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Coinbase Confirms DOJ Investigation Following Major Security Incident

The US Department of Justice (DOJ) has initiated an investigation into a significant security breach at Coinbase, the largest US-based cryptocurrency exchange. 

According to sources familiar with the matter cited by Bloomberg, the DOJ’s criminal division in Washington is examining the circumstances surrounding the breach, which has raised serious concerns about cybersecurity within the crypto sector.

Coinbase Collaborates With DOJ Amid Major Data Breach 

Coinbase disclosed that the breach involved criminal actors bribing employees and contractors in India to gain access to sensitive client data. Paul Grewal, Chief Legal Officer of Coinbase, stated: 

We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement’s pursuit of criminal charges against these bad actors.

Importantly, the exchange’s CLO clarified that while Coinbase itself is not under investigation, the DOJ is focused on the criminals involved in the breach.

The incident first came to light when Coinbase received an email from an unidentified threat actor on May 11, claiming to possess information about certain customer accounts alongside internal documents. The company anticipates losses ranging from $180 million to $400 million due to the cyberattack.

$20 Million Reward Fund After Rejecting Ransom 

While the attackers managed to steal some data, including names, addresses, and email addresses, the exchange confirmed that login credentials and passwords were not compromised. 

In a statement on May 15, Coinbase reassured its users via social media platform X (formerly Twitter) that it would not succumb to the attackers’ demands. The criminals had requested a ransom of $20 million. 

Instead of paying the ransom, Coinbase announced the establishment of a $20 million reward fund aimed at encouraging information leading to the arrest and conviction of those responsible for the attack.

Coinbase

At the close of trading on Monday, the company’s stock (COIN) was trading at $263.

Featured image from DALL-E, chart from TradingView.com 

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Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Alexander Mashinsky, the former CEO of crypto lending firm Celsius, was sentenced to 12 years in prison on Thursday after pleading guilty to two counts of fraud. 

Celsius Mashinsky Faces Justice

The proceedings took place before US District Judge John G. Koeltl in Manhattan’s Southern District, where Mashinsky faced the repercussions of what prosecutors characterized as a sweeping scheme to defraud investors.

In December, the crypto lender’s former CEO admitted guilt to charges of commodities fraud and manipulation of the Celsius token, CEL, leading to his current sentence.

Mashinsky’s legal troubles began in 2023 when he was arrested on multiple counts, including securities, commodities, and wire fraud. This arrest coincided with Celsius’s announcement of a $4.7 billion settlement with the Federal Trade Commission (FTC), one of the largest settlements in the agency’s history. 

The resolution of this settlement remains dependent on Celsius successfully returning the remaining customer assets amidst ongoing bankruptcy proceedings, emphasizing the scale of the fraudulent activities.

SEC And CFTC Pursue Multi-Billion Dollar Fraud

Prosecutors alleged that Mashinsky misled investors regarding the safety and profitability of Celsius’s yield-generating platform while simultaneously liquidating tens of millions of dollars in personal holdings. 

Initially, Mashinsky denied any wrongdoing, but his guilty plea and subsequent sentencing have brought this lengthy legal saga to a close.

This case is part of a broader crackdown in the cryptocurrency sector, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) also filing charges against Mashinsky and Celsius for orchestrating a multi-billion dollar fraud scheme. 

The scrutiny of Mashinsky and his actions mirrors the fates of other high-profile crypto executives, including FTX founder Sam Bankman-Fried and Binance’s Changpeng Zhao, as well as Do Kwon of Terraform Labs, all of whom faced serious legal challenges in the country. 

Celsius

Featured image from DALL-E, chart from TradingView.com

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Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

In a recent statement, the US Securities and Exchange Commission (SEC) provided insights into the classification of memecoins within the context of federal securities laws. 

This move, a part of the SEC’s attempt to make clear how these regulations apply to different assets, could prove to be a significant victory for these altcoins and the exchange-traded funds (ETFs) that have been filed with the regulator.

Memecoins Not Subject To Federal Securities Laws

According to the SEC’s criteria, a memecoin is generally characterized as a type of cryptocurrency that draws inspiration from internet memes, cultural phenomena, or current events, with promoters aiming to cultivate a vibrant online community that engages in buying and trading these assets.

The SEC’s Division of Corporation Finance delineated that while individual memecoins may exhibit distinct features, they typically share common traits. Their value largely hinges on market demand and speculative trading, akin to collectibles rather than traditional investments. 

As such, the agency asserted that memecoins usually lack substantial functionality or practical use beyond entertainment, leading to significant price volatility driven by speculative behavior.

Importantly, the SEC concluded that transactions involving these types of memecoins do not constitute the offer and sale of securities as defined under the federal securities laws. 

This means that individuals participating in the sale of meme coins are not required to register their transactions under the Securities Act of 1933, nor do they need to rely on any exemptions from registration. 

Fraudulent Activities Still Subject To Enforcement

The SEC’s analysis draws from the definitions of “security” enshrined in federal statutes, which include various financial instruments such as stocks and bonds. Since memecoins do not yield income or confer rights to profits or assets, they do not fit into these established categories. 

The SEC evaluated whether memecoins could be classified as investment contracts under the “Howey test,” a legal precedent that determines if an arrangement qualifies as a security based on economic realities.

The key factors examined include whether there is an investment in an enterprise with the expectation of profits derived from the efforts of others.

The SEC found that purchasers of memecoins are not investing in an enterprise, as their funds are not pooled for development by promoters. Instead, the value of memecoins emerges from speculative trading and public sentiment, without any involvement of managerial efforts that could generate profits. 

However, the statement made clear that this classification does not apply universally to all memecoins. The SEC will scrutinize any offerings that deviate from the outlined characteristics or that attempt to bypass securities laws under the guise of being meme coins. 

Plus, the regulator clarified that while memecoins may not be subject to federal securities regulations, any fraudulent activities associated with their sale could still be pursued under other federal or state laws.

Memecoins

Featured image from DALL-E, chart from TradingView.com 

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Justin Sun And SEC Request ‘Pause’ In Ongoing Legal Battle Over Crypto Ventures

According to Bloomberg, lawyers representing Justin Sun and the US Securities and Exchange Commission (SEC) are requesting a stay in the ongoing regulatory proceedings against him. 

Justin Sun And SEC Seek Case Pause

This joint filing, submitted on Wednesday, indicates that both parties believe it is in their mutual interest to pause the case while they explore a potential resolution. They assert that such a stay would not prejudice any involved parties or non-parties, marking a collaborative approach to navigating the complexities of crypto regulation.

