👨‍💼 Will the Next President be Pro Crypto?

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Good Morning!

Another week, another Crypto hack. This time, Mixin, a decentralized wallet service was the victim, losing over $200M and so far only being able to return half of customers funds.

The markets have been shaky the past couple of days, with Bitcoin failing to see further momentum after last weeks increase in price. Investors are preferring less risky assets like Bonds over stocks and crypto whilst interest rates remain high.

Let’s dive in! 👇️ 

Markets

Bitcoin Price Erases September Gains—What Could Happen This Week (3 minute read)
Last week, Bitcoin experienced a bounce in price, but it couldn't maintain momentum, raising uncertainty regarding the potential for a bullish trend reversal that seemed to initiate two weeks earlier. Their is importance in the $24,800 range. This level has historically functioned as both resistance and support since July 2022, making it a critical zone. If the price doesn't close below this level, there's a possibility that the recent decline is merely a retest, confirming it as a supportive zone. However, the cryptocurrency's inability to sustain the upward movement was evident last week, as despite reaching a local high of $27,486, the price showed a long upper wick and closed bearishly, signaling a shift in momentum from bulls to bears.

Presidential hopefuls are getting louder on crypto issues, at least for now (3 minute read)
Cryptocurrencies have gained notable traction as a prominent subject in the early stages of the 2024 US Presidential election, though this surge of interest may wane as the primaries progress. Several Republican candidates eyeing the nomination, such as Vivek Ramaswamy and Florida Governor Ron DeSantis, have shown a positive stance on the digital asset realm. Ramaswamy has appealed to crypto-friendly voters by consistently expressing dissatisfaction with non-elected officials, including US Securities and Exchange Commission Chair Gary Gensler. He criticized agencies like the Federal Reserve and SEC, highlighting issues with personnel suitability. Similarly, DeSantis has entered the crypto dialogue, relating digital asset concerns to familiar Republican grievances. At a July 2024 conference, he criticized a central bank digital currency for its privacy shortcomings and pledged to halt "Biden’s war on Bitcoin and cryptocurrency.”

Bitcoin and S&P 500 Eye Quarterly Loss as Bonds Look Most Attractive Since 2009 (2 minute read)
Bitcoin and the S&P 500, a key indicator of Wall Street's performance, seem poised to conclude the third quarter on a lower note, driven by a significant metric favoring bonds over stocks and general risk assets—a trend not seen since 2009. As of the latest data, the leading cryptocurrency, Bitcoin, has traded at $26,100, marking a 14% decline for the third quarter if the losses persist through September 30. Concurrently, the S&P 500, a critical measure for risk assets globally, including cryptocurrencies, recorded a nearly 3% drop for the same quarter, closing at $4,320.05 on Friday. Treasury securities, seen as risk-free due to the backing of the U.S. government, present a comparatively higher return, reinforcing their appeal for investors.

Tech

Inscription Craze Leaves Thousands of Bitcoin Transactions Unconfirmed (3 minute read)
Over time, Bitcoin's network has frequently experienced prolonged transaction queues awaiting confirmation, leading to a surge in fees and causing concern within the crypto community and beyond. Presently, the network is grappling with another episode of congestion, as noted by Bitcoin on-chain analyst Willy Woo, who pointed out that the mempool—the queue of unconfirmed transactions—is now at its peak since BTC data recording began. Though fees are not currently as exorbitant as during the intense activity of early May, the network has struggled to clear the mempool, sustaining ongoing congestion.

Mixin Network founder says just half users' assets are safe after $200 million hack (2 minute read)
Mixin Network, a decentralized wallet service that recently fell victim to a $200 million hack, is currently able to guarantee the safety of only half of its users' assets, according to its founder, Feng Xiaodong. Regardless of the asset type, be it Bitcoin or Ethereum, the platform is committed to safeguarding at least half of the user funds. Feng explained in a livestream that recovering the compromised funds poses a significant challenge. As a short-term solution, the company intends to secure half of the total user assets unaffected by the hack. Regarding the remaining assets, Feng mentioned that the team is exploring the possibility of issuing "bond tokens" to affected users, with plans for Mixin to repurchase them at a later date.

Misc

Former SEC attorney John Reed Stark urges DOJ to ‘wake up’ and prosecute crypto-grifters (4 minute read)
John Reed Stark, a former SEC attorney with extensive experience in cyber-related investigations, advocates for Department of Justice prosecution as a crucial measure to tackle fraudulent activities in the crypto space. Stark emphasizes that crypto scammers often perceive regulatory enforcement lightly and points out a concerning lack of DOJ prosecutions in cases related to crypto fraud compared to the proactive actions taken by the SEC. He finds this situation perplexing. Furthermore, Stark raises concerns about the cryptocurrency industry's major stakeholders and companies, singling out Binance, Coinbase, and Gemini's Tyler Winklevoss for their attitudes towards SEC actions. Despite facing SEC lawsuits, Stark notes that Coinbase and Binance have seemingly disregarded the legal actions, even wearing them as "badges of honor," while Winklevoss described the SEC's lawsuit against Gemini as "super lame."

Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal (3 minute read)
The Securities and Futures Commission, a prominent financial regulator in Hong Kong, has announced its heightened commitment to tackling unregulated cryptocurrency trading platforms within its jurisdiction. The SFC's recent declaration on September 25 outlines plans to publish a comprehensive list comprising licensed, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs). This initiative aims to assist the public in identifying potentially unregulated VATPs operating in Hong Kong. Additionally, the SFC will maintain a dedicated list of "suspicious VATPs," easily accessible on their website, in response to the recent JPEX crypto exchange scandal—a financial fraud case described by local media as one of the region's most severe. JPEX has been accused of promoting its services to Hong Kong residents without acquiring the necessary licensing.

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