After a landslide election on July 4 favoring the UK Labour Party over the Conservatives, Prime Minister Keir Starmer has started making appointments to the new government, including Member of Parliament Tulip Siddiq.

In a July 9 announcement, PM Starmer appointed Siddiq as Economic Secretary to the Treasury and City Minister, putting her in charge of many policies affecting the regulation of digital assets and central bank digital currencies in the UK. Siddiq, who held the role of Shadow City Minister and Shadow Economic Secretary while Conservatives were the primary ruling party, made statements suggesting that she would implement stricter rules on cryptocurrency.

In a May 2023 New Statesman op-ed, Siddiq urged UK lawmakers to introduce a “comprehensive, all-of-government framework to address the emerging risks and opportunities posed by crypto assets,” following the example in the United States. She compared the Conservative government’s approach to crypto to the “Wild West,” calling for regulation and protection against scammers.

“A Labour government would be serious about attracting fintech companies to the UK and safely harnessing the progressive potential of crypto technology,” said Siddiq. “But it’s time to reject the arguments of the libertarian right and properly regulate the sector.”

Source: Tulip Siddiq

Crypto under Labour?

In 2022, the self-regulatory trade association CryptoUK rated Siddiq as one of the top ten UK lawmakers who spoke about crypto and blockchain in the House of Commons. Nigel Green, CEO of financial consultancy firm deVere Group, claimed that the economic secretary “would transform the UK into a global centre for tokenized assets” after a Labour victory.

It’s unclear where digital assets may fall in the Labour government’s priorities. Under PM Starmer, the UK government announced it would first be scrapping the Conservatives’ policy of deporting asylum seekers to Rwanda. Cointelegraph reached out to Siddiq but did not receive a response at the time of publication.

“Labour will prioritize housing and the NHS,” said Hedge Fund Tyr Capital chief investment officer Edouard Hindi. “Development of the Web3 regulatory infrastructure will most probably be put on hold until the new government decides what the UK’s new crypto policy should be.”

Labour won 411 seats in the 650-seat House of Commons following the election, while the Conservatives won 121 seats. However, certain crypto-friendly UK lawmakers, including Lisa Cameron — the MP for East Kilbride, Strathaven and Lesmahagow — stood down after the election announcement in May.

In the United States, the general election set for November 2024 could similarly shake up digital assets and blockchain policy depending on which political party gains control of the House of Representatives, the Senate, and the Presidency. On July 9, the tech trade group Chamber of Progress wrote to President Joe Biden asking him to “provide the regulatory clarity” on crypto that voters want.

Magazine: Decade after Ethereum ICO: Blockchain forensics end double-spending debate

Trading platform Abra reportedly purchased Valkyrie’s private crypto trusts in May 2024, ahead of a settlement between the crypto trading platform and 25 state financial regulators in the United States.

According to Bloomberg, Abra took over Valkyrie’s Tron (TRX) and Zilliqa trusts, which saw previous sales of $50 million and $21.3 million respectively. In addition to TRON and Zilliqa, Abra purchased several other unnamed digital asset trusts from Valkyrie.

Marissa Kim, Abra's head of asset management, also told the financial outlet that the trading platform could list the trusts on public exchanges, should market demand grow for the investment vehicles.

Abra comes under regulatory scrutiny

In 2023, Texas state regulators accused Abra of insolvency and securities fraud. The Texas State Securities Board claimed the company had been insolvent since March of 2023 and issued a cease and desist order against the exchange in June of that year.

Fast forward to January 2024, Abra entered into a deal with the Texas State Securities Board. As part of the agreement to wind down operations, Abra agreed to notify all investors with balances over $10 that funds should be withdrawn, with any remaining funds to be liquidated into fiat and returned to Texas investors.

At the time, Abra founder Bill Barhydt maintained that the trading platform had never restricted US withdrawals and reiterated the company’s commitment to winding down retail operations within the United States.

In 2024, the trading platform continued to face mounting pressure from various state regulators, who accused it of operating without licensing. This culminated in an eventual settlement with 25 states.

Related: Abra, CEO Barhydt settle with 25 US states over licensing violations

Valkyrie offloading businesses

Earlier in 2024, CoinShares announced it acquired Valkyrie's ETF business and the advisory arm of the financial firm, Valkyrie Investments.

CoinShares also announced that it would rebrand the Valkyrie business assets under the CoinShares brand as part of the firm’s US expansion goals. 

Magazine: Lark Davis on fighting social media storms, and why he’s an ETH bull: Hall of Flame

Issuers of spot Ethereum exchange-traded funds (ETFs) expect to receive final approval from regulators imminently, according to an industry source familiar with the matter. This would set the stage for Ether (ETH) ETFs to start listing as soon as next week. 

Spot ETF issuers expect to receive final comments from the United States Securities and Exchange Commission (SEC) by early next week, and possibly as soon as July 12, according to the source, who declined to be identified as their discussion with issuers were private.

Several issuers—including Van Eck and 21Shares—filed amended registrations this week in hopes of receiving the SEC’s final signoff to begin listing spot ETH ETFs. In all, some eight spot issuers are awaiting regulatory approval.

Analysts expect that ETH ETFs could attract billions of dollars of inflows in the months after listing, potentially driving significant appreciation of Ether’s spot price. According to crypto analyst Mark Dunleavy, ETH is “less available on exchanges, mean[ing] thinner order books and less to purchase,” and thus ETH’s spot price will be even more responsive to buying demand from ETFs than BTC’s.

Related: Ethereum ETF inflows could hit $10B, sending ETH to new highs — Analyst

One significant source of demand is crypto-native hedge funds, which have self-custodied billions of dollars worth of spot ETH for years and are now reaching out to institutional market makers, such as Virtu Financial, to swap those holdings for ETF shares, according to the source.

The source said upward of a dozen crypto-native funds with total assets under management exceeding $1 billion each have expressed interest in such an exchange.

Once listed, the spot ETH ETFs will complement an existing slate of publicly traded crypto funds, including the approximately a dozen spot Bitcoin (BTC) ETFs that began trading after receiving regulatory clearance in January.

More than $15 billion worth of BTC is currently held by ETFs. Dunleavy predicts that ETH ETFs could attract up to $10 billion in inflows in the coming months. Spot Solana (SOL) ETFs may soon join the ranks as well, with at least two that could begin trading early next year.

Magazine: Decade after Ethereum ICO: Blockchain forensics end double-spending debate

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

This past week, significant new developments were announced by industry-leading Web3 firms, including MetaMask, Polygon and StarkNet. Each revealed promising new infrastructure developments that could bolster mainstream adoption.

On the downside, cryptocurrency hacks continue eroding mainstream trust, as total hacked funds surpassed $1.4 billion in 2024 — not because of DeFi protocols but mainly because of centralized exchanges (CEXs).

Are centralized exchanges becoming the main target for crypto hackers? A 900% year-over-year increase in losses incurred by CEXs suggests so.

Crypto thefts surpass $1.4 billion in 2024 as centralized exchanges become the main target

According to cybersecurity firm Cyvers’ mid-year Web3 security report, the total volume of stolen crypto funds in 2024 is approaching $1.4 billion as centralized exchanges emerge as the new ground zero for exploits.

