Crypto Daily Roundup, 04 Oct: What's behind the crypto market's drop?

04-10-2023 By: Lokesh Gupta
Crypto Daily Roundup

Crypto with the Top Losers in the past 24 hours

TOP 5 Losers

Indices LTP Change (%)
Bitcoin SV $36.65 9.80%
eCash $0.00002475 8.39%
Aave $64.48 7.08%
Stacks $0.4826 5.94%
Bitcoin Cash $230 5.50%

Crypto News Key Highlights:

A $3.2 million transaction involving 425 billion Shiba Inu (SHIB) tokens on Coinbase has caught the cryptocurrency community's attention. SHIB's recent price volatility faces a crucial test at the 50 EMA level. Large transactions by prominent SHIB holders may signal broader trends, especially as SHIB approaches a critical resistance level. Despite price fluctuations, the SHIB community continues its burn program, reducing the circulating supply.

Prominent asset management firms like ProShares, VanEck, and Bitwise are entering a competitive market with Ethereum ETFs. Analysts express concerns about their ability to attract assets, citing low trading volumes compared to Bitcoin ETFs. Valkyrie leads in Ether futures ETFs, but overall launch performance raises questions about demand for crypto exposure.

The Brazilian Securities and Exchange Commission (CVM) has allowed investment funds to invest in cryptocurrency, with Resolution 175 in effect from October 2. Funds can allocate up to 10% of their portfolios to digital assets but must use approved exchanges. Analysts anticipate increased interest from institutions, despite limited exchange options. The regulation is seen as legitimizing institutional interest in crypto while imposing limits to protect investors from market volatility.

Elon Musk, CEO of Tesla and SpaceX, has criticized fiat currency, calling it a "scam" in response to a social media post. Musk has previously expressed skepticism about fiat currency and has shown support for cryptocurrencies like Bitcoin. Other individuals, including Robert Kiyosaki, the author of "Rich Dad Poor Dad," share similar views, describing fiat money as "fake" and advocating for alternative assets like gold, silver, and Bitcoin.

AAVE's daily transaction volume in profit surged to a six-month high due to its positive correlation with Bitcoin (BTC). This increase followed BTC breaking key resistance levels. AAVE experienced a 15% intraday price rally but later declined to $69.46. Whale investors holding AAVE tokens increased, and the token's supply on exchanges rose by 2% as investors sought to book profits.

Crypto exchange Binance collaborated with the US Homeland Security Investigation and Thai police to dismantle a significant pig butchering scam targeting novice traders in Thailand. Five principal members were arrested, and assets valued at $277 million, including luxury items, were confiscated. Over 3,200 victims sought compensation in the wake of the crackdown, which revealed the rise of crypto scams in the country. Police acknowledged Binance's valuable contribution to combating scams and cybercrimes.

The US Treasury's OFAC has sanctioned crypto wallets linked to individuals and companies involved in fentanyl production. Indictments were filed against Chinese chemical manufacturers and employees for an illegal precursor distribution scheme using crypto transactions to conceal identities. Wallets for Bitcoin, Ether, USD Coin, Tether, and Tron were added to the sanctions list, aimed at disrupting the illicit drug network responsible for a significant number of deaths in the US.

Crypto and Web3 projects experienced a 153% increase in attack incidents in Q3 2023 compared to the same period in 2022, with 76 attacks resulting in nearly $686 million in losses, per Immunefi. DeFi hacks accounted for 72.9% of losses, Ethereum and BNB Chain were the most targeted networks, and the Lazarus Group was responsible for 30% of stolen crypto in Q3.

The Bank for International Settlements (BIS) conducted an experimental cross-border trading test using wholesale Central Bank Digital Currencies (CBDCs) and DeFi technology. In collaboration with central banks from France, Singapore, and Switzerland, the experiment called "Project Mariana" explored the use of wCBDCs for settlement, utilizing blockchain and automated market makers. The BIS clarified that this was a purely experimental project, and it doesn't imply immediate plans for issuing wCBDCs or adopting DeFi technology by the participating countries.

Also read - 24 Crypto Update, 03 Oct: Crypto market continues its downward trend

WHAT'S YOUR OPINION?
Related News
Related Blogs