Tag: Crypto

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Changpeng Zhao Walks Free: Crypto’s Controversial King Returns

Crypto King pardoned

Changpeng Zhao, better known as CZ, has been released from prison following a high-profile pardon by President Donald Trump.

The Binance founder had served a four-month sentence after pleading guilty to violating U.S. anti-money laundering laws—a conviction that formed part of a $4.3 billion settlement with the Department of Justice.

CZ’s release marks a dramatic turning point in the U.S. government’s approach to cryptocurrency regulation. Once emblematic of the Biden administration’s crackdown on crypto platforms, CZ now reportedly finds himself at the centre of a political pivot.

Trump’s pardon, announced in October 2025, has been met with both celebration and condemnation. Critics, including Senator Thom Tillis, argue the move undermines efforts to regulate illicit finance, while supporters hail it as a step toward restoring innovation in the digital asset space.

Now based in Abu Dhabi, CZ has vowed to ‘help make America the Capital of Crypto‘. His post-release activities suggest a shift from direct exchange management to broader influence.

Such as, investing in educational initiatives like Giggle Academy, backing blockchain startups, and lobbying for friendlier crypto legislation.

Despite the pardon, expectations remain high. CZ is under intense scrutiny—not just from regulators, but from the crypto community itself.

Many expect him to champion transparency, rebuild Binance’s reputation, and avoid the shadowy practices that led to its U.S. ban in 2019. His future influence may hinge on whether he can balance ambition with accountability.

For now, CZ’s return is symbolic: a signal that the crypto world is once again in flux, with its most controversial figure back in play.

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AWS Outage Reveals Fragility of Global Cloud Dependency

Amazon services go dark

It was just one week ago on Monday 20th October 2025, Amazon Web Services (AWS) experienced a major outage that rippled across the digital world, disrupting operations for millions of users and businesses.

The incident, which originated in AWS’s US-East-1 region, was reportedly traced to DNS resolution failures affecting DynamoDB—one of AWS’s core database services.

This technical fault triggered cascading issues across EC2, network load balancers, and other critical infrastructure, leaving many services offline for hours.

The impact was immediate and widespread. Major consumer platforms such as Snapchat, Reddit, Disney+, Canva, and Ring doorbells went dark.

Financial services including Venmo and Robinhood faltered, while airline customers at United and Delta struggled to access bookings. Even British government portals like Gov.uk and HMRC were affected, underscoring the global reach of AWS’s infrastructure.

World leader

AWS is the world’s leading cloud provider, commanding roughly one-third of the global market—well ahead of Microsoft Azure and Google Cloud.

Millions of companies, from startups to multinational corporations, rely on AWS for everything from data storage and virtual servers to machine learning and content delivery.

Its services underpin critical operations in healthcare, education, retail, logistics, and media. When AWS stumbles, the internet itself feels the tremor.

20 Prominent Companies Affected by the AWS Outage (20th Oct 2025)

SectorCompany NameImpact Summary
E-commerceAmazonInternal systems and Seller Central offline
Social MediaSnapchatApp outages and delays
StreamingDisney+Service interruptions
NewsRedditPartial outages, scaling issues
Design ToolsCanvaHigh error rates, reduced functionality
Smart HomeRingDevice connectivity issues
FinanceVenmoTransaction delays
FinanceRobinhoodTrading disruptions
AirlinesUnited AirlinesBooking and check-in issues
AirlinesDelta AirlinesReservation access problems
TelecomT-MobileIndirect service disruptions
GovernmentGov.ukPortal access issues
GovernmentHMRCService delays
BankingLloyds BankOnline banking affected
ProductivityZoomMeeting access issues
ProductivitySlackMessaging delays
EducationCanvasAssignment submissions disrupted
CryptoCoinbaseUser access failures
GamingRobloxServer outages
GamingFortniteGameplay interruptions

This outage wasn’t the result of a cyberattack, but rather a technical fault in one of Amazon’s main data centres. Yet the consequences were no less severe.

Amazon’s own operations were disrupted, with warehouse workers unable to access internal systems and third-party sellers locked out of Seller Central.

Canva reported ‘significantly increased error rates’. while Coinbase and Roblox cited cloud-related failures.

The incident serves as a stark reminder of the risks inherent in centralised cloud infrastructure. As digital life becomes increasingly dependent on a handful of providers, the potential for systemic disruption grows.

A single point of failure can cascade across industries, affecting everything from classroom assignments to emergency services.

AWS has since restored normal operations and promised a detailed post-event summary. But for many, the outage has reignited questions about resilience, redundancy, and the wisdom of placing so much trust in a single cloud giant.

In the age of digital interdependence, even a brief lapse can feel like a global blackout.

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Paxos – A PayPal Crypto Partner Mints $300 Trillion in Stablecoins—A Glitch of Galactic Proportions

Stablecoin Glitch

In a surreal twist that briefly defied economic logic, Paxos—the blockchain infrastructure firm behind PayPal’s PYUSD stablecoin—accidentally minted $300 trillion worth of digital dollars in a technical mishap.

The error, reportedly spotted on Ethereum’s public ledger Etherscan, triggered a wave of astonishment across crypto circles before Paxos swiftly burned the excess tokens and issued a statement clarifying the blunder.

Technical error?

‘This was an internal technical error. There is no security breach. Customer funds are safe’, Paxos assured, adding that the root cause had been addressed.

To put the scale of the error in perspective: $300 trillion is more than double the estimated total GDP of the entire planet. And we trust these people and systems?

It’s a sum that could theoretically buy every publicly traded company several times over—and still leave room for a few moon bases. Fortunately, the minting was part of an internal transfer and never entered circulation.

Who is in charge?