In the second quarter of 2024, total crypto losses exceeded $600 million, marking a 100% increase over the same period in 2023. The surge in stolen funds was driven primarily by a 900% increase in losses on centralized exchanges, according to the report.

“This quarter has witnessed a significant shift in attack vectors, with centralized exchanges (CEX) bearing the brunt of major incidents, while decentralized finance (DeFi) protocols show improved resilience,” the report stated, adding, “This trend may be attributed to the concentration of assets in centralized platforms and potentially lax security measures in some exchanges.”

Continue reading

Starknet to introduce staking in Q4 2024

Eli Ben-Sasson, the CEO of StarkWare, announced at EthCC on July 10 that the company plans to introduce staking by the end of 2024 through a Starknet improvement proposal (SNIP).

If the community approves the SNIP, Starknet staking is expected to go live on testnet soon, followed by the mainnet launch in the fourth quarter.

A GitHub repository for the new staking feature will be publicly available throughout the development process.

In a written Q&A with Cointelegraph, Ben-Sasson explained that staking would enable Starknet tokenholders to “participate in core activities of a decentralized network.”

Continue reading

MetaMask unveils toolkit to ease Web3 onboarding

Consensys unveiled the MetaMask Delegation Toolkit at EthCC, marking a significant milestone in the company’s efforts to promote Web3 and blockchain adoption.

According to a press release shared with Cointelegraph, the toolkit enables developers to create decentralized applications (DApps) and protocols that offer new user experiences.

The MetaMask toolkit will be available on any Ethereum Virtual Machine (EVM) chain supported by a user operation bundler, including Arbitrum, Avalanche, Base, Linea, Optimism and Polygon.

Continue reading

SingularityNET and Filecoin partner for AI and DePIN

SingularityNET, an artificial intelligence platform developer, and the Filecoin Foundation, the governance body behind the Filecoin network, have announced a collaborative partnership.

The partnership aims to integrate the AI and decentralized physical infrastructure network (DePIN) industries while maintaining decentralization, AI ethics and data provenance.

According to an official press release shared with Cointelegraph, the partnership will also establish an AI ethics working group to ensure that AI development and deployment adhere to ethical practices.

Continue reading

TON Application Chain and Polygon team up to launch new TON L2

The TON Application Chain (TAC) and Polygon Labs are set to bring EVM functionality to the TON ecosystem.

In a July 9 announcement, the TON Application Chain and Polygon announced that the TON L2 had integrated Polygon CDK and the interoperability protocol AggLayer to bring EVM-compatible DApps to TAC.

It aims to increase the range of applications available to the TON network’s users, including DeFi, gaming and identity solutions.

Continue reading

DeFi market overview

The majority of the 100 largest cryptocurrencies by market cap have ended the week in the green, as shown by data from Cointelegraph Markets Pro and TradingView.

Out of the top 100, Telegram-based gaming token Notcoin (NOT) logged the biggest weekly gain of over 46%, followed by the Celestia (TIA) token, which is up over 38% on the weekly chart.

NOT and TIA, 1-week chart. Source: Cointelegraph

However, investor sentiment eroded over the past week, as the crypto Fear & Greed index fell to 25, signaling “extreme fear,” down from last week’s 29. Investor sentiment remains pressured by Bitcoin (BTC) trading under the important $60,000 psychological mark.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

After hitting a four-year low, XRP (XRP) appears on the brink of a comeback against the Bitcoin (BTC) trading pair. Fueling this optimistic turnaround is the emergence of a classic bullish pattern, namely the triple bottom formation.

XRP eyes a 30% rebound versus Bitcoin

A triple bottom pattern develops when the price forms three distinct lows, all reaching a similar price level, thus indicating strong support.

Triple bottom trend reversal illustrated

After the third low, the price breaks above the neckline resistance level formed between the lows and, as a rule of technical analysis, rises by as much as the maximum distance between the pattern's lowest point and the neckline.

As of July 12, the  XRP/BTC pair was testing its neckline support of around 793 satoshis (1 satoshi = 0.00000001 BTC) for a potential breakout.

XRP/BTC weekly price chart. Source: TradingView

Additionally, the pair's weekly Relative Strength Index (RSI) reading of around 36 indicates that XRP is undervalued versus Bitcoin, further boosting its recovery potential in the coming weeks. That said, a decisive close above 793 satoshis will likely push XRP/BTC toward its triple bottom target of around 1,055 satoshis.

Conversely, a pullback from the neckline resistance, akin to similar retreats in recent history, risks pushing XRP/BTC toward its local bottom of 664 satoshis—down by over 15% from the current prices—by August.

Bitcoin’s 20% drawdown benefiting XRP price

XRP's renewed strength versus Bitcoin primarily comes in the wake of the German government's relentless selling of its BTC holdings in July. For context, the wallets associated with the government have witnessed 46,200 BTC in outflows since mid-June, amounting to around $2.69 billion worth of potential sell-pressure.  

German government's Bitcoin wallet balance. Source: Arkham Intelligence

Furthermore, the ongoing reimbursement of over 140,000 BTC to Mt. Gox creditors has reduced traders’ appetite for Bitcoin with the XRP/BTC pair up over 20% in July.

Bitcoin dominance overall has slipped to 54.55% on July 12 from highs of 55.46% a week ago, suggesting that traders could be rotating into altcoins while the BTC price consolidation period plays out. 

Bitcoin Dominance Index daily performance chart. Source: TradingView

Looking broadly, XRP is relatively underbought versus most of the top-ranking crypto assets so far in 2024, with its year-to-date returns sitting around -26.50%.

The weekly Relative Strength Index (RSI) for XRP/BTC is rebounding after hitting its lowest level in two years at around 33, just three points above the oversold threshold. Historically, when XRP's weekly RSI last reached 33, it was followed by an impressive 194% rally, suggesting a potential for significant upward movement this time as well.

XRP/USD weekly price chart. Source: TradingView

In comparison, BTC’s weekly relative strength is in a correction mode, having declined from a very overbought level of 88 in March to a neutral level of 45.50 as of July 12.

BTC/USD weekly price chart. Source: TradingView

This decline indicates that Bitcoin's bullish momentum has significantly weakened in the past two months, which may benefit "underbought" big-cap altcoins like XRP in the coming weeks. XRP may reap additional benefits from the growing buzz around its "inevitable" exchange-traded fund (ETF) launch. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin (BTC) bounced off the $56,500 support on July 12, indicating demand at lower levels. Institutional investors are viewing the dips in Bitcoin as a buying opportunity. According to the onchain analytics platform CryptoQuant, institutional investors have acquired 100,000 Bitcoin in new purchases in a week.

A positive sign for the bulls is that much of the German government’s Bitcoin selling is over. Traders will next keenly watch the selling by the creditors of the Mt. Gox exchange after they receive their repayments. Bitcoin may start a recovery if the selling is subdued, but if the creditors dump their holdings, the price may remain under pressure for some more time.

Crypto market data daily view. Source: Coin360

Bitcoin’s failure to start a strong relief rally has halted the recovery in several altcoins, but the bulls have not ceded much ground to the bears. This suggests that the buyers are holding on to their positions as they anticipate the up move to continue.

Will the selling pressure in Bitcoin and altcoins reduce? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

The bulls tried to push Bitcoin above the 20-day simple moving average ($59,650) on July 11, but the bears held their ground. This shows that the sentiment remains negative, and traders are selling on rallies.