This follows a similar request for a pause in the case against Binance and reflects a notable shift in the regulatory climate for digital assets in the United States since the inauguration of President Donald Trump. 

Under the acting chair Mark Uyeda, the SEC has recently closed investigations into several crypto entities, including Robinhood, the decentralized finance firm Uniswap, and the non-fungible token (NFT) marketplace OpenSea. 

Most significantly, Coinbase announced that the SEC agreed to drop its lawsuit against the largest digital asset exchange in the US, pending commissioner approval. 

SEC Favoring Trump’s Business Associates?

These actions mark a significant pivot from the previous administration’s approach, which has been criticized by various crypto executives, many of whom celebrated the former SEC Chair Gary Gensler’s resignation in January.

Specifically, the SEC sued Justin Sun in 2023, alleging that he collaborated with entities he controls, such as the Tron Foundation and BitTorrent Foundation, to orchestrate the offer and sale of “unregistered securities.” 

However, the recent decision to seek a stay in these proceedings suggests a reevaluation of the agency’s priorities, particularly concerning figures like Justin Sun.

Corey Frayer, director of investor protection at the Consumer Federation of America and a former adviser to Gensler, noted that the absence of fraud charges in the Justin Sun case signifies a “troubling politicization” of the SEC. 

The director remarked that the agency’s current approach appears to be “benefitting Trump’s business associates,” suggesting a shift in regulatory focus that aligns with the interests of the former president.

This comes amid significant investments in Trump’s World Liberty Financial (WLFI), with Justin Sun purchasing over $70 million in WLFI token’s to support this upcoming decentralized finance (DeFi) venture.

Justin Sun

Featured image from the WSJ, chart from TradingView.com 

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North Korean Lazarus Group Identified As Culprit In Bybit’s Historic $1.5 Billion Hack

In a significant blow to the cryptocurrency industry, Bybit, one of the leading crypto exchanges, has confirmed a major security breach involving its Ethereum cold wallet. 

The incident, reported on Friday by Bitcoinist, marks one of the largest cryptocurrency hacks in history, with losses estimated at over $1.5 billion.

Bybit Hack Linked To North Korea’s Lazarus Group

According to Bybit, the breach occurred during a transfer from their ETH multisig cold wallet to a warm wallet. The exchange revealed on social media platform X (formerly Twitter) that the attack was executed through a “sophisticated manipulation” of the transaction process. 

This manipulation allowed the hacker to mask the signing interface, which displayed the correct wallet address while altering the underlying smart contract logic. 

Subsequently, on-chain market intelligence firm Arkham Intelligence revealed that crypto sleuth ZachXBT has provided compelling evidence linking the hack to the notorious Lazarus Group, a North Korea-backed hacker organization. 

In his detailed analysis, ZachXBT reportedly submitted findings that included test transactions, associated wallets, forensic charts, and timing analyses. This information has been shared with Bybit to assist in its ongoing investigation.

$1.44 Billion In Misappropriated Assets

The scale of the breach is staggering. Estimates suggest that approximately 401,347 ETH, valued at around $1.12 billion, were withdrawn. 

Additionally, other assets lost in the hack include 90,376 stETH worth $253.16 million, 15,000 cmETH valued at $44.13 million, and 8,000 mETH totaling $23 million. The total estimated loss stands at approximately $1.44 billion.

In light of this incident, Bybit has activated its security team and is collaborating with leading blockchain forensic experts to conduct a thorough investigation. 

The exchange has also reached out to other teams with expertise in blockchain analytics and fund recovery, inviting them to assist in tracing the misappropriated assets.

It remains to be seen what further action Bybit will take with the information provided by ZachXBT and how the case will unfold regarding the misappropriated customer funds. 

Bybit

As for ETH’s price, the second largest cryptocurrency on the market has seen a 4% retracement towards $2,640 just hours after the security breach. 

Featured image from DALL-E, chart from TradingView.com

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CZ Sparks Memecoin Frenzy With Dog Picture: Four.Meme Starts Token Betting Event

 Binance founder Changpeng Zhao, also known as “CZ,” has taken the crypto market by storm after sharing his dog’s name and picture. The announcement sparked the launch of multiple tokens inspired by the pet and was further fueled by BNB Chain’s memecoin launchpad’s name-guessing contest.

CZ Sparks Memecoin Frenzy

On Wednesday, Changpeng Zhao acknowledged the cycle’s memecoin frenzy after an X user asked if he had a dog. The Binance founder revealed he had “not a Shiba Inu, but a Belgian Malinois,” which resulted in the crypto community asking for the name and picture of his dog.

CZ inquired about how it would work if he shared the information, asking if people would create memecoins based on the dog, how investors would know which one is the “official” token, and if it even mattered.

He joked he would mull whether to “respect his privacy, or dox the dog for the cause,” sparking massive speculation about an official memecoin launch.

On Thursday, CZ shared on X that he would officially share his dog’s picture and name at 8:00 PM Dubai time, or 4:00 PM UTC, sending investors into a frenzy over the upcoming post.

Community members launched several tokens with the possible names of CZ’s four-legged companion, some reaching up to $60 million in market capitalization.

Arkham noted that the two frontrunner tokens on the BNB chain, BROWNIE, and PERRY, significantly surged on Thursday morning. Remarkably, an investor made over $1 million with less than a $12,000 initial in 12 hours.

Four.Meme Kicks-Off Token Event

BNB Chain’s token launchpad, Four.Meme joined the frenzy, announcing a “CZ Dog Name Meme Token Betting Event.” According to the X post, the tokens with the same then-unknown name of CZ’s dog would be part of a competition.

The tokens created today before 4:00 PM UTC would be eligible to participate and “become the next big meme.” The announcement detailed:

30 minutes after CZ’s post, the highest market cap token on Four.Meme wins! The winner’s token will have its tokens in LP revenue regularly burned by Four.Meme!

At 4:12 UTC, the Binance founder shared a picture with his dog, Broccoli. The dog was named after the vegetable because he wanted “a name that started with B and has some green in it.”

CZ wrote that he and Broccoli bonded over their difficulty socializing, adding that the dog helped him get a “good break” from the “intense negotiations with the DOJ back then.” He also stated that he never imagined his pet would be part of the blockchain ecosystem, adding that there’s “never a dull day in crypto.”

memecoin
Broccoli Immortalized In The Blockchain

CZ clarified that he was “just posting” his dog’s pictures and name and not issuing a memecoin himself. He considered it was up to the community whether to launch a token.

