💰 The US Gov has a HUGE Bitcoin stash

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Good Morning!

In the ongoing high-profile SBF trial, now in its third week, the defense has raised concerns about SBF's ability to focus without adequate access to Adderall. Meanwhile, Bitcoin experienced a notable price surge this morning, driven by the latest updates on a potential approval of a BTC ETF in the near future (Yes - We’ve been hearing this for months 😴 ).

Let’s talk Whales 🐋 . Justin Sun, the founder of Tron, has emerged as the leading individual stakeholder of ETH, holding an impressive 282,796 ETH, as reported by. Another surprising big holder, the United States currently holds a substantial Bitcoin holding, amounting to approximately 200,000 BTC, establishing itself as one of the world's largest Bitcoin stashes.

Markets

Bitcoin Jumps to Near $28K as Bulls Bet on ETF Approval (2 minute read)
On Monday during the Asian morning hours, Bitcoin experienced a notable 4.5% price surge, fueled by optimism surrounding the potential approval of a bitcoin exchange-traded fund in the near future. The cryptocurrency traded just below $28,000, recovering all losses from the previous week. This rise seemed to follow a trend set on Friday, prompted by the U.S. Securities and Exchange Commission's decision not to contest a recent Grayscale ruling. The SEC appears to have decided against appealing a court's reversal of the decision regarding Grayscale's bitcoin trust, potentially paving the way for the first U.S.-based bitcoin ETF.

Justin Sun became largest individual ETH staker (2 minute read)
Justin Sun, the founder of Tron, has emerged as the leading individual stakeholder of ETH. As reported by journalist Colin Wu, an address associated with Justin Sun is likely the biggest individual staker of ETH, with the wallet currently holding 282,796 ETH (approximately $447 million as of the current time) staked on Lido. Earlier this month, Sun had already unstaked $32.4 million worth of ETH, and on Oct. 4, he withdrew 19,999 staked ETH from Lido Finance, subsequently transferring them to the Binance exchange. This activity suggests the possibility that Sun may have sold or intends to sell these digital assets in the near future.

US Gov Holds Big Bitcoin Stash, But No Rush to Liquidate (3 minute read)
The United States government currently possesses a significant Bitcoin holding of approximately 200,000 BTC, making it one of the world's largest Bitcoin stashes. However, there is a notable lack of urgency in converting this substantial holding into liquid assets, unintentionally adopting the position of a patient "hodler." The total value of Bitcoin held by the federal government is estimated at around $5.4 billion, and if sold, this substantial amount could significantly impact the cryptocurrency market and escalate selling pressures. A recent Wall Street Journal report on October 15 highlighted the government's cautious approach towards converting its Bitcoin holdings into dollars, describing the US as being historically slow in this regard. Jarod Koopman, the executive director of the IRS’s cyber and forensics services section, emphasized their methodical approach, stating, “We don’t play the market. We basically are set by the timing in our process.”

Tech

Mining BTC is harder than ever (4 minute read)
As the next automated readjustment in Bitcoin mining difficulty approaches on Oct. 16, data from monitoring source BTC.com indicates that the Bitcoin difficulty is anticipated to reach new all-time highs. This trend aligns with the pattern seen throughout 2023, a year marked by consistent records in both difficulty and mining hash rate. The forthcoming difficulty increase may rank among the top three year-to-date, nearing a 7% rise. However, the combination of high difficulty and relatively moderate BTC prices raises concerns about miner profitability, with growing expenses per Bitcoin leading to periodic inquiries regarding miners' ongoing incentives. Additionally, next year's block subsidy halving is expected to reduce the BTC received per mined block by 50%, adding to considerations about future profitability.

Social finance apps Tomo and New Bitcoin City break above $1 million in TVL (2 minute read)
The social finance protocols Tomo and New Bitcoin City have each surpassed $1 million in total value locked (TVL) within their respective smart contracts, according to DefiLlama. Both protocols share similarities with FriendTech, a pioneering project in this emerging space that blends social media with finance. FriendTech introduced the concept of gated communities, where users purchase keys to access group chats, and the price of these keys increases with each purchase. Currently, Tomo and New Bitcoin City are the only other two platforms with over $1 million in TVL, apart from the dominant FriendTech, which maintains a TVL of $43.7 million. Another platform, StarsArena on Avalanche, previously had over $1 million in TVL before a hacking incident, but it is set to reopen today, with trading scheduled for a later date.

Misc

Sam Bankman-Fried Can't Focus Without His Medication
On Sunday, lawyers representing Sam Bankman-Fried, the founder of FTX, formally requested access to his prescribed medication, Adderall, during his ongoing fraud trial, citing his struggle to concentrate without it. Bankman-Fried has been diagnosed with attention-deficit hyperactivity disorder (ADHD) and was prescribed Adderall for daily use. However, during the two-week trial period, he has only been allowed to take the medication once in the early morning before attending court. The defense expressed concerns that this limited access to Adderall has affected Bankman-Fried's ability to focus adequately during the trial, particularly as the defense phase approaches and decisions about his testimony are crucial.

Crypto hiring: Staffing shake-ups at Gemini, Ripple and more (2 minute read)
Gemini made significant strides this week with a prominent hiring announcement, appointing Sachin Ranglani to lead its Indian subsidiary and serve as a vice president at the cryptocurrency exchange, focusing on the Indian market. Ranglani, with prior experience at Uber and Amazon, notably served as the senior vice president of product management at Indian fintech firm Paytm for three years. In contrast, Ethereum transaction tool monitor Blocknative faced challenges, revealing a reduction in its workforce by approximately 33%. Despite this setback, Blocknative plans to continue its current services and aims to introduce new features by year-end.

Secret audio, a star witness, and ‘Thai prostitutes’ complicate Sam Bankman-Fried’s defense (4 minute read)
In the ongoing trial, now in its third week and anticipated to last four to six weeks, the prosecution has presented a considerable amount of evidence that appears incriminating against the former crypto tycoon, Sam Bankman-Fried. The defense has yet to present its own witnesses and has faced challenges in cross-examining the government's witnesses, some of whom implicated Bankman-Fried in a long-running conspiracy involving customer theft, investor fraud, and efforts to conceal these actions. Bankman-Fried, aged 31, maintains a not guilty plea against the seven counts of fraud and conspiracy leveled against him. A pivotal prosecution witness is Caroline Ellison, 28 years old, and the former CEO of Alameda during its collapse, with a personal history of an on-and-off relationship with Bankman-Fried.

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