BTC/USDT daily chart. Source: TradingView

The onus is on the bulls to guard the zone between $56,552 and $53,485. If the price turns up sharply from the support zone, it will signal solid buying on dips. The bulls will have to overcome the barrier at the 20-day SMA to reduce the selling pressure. The BTC/USDT pair could then rise to the 50-day SMA ($64,532).

This optimistic view will be invalidated in the near term if the price continues lower and breaks below $53,485. If that happens, it will signal the start of a downtrend. The pair could plummet to $50,000, where the bulls will try to arrest the decline.

Ether price analysis

The long wick on Ether’s (ETH) July 11 candlestick shows that the bears are selling the rallies to the 20-day SMA ($3,239).

ETH/USDT daily chart. Source: TradingView

The bears will try to pull the price to $2,850, which is an important level to watch out for. Buyers are expected to defend the level with vigor. If the price rebounds off $2,850, the bulls will make another attempt to clear the hurdle at the 20-day SMA. If they succeed, it will suggest the start of a sustained recovery to the 50-day SMA ($3,499).

If bears want to strengthen their position, they will have to yank the price below $2,850, which might be a difficult task. If this level cracks, the selling could intensify and the ETH/USDT pair may plunge to $2,200.

BNB price analysis

BNB (BNB) turned down from the 20-day SMA ($547) on July 11, indicating that the bears are aggressively defending the level.

BNB/USDT daily chart. Source: TradingView

The bears will try to pull the BNB/USDT pair to $495, which is an important level to keep an eye on. If the price rebounds off $495 will suggest that the bulls are trying to put in a higher low. That will improve the prospects of a break above the 20-day SMA.

Contrary to this assumption, if the price breaks below $495, it will suggest that the bears are maintaining their pressure. The pair could then drop to $460, which is likely to attract strong buying by the bulls.

Solana price analysis

The bulls are finding it difficult to push Solana (SOL) above the 50-day SMA ($150), indicating that the bears are unwilling to give up.

SOL/USDT daily chart. Source: TradingView

The SOL/USDT pair could remain stuck between $116 and the 50-day SMA for some time. If the price skids below $116, it will complete a bearish descending triangle pattern. That may start a downward move to $100 and later to $80.

Instead, if the price turns up and breaks above the 50-day SMA, it will signal the start of a relief rally to the downtrend line. The bears will try to stall the recovery at the downtrend line, but if the buyers bulldoze their way through, it will invalidate the bearish setup.

XRP price analysis

XRP’s (XRP) pullback reached the 50-day SMA ($0.49) on July 12, where the bears sold aggressively, as seen from the long wick on the day’s candlestick.

XRP/USDT daily chart. Source: TradingView

If the price rebounds off $0.46, it will suggest a change in sentiment from selling on rallies to buying on dips. That will enhance the prospects of a break above the 50-day SMA. The XRP/USDT pair could then attempt a move to $0.53.

Conversely, if the price slips and maintains below $0.46, it will signal that the bears remain active at higher levels. The pair may then gradually decline toward the crucial support at $0.41. The bulls are expected to aggressively defend the $0.46 to $0.41 zone.

Dogecoin price analysis

Dogecoin (DOGE) is consolidating in a downtrend. The price is stuck between the breakdown level of $0.12 and the psychological support at $0.10.

DOGE/USDT daily chart. Source: TradingView

The downsloping moving averages and the RSI in the negative territory indicate advantage to bears. A break and close below $0.10 will embolden the bears who will try to sink the DOGE/USDT pair to $0.08.

The $0.12 resistance is the crucial level to watch out for on the upside. If this level is scaled, it will suggest the start of a strong recovery. The 50-day SMA ($0.14) may act as a hurdle, but it is likely to be crossed.

Toncoin price analysis

Toncoin (TON) has been trading near the 20-day SMA ($7.48), indicating that the bulls are maintaining their buying pressure.

TON/USDT daily chart. Source: TradingView

If bulls propel the price above the 20-day SMA, the TON/USDT pair could rise to $7.72 and thereafter attempt a rally to $8.29. This level is expected to attract strong selling by the bears who will try to keep the price inside the $6.77 to $8.29 range.

Contrarily, if the price turns down from the 20-day SMA, it will signal that the bears are fiercely defending the level. A break and close below $6.77 will complete a double top pattern, opening the gates for a drop to $6 and then to $5.50.

Related: Key BTC price levels emerge as Bitcoin hits $58K on 'sticky' US PPI

Cardano price analysis

Cardano (ADA) has reached the resistance line of the descending channel, indicating that the bulls are attempting a comeback.

ADA/USDT daily chart. Source: TradingView

The 20-day SMA ($0.39) is flattening out, and the RSI is just above the midpoint, signaling that the selling pressure is reducing. If buyers shove the price above the 50-day SMA ($0.41), it will signal a short-term trend change. The ADA/USDT pair could then attempt a rally to $0.50.

This positive view will be negated if the price turns down sharply from the resistance line and breaks below the 20-day SMA. That could pull the price down toward the support line of the channel.

Avalanche price analysis

Avalanche (AVAX) has been trading between $27.50 and $24.50 for the past few days, but this tight range trading is unlikely to continue for long.

AVAX/USDT daily chart. Source: TradingView

If buyers kick and sustain the price above the 20-day SMA, the AVAX/USDT pair could rise to the 50-day SMA ($30.39). This level may offer resistance, but if the bulls prevail, the pair could surge to $34 and subsequently to $37.20.

Alternatively, if the price turns down and breaks below $24, it will signal that the bears are in command. The pair may retest the July 5 low of $21.80. If this level cracks, the pair could plummet to $19.

Shiba Inu price analysis

The bears have not allowed Shiba Inu (SHIB) to rise above the 20-day SMA ($0.000017), indicating selling on rallies.

SHIB/USDT daily chart. Source: TradingView

The downsloping moving averages and the RSI in the negative territory suggest that the bears have the edge. A break below $0.000015 will open the doors for a possible drop to $0.000012 and eventually to $0.000010.

The bulls are likely to have other plans. They will try to drive the price above the 20-day SMA and start a rally to the breakdown level of $0.000020. This level may again witness a tough battle between the bulls and the bears.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The United States Securities and Exchange Commission (SEC) has dropped a three-year investigation into Hiro Systems, the developer of Bitcoin’s Stacks layer-2 blockchain, which raised $70 million from token sales between 2017 to 2019, according to a July 12 regulatory filing. 

Hiro, which was previously called Blockstack, began treating its native token, STX, as a security under U.S. law since  its launch in 2018.

“Based on the information we have as of this date, we do not intend to recommend an enforcement action by the Commission against Hiro Systems PBC, formerly known as Blockstack PBC,” according to a letter from the regulator included in the Friday filing.

 Regulation D and S exemptions for private and foreign offerings, respectively.

However, in 2021, Hiro argued that the Stacks blockchain had become sufficiently decentralized that the company no longer qualified as a securities issuer. “Management concluded further that if Hiro is no longer in the position of providing, and will no longer be able to provide, essential managerial services to the Stacks Blockchain, then it is no longer necessary for Hiro to treat the Stacks Tokens as investment contracts that are securities under the federal securities laws,” the company said in a filing

Performance of the STX token since launch. Source: Coinmarketcap

This is the second crypto-related investigation the US regulator has dropped this week. On July 11, Paxos announced that the SEC decided against taking enforcement action against the Web3 infrastructure platform in connection with its investigation of the Binance USD (BUSD) stablecoin.

