Crypto News Highlights:
- Israel-Hamas Tensions vs. Crypto: The ongoing Israel-Hamas conflict has caught the world’s attention, but surprisingly, the cryptocurrency market seems relatively unaffected by its ups and downs. Recent events, including surprise attacks and rocket strikes, have not significantly impacted the crypto sector.
- Wall Street Watching Inflation: Wall Street is closely monitoring economic data, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI), which indicate rising inflation in line with central bank calls for higher interest rates. The CPI, excluding food and fuel, is expected to increase by 0.3% for the second consecutive month. Additionally, the minutes from the September Federal Open Market Committee (FOMC) meeting will be released on October 11.
- Bitcoin Whale Movement: A previously inactive Bitcoin whale recently moved 5,000 BTC, worth $137 million, after three years of dormancy. Such whale activity often raises concerns as it can influence Bitcoin’s price due to potential large sell-offs. However, the motive behind this move remains unclear, leaving uncertainty about its impact on Bitcoin’s value.
- Upbit Faces Hacking Attempts: South Korean crypto exchange Upbit reported a significant increase in hacking attempts, with over 159,000 attempts in the first half of 2023, marking a 1,800% surge from H1 2020. To enhance security, Upbit has increased its holdings in cold wallets to 70%. Despite a breach in 2019, it has remained hack-free, prompting calls from lawmakers for government action on exchange security.
- CFPB Considers Crypto Regulation: The Consumer Financial Protection Bureau (CFPB) in the United States is contemplating applying the Electronic Fund Transfer Act (EFTA) to cryptocurrencies to protect consumers from fraudulent transactions. CFPB Director Rohit Chopra plans to provide guidance on how existing electronic fund transfer laws apply to crypto amid a surge in crypto-platform hacks and legal cases involving crypto firms.
- Sam Altman on Bitcoin: OpenAI CEO Sam Altman praised Bitcoin as a “super logical” step in the tech evolution, citing its potential to combat corruption and operate outside government control. In a podcast with Joe Rogan, Altman expressed concerns about central bank digital currencies (CBDCs) and their surveillance potential, while Rogan expressed optimism about Bitcoin becoming a universal currency. Both criticized the U.S. government’s treatment of the crypto industry.
- NFT Market Trends: NFT sales have seen a seven-week decline, 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. However, the number of NFT purchasers increased by 17.77%, and sellers rose by 15.82%. Notable NFT sales included Cryptopunk #2367, sold for $143,062, and BNB’s Starcraft Planets #1498, auctioned for $32,880. Blue-chip NFT collectibles saw a decline in floor prices, reflecting a broader market trend.
- Crypto as a Safe Haven: The Israel-Hamas conflict has raised concerns among investors about geopolitical risks affecting global financial markets. As tensions rise, demand for safe-haven assets like gold and the US dollar may increase. Cryptocurrencies, often referred to as “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 highlights cryptocurrencies’ potential to enhance global investment and financial empowerment in crisis-stricken areas.
- Stars Arena Exploited: The SocialFi platform Stars Arena, built on Avalanche (AVAX), suffered a $2.9 million loss due to a smart contract vulnerability exploited by malicious actors. The vulnerability allowed hackers to manipulate ticket prices, leading to a drain in the contract’s funds. Stars Arena is actively working to recover the lost funds and improve its security measures, pledging to continue its operations.