The BNB foundation “may provide rewards for the top memes on the BNB Chain, giving LP support or other rewards,” but the details are still being discussed.

After the “Pet reveal,” the tokens guessing Broccoli’s name plummeted, with the leading memecoin falling from a $22 million market cap to less than $1 million in less than a minute.

Meanwhile, the creation of memecoins inspired by CZ pet’s real name spiked, with several BNB Chain and Solana-based tokens flooding DexScreener’s feed. At the time of writing, CZ’s Dog (BROCCOLI), launched a minute after Zhao’s post, has become the largest gainer.

The memecoin reached a $300 million market capitalization minutes after being created and is currently trading at $0.0745, with a $75 million market cap. The winning token of the Four.Meme contest is yet to be announced.

memecoin, BNB, BNBUSDT

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Ross Ulbricht Wallet Woes: Accidental Transaction Tanks Pumpfun Coin By $12M

Ross Ulbricht, the founder of the notorious Silk Road marketplace, recently made headlines again—not for his controversial past or his pardon by former President Donald Trump, but for a staggering $12 million loss incurred while trading a memecoin on the platform Pump.fun. 

Ross Ulbricht $12 Million Mistake

On January 29, Ulbricht, or an individual with access to his Solana wallet, reportedly attempted to manage liquidity for ROSS tokens, a meme coin created by his supporters to raise funds following his release. 

Ross Ulbricht received 50% of the total supply of these tokens, which were designed to generate financial support in the wake of his pardon. Instead of liquidating his holdings all at once, he sought to add liquidity gradually on Raydium, a decentralized exchange (DEX) operating on the Solana blockchain.

However, Ulbricht’s attempt to provide liquidity was marred by a critical error. In setting up the liquidity pool, he mistakenly utilized a Constant-Product Market Maker (CPMM) model instead of the more refined Concentrated Liquidity Market Maker (CLMM) model. 

The CPMM model, which is the standard for automated market makers, does not allow liquidity providers to set specific price ranges for their trades. As a result, Ulbricht’s tokens became available for trading at an unfavorable price, leading to immediate and unintended market consequences.

ROSS Tokens Plunge 90% After MEV Exploitation

This misconfiguration attracted the attention of a maximal extractable value (MEV) bot—an algorithm designed to scan blockchain transactions for profitable opportunities and execute trades at lightning speed. 

The bot seized the moment, purchasing $1.5 million worth of ROSS tokens at a steep discount, then promptly reselling them at a profit into the existing liquidity pool. The rapid exploitation of the mispriced tokens caused a significant price drop, triggering a cascade of losses.

In an effort to rectify the situation, Ross Ulbricht attempted to fix his liquidity setup but fell into the same trap, ultimately losing an additional $10.5 million. This brought his total losses to a staggering $12 million as the MEV bot continued to exploit the misconfigured liquidity. 

The fallout from these transactions resulted in a 90% crash in the token’s price, eroding a significant portion of its market value.

Despite these setbacks, Ross Ulbricht retains 10% of the ROSS token supply in another wallet, now correctly configured on Raydium’s CLMM pools. These remaining holdings are estimated to be worth around $200,000, a mere fraction of the original investment.

Ross Ulbricth

Featured image from DALL-E, chart from TradingView.com

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Tuttle Capital Files For 10 Leveraged Crypto ETFs Including TRUMP And Cardano

Tuttle Capital Management (TCM) has filed for ten different leveraged crypto ETFs in the United States, signaling an increasing interest from asset managers in leveraging cryptocurrencies and memecoins as viable investment vehicles.

Tuttle Capital’s Crypto ETFs To Feature 2x Long Exposure

Based in Riverside, Connecticut, Tuttle Capital was founded in 2012 and specializes in providing investment management and advisory services.

The firm’s recent filing encompasses a range of well-known cryptocurrencies, including XRP, Solana (SOL), Litecoin (LTC), and Cardano (ADA), as well as more niche tokens like TRUMP, MELANIA, BONK, Chainlink (LINK), and Polkadot (DOT. 

The proposed ETFs are designed to provide a 2x long exposure to these digital assets, catering to investors looking to capitalize on the volatility and potential upside of the cryptocurrency market.

Bloomberg ETF experts James Seyffart and Eric Balchunas have noted the significance of this filing. Seyffart highlighted that this marks the first US crypto ETFs filings for assets like Chainlink, Cardano, Polkadot, and even the memecoin MELANIA. 

A Key Test For SEC Regulations?

The expert further emphasized that this is a pivotal moment for issuers as they test the boundaries of what the US Securities and Exchange Commission (SEC) will permit. 

The recent establishment of the new crypto task force, led by pro-crypto Commissioner Hester Peirce, is anticipated to play a crucial role in determining the regulatory landscape for such products.

Balchunas added that the crypto ETFs fall under the Investment Company Act of 1940, suggesting that unless the SEC disapproves the applications, these ETFs could potentially be available for trading as early as April. 

The expert remarked on the significance of the ongoing Dogecoin and TRUMP crypto ETF as well, noting that their lack of withdrawal after a week indicates a shifting attitude among regulators.

Crypto ETFs

Despite the new crypto ETFs filings, Cardano’s price dropped nearly 5%, losing the key $1 milestone. ADA is now trading at $0.92. 

Featured image from DALL-E, chart from TradingView.com 

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CoinShares Seeks Approval For Spot Litecoin And XRP ETF In Latest Market Move

In a notable change in the crypto regulatory environment, asset managers are regaining confidence in their pursuit of ETFs. Significantly, CoinShares submitted applications for a spot XRP ETF and a Litecoin (LTC) fund, indicating an increasing enthusiasm for altcoin investment offerings.

CoinShares Targets Litecoin And XRP ETF

CoinShares’ submission arises as the US ETF market is progressively concentrating on cryptocurrency investments, after the approval and resulting success of funds investing in Bitcoin (BTC) and Ethereum (ETH) in 2024.

The firm has submitted an S-1 registration statement to the Securities and Exchange Commission (SEC) to launch the XRP ETF, aimed at providing investors with direct exposure to the market’s second largest altcoin. 

Additionally, CoinShares is expanding its offerings by applying for a spot Litecoin ETF, positioning itself as one of the few companies actively exploring altcoin-based ETFs in the US market.

On the same day, Grayscale Investments also filed applications with the New York Stock Exchange (NYSE) for both a Solana ETF and a Litecoin ETF, alingning with other firms, including Canary Capital and CoinShares, all seeking regulatory approval for similar products.