PYUSD is designed to be a dollar-pegged stablecoin, backed by U.S. dollar deposits and short-term treasuries. Its promise of 1:1 redemption relies not on algorithmic magic but on real-world reserves and third-party attestations.

The incident, while resolved in under 20 minutes, underscores the fragility of trust in digital finance—especially when automation meets scale.

The crypto community, already wary of stablecoin transparency, seized on the event as a cautionary tale.

While no funds were lost and no users affected, the episode raises questions about auditability, protocol safeguards, and the symbolic weight of ‘minting’ in a decentralised economy.

In an era where digital assets are increasingly mainstream, even a fleeting glitch can ripple through markets and headlines.

Thin air

Paxos may have burned the tokens, but the spectacle of $300 trillion conjured from code won’t be forgotten anytime soon.

Hey, let’s go make some money!

We can ‘print’ dollars too… can’t we?

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Is Bitcoin truly an asset class investment?

Is Bitcoin truly an asset class investment?

Bitcoin’s status as an asset class remains fiercely debated—its classification hinges on whether one prioritises institutional frameworks or symbolic disruption.

✅ Arguments for Bitcoin as an asset class

Many investors treat Bitcoin as a distinct asset class due to its unique characteristics:

  • Scarcity: With a capped supply of 21 million coins, Bitcoin mirrors commodities like gold.
  • Divisibility & Fungibility: It can be split into smaller units, and each unit is interchangeable.
  • Liquidity: It’s widely traded and easily converted into fiat currencies.
  • Store of Value: Often dubbed ‘digital gold’, especially in inflationary climates.
  • Low correlation: Bitcoin’s behaviour diverges from traditional assets, offering potential diversification.

❌ Arguments against Bitcoin as an asset class

Institutions such as Hargreaves Lansdown argue Bitcoin lacks the stability and intrinsic value required for formal classification:

  • Volatility: Its dramatic price swings make it riskier than equities or bonds.
  • No intrinsic value: Unlike shares or debt instruments, Bitcoin doesn’t generate income or cash flow.
  • Regulatory ambiguity: Its decentralised nature and evolving legal status complicate analysis.
  • Speculative behaviour: Critics liken it more to a speculative punt than a foundational portfolio component.

So…

Bitcoin’s contested identity as an asset class reflects a deeper philosophical divide: is it a legitimate store of value shaped by digital innovation, or a speculative mirage challenging financial orthodoxy?

While its traits—scarcity, liquidity, and decentralised architecture—suggest asset-like behaviour, its volatility and lack of intrinsic value leave its classification unresolved.

For investors and thinkers alike, Bitcoin invites not just financial analysis but existential reflection on what we trust, value, and rebel against in the evolving economy.

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When will it be time to worry about the AI bubble?

AI bubble inflating

Key Signals of an AI Bubble

Valuations detached from fundamentals When companies with minimal revenue or unclear business models are trading at sky-high valuations purely because they’re ‘AI-adjacent’, surely it’s time to take note.

Overconcentration in a few stocks If market gains are disproportionately driven by a handful of AI giants (think Nvidia, Microsoft and Amazon etc.), it suggests fragility. A stumble by one could ripple across the sector.

Narrative dominance over substance When investor excitement is driven more by buzzwords (‘transformational’, ‘disruptive’, ‘AGI’) than by actual product performance or adoption metrics, the hype may be outpacing reality. But there is real utility in AI if managed carefully.

Corporate FOMO and rushed adoption Companies scrambling to integrate AI without clear ROI or strategic fit—especially when they start cutting staff to “reskill for AI”—can signal unsustainable pressure.

Retail investor mania If you start seeing AI-themed ETFs, TikTok stock tips, and speculative day trading around obscure AI startups, it’s reminiscent of past bubbles like dot-com or crypto.

What to watch for next

  • Earnings vs. expectations: If AI leaders start missing earnings or issuing cautious guidance, sentiment could shift fast.
  • Regulatory headwinds: New rules around data, privacy, or model transparency could reshape the landscape.

Labour market impact: If AI adoption leads to widespread job displacement without productivity gains, the backlash could be swift.

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Bitcoin surges to record high as investors pause for breath to take profits

Bitcoin hits new high!

Bitcoin hit a new milestone on 14th July 2025, reaching an unprecedented $123,091.61.

This marks the digital currency’s highest level to date, building on months of momentum driven by institutional buying, regulatory optimism, and a flood of capital from exchange-traded funds.

The rally comes amid growing confidence in cryptocurrencies as lawmakers in Washington debate the GENIUS Act, a pivotal piece of legislation that could cement Bitcoin’s role in mainstream finance. Market sentiment has been overwhelmingly bullish, with analysts citing a ‘flight to digital safety’ as global uncertainties mount.

However, since the peak, Bitcoin’s ascent has shown signs of levelling off. Profit-taking among investors appears to have introduced temporary friction, prompting a modest dip in trading volumes.

Several large wallets moved substantial holdings to exchanges, hinting at short-term sell-offs. Yet the decline has been measured, and there’s little indication of widespread panic.

Some traders interpret this plateau not as weakness, but consolidation.

With volatility baked into its DNA, Bitcoin continues to command attention from both seasoned investors and curious newcomers.

Whether it resumes its march toward $125,000 or cools off remains to be seen—but for now, the market is watching, waiting, and calculating its next move.

Five-day Bitcoin ascent

DateOpening PriceClosing PriceDaily HighDaily Low
11 July$115,909.08$117,579.19$117,901.00$115,909.08
12 July$117,579.19$117,460.30$118,672.53$117,460.30
13 July$117,460.30$118,908.51$118,908.51$117,460.30
14 July$118,908.51$122,584.00$123,091.61$118,908.51
15 July$122,584.00$121,902.00$122,493.00$121,902.00
Five-day Bitcoin ascent
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Asia’s shift away from the U.S. Dollar gains momentum

De-dollar

The global financial landscape is undergoing a significant transformation as Asian economies accelerate their move away from the U.S. dollar.