Related: SEC will not pursue enforcement action against Paxos

The SEC is still pursuing enforcement actions against firms including Ripple, Binance, Kraken and Coinbase. However, a series of recent court rulings—including a landmark Supreme Court ruling in June—have significantly curtailed the regulators’ ability to take a hardline stance against alleged violations among crypto issuers.

The Supreme Court’s Loper Bright v Raimondo decision overruled the so-called Chevron Doctrine, which previously provided regulators such as the SEC with broad latitude in determining how to enforce existing laws. The SEC also experienced setbacks in actions against Ripple and Binance in 2023 and 2024, respectively, when judges ruled against claims that the companies had violated securities laws.

Magazine: ‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters

In a newly released and otherwise crypto-friendly portion of its 2024 platform, the Republican Party echoed a common concern about a potential United States central bank digital currency (CBDC): the possibility that this might take the form of a privacy-invading state surveillance mechanism. What we should be more concerned about is a CBDC built on technical rails that can be infiltrated and exploited by our adversaries.

Despite political opposition, a CBDC in this country is a realistic future possibility. Interest is growing steadily among central banks and financial institutions worldwide. Designing one that is resilient to a cyberattack based on what’s known as Shor’s algorithm — a powerful tool set to become much more practical as quantum computing takes hold in the coming years — is a matter of vital interest. Without post-quantum technology underpinning the future of our monetary system, the country’s economic security and financial privacy is vulnerable to foreign interference.

As a digital liability of the Federal Reserve, a CBDC would be comparable to a digital version of a dollar bill. From a credit and liability risk standpoint, such an innovation would be the safest of its kind in the kaleidoscope of digital assets available to the general public. In theory, it would exist alongside fiat currency, commercial bank money, and privately issued digital assets, thereby adding a weighty, government-backed option to a diversity of payment choices for the public.

Proposed 2024 Republican platform on CBDCs and cryptocurrency. Source: X

In the United States, there have been only a few attempts at designing a theoretical central bank digital currency. One of the first design tests was piloted by the Massachusetts Institute of Technology’s Digital Currency Initiative in 2022 in collaboration with the Federal Reserve Bank of Boston. Another pilot project was completed in late 2023 by The Digital Dollar Project, Western Union, Accenture, and BDO Unibank.

Related: Bahamians didn't want CBDCs — So now they're being forced to use them

The technical rails of these two pilot projects were built using distributed ledger technology and custom, high-performance blockchain architectures, both of which rely on public key cryptography — a system that uses a public database of keys and signatures to verify identities and encrypt messages. The problem is that this type of cryptography relies on algorithms that are vulnerable to quantum computing attacks.

Quantum computing is as complex as it sounds. Relying on quantum mechanics phenomena, it far outpaces the ability of classical computers and supercomputers to solve complex algorithms in both speed and capability. Public-key cryptography is one of its primary targets.

Thus, it’s alarming that developers of CBDCs are not prioritizing quantum-resistant designs in their early technical roadmaps. As RAND mathematician Alvin Moon noted, "A steady stream of advances in quantum computing technology is undeniably increasing the urgency to standardize and implement post-quantum algorithms, or algorithms which are resistant to both present-day computing and on-the-horizon quantum computing."

Related: 'Privacy-minded' CBDCs are a wolf in sheep’s clothing

This security flaw represents a serious vulnerability in the U.S. monetary system if central bank digital currencies are eventually adopted by the Federal Reserve and authorized by Congress. , Valid concerns of surveillance and potential harms to civil liberties are driving debates and may positively influence laws, regulations, and ethical governance standards. Technical designs continue to evolve, albeit slowly, to address privacy risks. However, without secure and resilient technical rails, CBDC adoption will remain a serious risk. A potential breach of our monetary system and access to Americans’ personal data and private financial records would be a national security threat of the first order.

The good news is that frameworks for post-quantum research and development are already underway. For example, the National Quantum Initiative Act (Quantum Act) was signed into law in 2018 “to accelerate quantum research and development for the economic and national security of the United States.” The National Quantum Initiative engages in educational training, collaborations in quantum information science with international partners, and in research opportunities funded by DARPA and the Department of Energy.

The Cybersecurity and Infrastructure Security Agency (CISA) developed a “Quantum Readiness“ roadmap in 2023. Source: CISA

A “Quantum Readiness“ roadmap was also introduced in late 2023 by the Cybersecurity and Infrastructure Security Agency (CISA), which lays out a strategy for organizations to migrate away from public key cryptography and to a post-quantum standard for critical infrastructure. To complement these efforts, the National Science Foundation is in the process of implementing a National Quantum Virtual Laboratory program.

Despite these initiatives — and despite that the Federal Reserve has acknowledged that quantum computing should be an important technical consideration — there is no evidence of post-quantum research and development specifically addressing a central bank digital currency design.

Meanwhile, there have been legislative efforts to ban research and development for a central bank digital currency. That’s not the answer, either. The very opposite needs to happen. To take our post-quantum future seriously, America needs to invest in research, technical development, and testing of a central bank digital currency with post-quantum design features.

While much attention is being spent on enemies at home, let’s not forget about our adversaries abroad.

Agnes Gambill West is an affiliate senior research fellow with the Mercatus Center at George Mason University. She's the co-chair of the North Carolina Blockchain Initiative, an appointee to the North Carolina Innovation Council, and serves on the Business and Consumer Payments Advisory Council for the Federal Reserve Bank of Richmond. She has experience working as a proprietary trader and is the co-founder of an Ethereum-based blockchain payments company. She received a JD from University of North Carolina School of Law, an LLM from Duke University School of Law, and an MSc from Oxford University.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The European Union released documents on July 12 indicating that Elon Musk’s X.com has been preliminarily found to be in breach of the Digital Services Act (DSA).

According to the EU’s preliminary findings, X violated the DSA on three separate counts and faces fines of “up to 6% of the total worldwide annual turnover of the provider.”

DSA breaches

Per documents published by the European Commission:

“Today, the Commission has informed X of its preliminary view that it is in breach of the Digital Services Act (DSA) in areas linked to dark patterns, advertising transparency and data access for researchers.”

This notice refers to an investigation opened in December 2023. Among the concerns raised at the time were X’s moderation practices, use of generative artificial intelligence, failure to provide required data to researchers and lack of transparency over its advertising practices

As of July 12, Musk and X are on official notice that they’ve been found in violation of the DSA. However, as EU Internal Market Commissioner Thierry Breton recently wrote on X, these findings aren’t final and “X has now the right of defence.”

In response, Musk posted, “How we know you’re real?” Whether this indicates that Musk doesn’t trust his own platform’s verification service (Breton’s profile on X has a badge indicating he’s a verified user) or Musk was simply trolling the politician is unclear.

Source: Elon Musk

The complaints

Profile badges on X are at the heart of the EU’s first DSA complaint against Musk and X.

The July 12 notice accuses X of designing and operating its “blue check” verification system “in a way that does not correspond to industry practice and deceives users.”

According to the EU:

“Since anyone can subscribe to obtain such a ‘verified’ status, it negatively affects users’ ability to make free and informed decisions about the authenticity of the accounts and the content they interact with.”