Skepticism Surrounds Proposed Litecoin ETF

Despite the enthusiasm surrounding the XRP ETF filing, the altcoin has shown a mixed response in the market. XRP recently emerged from a nearly three-year consolidation period below the $0.50 mark, boosted by excitement surrounding pro-crypto regulatory shifts under President Donald Trump. 

Currently, XRP is experiencing remarkable momentum, boasting a staggering 500% year-to-date gain, trading at approximately $3.10.

However, the announcement of CoinShares’ XRP ETF did not significantly impact the token’s price, which remains down 0.4% within a 24-hour period. 

On a more critical note, the proposed Litecoin ETF has sparked skepticism among some market experts. Analyst Ali Martinez expressed concerns regarding the viability of a Litecoin ETF, pointing out that the coin has remained stuck in the same price range since 2017, a span of eight years. 

The analyst continued to probe the reasoning for initiating a Litecoin ETF when ironic options, like a “USDT ETF,” he claims, might provide more instant advantages such as staking rewards.

XRP ETF

Featured image from DALL-E, chart from TradingView.com 

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Number Of New Trump-Themed Malicious Tokens Spike 206% After Official Memecoin Launch

The ongoing TRUMP memecoin frenzy has sparked the creation of hundreds of tokens inspired by the US president and his family. A recent report revealed malicious tokens and dApps using Donald Trump references skyrocketed since Friday, targeting unsuspected investors and non-crypto people.

Trump-Themed Scams Skyrocket

Over the weekend, US President Donald Trump surprised the crypto industry by launching his official memecoin, TRUMP. The token received heavy criticism, with several crypto investors calling the President’s memecoin venture a “big red flag.”

Many community members initially suspected the token was a hacking scam, while others expressed reservations about TRUMP’s tokenomics. Regardless of the doubts, the memecoin eclipsed the market, skyrocketing to $30 in a few hours and hitting an all-time high (ATH) of $75 a day later.

Web3 security platform Blockaid shared that TRUMP’s successful launch also ignited a “rapid proliferation of malicious tokens, fake dApps, and scams using the Trump name and branding,” following the trend of scammers leveraging major news events in the crypto industry to target unsuspecting users.

According to the report, tokens with the “Trump” name increased by 206% on the launch day. The report stated, “Many of these tokens used misleading branding to lure investors.”

The chart shows that since late December, the number of new malicious tokens with the word “Trump” has hovered between 2,000 and 3,000 daily. However, this number increased to 6,800 tokens deployed on Friday, double the usual 3,300 Trump-inspired tokens created daily.

memecoin

Additionally, the number of fake dApps deployed saw record rates over the weekend. The malicious applications are often used to “trick users into connecting their wallets, allowing scammers to drain funds.”

Blockaid reports that impersonator dApps using President Trump’s name saw a 14x increase after the launch, with 91 malicious dApps deployed in 24 hours.

Trump Memecoin Frenzy Continues

The report highlighted that scammers didn’t stop at Trump-themed tokens. Memecoins with metadata referencing the Trump family, including Melania and Barron-inspired ones, surged by 592% over the weekend, “creating the illusion of an interconnected ecosystem.”

It’s worth noting that US First Lady Melania Trump announced the launch of her official memecoin, MELANIA, on Sunday afternoon. The launch pushed the crypto market to a 6% correction, with Bitcoin (BTC) dropping below $100,000, and TRUMP declining 49% in an hour.

On Inauguration Day, DexScreener’s main page showed a plethora of memecoins inspired by the Trump Family. Of the top 15 tokens, 11 were related to the presidential family, including the official TRUMP and MELANIA memecoins.

memecoin

Fake Donald Trump Jr, Ivanka, and Eric memecoins were also launched, alongside Trump-related figures like US Vice President JC Vance and Elon Musk. Despite the several Musk-themed tokens already existing, the recently launched memecoins used branding inspired by the official Trump tokens.

Moreover, the Trump memecoin frenzy continued as the US President was sworn into office. A video shared on X shows that during Trump’s inauguration speech, community members created several new tokens themed after the speech.

Users flooded the market with dozens of memecoins using phrases like “Make America respected again” or “America will be admired again” just seconds after the US President pronounced them, potentially attempting to lucre from the ongoing hype.

As of this writing, the official TRUMP memecoin trades at $37.6, a 1.4% increase in the daily timeframe.

memecoin, TRUMP, TRUMPUSDT

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Donald Trump Memecoin Skyrockets Over 12,000% Overnight With $30B Fully Diluted Value – What Happened?

The TRUMP meme coin, the official Donald Trump cryptocurrency, took the crypto world by storm upon its launch on Friday. Within hours, it became the hottest topic in the market, captivating investors and enthusiasts alike. By Saturday morning, as the U.S. woke up to the news, the TRUMP coin had skyrocketed to an astonishing $30, marking a jaw-dropping 12,000% increase from its launch price.

The exponential rally that unfolded overnight now seems like just the beginning. The coin’s meteoric rise barely makes a dent in its increasingly vertical chart. With a staggering $6 billion market cap and a fully diluted valuation of $30 billion, the TRUMP coin is quickly establishing itself as a phenomenon in the meme coin category.

For early investors, the returns have been life-changing. A modest $10,000 investment at launch is now worth an incredible $1.2 million, highlighting the massive potential of this viral asset. As the TRUMP coin continues to dominate headlines, speculation is growing about whether this is a short-lived hype or the start of a new trend in the crypto space. With such explosive growth, all eyes are on this unprecedented meme coin’s next move.

TRUMP Becomes The Biggest Meme Coin In History

At 9:44 PM ET on an otherwise quiet Friday night, President-elect Donald Trump made history by launching the $TRUMP meme coin, which has already become the biggest meme coin phenomenon the market has ever seen. According to The Kobbeissi Letter, a trusted voice in global capital markets commentary, TRUMP is up a staggering 9,500%, with $2.2 billion in trading volume within just 12 hours of its launch.

Initially met with skepticism, the announcement of $TRUMP’s launch seemed so implausible that many traders assumed Trump’s account had been hacked. However, with no official statement refuting the coin’s legitimacy, confidence grew—and so did the price.

By 12:45 AM ET, TRUMP had broken above $10, accelerating into a parabolic rally. In the early hours, traders witnessed unprecedented returns. One investor reportedly turned $50,000 into nearly $1.1 million in just two hours. Remarkably, TRUMP outperformed the S&P 500’s 30-year cumulative return within that same short window.