This trend, known as de-dollarisation, is driven by a combination of geopolitical uncertainties, monetary policy shifts, and efforts to reduce reliance on the greenback in trade and investment.

The forces behind de-dollarisation

For decades, the U.S. dollar has dominated global trade and foreign exchange reserves. However, its share in global reserves has steadily declined from over 70% in 2000 to 57.8% in 2024.

This shift is particularly pronounced in Asia, where nations are actively promoting the use of local currencies to mitigate exchange rate risks and strengthen regional financial stability.

The Association of Southeast Asian Nations (ASEAN) has committed to increasing local currency settlements in trade and investment as part of its Economic Community Strategic Plan for 2026-2030.

Additionally, major economies like China and India are developing alternative payment systems to bypass traditional dollar-based transactions, further reducing dependency on the greenback.

Implications for the U.S. Dollar

The dollar has faced increased volatility, with a sharp 8% decline in the dollar index since the start of 2025. Investors and policymakers are recognising that the dollar can be leveraged in trade negotiations, prompting a reassessment of portfolios overweight in U.S. assets.

While the dollar remains the world’s primary reserve currency, its dominance is being challenged. Asian economies, particularly Singapore, South Korea, Taiwan, and China, hold substantial foreign assets, giving them the ability to repatriate earnings into local currencies.

The shift away from the dollar is a slow but steady process, signalling a broader transition towards a multipolar financial system.

Crypto and DeFi are playing a growing role in de-dollarisation.

Many nations, particularly within BRICS, are turning to digital assets to reduce reliance on the U.S. dollar in global trade.

How crypto supports de-dollarisation

Alternative Payment Systems – Cryptocurrencies like Bitcoin and Ethereum allow countries under U.S. sanctions to bypass traditional dollar-based financial systems.

Central Bank Digital Currencies (CBDCs) – Over 130 countries are exploring CBDCs to strengthen local currency transactions and reduce dependence on the dollar.

Stablecoins & Cross-Border Trade – Stablecoins such as USDT and USDC facilitate international payments, with daily transaction volumes exceeding $150 billion.

The bigger picture

The shift away from the dollar is not just about crypto – it’s part of a broader movement toward a multipolar financial system.

While digital assets provide alternatives, traditional financial institutions are also adapting by promoting local currency settlements

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Bitcoin surges to new all-time high above $111000

Bitcoin at new high!

Bitcoin has once again shattered records, reaching a new all-time high of $111,544 during early trading hours on 22nd May 2025

The world’s largest cryptocurrency has surged nearly 50% since April, fueled by growing substantial institutional interest and macroeconomic shifts.

The rally follows a period of volatility earlier in the year, when Bitcoin dipped below $75,000 amid concerns over U.S. trade policies and global economic uncertainty.

However, renewed investor confidence, coupled with ETF inflows and regulatory optimism, has propelled Bitcoin past its previous peak of $109,800 set just a day earlier.

Analysts attribute the surge to weak demand for government bonds, prompting investors to seek alternative assets.

Additionally, corporate treasury allocations into Bitcoin have increased, with public companies now holding 15% of all Bitcoin in circulation.

With Bitcoin’s momentum showing no signs of slowing, experts predict the next psychological milestone could be $120,000.

Bitcoin one-day chart 22nd May 2025

Bitcoin one-day chart 22nd May 2025

As institutional adoption continues to rise, Bitcoin’s role as a hedge against inflation and economic instability is becoming more pronounced.

Will Bitcoin maintain its upward trajectory, or is a correction on the horizon?

A 50% climb in around a month is a substantial increase – it has room to give… and it most likely will.

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Bitcoin and ether drop amid grim inflation outlook – tariff uncertainty

Crypto fear factor

Crypto faces market turmoil mid economic concerns

The cryptocurrency market has been rocked by significant declines in two of its flagship assets, Bitcoin and Ether.

This downturn reflects mounting concerns over broader economic challenges, including inflationary pressures and uncertainties surrounding Trump’s global trade tariffs.

Snapshot data from CMC

Bitcoin, often seen as a digital gold and a hedge against traditional financial instability, saw its value dip below $80,000. Similarly, Ether, the second-largest cryptocurrency by market capitalisation, tested the $2,100 threshold, shaking investor confidence.

Cryptocurrency fear and greed index chart from CMC

Cryptocurrency fear and greed index from CMC

The decline comes as central banks continue to grapple with persistent inflation, leading to speculation about further interest rate hikes. These economic conditions have raised fears that tighter monetary policies could dampen the speculative fervour that has long driven crypto markets.

In parallel, ongoing uncertainties about global trade tariffs have added another layer of complexity. Concerns about supply chain disruptions and escalating trade tensions have created a cautious environment for investors, spilling over into the volatile cryptocurrency sector.

While cryptocurrencies are no stranger to price swings, the current drop underscores their vulnerability to macroeconomic trends. As investors await clarity on inflation and tariff policies, the market could remain turbulent in the near term.

The resilience of Bitcoin and Ether will likely be tested as they navigate these economic headwinds.

Gold, however, has recently touched new all-time highs.

One year gold price chart – new all-time high!
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Trump Media shares gain after Crypto.com announce ETF deal

Crypto ETF

Trump Media & Technology Group (TMTG) has made headlines with its latest announcement of a partnership with Crypto.com to launch a series of exchange-traded funds (ETFs) and related products.