The commission added that “there is evidence of motivated malicious actors abusing the ‘verified account’ to deceive users.”

The other complaints stem from X’s handling of advertising and researchers. The EU requires “very large online platforms” (VLOPs), like X, to meet transparency requirements with regard to how advertising is meted on the platform. X allegedly failed to meet these requirements. It also allegedly eschewed directives to provide researchers with access to public data through the X API, placing it further in violation of the DCA.

Musk and X now have the right to appeal. If, however, the company and its founder are ultimately declared in violation, they face fines in excess of $200 million dollars — 6% of the company’s turnover, which was approximately $3.4 billion for 2023.

The company would also face a period of supervision, while it brings its products and services in line with the law.

Related: Elon Musk did not volunteer his sperm to seed a colony on Mars

Cryptocurrency mining firm Bitfarms has scheduled a shareholder meeting in response to a request from Riot Platforms — the firm attempting a corporate takeover of Bitfarms.

In a July 12 notice, Bitfarms’ board said it would hold a shareholder meeting on Oct. 29 following claims Riot plans to “disrupt the strategic alternatives review process” the mining firm started. In May, Riot offered $950 million to acquire Bitfarms but has met resistance from the company, which is employing various tactics to impede the takeover.

After Bitfarms implemented a strategy to prevent Riot from acquiring a 15% or higher stake in the firm, Riot launched a campaign to replace three of the mining company’s board of directors with candidates seemingly friendly to its interests. Former Bitfarms CEO Geoffrey Morphy stepped down in May after filing a $27 million lawsuit against the firm. Nicolas Bonta acted as the interim CEO until Ben Gagnon’s appointment on July 8.

“The Company remains committed to constructive engagement with all shareholders and remains hopeful that Riot will seek to constructively engage with the Company so that Bitfarms need not expend its limited cash resources to protect the interests of its stakeholders against the actions of Riot,” said Bitfarms.

Related: Bitfarms mined 21% more Bitcoin in June amid Riot takeover attempts

Riot CEO Jason Les has claimed that some of Bitfarms’ attempts to stop the takeover were ”in direct conflict with established legal and governance standards.” Cointelegraph reached out to Riot for comment but did not receive a response at the time of publication.

Bitfarms shares on the Nasdaq under the ticker BITF were trading at $2.50 at the time of publication, having fallen more than 20% since June 17. Compared to Riot’s market capitalization of more than $2.8 billion, Bitfarms has a market cap of roughly $1 billion.

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Bitcoin (BTC) price may have seen the local bottom as the German government is running out of Bitcoin to sell. Technical indicators point to the potential beginning of the re-accumulation phase.

German gov’t nearly done selling Bitcoin

The German government’s wallet is down to just 3,856 Bitcoin, only three weeks after it started selling.

As a result, the additional $222 million worth of selling pressure has pulled the BTC price below $60,000 over the past week, but signs of a potential bottom are starting to emerge. 

In its latest transfers on July 12, the wallet sent 800 BTC to Kraken exchange, 500 BTC to wallet "bc1q" and another 1,000 BTC to wallet ‘="139p,"

German government wallet. Source: Arkham Intelligence

The wallet started selling Bitcoin in the middle of June after it held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirate movie website operator Movie2k.

Bottom may be in but BTC price needs to hold $56.7K

The end of the German government’s Bitcoin selling could help Bitcoin find its local price bottom.

For instance, technical analysis using the Wyckoff method points to a potential price bottom and a recovery above the $60,000 psychological mark, according to popular crypto analyst Moustache.

The analyst wrote in a July 11 X post:

“I think we will see $BTC back above $60,000 very soon.”

Bitcoin Wyckoff re-accumulation pattern. Source: Moustache

Other indicators are also pointing to a local price bottom, including the Coinbase Premium, according to crypto trader Marty Party, who shared the below chart in a July 11 X post.

BTC, COinbase Premium, 1-week chart. Source: Martyparty

The Coinbase premium measures the price differences between Bitcoin on Coinbase, largely used by United States investors and Binance. The premium signals US demand for Bitcoin compared to the rest of the world.

Related: Buying the dip? Bitcoin institutional investors add 100K BTC in a week

However, as Cointelegraph reported, Bitcoin price needs to hold above the $56,750 mark to stop further bearish momentum.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin tagged $58,000 around the July 12 Wall Street open as markets reacted to “sticky” United States inflation data.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin joins stocks in positive PPI reaction

Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) price strength improving as the Producer Price Index (PPI) print for June rose more than forecast.

Year-on-year PPI came in at 2.6% versus 2.3% expected, 0.1% higher than the month prior.

“On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in June, the largest advance since moving up 2.7 percent for the 12 months ended March 2023,” an accompanying press release from the US Bureau of Labor Statistics stated.

US PPI 12-month % change. Source: Bureau of Labor Statistics

While the opposite of July 11’s Consumer Price Index (CPI) numbers, BTC/USD avoided a downturn on the PPI release, modestly gaining in line with US stocks while dollar strength tumbled.

“So overall PPI is sticky on YoY basis if not higher due to higher prices & lack of supply,” popular trader Skew wrote in part of a response on X (formerly Twitter).

“Increasing energy, food and trade services prices is not a great look.”

Skew noted that barring energy, food and trade services, the index was “basically flat” and less of a surprise to markets. 

“Initial reaction was DXY & Yields up before lower, this tells me the market is transitioning into expecting a harsh reality when demand continues to buckle,” he concluded.

“NQ & ES likely recovering here with hedges coming off. End of day performance will be important.”

US Dollar Index (DXY) 1-day chart. Source: TradingView

The US Dollar Index (DXY) was down 0.35% on July 12 at the time of writing, headed toward its lowest levels in over a month.

Continuing, Skew described the spot order book on Binance, the largest global exchange, as “pretty healthy.”

“Although orderbooks are skew to bid, need to see this translate into market flows being bid,” he commented alongside a chart showing liquidity areas.

BTC/USDT order book data for Binance. Source: Skew/X

Analyst demands higher BTC price daily close

Others also demanded a stronger statement from BTC/USD to entertain the idea of a longer-term recovery.

Related: Buying the dip? Bitcoin institutional investors add 100K BTC in a week

Popular trader Rekt Capital highlighted $58,350 as the required minimum for the daily close.

“There’s the rebound Bitcoin needed and price is now challenging that Lower High resistance again,” he told X followers about the PPI reaction alongside an explanatory chart.

“Bitcoin needs to Daily Close above $58350 (black) to break the Lower High and more importantly - position itself for a rally to $60600 (blue).”

BTC/USD chart. Source: Rekt Capital/X

Rekt Capital reiterated earlier coverage of BTC/USD attempting to break through a downward trendline — something met with rejection throughout recent days.

BTC/USD chart. Source: Rekt Capital/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Since the inception of cryptocurrencies, a plethora of crypto wallets have emerged, with one of the most popular being the MetaMask browser extension wallet from software technology firm Consensys. 

Launched in 2016, MetaMask is now the most popular wallet for interacting with decentralized finance (DeFi).

MetaMask owes much of its popularity to its ease of use and wide range of functionalities.

MetaMask launched as a browser extension that allowed users to transact with Ether (ETH) and other ERC-20 tokens.