Trump meme coin price timeline | Source: The Kobeissi Letter on X

A key factor driving the coin’s explosive price action is its limited circulating supply. Only 20% of the maximum supply—200 million coins—is currently on the market. Over the next 36 months, the remaining 800 million coins will gradually be released. Speculation is rife that Trump himself holds this undistributed portion, potentially giving him substantial control over the asset.

Project liquidity distribution by group | Source: The Kobeissi Letter on X

With $TRUMP already establishing itself as a phenomenon, the coin’s trajectory remains a captivating spectacle. This unprecedented rally and intrigue surrounding its supply mechanics have cemented it as one of the most extraordinary stories in crypto history.

Price Action And Market Cap Details

The explosive rise of the TRUMP coin has prompted questions about its Market Cap and Fully Diluted Valuation (FDV). With a total supply of 1 billion coins, the FDV—if all tokens were circulating—would stand at approximately $21 billion based on current prices. However, since only 200 million coins (20% of the total supply) are currently in circulation, the market cap is approximately $4.2 billion. This significant disparity highlights the impact of circulating supply on valuation metrics.

Price action, for now, provides limited insight into the coin’s future. There is little data to conduct meaningful technical analysis. The TRUMP chart essentially consists of a parabolic green candle, reflecting its meteoric rise in an hype-dominated environment. This leaves the market with one critical question: can demand sustain current levels as the remaining 80% of the supply gradually enters circulation?

Price Soars Above $30 | Source: Kobeissi Letter chart on TradingView

The TRUMP emission schedule outlines how the maximum supply will be reached over the next 36 months. Skeptics argue that this influx of supply could lead to oversaturation, ultimately sending the coin’s price plummeting to $0. On the other hand, bulls believe the schedule’s gradual nature allows demand to keep pace. This could mitigate the risk of significant price dilution. For now, the debate continues.

Featured image from Dall-E, chart from TradingView

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Bitcoin Breaks Out Of Cup-And-Handle Pattern, Eyes $276,000 Target

The market’s leading cryptocurrency, Bitcoin (BTC), has rejoined the crypto rally, gaining momentum on Friday amid reports that President-elect Donald Trump may issue an executive order prioritizing cryptocurrencies as soon as he takes office. 

As of the latest data from CoinGecko, Bitcoin surged nearly 5% in the 24-hour time frame, reaching $104,000. The broader cryptocurrency market, represented by the CoinDesk 20 index, also saw an uptick, rising 1% following a 4% increase on Thursday.

Excitement Builds Ahead Of Trump’s Executive Orders 

This newfound interest in Bitcoin has positively impacted exchange operators, with shares of platforms like Coinbase and Robinhood climbing approximately 5% and 3%, respectively. 

According to CNBC, the excitement follows a Bloomberg report indicating that Trump might establish the crypto advisory council he had previously promised, potentially giving the industry a significant voice in his administration. 

Bitcoin

Discussions surrounding a national Bitcoin stockpile are also part of the anticipated executive order, which is expected to address various aspects of cryptocurrency policy, according to a report by the New York Times.

While the prospect of a pro-crypto administration and Congress in 2025 is encouraging for the industry, some Wall Street analysts caution that the full impact may not be felt immediately. 

Coins and crypto projects outside of Bitcoin could reportedly benefit the most from clear and supportive regulations, especially as they have been more vulnerable to Securities and Exchange Commission (SEC) lawsuits and perceived banking discrimination under the previous administration. 

Analysts Eye Record-Breaking Bitcoin Prices 

Bitcoin’s performance has been closely aligned with the stock market this year, following a period of consolidation that began in late December. 

This came after Federal Reserve Chair Jerome Powell raised concerns about inflation, a sentiment that has since eased with two favorable inflation reports in January. 

Expectations are high that any announcements from the incoming administration next week could propel Bitcoin’s price even higher, potentially setting new records. 

Analysts believe that the new administration, along with a new SEC chairman, could usher in opportunities for innovation within the cryptocurrency space. 

JPMorgan analyst Kenneth Worthington noted that while the environment is promising, the market capitalization of other tokens and lower investor interest may limit the impact of new cryptocurrency products.

In a favorable technical development, crypto analyst Ali Martinez recently pointed out that Bitcoin has broken out of a cup-and-handle pattern, a bullish indicator in technical analysis. 

Bitcoin

This pattern resembles a “cup” followed by a downward trend, or “handle,” which typically signals a buying opportunity. According to Martinez, this suggests a potential upside target of $276,400 for Bitcoin—more than doubling its record high of $108,000 reached at the end of last year.

Featured image from DALL-E, chart from TradingView.com 

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BREAKING: BitMEX Fined $100 Million For US Money-Laundering Violations

Federal judge John G. Koeltl has directed BitMEX to pay a $100 million fine, representing the latest development in an ongoing legal dispute regarding money laundering infractions in the US.

BitMEX Faces Major Legal Setback

The legal challenges for BitMEX stem from activities between 2015 and 2020, during which the exchange reportedly failed to adhere to the United States Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering. 

Despite BitMEX’s attorneys arguing that a previous $110 million fine and earlier guilty pleas from the exchange’s founders were sufficient punishment, Judge Koeltl deemed additional financial penalties necessary.

In 2022, BitMEX’s founders, Arthur Hayes, and Benjamin Delo, admitted guilt to comparable charges, with both consenting to pay a $10 million criminal penalty.

 Exchange Implements Enhanced KYC And AML Measures

In a statement following the ruling, the company expressed disappointment over the additional financial penalty but noted that the amount was significantly lower than the Department of Justice’s (DOJ) initial demands, which exceeded $200 million during plea negotiations and rose to approximately $420 million during sentencing discussions.

The exchange emphasized its commitment to compliance, stating that it has made significant improvements to its operations since the period covered by the BSA charges. 

This includes implementing a robust user verification program and comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. BitMEX asserts that these advancements have been recognized by users, partners, and regulatory stakeholders.

“We stand firm by the statement that the BSA charge is old news,” the company remarked in its statement. BitMEX expressed a desire to move past these legal challenges and focus on innovation and service delivery for its users. 

The exchange aims to maintain its position as a leading, trusted, and financially stable crypto derivatives platform, continuously launching new products and innovations to meet user demands.

BitMEX

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BREAKING: BitMEX Fined $100 Million For US Money-Laundering Violations

Federal judge John G. Koeltl has directed BitMEX to pay a $100 million fine, representing the latest development in an ongoing legal dispute regarding money laundering infractions in the US.

BitMEX Faces Major Legal Setback

The legal challenges for BitMEX stem from activities between 2015 and 2020, during which the exchange reportedly failed to adhere to the United States Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering. 

