Crypto Daily Roundup, 09 Oct: Israel-Hamas Tensions Worry Investors

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The Israel-Hamas conflict, a persistent geopolitical concern, maintains its global spotlight. Interestingly, the cryptocurrency sector appears relatively insulated from its fluctuations. Recent events involved Gaza militants launching a surprise attack, causing casualties in Israel, along with ongoing rocket attacks in areas like Tel Aviv.

Wall Street is eagerly monitoring upcoming economic data, including CPI and PPI, signaling increasing inflation in line with central bankers' calls for sustained higher interest rates. The CPI, excluding food and fuel, is anticipated to climb by 0.3% for a second consecutive month. Furthermore, the minutes of the September FOMC meeting will be disclosed on October 11.

A long-dormant Bitcoin whale recently moved 5,000 BTC (worth $137 million) after three years of inactivity, causing speculation in the market. Such whale activity often raises concerns as it can influence Bitcoin's price due to the potential for significant sell-offs. However, the motive behind this move remains unclear, leaving uncertainty about its impact on Bitcoin's value.

South Korean crypto exchange Upbit faced over 159,000 hacking attempts in H1 2023, a 1,800% surge from H1 2020, as reported by its parent company Dunamu. To bolster security, Upbit increased cold wallet holdings to 70%. Despite a 2019 breach, it has remained hack-free. Lawmakers call for government action on exchange security.

The Consumer Financial Protection Bureau (CFPB) in the United States is considering applying the Electronic Fund Transfer Act (EFTA) to cryptocurrencies to protect consumers from fraudulent transactions. CFPB Director Rohit Chopra mentioned plans to provide guidance on how existing electronic fund transfer laws apply to crypto, amid a surge in crypto-platform hacks and ongoing legal cases involving crypto firms.

OpenAI CEO Sam Altman praised Bitcoin as a "super logical" step on the tech tree, citing its potential to combat corruption and operate outside government control during a podcast with Joe Rogan. Altman expressed concerns about central bank digital currencies (CBDCs) and their potential for surveillance, while Rogan shared optimism about Bitcoin becoming a universal currency. Both voiced opposition to CBDCs and criticized the U.S. government's treatment of the crypto industry.

NFT sales have declined for seven consecutive weeks, with the latest week's transactions totaling $66.11 million, an 11.65% drop from the previous week. Ethereum-based NFTs dominated sales, accounting for 57.63% of the total. Despite the overall decrease, the number of NFT purchasers increased by 17.77%, and the number of sellers rose by 15.82%. Notable NFT sales included Cryptopunk #2367, which sold for $143,062, and BNB's Starcraft Planets #1498, auctioned for $32,880. However, blue-chip NFT collectibles saw a decline in floor prices, reflecting a broader downtrend in the market.

The Israel-Hamas conflict raises concerns among investors about geopolitical risks affecting global financial markets. As tensions escalate, demand for safe-haven assets like gold and the US dollar may increase. Cryptocurrencies, often dubbed "digital gold," could also benefit as investors seek refuge during uncertain times and as a means of preserving wealth and facilitating cross-border transactions in regions with capital controls or unstable financial systems. This conflict underscores cryptocurrencies' potential to enhance global investment and financial empowerment in crisis-stricken areas.

The SocialFi platform Stars Arena, built on Avalanche (AVAX), suffered a $2.9 million loss due to a smart contract vulnerability exploited by bad actors. The reentrancy issue allowed hackers to manipulate ticket prices, draining the contract's funds. Stars Arena is working to recover funds and enhance security, vowing to continue its operations.

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