The wallet is currently available as an extension to the Chrome, Firefox, Brave, Edge and Opera internet browsers. In 2020, a mobile app for iOS and Android appeared.

In addition to its wallet function, MetaMask also acts as an ID card and can simplify tax reporting for users. It creates a public address to identify an account in various decentralized applications (DApps).

This allows MetaMask users to exchange cryptocurrencies, access non-fungible token (NFTs) markets, and earn tokens in blockchain games.

As a result, most DApps have a built-in integration with MetaMask. This feature positively affects user growth and the popularity of the wallet among DApp developers.

MetaMask’s status as the number-one crypto wallet has recently been challenged, especially since November 2022, when Consensys changed its privacy policy and announced that it would collect users’ internet protocol, or IP, addresses.

The crypto community, which is particularly concerned about privacy, reacted poorly, claiming that Consensys’ actions contradict crypto’s core tenet of decentralization.

While MetaMask is still one of the top wallets, others have emerged that offer similar services and compatibility.

Exodus

Multicurrency software wallet Exodus belongs to the Web3 generation of crypto wallets. In addition to standard wallet features, it supports swap exchange and DApps.

Exodus is one of the most visually appealing and intuitive wallets on the market. Originally a PC-only wallet, It now supports iOS and Android.

One of Exodus’ main advantages is the number of cryptocurrencies it supports. The wallet supports an unlimited amount of cryptocurrencies across over 50 networks. These include recognized altcoins such as Ether (ETH), Litecoin (LTC), XRP (XRP) and Bitcoin Cash (BCH), as well as popular memecoins like Dogecoin (DOGE) and Shiba Inu (SHIBA).

Multicurrency software wallet Exodus belongs to the Web3 generation of crypto wallets. In addition to standard wallet features, it supports swap exchange and DApps.

Exodus is one of the most visually appealing and intuitive wallets on the market. Originally a PC-only wallet, It now supports iOS and Android.

One of Exodus’ main advantages is the number of cryptocurrencies it supports. The wallet supports an unlimited amount of cryptocurrencies across over 50 networks. These include recognized altcoins such as Ether (ETH), Litecoin (LTC), XRP (XRP) and Bitcoin Cash (BCH), as well as popular memecoins like Dogecoin (DOGE) and Shiba Inu (SHIBA).

Exodus wallet desktop interface. Source: Exodus

The wallet has a swap option, which allows users to exchange one cryptocurrency for another directly in the wallet. This is a convenient way to convert digital assets without needing third-party platforms. 

Another feature of the wallet is staking, which is available for Solana’s (SOL), Polygon’s (MATIC) and Cardano’s (ADA) tokens. Users can choose their currency and lock it for a specified time, receiving rewards in return.

Phantom 

Phantom wallet has been operating since 2021 and is popular among Solana ecosystem users. It supports Solana, Bitcoin, Ether and Polygon, providing a single platform for managing digital assets and accessing DApps. Phantom’s browser extension and mobile app allow users to interact with major NFT marketplaces and showcase their collections. 

Phantom is a non-custodial wallet where users retain complete control over their funds without needing to provide personal information. A fraud detection system immediately identifies suspicious transactions, and the ability to connect Ledger hardware wallets adds an extra layer of security.

Phantom wallet. Source: Phantom

Phantom wallet users can top up their wallets using bank cards and transfers. The wallet also has a swap function, which allows users to instantly exchange one cryptocurrency for another.

Phantom also lets users connect to various marketplaces and participate in contests. It also provides a tutorial section for new users.

Brave

Brave Wallet is a cryptocurrency wallet built into the Brave internet browser. It supports multiple cryptocurrencies, including Brave’s native Basic Attention Token (BAT). 

Users can buy crypto and NFTs with a bank card and connect to other wallets.

Originally, Brave Wallet was a fork of MetaMask, but as Brave evolved, the project team decided that a higher level of security and privacy could only be achieved with an integrated cryptocurrency wallet built into the browser. The wallet also has a mobile version on Android and iOS.

Brave Wallet interface on desktop. Source: Brave

One of Brave Wallet’s primary functions is to serve as an aggregator for users who want to make quick transactions on one platform.

The wallet has a user-friendly interface, is intuitive and is suitable for novice users.

While it is a versatile wallet, Brave Wallet does not support DApps or Bitcoin.

Zengo

Zengo Wallet has been operating since 2019 and lets users secure their wallets with multiparty computation (MPC).

MPC allows two or more entities to compute an output without revealing their inputs. According to the example on Zengo’s website, “Using MPC, a group of friends can securely calculate their average salary (‘output’), without revealing how much each of them gets (‘inputs’).”

For wallet users, this means they can secure their crypto without a single point of failure, like a seed phrase. MPC can perform all the necessary cryptographic functions for a wallet among multiple parties, such as a remote server and a mobile phone.

It is secure, as there is no one private key to steal, while each party can back up their input that does not “expose or compromise the entire system.”

Zengo’s MPC protocol includes an account password (via email), 3D FaceLock (biometric facial scanning), Zengo’s initial recovery file, dual resource storage (on the personal device and on Zengo’s remote server), and the use of a smart contract to verify the owner’s signature.

Zengo wallet on mobile. Source Zengo

Users must authenticate every transaction on Zengo with a facial ID scan so that no one else can access their cryptocurrency.

The wallet itself functions like most cryptocurrency wallets. Users can send and receive over 120 cryptocurrencies and store NFTs.

In early 2022, it also introduced support for connecting to various DApps.

Rabby 

Rabby Wallet is a multichain cryptocurrency wallet with a modern design created by DeBank. The wallet supports tokens and coins of 141 Ethereum Virtual Machine (EVM)-compatible networks at the time of writing.

Rabby Wallet has a desktop version for Windows and macOS operating systems. A mobile version is currently in beta on Android and iOS.

Rabby Wallet. Source: Rabby

Fraudsters have previously tried to create a mobile app and deceive users using the news of the wallet’s supposed mobile release to steal unsuspecting victims’ crypto.

The wallet does not require user identification and provides scam warnings on tokens and projects it suspects are fake or untrustworthy.

As the Web3 space continues to develop, more alternatives appear on the market, and crypto holders have never had more options for storing their assets. 

The European Union has confirmed the continuation of its collaboration with ChromaWay to develop blockchain-based sustainability solutions. 

This decision was announced on July 12 in the wake of ChromaWay’s presentation at the EU Pre-Commercial Procurement (PCP) final review meeting, which showcased advancements in decentralized applications for Digital Product Passports (DPP) and intellectual property (IP) rights.

Relational blockchain technology

During the review meeting in Brussels, ChromaWay highlighted the development of its underpinning technology, known as relational blockchain, which enhances efficiency by improving the organization and complexity of onchain data. 

Relational blockchain technology blends the flexibility of relational databases with the decentralized security of blockchain.

It could be used to power enterprise solutions but also underpins Chromia, a public layer-1 platform designed for decentralized applications that is set to launch its mainnet on July 16.

Or Perelman, the co-founder of Chromia, told Cointelegraph that they are “eager” to develop innovative solutions for institutional applications alongside the EU.

“By fostering collaboration among governments, regulators, institutions, and blockchain innovators, we can unlock the full potential of Web3 technology and drive widespread adoption.”