Despite BitMEX’s attorneys arguing that a previous $110 million fine and earlier guilty pleas from the exchange’s founders were sufficient punishment, Judge Koeltl deemed additional financial penalties necessary.

In 2022, BitMEX’s founders, Arthur Hayes, and Benjamin Delo, admitted guilt to comparable charges, with both consenting to pay a $10 million criminal penalty.

 Exchange Implements Enhanced KYC And AML Measures

In a statement following the ruling, the company expressed disappointment over the additional financial penalty but noted that the amount was significantly lower than the Department of Justice’s (DOJ) initial demands, which exceeded $200 million during plea negotiations and rose to approximately $420 million during sentencing discussions.

The exchange emphasized its commitment to compliance, stating that it has made significant improvements to its operations since the period covered by the BSA charges. 

This includes implementing a robust user verification program and comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. BitMEX asserts that these advancements have been recognized by users, partners, and regulatory stakeholders.

“We stand firm by the statement that the BSA charge is old news,” the company remarked in its statement. BitMEX expressed a desire to move past these legal challenges and focus on innovation and service delivery for its users. 

The exchange aims to maintain its position as a leading, trusted, and financially stable crypto derivatives platform, continuously launching new products and innovations to meet user demands.

BitMEX

Featured image from DALL-E, chart from TradingView.com

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Bitcoin Eyes Potential Rebound To $98,600, But Analyst Suggests Caution

The market’s New Year rebound turned into a start-of-year retrace after Bitcoin (BTC) dropped from the recently reclaimed $100,000 support into the $94,000 territory. Amid the drop, an analyst shared his “cautiously bullish” outlook for BTC’s price.

Bitcoin Risks Crash To $74,000

On Tuesday, Bitcoin dropped below $97,000, dragging the market into the first pullback of the year. BTC began 2025 trading around the $92,000 level but climbed around 6.5% in the following days.

After turning the $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support zone, dipping 3% in an hour yesterday.

The cryptocurrency has dropped another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, BTC has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance.

Crypto analyst Ali Martinez examined BTC’s recent performance. In an X threat, the analyst noted that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern” on Monday, invalidating the bearish setup pattern.

bitcoin

However, the reversal “erased those gains, dragging BTC back below the right shoulder and reigniting bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martinez also pointed out that Bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million BTC.

The analyst suggested the price drop could force these holders to “sell some BTC to cut potential losses.” He also noted there isn’t significant resistance ahead for the flagship crypto, with only a minimal supply wall of 107,000 BTC between $104,700 and $105,770.

Nonetheless, the analyst warned that a surge in selling pressure that pushes the cryptocurrency below the $92,000 mark “could spell trouble,” as it would open “the door to a steep drop, with little support until $74,000.”

“Therefore, the current market conditions, from a macro perspective, are reigniting fears of a potential Bitcoin crash,” he added.

BTC Price Set To Bounce Soon?

The analyst also shared a “cautiously bullish” outlook for BTC from a technical perspective. Martinez pointed out that TD Sequential presented a buy signal on Bitcoin’s 4-hour chart, suggesting a potential price rebound if the price can hold the $93,500 support zone.

Additionally, he highlighted that traders on Binance “are leaning bullish on Bitcoin,” as  61.28% of all traders on the crypto exchange with open positions are betting that the price will go up.

Martinez also noted that $35 million would be liquidated if BTC’s price rebounds to $98,600, suggesting that market makers “may try to grab” it. Similarly, there’s another $66 million liquidation zone above $103,300.

However, the analyst emphasized that Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that BTC could rebound to $98,600 in the short term, but “the macro suggests caution.”

As of this writing, Bitcoin is trading at $94,500, a 3.3% retrace in the daily timeframe.

Bitcoin, BTC, BTCUSDT

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Bitcoin Bounces Back Above $100K – Is the Bull Run Resuming or a Correction Ahead?

After weeks of trading below the critical $100,000 mark, Bitcoin has started 2025 with renewed bullish momentum. The cryptocurrency, which had been struggling since last month, has shown signs of recovery, climbing back above the psychological $100,000 threshold earlier today for the first time in recent weeks.

Bitcoin entered the year trading between $93,000 to $95,000 but has now regained momentum as its current trading price sits at $102,368.  Over the past 24 hours, Bitcoin has surged by a 4.5% increase, bringing it closer to its all-time high of $108,000 achieved in late 2024.

This upward movement has reignited optimism among both retail and institutional investors, with many closely watching key market indicators to understand whether Bitcoin can sustain this momentum or if another correction might be on the horizon.

What Bitcoin Short-Term Holder Realized Price Indicates

CryptoQuant analyst Yonsei Dent recently shared an analysis of Bitcoin’s price dynamics, highlighting the role of the Realized Price of Short-Term Holders (STH) as a key breakeven point.

The Realized Price represents the average purchase price of Bitcoin by short-term holders, segmented into two critical bands: 1-week to 1-month (1W-1M) and 1-month to 3-month (1M-3M).

Bitcoin Realized Price of Short-Term Holders (STH)

Historically, the 1M-3M band has consistently acted as a medium-term support zone, while the 1W-1M band reflects short-term market sentiment. When the gap between these two bands widens, Bitcoin often experiences consolidation or corrective phases until they converge again.

Currently, Bitcoin is encountering resistance at the 1W-1M band. However, the 1M-3M band continues to provide strong support, indicating a potential accumulation opportunity for medium-term investors.

Yonsei Dent emphasized that monitoring the interaction between these two bands is essential for identifying market trends. As they move closer together, Bitcoin may experience a period of relative stability before determining its next significant price direction.

Further Upward Momentum Expected?

Another CryptoQuant analyst, Joohyun Ryu, provided insights into Bitcoin’s recent correction phase, noting that while the market exhibited signs of cooling, key indicators suggest a potential rebound.

Metrics such as Market Value to Realized Value (MVRV), Adjusted Spent Output Profit Ratio (aSOPR), and Net Unrealized Profit/Loss (NUPL) offer valuable context for assessing market sentiment.

The MVRV ratio currently stands at 2.358, indicating that Bitcoin is trading at a moderate premium relative to its realized value. Similarly, the aSOPR metric, currently at 1.02, suggests that Bitcoin transactions are still yielding profits on average.

Meanwhile, the NUPL value of 0.58 reflects a market sentiment that remains in a state of optimism despite recent price fluctuations. Ryu also highlighted the continued activity of short-term holders, noting their consistent market participation despite recent volatility.