This news has sparked a surge in TMTG’s stock, which rose by approximately 9% in after-hours trading, despite a challenging year that saw the stock down 38% prior to this development. Will the gain hold?

The ETFs, branded under TMTG’s fintech arm are set to focus on a ‘Made in America’ theme, incorporating a mix of digital assets like Bitcoin and Cronos (Crypto.com’s native token) alongside traditional securities.

Crypto.com will play a pivotal role in this venture, providing backend technology, custody, and cryptocurrency supply for the ETFs.

The products are expected to be available internationally, including in Europe and Asia, through major brokerage platforms and the Crypto.com app, which boasts a global user base of 140 million.

This partnership marks another step in TMTG’s foray into the digital asset space, following previous ventures into non-fungible tokens (NFTs) and meme coins.

The move also highlights the growing intersection between traditional finance and cryptocurrency, as companies seek to innovate and diversify their offerings in a competitive market.

While the announcement has generated excitement, it also raises questions about the regulatory landscape and the sustainability of such ventures.

As TMTG and Crypto.com prepare to launch these ETFs later this year, pending regulatory approval, the financial world will be watching closely to see how this collaboration unfolds and its impact on the broader market

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‘A pig in lipstick’ – Trump’s strategic Bitcoin reserve criticised

Pig in lipstick

The announcement of Donald Trump’s Strategic Bitcoin Reserve has sparked a wave of criticism and debate, with detractors likening the initiative to ‘a pig in lipstick’ – a superficial attempt to dress up a flawed concept.

The reserve, which aims to stockpile or create a strategic reserve Bitcoin seized through criminal and civil forfeitures, has been touted as a bold move to position the United States as a leader in the cryptocurrency space. However, critics argue that the plan is fraught with risks and questionable motives.

One of the primary concerns is Bitcoin’s notorious volatility. Unlike traditional reserve assets such as gold or oil, Bitcoin’s value can fluctuate wildly, making it a precarious choice for a national reserve.

Economists warn that integrating such an unpredictable asset into government holdings could destabilise financial strategies rather than strengthen them.

Moreover, the initiative has raised eyebrows over its potential conflicts of interest. Critics point out that Trump’s administration has shown a growing affinity for cryptocurrency, with some officials previously holding stakes in digital assets.

This has led to accusations that the reserve could serve as a vehicle for personal or political gain rather than a genuine effort to bolster national economic security.

Supporters of the reserve argue that it represents a forward-thinking approach to embracing digital assets as ‘digital gold.’ They believe that retaining seized Bitcoin, rather than auctioning it off, could provide long-term financial benefits and signal the U.S.’s commitment to innovation in the crypto space.

However, even some crypto enthusiasts are skeptical, questioning whether the reserve’s creation is more about optics than substance.

In the end, the Strategic Bitcoin Reserve has ignited a broader conversation about the role of cryptocurrency in national policy. Whether it proves to be a visionary move, or a misguided gamble remains to be seen.

For now, the debate goes on.

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Trump’s U.S. Bitcoin reserve plan falls short of expectations

National U.S. crypto reserve

The cryptocurrency market faced a significant downturn following the announcement of President Donald Trump’s U.S. Bitcoin reserve plan

The initiative aimed to position the United States as a global digital asset leader fell short of market expectations, triggering a wave of selloffs.

Bitcoin, the flagship cryptocurrency, experienced a 3% drop, trading at $87,586.86 before dipping further to $84,688.13. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also saw declines, with Cardano’s ADA token suffering a sharp 13% drop.

The market’s reaction underscores the gap between investor hopes and the plan’s immediate implications.

The executive order established a strategic bitcoin reserve funded exclusively by assets seized in criminal and civil proceedings. While this approach ensures no taxpayer burden, it disappointed investors who anticipated direct government purchases to bolster Bitcoin’s value.

White House Crypto and AI Czar David Sacks emphasised the reserve’s role as a ‘digital Fort Knox’, but the lack of immediate buy pressure dampened market sentiment.

The broader economic context also played a role. Weakness in equities and ongoing tariff concerns added to the uncertainty, compounding the market’s reaction.

Analysts noted that while the reserve plan is a step toward legitimising cryptocurrencies, its short-term impact on prices was underwhelming.

Despite the initial disappointment, the strategic reserve could have long-term benefits. By centralising and securing digital assets, the U.S. government aims to strengthen its position in the global financial system.

However, for now, the market remains volatile, reflecting the challenges of balancing innovation with investor expectations.

As the crypto landscape evolves, the success of such initiatives will depend on their ability to deliver tangible value to both the market and the broader economy.

Will the U.S. government create a strategic crypto reserve by directly buying the digital asset and holding it as a national reserve?

At this moment in time, only Trump has that ‘key’.

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Trump announces strategic crypto reserve to including Bitcoin – Solana – XRP – Cardano and Ethereum

Crypto reserve

President Donald Trump has announced the creation of a ‘strategic crypto reserve’ that will include Bitcoin, Ethereum, XRP, Solana, and Cardano.

This move aims to position the United States as the ‘crypto capital of the world’ and has already led to significant price increases for these cryptocurrencies.

The announcement was made on Truth Social, where Trump emphasised the importance of elevating the crypto industry after what he described as years of corrupt attacks by the previous administration.

This is the first time Trump has specified his support for a crypto ‘reserve’ versus a ‘stockpile’.

Many crypto investors feel strongly that a crypto reserve should hold only Bitcoin, while some reject the idea of a reserve holding digital assets altogether.

Cryptocurrencies instantly rallied after President Donald Trump announced the creation of a strategic crypto reserve.

Crypto coins have since lost some of those initial gains.