EU blockchain adoption

The EU’s overall positive assessment of ChromaWay’s contributions underscores the potential of relational blockchain technology to create significant impacts in both the public and private sectors.

It also aligns with its broader strategy to integrate innovative blockchain solutions into various sectors, promoting sustainability and efficiency. The EU has been vocal about its commitment to fostering technological advancements that can drive economic and environmental benefits across Europe.

In July 2024, representatives from RBN Eco and ChromaWay will undergo an interview with the European Blockchain Association to assess compatibility with upcoming EU initiatives.

Furthermore, the team will participate in a follow-up workshop in Brussels this September to outline the next steps for Q4 2024 and into 2025.

The EU has also partnered with other blockchain solutions such as Iota, which the European Commission chose for its Web3 ID for blockchain sandbox in June 2024.

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A cryptocurrency wallet related to Genesis Trading has transferred nearly $720 million worth of Bitcoin to the Coinbase exchange during the past month, pointing to the potential start of asset liquidations.

The Genesis Trading-labeled wallet has transferred over 12,600 Bitcoin (BTC) during the past 30 days, worth $719.9 million, mainly in transactions of 500 to 700 BTC.

The address currently holds 33,356 Bitcoin, down from over 46,000 BTC a month ago, on June 12, according to Arkham Intelligence data.

Genesis Trading Wallet. Token balance and outflows. Source: Arkham Intelligence

The multi-million Bitcoin transfers come two months after Letitia James, the attorney general for the State of New York announced that her office reached a settlement with Genesis, requiring the firm to pay $2 billion to defrauded investors over its Earn program.

The settlement requires the funds to be returned to Genesis investors and bans the company from operating in New York.

Genesis traders could be made whole

The Genesis Trading-labelled address could indeed be preparing to start repaying users, based on the amount of assets and recent transfers to centralized exchange (CEX) Coinbase.

The wallet currently holds a total of $2.28 billion worth of cryptocurrency, with $1.91 billion of Bitcoin as the biggest holding, followed by $364 million worth of Ether (ETH).

Genesis Trading wallet, token balance history. Source: Arkham Intelligence

The amount surpasses the $2 billion in digital assets that the platform was ordered to pay to the defrauded investors of its Earn program.

On June 14, The New York Attorney General’s office announced that it had recovered more than $50 million from Gemini which will be returned to investors in the exchange’s Earn program.

The settlement banned Gemini from operating any cryptocurrency lending program in New York state, and James said on X that “everyone that Gemini deceived will get their money back.” Gemini Trust said that affected Earn users could expect “100% of the assets owed to them” within seven days.

The Genesis saga

The New York Attorney General’s office filed its lawsuit against Genesis in October 2023, later expanding it to include the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro.

The lawsuit alleged that Gemini had defrauded 230,000 investors — including New York residents — through its Earn program with Genesis Global Capital, failing to disclose its risks.

The New York AG also filed a lawsuit against former Celsius CEO Alex Mashinsky for allegedly hiding the platform’s “dire financial condition.” Mashinsky currently faces criminal charges in the Southern District of New York related to securities fraud, wire fraud and conspiracy to commit fraud and is expected to go to trial in January 2025.

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Nigerian blockchain and data experts have shared their insights on the National Information Technology Development Agency’s (NITDA) initiative to develop an indigenous blockchain named "Nigerium.” 

This ambitious project aims to ensure data sovereignty and bolster national security. However, stakeholders highlight that the Nigerium project must be homegrown, leveraging the country's local talent and addressing fundamental infrastructure and policy challenges.

Local leadership in Nigerium project

In a statement shared with Cointelegraph, Nathaniel Luz, CEO of Flincap, a platform for African over-the-counter crypto exchanges, emphasized the importance of having Nigerian experts lead the Nigerium project.

He believes that Nigeria has the capable hands to build such a project from start to finish, highlighting that Nigerians have led major global blockchain initiatives.

"If you're talking about data security and national integrity, you cannot be outsourcing that to some foreigners,"

However, Luz cautioned against skipping essential foundational steps, which could lead to significant issues, as seen with the eNaira project. He underscored the need for robust infrastructure, such as data centers and reliable electricity, to support the project.

Luz pointed out that most of Nigeria’s data is stored with Big Tech firms outside the country and stresses the importance of developing local data storage capabilities. “We need the basics of all basics— electricity, basic policies — to make these things work,” he explained.

Data collection practices needed

Obinna Uzoije, a data expert, with Africa Policy Conversations commends NITDA's efforts but emphasizes the need to address Nigeria's lagging data collection practices.

Related: Nigerian blockchain leader advocates AI to save African languages

"Nigeria's inability to adopt data collection as a crucial factor for achieving state capacity is a significant challenge that needs to be addressed," he states. Uzoije points out that the lack of accurate and reliable data has led to disparities, making it difficult to utilize data-driven insights for development and research.

Uzoije stressed the infancy of data analysis as a career in Nigeria, noting that companies and individuals must recognize the importance of data collection and analysis to drive innovation and economic growth.

Nigeria has shown interest in using blockchain more extensively in its economy. In May, the NITDA restructured the National Blockchain Policy Steering Committee (NBPSC) to reassess the policies guiding the implementation of the country’s National Blockchain Policy.

More recently, the country announced plans to establish research centers focused on emerging technologies such as A), the Internet of Things (IoT) and blockchain across the country’s six geopolitical zones.

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Bitcoin (BTC) institutional investors are “buying the dip” while BTC price action circles multi-month lows, analysis says.

In one of its Quicktake blog posts on July 11, on-chain analytics platform CryptoQuant revealed 100,000 BTC in new purchases in just one week.

Bitcoin institutional buying: One week, $5.7 billion

Bitcoin institutional investors are not only buying, but doing so with more conviction than when BTC/USD traded near all-time highs.

That is the conclusion of CryptoQuant contributor Cauê Oliveira, who this week analyzed the change in wallet balance of entities between 1,000 and 10,000 BTC.

These entities, who reflect the institutional side of the Bitcoin investor base, have upped their exposure at a rapid pace since the start of June. Since then, BTC/USD has fallen by up to 23%.

Even last week, when Bitcoin hit its lowest levels since late February, the buying continued, with the total increase passing 100,000 BTC ($5.7 billion).

“While many novice investors capitulated last week, with special emphasis on coins purchased between 1 and 3 months ago, institutional players made the largest accumulation process since March,” Oliveira summarized.

Bitcoin large holder balance data (screenshot). Source: CryptoQuant

In terms of 30-day rolling balance change, the jump matches that seen during the height of the inflows to the United States spot Bitcoin exchange-traded funds (ETFs) in March. This time, however, with ETF inflows comparatively cool, the destination for the BTC lies elsewhere.

“This means that, unlike what was seen in March, which was a demand more linked to fundraising, the current institutional accumulation may indicate a true process of ‘buying the dip’ in large players,” Oliveira concluded.

While March’s daily inflows topped $1 billion, the current day-to-day numbers are far smaller. Data from sources, including United Kingdom-based investment firm Farside Investors, shows around $79 million for July 11, while July 8 saw $294 million — the highest tally in a month.

US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors

Conviction outlasts the BTC price dip

As Cointelegraph reported, other cohorts of Bitcoin hodlers face a battle of willpower as they hold significant funds “in the red.”

Related: Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger

Short-term holders, including newcomer whales, faced 17% in unrealized losses during last week’s trip to $53,500.