This steady influx of new investors suggests growing confidence in Bitcoin’s long-term value proposition. Historically, such behavior has preceded significant upward price movements, reinforcing the notion that the recent market cooling phase may set the stage for a potential breakout.

Featured image Created With DALL-E, Chart from TradingView

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Former Terra CEO Do Kwon Enters Not Guilty Plea In Landmark $40 Billion Crypto Trial

Do Kwon, the South Korean cryptocurrency entrepreneur and co-founder of Terraform Labs, pleaded not guilty on Thursday to a series of criminal fraud charges in a Manhattan federal court. 

This comes just days after his extradition from Montenegro, where he had been detained for over a year. His case centers around the collapse of TerraUSD and Luna (LUNC), which collectively lost an estimated $40 billion in 2022.

Ordered To Remain In Custody Following Court Appearance

According to a Reuters report, federal prosecutors unsealed a nine-count indictment accusing Kwon of multiple offenses, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. 

Dressed in an olive green long-sleeved shirt and black sweatpants, Kwon appeared in court alongside his lawyer, Andrew Chesley, who indicated that they would not seek bail at this time. 

Following Kwon’s plea, US Magistrate Judge Robert Lehrburger reportedly ordered him to remain in custody. Do Kwon left the courtroom with a copy of the 79-page indictment, and he is scheduled to return for another hearing on January 8.

The Fallout From Do Kwon Alleged Fraud And Market Manipulation

In June, Kwon reached a civil settlement with the US Securities and Exchange Commission (SEC), agreeing to pay an $80 million fine and accept a ban from participating in cryptocurrency transactions. This settlement was part of a broader $4.55 billion resolution related to alleged misconduct in the management of Terraform Labs.

The indictment details how Kwon allegedly misled investors about the stability of TerraUSD, a stablecoin designed to maintain a value of $1. In May 2021, when the stablecoin’s value began to falter, Kwon reportedly claimed that a computer algorithm known as “Terra Protocol” had successfully restored its peg. 

In reality, prosecutors allege that Do Kwon orchestrated a scheme involving a high-frequency trading firm to secretly purchase millions of dollars of TerraUSD to artificially inflate its price.

This reportedly drove both retail and institutional investors to buy Terraform products, significantly boosting the value of Luna, another token linked to TerraUSD, to as high as $50 billion by the spring of 2022. The indictment states, “Much of this growth followed Kwon’s brazen deceptions about Terraform and its technology.”

However, the situation took a turn for the worse in May 2022 when TerraUSD’s value began to decline again. The trading firm that had previously propped it up warned Kwon that maintaining its value “wasn’t so simple this time.” 

The subsequent crash of both TerraUSD and Luna sent shockwaves through the cryptocurrency market, leading to substantial losses for investors and contributing to a broader downturn that affected other digital assets, including Bitcoin (BTC).

While prosecutors have not disclosed the identity of the trading firm involved, SEC lawyers previously indicated that Jump Trading had played a role in supporting TerraUSD during its peak in May 2021.

Do Kwon

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Michael Saylor Predicts Bitcoin Market Cap Of $280 Trillion By 2045—What Will The Price Be?

In a recent interview with Fox Business, Michael Saylor, co-founder and chairman of MicroStrategy, expressed an ambitious vision for Bitcoin (BTC), predicting a substantial increase in its overall market value over the next 21 years. 

This forecast aligns with MicroStrategy’s ongoing strategy of intensifying its Bitcoin acquisition program, which has significantly influenced the company’s stock performance, linking it closely to Bitcoin’s price movements.

Saylor Envisions Bitcoin Price Soaring To $13 Million

Bitcoin has already reached a valuation of approximately $2 trillion, with its price hitting a new record of $104,000 on Thursday. However, Saylor anticipates an additional $200 trillion will be added to Bitcoin’s market cap by 2045, driven largely by global inflationary pressures. 

According to Saylor, many investors are moving away from traditional assets in favor of Bitcoin, viewing it as a viable global monetary asset. He asserts that as more capital flows into Bitcoin, its growth trajectory will outpace equities, gold, and real estate.

Delving into specific price predictions, Saylor posited that bitcoin could reach an astounding $13 million per coin. This would represent a 12,384% growth if Saylor’s predicted scenario comes to fruition, potentially making it the largest currency in the world. 

Saylor bases this estimate on an analysis suggesting that Bitcoin has historically grown at an average annual rate of 29%. This growth, he argues, could continue, leading to the projected valuation by 2045. 

NewsBTC previously reported that Saylor believes that Bitcoin represents only 0.1% of the global capital market, but he envisions that figure increasing to 7%.

Saylor also provided a detailed analysis of Bitcoin’s growth trajectory, outlining a four-year projection with an average growth rate that might start at 44% and gradually taper down to 30%. 

Contrary to the perception of Bitcoin as a high-risk asset, Saylor emphasizes its potential as a safe haven for risk-averse investors, highlighting the increasing demand for security in investment choices.

MicroStrategy Ramps Up BTC Acquisitions

In a recent social media update, Saylor shared the company’s performance following three years of strategic Bitcoin investments. He announced that year-to-date, MicroStrategy’s treasury operations have delivered an impressive BTC yield of 63.3%, resulting in a net benefit of approximately 119,800 BTC for shareholders. 

At prices of $103,000 per BTC, this translates to an estimated $12.3 billion in returns for the year, positioning MicroStrategy as one of the most profitable and fastest-growing companies operating under the “Bitcoin Standard.”

On Monday, MicroStrategy revealed that it has significantly ramped up its BTC acquisitions, surpassing the milestone of 400,000 BTC in its portfolio.

The company sold 3.7 million shares of its stock, generating around $1.5 billion in proceeds immediately reinvested into Bitcoin. This marks the fourth consecutive week of Bitcoin purchases by the firm.

Since November 11, MicroStrategy has invested over $13.5 billion in Bitcoin across three separate transactions, bringing its total holdings to approximately $38 billion, or 402,100 BTC, at an average purchase price of $56,658 per coin. 

Bitcoin

BTC trades at $101,628 at the time of writing, recording a 6% surge in the 24-hour time frame. 

Featured image from DALL-E, chart from TradingView.com 

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Bitcoin Price Hits Historic $104,000: Key Factors Fueling The Surge

Bitcoin has shattered previous records, soaring past the $100,000 milestone for the first time ever to reach an all-time high of $104,088 late Wednesday in New York. The flagship cryptocurrency had dipped to $94,587 on Wednesday but staged a remarkable comeback. Several key factors contributed to this unprecedented surge:

#1 Fed Chair Powell Compares Bitcoin To Gold

In a significant acknowledgment from the traditional financial sector, Federal Reserve Chair Jerome Powell discussed Bitcoin during the New York Times DealBook Summit. When questioned about the perception of Bitcoin as a symbol of faith or lack thereof in the US dollar and the Federal Reserve, Powell offered a nuanced perspective.