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Bitcoin hits reverse after Trump election pump!

Bitcoin

This week has seen a decline in Bitcoin with the digital asset hitting a 3-month low, reversing gains that followed the election of U.S. President Donald Trump.

Bitcoin was trading at about $78,700 in trading in Asia, down 5.5% on the day and about 25% lower than an all-time high from December 2024.

Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)

Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)

Bitcoin slips

Bitcoin had enjoyed a surge in prices following Trump’s election victory in November 2024, with Trump having posed himself as a pro-crypto candidate during his campaign.

However, prices have slipped as investors turn-away from assets perceived to be too risky given the weakness in global equity markets and amid uncertainty surrounding the new President’s tariff policy and resolutions to the Russia-Ukraine and Israel-Gaza wars.

Investor sentiment was also soured by news that Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack in what’s estimated to be the largest crypto heist in history.

Bitcoin ETF activity is still prominent.

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Hackers steal $1.5 billion from Bybit exchange

Crpto theft

Bybit, one of the world’s largest cryptocurrency exchanges, has fallen victim to the biggest crypto heist in history

Hackers managed to steal a staggering $1.5 billion in digital assets, primarily in Ethereum, from Bybit’s cold wallet, an offline storage system designed for ‘security’.

This breach has sent shockwaves through the cryptocurrency community, raising concerns about the security of digital assets.

The attack, which occurred on 21st February 2025, was reportedly traced back to the notorious North Korean hacking group, Lazarus. Known for their sophisticated cyber-attacks, the Lazarus Group exploited vulnerabilities in Bybit’s security infrastructure to gain access to the cold wallet.

Once inside, they swiftly transferred the stolen funds across multiple wallets and liquidated them through various platforms.

Bybit’s CEO, Ben Zhou, reassured users that all other cold wallets remained secure and that withdrawals were operating normally. However, the breach triggered a rush of withdrawals as users feared potential insolvency.

To mitigate the impact, Bybit secured a bridge loan from undisclosed partners to cover any unrecoverable losses and maintain operations.

Blockchain analysis firms, including Elliptic and Arkham Intelligence, have been working tirelessly to trace the stolen assets.

They have labelled the thief’s addresses in their software to prevent the funds from being cashed out through other exchanges. Despite these efforts, the stolen funds are being systematically moved through anonymous exchanges, making it challenging to recover the assets.

This incident highlights the ongoing risks associated with cryptocurrency exchanges and the need for robust security measures. As the industry grapples with the aftermath of this unprecedented heist, experts warn that large-scale thefts remain a fundamental risk in the digital asset space.

Bybit’s response and the collaborative efforts of the crypto community will be crucial in restoring trust and preventing future breaches.

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Gold or Bitcoin?

Gold or Bitcoin

Gold or Bitcoin: Which Is a Better Investment?

When it comes to investing, two assets often come to mind: gold and Bitcoin.

Both have their unique advantages and disadvantages, and choosing between them depends on your investment goals, risk tolerance, and market outlook.

Historical performance

Gold has been a reliable store of value for thousands of years. Its price has seen steady growth, with a notable increase of 60% from 2010 to 20241.

During the 1970s inflation crisis, gold rose by 2,300%, showcasing its ability to hedge against inflation. Gold ETFs have grown to around $270 billion in assets under management (AUM) by 2024.

Impressive growth some would say but wait… there’s a new kid on the block.

Bitcoin, on the other hand, is a relatively new asset, introduced in 2009. Despite its short history, Bitcoin has seen explosive growth, surging from $4 in 2011 to over $106,000 in 2024 – a growth of more than 2 million percent.

During the 2020-2024 inflationary cycle, Bitcoin increased by 1,185%, highlighting its potential as an inflation hedge.

Volatility and risk

Gold is known for its stability and long-term value preservation. Its volatility index (VIX) is relatively low, making it a safe haven during economic downturns. Investors with long-term goals often prefer gold for its consistent performance and lower risk.

Bitcoin, however, is highly volatile. Its price can fluctuate dramatically within short periods, making it a riskier investment. While Bitcoin offers the potential for high returns, it also comes with the possibility of significant losses. Investors must be prepared for the market’s ups and downs and have a higher risk tolerance.

Inflation hedging

Both gold and Bitcoin are considered effective hedges against inflation. Gold has a long history of maintaining its value during inflationary periods, making it a trusted asset for wealth preservation.

Bitcoin, as a digital asset, has gained recognition as ‘digital gold’ and is increasingly seen as a viable alternative for hedging against inflation.

Regulatory environment

Gold is a well-established asset with a clear regulatory framework. Central banks worldwide hold significant gold reserves, underscoring its role in financial stability. Bitcoin, however, operates in a relatively new and evolving regulatory landscape.

While some countries have embraced Bitcoin, others have imposed restrictions or bans, adding an element of uncertainty to its future.

Accessibility and liquidity

Gold is a tangible asset that can be easily bought and sold. It is widely accessible and has a liquid market, allowing investors to enter and exit positions with ease.

Bitcoin, while also highly liquid, requires a digital wallet and an understanding of cryptocurrency exchanges. Its accessibility can be limited by regulatory and technological barriers.

Is there a conclusion?

Choosing between gold and Bitcoin depends on your investment goals and risk tolerance. Gold offers stability, long-term value preservation, and a lower risk profile, making it suitable for conservative investors.

Bitcoin, with its potential for high returns and inflation hedging, appeals to those with a higher risk tolerance and a belief in the future of digital assets.

Ultimately, diversifying your portfolio with both assets can provide a balanced approach, combining the stability of gold with the growth potential of Bitcoin.

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Trump’s SEC prepares new ‘crypto task force’ to regulate the industry

Crypto regulation

On 21st January 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of a new cryptocurrency task force under the leadership of President Donald Trump.