The aggregate cost basis of the short-term holder investor base, defined as entities hodling a given unit of BTC for up to 155 days, sits above $64,000, per calculations from on-chain analytics firm Glassnode.

BTC/USD chart with short-term holder cost basis. Source: Glassnode

Earlier, Cointelegraph noted that overall crypto market sentiment remains gloomy, with the Crypto Fear & Greed Index dropping back to "extreme fear" for the first time since January.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Cryptocurrency adoption is on track to surpass the much-awaited one billion user mark, which could happen as early as 2026.

According to Pavlo Denysiuk, CEO of Lunu crypto payments firm, the number of cryptocurrency holders could triple over the next two years based on current user growth.

He said during a panel discussion at NFT Fest 2024:

“Within two years there will be at least two times or three times more crypto holders worldwide. This is where we get more adoption everywhere and in terms of payments as well.”

According to the 2024 Cryptocurrency Ownership report by Triple-A, there are an estimated 560 million crypto holders worldwide, meaning that an average of 6.8% of the world’s population holds crypto.

Web3 Adoption, panel discussion. Source: NFT Fest

Related: Ether ETFs will only be a ‘sidekick’ to Bitcoin ETFs — Bloomberg analyst

Crypto adoption will happen as soon as the infrastructure is there

With nearly 7% of the world holding cryptocurrency, the adoption of crypto payments is only a matter of time.

According to Denysiuk, crypto payment adoption will occur as soon as mainstream companies like Starbucks start offering the necessary infrastructure. He said:

“[Crypto payment adoption] is not something that you need to convince someone of. Whenever the infrastructure is there, whenever you come to your Starbucks shop or somewhere else and there is a sticker saying ‘we accept crypto’...”

“It’s just another payment method,” added Denysiuk, explaining that crypto payments aren’t significantly different from today’s credit card and neobank-enabled digital payments, which are already popular in the mainstream.

Denysiuk is the CEO of Berlin-based Lunu, a company building a stablecoin-powered payments ecosystem for economic integrations.

Is It Too Late to Invest in Crypto? Bitcoin MASS ADOPTION Explained. Source: Cointelegraph

Related: World’s largest Bitcoin miner didn’t sell any BTC in June

Stablecoins are crucial for mass adoption, but user experience remains the biggest challenge

Stablecoins are considered one of the main on-ramps from the fiat to the digital economy and they will remain an important part of reaching the first billion crypto holders, according to Denysiuk.

He said:

“Stablecoins are very important for adoption. In our case, we almost never see people paying in Bitcoin, even though Bitcoin was invented as a digital currency.”

The stablecoin market is currently worth over $163 billion, or 7.7% of the entire crypto market’s 2.11 trillion market capitalization, according to CoinMarketCap data.

However, reaching the first billion crypto users will require more beginner-friendly applications, according to Chintan Turakhia, senior director of engineering at Coinbase.

Speaking exclusively to Cointelegraph at EthCC, Turakhia said:

“If our goal is to bring in the next billion users — and let’s start with just 100 million — we have to take all those friction points out.”

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Decentralized finance (DeFi) protocol Dough Finance lost $1.8 million in digital assets after a flash loan attack on the protocol. 

On July 12, Web3 security firm Cyvers flagged that they had detected multiple suspicious transactions. The company communicated with lending protocol Aave to check if pools were affected. However, the security firm confirmed that pools within Aave were safe.

Despite this, Dough Finance suffered the brunt of the attack. According to Cyvers, the attacker was funded through the zero-knowledge (ZK) protocol Railgun and swapped the stolen USD Coin (USDC) for Ether (ETH). The attacker got a total of 608 ETH, worth about $1.8 million.

Hacker manipulates smart contract

Web3 security provider Olympix highlighted that the exploit was due to unvalidated calldata within the "ConnectorDeleverageParaswap" contract. The firm explained:

“The contract didn't properly check the data it received during flash loan calls, allowing the attacker to manipulate it for their benefit.”

Because of this, the attacker was able to manipulate the data and steal the funds.

Olympix said those who deposited funds in the DeFi protocol’s exploited contract might be impacted. However, the security provider noted that the hack did not impact Aave pools.

The security provider also advised Dough Finance users to consider withdrawing their funds to a secure wallet. Furthermore, they urged users to monitor announcements from the Dough Finance team and avoid interacting with the protocol until the situation is resolved.

Related: Pancake Bunny hacker siphons $2.9M of Ether through Tornado Cash

Over $1 billion lost to security incidents in 2024

While the Dough Finance hack losses only amounted to almost $2 million, the rest of the crypto space had already lost more than $1 billion in digital assets because of various incidents within the space.

On July 3, blockchain security company CertiK published its security report, highlighting that losses on onchain incidents already reached $1.19 billion in the first half of 2024. Most of the losses were attributed to phishing attacks and private key compromises.

According to CertiK, the space lost almost $500 million to phishing attacks, while private key compromises resulted in almost $409 million in losses.

CertiK co-founder Ronghui Gu highlighted the urgent need to implement multifactor authentication methods, such as two-factor authentication (2FA) and security keys.

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The German government has resumed selling its Bitcoin holdings, beginning the process on July 12. This move follows the return of some previously transferred funds to the government's Bitcoin wallet.

According to Arkham blockchain data, the German government executed multiple transactions, transferring a total of 3,200 Bitcoin (BTC) across various platforms. The transactions were confirmed at precisely 15:02 UTC+8.

Recent transfers

The Bitcoin distribution had Bitstamp, Kraken, and Coinbase receiving 400 BTC each, totaling 1,200 BTC. Additionally, 1,000 BTC was sent to an address believed to belong to B2C2 Group, specifically address 139PoP…H7ybVu., and 500 BTC was transferred to an unmarked address, identified as bc1qu3…guzr4j.

Meanwhile, crypto analyst Michaël van de Poppe shared a post on the X social platform speculating that the remaining Bitcoin (BTC), worth approximately $300 million, is likely to be sold on July 12.

Source: Michael van de Poppe

Historically, large sales by government entities can lead to increased market activity and potential price fluctuations. However, the careful distribution of Bitcoin across different platforms might help prevent sudden and extreme price swings.

The German government’s wallet, holding Bitcoin BTC seized from a film pirating website crackdown in January, has transferred billions in Bitcoin since June 19 but ramped up efforts at the start of July.

Market sell pressure

Beginning with 50,000 Bitcoin, the wallet has transferred away a significant chunk of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has successfully sold 44,200, 88.4% of the original 50,000.

Related: ‘Buy the dip’ mentions on social platforms surge as Bitcoin stumbles

On July 11, the German government’s Bitcoin wallet temporarily fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin (10,620 BTC) to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses, according to blockchain analytics firm Arkham.”

German lawmaker and Bitcoin advocate Joana Cotar has expressed disapproval over the country’s large-scale sale of Bitcoin, suggesting that the cryptocurrency could have been utilized as a safeguard against traditional financial system risks by adopting it as a “strategic reserve currency" instead.

The recent decline in Bitcoin’s price can be attributed to a combination of factors, including Germany’s significant sale of BTC and concerns that Mt. Gox is releasing a substantial amount of Bitcoin, worth over $8 billion, to its creditors, which has led to market uncertainty and downward pressure on prices.

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