Bitget Hot Takes (October 10 - October 16)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
• BGB is least affected by the negative market sentiment.
• Chainalysis: ‘October is the biggest month in the biggest year ever for hacking activity’.
• Tether says no more commercial papers.
• Google and BNY Mellon discover the digital space.
BGB Least Affected By The Negativity
After the U.S. CPI for September was out on October 12 (last Tuesday), the market has been rather depressed as more aggressive moves from the Federal Reserve (FED) are expected in the next months. That led to many cryptocurrencies’ negative cumulative returns, including BTC, ETH, BNB, and BGB.
The thing is, the first three have been trading at a loss since the beginning of last week, while BGB was able to enjoy four green days - until the CPI sentiment kicked in, but the doom didn’t last too long. Sunday was good news for BGB as the daily return helped cut down the weekly losses to only 0.28% compared to Bitcoin’s 1.78%, Ethereum’s 3.05%, and Binance Coin’s 2.68%.
Once again, BGB proved itself to be remarkably resilient to the market's unfavourable conditions. Take a look at our BGB reports for the last months for further analysis:
The U.S. September CPI Is Out
The U.S. employment data released the week before was unanticipatedly positive, meaning the FED can already very well move on with their rising interest rates plan. On top of that, we saw another inflated month with 0.4% MoM growth and 8.2% YoY growth in the U.S. Consumer Price Index (CPI) - a statistic that will most likely motivate FED to remain hawkish.
Bitcoin’s weekly low hit US$18,193.75 on October 13 before soaring to US$19,946.54 on the next day. And this weekend had been extremely quiet for the global spot market as well as Bitcoin market:
- Global spot volume on Saturday (October 15) ranged between US$67 billion and US$8 billion and closed the week at US$2.8 million in volume at 0:00 UTC on Sunday (October 16).
- Bitcoin had been trading within a tight range over the weekend: less than US$110 on Saturday and less than US$200 on Sunday.
In a pro-crypto move, Google will soon offer crypto payments for cloud services via Coinbase. And we can already access Ethereum wallet balance by entering, for example, the wallet address of Ethereum’s co-founder Vitalik Buterin, into the Google search bar as below:
Source: Google Search
BNY Mellon is the oldest bank in America with US$47 trillion in assets under custody and/or administration and US$1.9 trillion in assets under management. It’s also the world’s largest custodian bank and has now started a crypto custody service as well as other crypto services such as fund manager-grade bookkeeping services. Even news of Google and BNY Mellon stepping into crypto did not benefit the largest cryptocurrency’s prices.
The bear market has been hard for Bitcoin miners, especially after Bitcoin lost its US$20,000 mark in September. Now it’s become even harder as Bitcoin mining difficulty recorded a new all-time high of 35.6 trillion on October 10.
That day, both Riot Blockchain, Inc. and Marathon Digital Holdings, Inc. saw their stocks (RIOT and MARA, respectively) shedding 2.74% and 2.62% of their value. RIOT price then continued to slide down for most of the week, resulting in a negative return of 3.40% while MARA ended up 12.64% higher than the previous week. Other losers of the week include ProShares’ Short Bitcoin Strategy ETF (BITI), Grayscale Ethereum Trust (ETHE), and Cathie Wood’s ARK Next Generation Internet ETF (ARKW). Cathie also published an Open Letter to the FED last Monday, saying it is risking ‘a deflationary bust’.
The European Union is one step ahead of regulating crypt The MiCA bill was signed off by the European Parliament Committee on Economic and Monetary Affairs, which requires crypto projects to publish a white paper, stablecoin issuers to meet capital requirements and limit their stablecoin supply, mining firms to disclose their energy consumption and classifies NFT as securities. Meanwhile, the U.S. Securities and Exchange Commission (SEC) rejected WisdomTree’s latest spot Bitcoin ETF proposal and is investigating Yuga Labs, creator of the Bored Apes because of ‘unregistered offerings’ (Source: Bloomberg). Panic took effect, causing a selloff of Yuga Labs’ Mutant Ape Yacht Club and Bored Ape Yacht Club.
For Portuguese investors, please keep in mind that your crypto holdings of less than one year are about to be taxed according to the country’s proposed budget plan for 2023.
Hack After Hack
Chainalysis has dubbed this October ‘the biggest month in the biggest year ever for hacking activity’, and we still have half of the month to go. The second week opened with a US$2 million hack of QANplatform’s offline bridge, followed by an exploit in the smart contract of Rabby Wallet’s Rabby Swap.
Two more projects that fell prey to malicious attackers were TempleDAO (US$2.3 million) on Ethereum and Mango Markets on Solana (US$100 million). Even FTX was also a victim of its user’s subsidy abuse plan: This particular user took a minting free ride of US$70,000 in XEN, while FTX had to pay more than 100 ETH for transaction fees.
In an attempt to provide better bridge security, Cosmos and Osmosis developers ‘have been auditing IBC’, discovered a ‘critical security vulnerability’, and are working on it.
A detailed analysis of the BNB Chain bridge hack is available here.
The Latest Bitget News
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