This initiative marks a significant shift in the regulatory landscape for digital assets, aiming to provide a comprehensive and clear framework for the industry.

Task force

The task force, led by Commissioner Hester Peirce, also known as ‘Crypto Mom,’ is designed to address the regulatory challenges that have plagued the crypto industry for years.

The primary objectives of the task force include drawing clear regulatory lines, providing realistic paths to registration, crafting sensible disclosure frameworks, and deploying enforcement resources judiciously.

This approach contrasts sharply with the previous administration’s reliance on enforcement actions, which often left the industry in a state of confusion and uncertainty.

The announcement has generated a wave of optimism among crypto enthusiasts and investors. The price of Bitcoin, for instance, saw a notable increase following the news, reflecting the market’s positive reception.

But before this announcement, Bitcoin was already in an upward trajectory following the positive news swirling around Trump after he won the U.S. election.

Industry leaders are hopeful that the new regulatory environment will foster innovation while protecting investors and maintaining market integrity.

Commodity Futures Trading Commission

One of the key aspects of the task force’s mandate is to collaborate with other government agencies, Congress, and international bodies to ensure a cohesive regulatory approach.

This includes working closely with the Commodity Futures Trading Commission (CFTC) and other federal departments to harmonize regulations and provide technical assistance to Congress as it considers changes to the existing legal framework.

The task force’s formation is seen as a pivotal moment for the crypto industry, signalling a more welcoming and structured regulatory environment. As the task force begins its work, the industry eagerly anticipates the development of clear and practical guidelines that will support the growth and maturation of the digital asset market.

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Melania and Donald Trump launch their own cryptocurrency meme coins

Crypto

Melania Trump has launched a meme coin called ‘Melania’

The meme coin was announced on the eve of Donald Trump’s inauguration as president of the United States.

It comes days after President-elect Donald Trump launched his own meme coin, ‘Official Trump.’

In a disclaimer on the meme coin’s official website, potential buyers are told that Melania memes ‘are digital collectibles intended to function as an expression of support for and engagement with the values embodied by the symbol MELANIA. and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.’

On the Trump token’s website, the cryptocurrency – depicted with an image of Trump raising his fist in the air – is marketed as ‘a piece of history,’ while Trump himself is branded ‘the crypto president.’

Bitcoin hit a new all-time high overnight after the Trumps each launched their own meme coins in the past few days.

The flagship cryptocurrency was up and touching $107,000 in early Monday trade.

Trump launched the ‘Official Trump‘ meme coin Friday (17th January 2025), which has risen to a $10.6 billion market cap and surged more than 659%, according to data from CoinGecko and Coinbase (as of 20th January 2025) – and has trimmed back since. 

Melania Meme has hit a $1.3 billion market cap and 14% price increase since its launch Sunday night (19th January 2025). It has attracted $7.3 billion in trading volumes over that day, compared to the Trump meme’s $31 billion. But has since trimmed back.

Meme coins are considered the riskiest corner of the already risky cryptocurrency market.

But the Trumps’ coin launches are giving traders confidence that the incoming administration will be positive for the industry.

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What could quantum computing breakthrough ‘Willow’ mean for the future of Bitcoin and other cryptos

Crypto and quantum computing

The advent of quantum computing presents both opportunities and challenges for the field of cryptography, especially in relation to cryptocurrencies.

Quantum computers, leveraging the principles of quantum mechanics, have the potential to revolutionise computing by solving certain problems significantly faster than classical computers.

One of the primary concerns is the impact of quantum computing on cryptographic algorithms that underpin the security of cryptocurrencies like Bitcoin and Ethereum.

Traditional public-key cryptography, which relies on the difficulty of factoring large prime numbers or solving discrete logarithms, could be broken by a sufficiently powerful quantum computer. Algorithms such as RSA, ECC (Elliptic Curve Cryptography), and DSA (Digital Signature Algorithm) could become vulnerable, as quantum algorithms like Shor’s algorithm are capable of efficiently solving these problems.

This potential vulnerability poses a significant threat to the security and integrity of cryptocurrency transactions. If quantum computers can crack these cryptographic codes, they could potentially access private keys, allowing malicious actors to steal funds or forge transactions. As a result, the trust that underpins the entire cryptocurrency ecosystem could be eroded.

However, the quantum threat is not without its solutions. The field of post-quantum cryptography is actively developing new cryptographic algorithms that are resistant to quantum attacks.

These algorithms leverage mathematical problems believed to be hard even for quantum computers, such as lattice-based cryptography, hash-based cryptography, and multivariate polynomial cryptography.

Transitioning to post-quantum cryptographic algorithms is crucial for ensuring the long-term security of cryptocurrencies in a quantum computing era.

In conclusion, while quantum computing poses a formidable challenge to current cryptographic systems, proactive measures and the development of quantum-resistant algorithms can mitigate these risks.

The cryptocurrency industry must stay ahead of the curve, adopting new technologies and strategies to safeguard against potential quantum threats and ensure the continued security and trust in digital currencies.

It has been estimated that the arrival of quantum computer is at least 10 years away. But is that allowing for the use of AI in its creation?

What is Willow and Quantum Computing?

Willow is the start of a new era of ultra-powerful ‘quantum’ microchips designed by Google. Willow’s speed is almost incomprehensible – according to Google, it is able to perform a computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years to solve.

This new chip design will inevitably lead to new quantum innovations and computer design over the coming years.

Ten septillion is 10,000,000,000,000,000,000,000,000 years.

If you don’t understand (not many people do) what makes up quantum computing – there is a very simplified way simplified way of thinking about the breakthrough.

