID, sending payments across any network and with any currency has never been easier.”

A global presence

According to reports from Ripple, the Open Payments Coalition currently boasts of 40 customers and partners, including payment processor BitPay, Flutterwave, Mercy Corps, and GoPay. Furthermore, with over 100 million customers in the coalition, the adoption of the PayID is expected to be swift.

Several banks, payment service providers, digital wallets, custodians, or remittance providers will be able to instantly send value across the globe through a peer to peer platform. The PayID system will, however, need to compete fiercely with the launch of Facebook’s Libra, also targeting to offer similar services to billions of customers.

Ripple’s PayID also complies with the FinCEN requirements and FAFT directives to provide a safe and regulated platform.

Is the lack of fiat gateways risky?

Despite the hype surrounding the payment solution, there remains a black spot in the coalition – a lacking representation of traditional financial companies as partners. PayID website describes the platform as a “peer-to-peer platform with no central authority,” which maybe scares these heavily regulated fields from participating in the coalition.

The consequence? For a start, the platform will remain a crypto-only transaction platform despite the website saying otherwise. To take over the globe in payments and settlements, PayID will need to offer a direct fiat channel, similar to PayPal, to banks and financial institutions. Not only the crypto companies.

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Author: Lujan Odera

BTC Investors Are Buying the Dip But Watchout, Options Expiry Are Coming

  • Bitcoin addresses holding 0.1+ coins breaks ATH set yesterday as price moves north of $5,800
  • Bitcoin futures and options set to be expired next week

For the past few days now, bitcoin is showing the signs of decoupling from the other risky assets like gold as the digital asset jumped to $5,920, up 8.13%, with more than $2 billion worth of bitcoin exchanging hands-on top ten exchanges with real volume.

Another positive movement is the number of addresses holding over 0.1 BTC just hitting an all-time high yet again. Just a day before, the addresses reached a peak of 2,919,003 only to surpass this with 680 new addresses.

Source: Glassnode

Looks like people are buying the dip and stacking some sats. Bitcoin HODLer Net Position Change is also showing that investors are accumulating. The metric has been positive during the recent BTC price dump, which means long term investors “accumulating discounted BTC and increasing their positions.”

Also, according to MVRV, this is the “best time to accumulate BTC at a relatively discounted price” as it drops below one for the fourth time in Bitcoin’s history.

Market Dynamics to Change

However, as bitcoin surges and altcoins jumping even higher, with Dash (19.49%), IOTA (15.50%), Chainlink (13.47%, BAT (11.14%), and Cardano (11.02%) leading the market gains, bitcoin futures and options are soon to be expired.

While next week, on the last Friday of the month, CME Bitcoin futures will expire, nearly two-third of outstanding options will expire over the next two Fridays.

Bitcoin options volume, however, has been going down since March 12 sell-off, the same as bitcoin futures contracts.

BTC Options Volume SKEW
Source: Skewdotcom

Strength of the infrastructure under question

Late last week, bitcoin plunged to its worst day in seven years as worries over the economic hit from the coronavirus (Covid-19) spread from stocks, oil, bonds, gold, to cryptocurrencies.

This resulted in a dramatic spike in volatility and volumes and the infrastructure created under this strain.

As we reported, Ethereum network congested by getting overwhelmed causing a sharp increase in gas prices and forced liquidations on DeFi projects like MakerDAO.

In the Bitcoin market, futures exchanges saw a rush of triggered liquidations of leveraged positions that fueled the pressure on price. Spread between spot and futures exchanges also jumped. This resulted in at least two major exchanges going down.

While New York-based Gemini went offline for less than 90 minutes and Seychelles-based BitMEX went down twice for a total of 45 minutes. A spokeswoman for Gemini said,

“In an abundance of caution, and to protect the integrity of our marketplace, we paused the market to resolve the issue and ensure all market services were back online in a healthy state prior to reopening.”

As for BitMEX, the exchange suffered two DDoS attacks that day, attackers waited for the right moment and overwhelmed the platform “during a moment of peak volatility.”

This has the market concerned about the strength of the infrastructure.“Volatility is not an issue — it’s whether the technology can deal with the volatility.” said Denis Vinokourov at crypto exchange BeQuant.

“The tech is important. You’re inviting traditional, big firms to trade on platforms that may not be able to withstand the amount of trading.”

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Author: AnTy

US Treasury Blacklists Two North Korean Lazarus Group Hackers BTC Addresses

  • The 20 Bitcoin addresses have been blacklisted for their association with N.Korea.

The US Treasury Office’s Office of Foreign Asset Control (OFAC) has blacklisted 20 new Bitcoin (BTC) addresses for their connection to two names from its sanctioned individuals list.

As the OFAC’s Specially Designated Nationals (SDN) list’s update says: Yinyin Tian and Jiadong Li have been involved with the Lazarus Group, infamous for hacking activities and affiliations with North Korea’s government.

Conspiracy to Launder Money and Operating an Unlicensed Business

The Lazarus Group has allegedly stolen over half of a billion dollars worth of crypto and targeted 14 different crypto exchanges since 2018, according to the cybersecurity vendor-  Group-IB.

Unsealed Court documents reveal charges against Tian and Li such as conspiracy to launder monetary instruments and operating an unlicensed money transmission business.

A press release from the Treasure Department added that $91 million has been stolen from a crypto exchange, in addition to $9.5 million from another.

No Bitcoin Held at the Addresses

According to Steven Mnuchin, the US Treasury Secretary,

“The North Korean regime has continued its widespread campaign of cyber-attacks on financial institutions to steal funds. The United States will continue to protect the global financial system by holding accountable those who help North Korea engage in cyber-crime.”

The blacklisted addresses appear to have had thousands of BTC processed through them, but at the moment they don’t hold any cryptocurrency.

OFAC Blacklisting Crypto Addresses for the Third Time

The OFAC has blacklisted crypto addresses for the third time after in 2018, it had released to the public BTC addresses connected to 2 Iranian citizens accused of ransomware transactions.

In 2019, a Litecoin (LTC) and several BTC addresses affiliated with 3 Chinese citizens charged with violating drug smuggling and money laundering laws have been made public too.

Meanwhile, Russian entities connected with the Independent Petroleum Company were deleted from the sanctions list on Monday, when the new 20 BTC addresses have been added.

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Author: Oana Ularu