Imagine a maze and how a classical computer would try to find its way through the maze from start to finish. It would try one potential path at a time. A quantum computer would be able to try each path at the same time.

The quantum computer is coming. The only delay will be in design restrictions and the power needed to run the system.

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Bitcoin breaks the $100,000 barrier

In a historic moment for the cryptocurrency world, Bitcoin has finally breached the $100,000 mark.

This milestone, reached on 5th December 2024, signifies a notable triumph for Bitcoin enthusiasts and investors who have endured the market’s volatility over the years.

The cryptocurrency value surge past $100,000 followed Donald Trump’s election as President of the United States. Trump’s favorable stance on crypto and his commitment to deregulate the sector are believed to have enhanced investor confidence. The momentum was further increased by his decision to nominate Paul Atkins, a recognized proponent of cryptocurrency, as the new chairman of the Securities and Exchange Commission (SEC).

Since the creation of the first Bitcoin ETF there have been massive inflows invested in this asset helping to push Bitcoin ever higher.

Bitcoin’s ascent to $100,000 has been tumultuous. Beginning the year at approximately $38,505, the cryptocurrency has experienced an impressive 155% increase to date. The surge was especially notable in the fortnight after Trump’s victory, with Bitcoin’s value soaring by about 45%.

Bitcoin’s ascent has triggered a ripple effect throughout the wider cryptocurrency market, now valued at a combined $3.78 trillion. This upsurge has reinforced Bitcoin’s preeminence in the digital asset arena and garnered considerable interest from institutional investors.

Despite the festive atmosphere, some analysts warn that Bitcoin’s well-known volatility is still worrisome. Although numerous investors have realized significant profits, the asset’s high-risk profile may not be appropriate for all. Nevertheless, the prevailing mood within the cryptocurrency community is one of optimism, fueled by the expectation that the incoming administration will create a regulatory climate more conducive to digital assets.

Bitcoin’s record-breaking streak continues, signaling a bright future for the renowned cryptocurrency. Its evolution from a peer-to-peer electronic cash system to a trillion-dollar asset highlights the revolutionary impact of blockchain technology.

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U.S. stocks have a November to remember as Dow touches 45,000

High Dow

On Friday 29th November 2024, the Dow Jones reached a new record high, closing at 44,910 points after breaching 45,000 temporarily

This formed part of a wider market surge that led the S&P 500 and Nasdaq Composite to also hit record peaks. It concluded a remarkable month for the stock market, marked by the Dow achieving its most substantial monthly gain of the year, all thanks to Trump winning the U.S. election.

In November, the S&P 500 experienced a 5.73% rise, and the Dow Jones Industrial Average recorded a notable 7.54% increase, both marking their most robust monthly performances for the year. Concurrently, the Nasdaq Composite enjoyed a 6.21% surge, its largest monthly gain since May.

Recently, a host of factors have pumped up investors’ sentiment for stocks. 

The presidential election concluded with Donald Trump decisively securing the presidency. This eliminated any uncertainty, which is often disliked by investors. Additionally, Trump’s support for the stock market, tax cuts, cryptocurrency, and deregulation is well-received by investors.

The U.S. economy expanded at an annualised rate of 2.8% in the third quarter. Although the gross domestic product is projected to grow by 1.31% in the fourth quarter, this still signifies an expansion, countering concerns of a potential recession hitting the U.S. economy.

Even a slowing growth rate can have its advantages. It provides the U.S. Federal Reserve with greater motivation to implement a second rate cut this year at its December 2024 meeting, potentially boosting economic activity.

Moreover, the seasonal strength of stocks in November 2024 has infused investors with a sense of optimism.

Entering December 2024, it’s challenging to disregard the current bull market, given the favourable conditions.

U.S. stocks are experiencing a robust year-end rally, partly due to short sellers being compelled to purchase stocks to close their positions as the year concludes.

This surge of buying could propel the S&P 500 to reach 6,300, suggesting a 5% increase for December 2024 and a 32.1% rise throughout 2024, surpassing the 24.2% gain seen in 2023.

Additionally, there’s the significant boost in cryptocurrency values, often referred to as the ‘Trump pump,’ – and this too is currently underway.

Dow Jones one-day chart as of 29th November 2024

Dow Jones one-day chart as of 29th November 2024
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Bitcoin’s flirt with $100,000 may be one bitcoin too far

Bitcoin

Bitcoin flirted with the $100,000 mark, coming within less than $1,000 of that psychological threshold. However, it failed to breach this peak, falling back to as low as $90,702. on Tuesday 26th November 2024. It has since rallied, trading at approximately $96,697 early on 29th November 2024. But still off the $100,000 barrier.

Investors taking profits

One factor contributing to the fall was investors capitalising on Bitcoin’s exceptionally high price, which increased the supply of Bitcoin. Long-term holders began to release substantial quantities of Bitcoin during the recent surge.

However, there are deeper reasons why some strategists remain uncertain about Bitcoin’s ability to reach the six-figure milestone. The $100,000 mark seems to have become a significant obstacle, if not an outright barrier, to further increases.

Leveraged to the hilt

Indeed, the recent surge in Bitcoin’s value could be instilling a misleading sense of confidence among investors. Viewing Bitcoin as a speculative bet or a means to achieve returns, it appears that investors are flocking to Bitcoin primarily for potential capital gains rather than its intrinsic value or practical applications.

The recent introduction of options for spot Bitcoin exchange-traded funds could be influential. Options provide investors with a way to speculate on Bitcoin’s price fluctuations without the need to invest in Bitcoin directly.

It’s leveraged to the hilt and there most likely will be a correction anytime soon.

That being said, a correction does not equate to lasting deflation. Should even a portion of U.S. President-elect Donald Trump’s commitments to the cryptocurrency sector materialise, the $100,000 mark might not represent a peak, but merely another milestone that Bitcoin surpasses during its triumphant ascent.

But remember, in my opinion and for what it’s worth – it is just a punt, not an investment.

Bitcoin one-day chart as of 29th November 2024 (11:16 am)

Bitcoin one-day chart as of 29th November 2024 (11:16 am)
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Trump U.S. election win drives gold price down and Crypto up!

Gold prices have fallen to near a two-month low as the dollar strengthens in the wake of Donald Trump’s election victory last week.

This downturn has halted the bullion’s rally, which had achieved a series of record highs over the past year. Gold has seen a decline in six of the seven most recent trading sessions following Trump’s win, interrupting its streak of record-breaking milestones over the last twelve months.

On the other hand, Crypto has relished the Trump pump with Bitcoin and many altcoins setting new all-time highs!

Gold price charts – 3 month and one-year snapshot as of: 15th November 2024 (08:10 GMT)

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Bitcoin breaks $82,000 with billions bet on it reaching $90,000

Bitcoin

Bitcoin has achieved a new all-time high, surpassing $82,000, and has continued to climb.

This suggests that investors are confident the world’s leading cryptocurrency will gain even more, following U.S. elections that resulted in a significant number of pro-crypto candidates being elected.

During his campaign, President-elect Donald Trump vowed to make the United States the ‘crypto capital of the world.’

Trump reportedly committed to several initiatives for the crypto community, such as creating a national cryptocurrency reserve using $16 billion in Bitcoin accumulated by the U.S. government from asset seizures and from reducing interest rates.

Generally, an easing of monetary policy aligns with an increase in cryptocurrency prices, as it lowers the cost of borrowing money.

The Fed recently lowered U.S. interest rates for the second time this year.

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The mystery surrounding the origin of Bitcoin

Origin of Bitcoin

Bitcoin’s origin is one of the most captivating mysteries of the digital age. The cryptocurrency was created in 2008 by an unknown individual or group under the pseudonym Satoshi Nakamoto.

Despite numerous investigations, the true identity of Nakamoto remains shrouded in secrecy.

Story

The story of Bitcoin begins with the release of a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This document outlined a new kind of decentralised digital currency, one that relied on cryptographic principles to ensure security and prevent double-spending.

Nakamoto’s revolutionary vision was to create a financial system free from the control of traditional banks and government interference.

Genesis block

In January 2009, Nakamoto mined the first block of the Bitcoin blockchain, known as the ‘genesis block,’ marking the birth of the cryptocurrency. Over the next couple of years, Nakamoto continued to work on the project, communicating with other developers via email and online forums.

The mystery surrounding the origin of Bitcoin

However, by 2011, Nakamoto had largely stepped away from active involvement in the project, leaving behind a legacy that would forever change the financial landscape.

Speculation

Speculation about Nakamoto’s true identity has been rampant. Some believe Nakamoto is a single, exceptionally talented individual, while others theorise that it could be a group of developers working under a collective pseudonym.

Over the years, various names have been proposed as possible candidates, including renowned cryptographers, developers, and even eccentric entrepreneurs. Yet, none of these theories have been definitively proven, and Nakamoto’s identity remains a closely guarded secret.

Intrigue

The intrigue surrounding Nakamoto is not just a matter of curiosity but also of financial significance. As the creator of Bitcoin, Nakamoto is estimated to own around one million Bitcoins. At current market values, this makes Nakamoto one of the wealthiest individuals in the world.

Bitcoin chart from inception as of 7th November 2024 touching $75,000

Bitcoin chart from inception as of 7th November 2024 touching $75,000

However, these Bitcoins have never been moved or spent, adding to the enigma of Nakamoto’s motives and intentions.

Myth?

The myth of Satoshi Nakamoto has taken on a life of its own, becoming a symbol of the power and potential of decentralized technology. The anonymity of Nakamoto also serves as a reminder of the core principles behind Bitcoin: privacy, decentralisation, and freedom from traditional financial systems.

In a world increasingly dominated by surveillance and control, the mystery of Nakamoto provides a compelling counter-narrative, one that continues to inspire and intrigue both technologists and libertarians alike.

In the end, the true identity of Satoshi Nakamoto may never be revealed, and perhaps that is as it should be. The enduring mystery adds to the allure of Bitcoin, ensuring that its origins will forever be a topic of fascination and debate.

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Bitcoin and altcoins rocket to new highs hot on the heels of Trump win!

Bitcoin new high!

Bitcoin, which could benefit from relaxed regulation, soared to an all-time high and topped $76,000.

Bitcoin rallied Wednesday 6th November 2024, hitting all-time highs as former President Donald Trump defeated Vice President Kamala Harris to win the election an become the 47th U.S. president.

The price of Bitcoin touched a fresh record of $76,493.86.

Bitcoin one-month chart as of 6th November 2024 – New high!

Bitcoin hits new all-time high of $76,493.86 6th November 2024

Trump’s support for crypto

The ‘noises’ around the Trump trade for crypto are reportedly of deregulation, potential tax cuts for an asset that is both held long term but also day traded, less dependency on government financial institutions and the Fed and maybe seen as an alternative as a decentralised currency. Trump has previously indicated support of risk assets and the growth of crypto.

Ether surged 11%, while Solana, rocketed 13%. Payment system token XRP jumped more than 5%. Meanwhile, Meme coins soared, with Dogecoin up more than 15%.

Shares of Coinbase surged around 31%%, posting its best day on record since its first day of trading. MicroStrategy, which has a high correlation play on the price of Bitcoin, advanced 13%.