“I don’t think that’s how people think about it,” Powell remarked. “People use Bitcoin as a speculative asset, right? It’s like gold. It’s just like gold, only it’s virtual. It’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar; it’s really a competitor for gold.”

This comparison to gold, a traditional store of value, was probably seen by many as another strong legitimization of Bitcoin in the financial ecosystem.

#2 Russia’s Putin Signals Openness To Bitcoin

Adding to the momentum, Russian President Vladimir Putin made comments during the Russia Calling forum that many interpret as an endorsement of Bitcoin.

“Who can ban Bitcoin? Nobody,” Putin stated. “And who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies. And no matter what happens to the dollar, these tools will develop one way or another because everyone will strive to reduce costs and increase reliability.”

The backdrop to Putin’s comments includes speculation about a forthcoming “Bitcoin Space Race” between global superpowers. President-elect Donald Trump, during his election campaign and at the Bitcoin 2024 conference in Nashville, pledged to establish a Strategic Bitcoin Reserve in the United States. He even suggested that part of the US debt could be “paid off” with Bitcoin.

David Bailey, CEO of BTC Inc and advisor to Trump’s team, emphasized the urgency of this initiative on X: “The Bitcoin Space Race is here. […] It couldn’t be more clear what’s happening. It must be a national priority to stand up the Strategic Bitcoin Reserve in the first 100 days of the Trump admin. We need an aggressive plan to grow USA’s proportional ownership of the Bitcoin supply.”

#3 Strong Spot Demand And Institutional Interest

The surge was underpinned by robust spot market activity and significant institutional participation. During the ascent, open interest in Bitcoin futures skyrocketed by more than $4 billion, according to data by Coinalyze. Funding rates also reached unprecedented levels, surpassing peaks seen two weeks ago when Bitcoin first hit $99,500.

Importantly, the rally was driven by spot markets and not only derivative speculation, indicating a healthy and sustained demand. The infamous “Great Sell Wall” at $100,000, which had previously resisted upward movement, was decisively breached on the second attempt.

Market analysts are speculating that major players like Michael Saylor may have been behind the substantial buying pressure. Notably, MARA Holdings, Inc., the largest publicly traded Bitcoin mining company by market capitalization, recently raised $850 million through an offering of zero-coupon convertible senior notes due 2031. While unconfirmed, there is a strong possibility that MARA utilized these funds to accumulate Bitcoin during the price run-up.

Supporting this notion, CryptoQuant reported: “Bitcoin passes $100k as institutional demand drives the market. The Coinbase Premium Index highlights sustained buying pressure from US investors.”

Coinbase premium
#4 Retail Market In Disbelief

Despite the bullish momentum, retail traders appear to be in a state of disbelief. On-chain analytics firm Santiment observed that while whale accumulation continues to strengthen, retail sentiment remains cautious.

Santiment noted: “With whale accumulation continuing to look strong, the only factor holding back $100K BTC history being made is retail traders’ excitement.” The firm highlighted that the start of December saw increasing skepticism and expectations of a significant price retracement following November’s historic gains. However, the current social media landscape reflects “hesitance and uncertainty from traders,” with a ratio of negative to positive commentary.

“With numerous indications over the years that crypto markets move the opposite direction of the crowd’s expectations, we should feel encouraged by our fellow traders’ FUD and high profit-taking,” Santiment added. “There may be a bit more of a battle between bulls and bears at this level, but we could see the long-awaited milestone come to fruition very shortly as long as key stakeholders continue their collection of more and more BTC.”

At press time, BTC traded at $102,681.

Bitcoin price

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Bitcoin (BTC) Crashes 33% In South Korea Amid Increasing Political Turmoil

Bitcoin (BTC) has seen a violent drop in South Korean exchanges amid the growing political crisis in the country. Following a recent announcement by the country’s President, the flagship crypto and other crypto assets saw a brief sell-off that plunged their prices by over 30%.

South Korea Declares First Martial Law In 44 Years

On Tuesday night, South Korean President Yoon Suk Yeol declared an “emergency martial law” for the first time in 44 years, causing panic among Koreans and kickstarting a massive sell-off of Bitcoin and other cryptocurrencies.

The Korean JoongAng Daily explains that a declaration of martial law replaces civilian government with military rule and suspends civilian legal processes for military powers.

Additionally, it allows measures like “restricting freedom of speech, publication, assembly and association, special changes to the authority of governments or courts, and a warrant system by the provisions of related laws.”

Nonetheless, if the parliament requests the lifting of martial law, with the consent of a majority of its members, the president must do so.

In a televised briefing, Yoon stated that the measure was taken to “eradicate pro-North Korean forces and protect the constitutional democratic order.” The President accused the country’s opposition of sympathizing with North Korea and anti-state activities.

 It’s worth noting that the opposition Democratic Party has a majority in the South Korean parliament, which has seemingly complicated Yoon’s efforts to push his agenda. In his statement, the Korean President didn’t announce specific measures but cited the opposition’s motion to impeach top prosecutors and reject the government’s budget proposal.

Through this martial law, I will rebuild and protect the free Republic of Korea, which is falling into the depths of national ruin. I will eliminate anti-state forces as quickly as possible and normalize the country.

Democratic Party leader Lee Jae-Myung announced they would attempt to nullify Yoon’s order but expressed concern that the military forces would act against the parliament members.

Bitcoin And XRP See Negative Kimchi Premium

Following the news, the price of Bitcoin saw a sharp correction against its South Korean Won (KRW) pair in local exchanges, dropping 27% on Upbit, Korea’s largest crypto platform.

Bitcoin

The flagship cryptocurrency fell from the 132 million KRW mark, worth around $92,000, to as low as 88.26 million KRW, around $62,000. However, it has since recovered from the nosedive, trading again above the pre-crash levels.

At the same time, Bitcoin recorded a price drop on global exchanges, falling momentarily below the $94,000 support before jumping back to the $95,000-$96,000 range on platforms like Binance, ByBit, and OKX.

Similarly, XRP saw its price retrace 60% from the 4,000 KRW mark to as low as 1,623 KRW, worth around $1.23. The cryptocurrency has recovered from the fall in the last hour, trading at 3,600 KRW, valued at $2.52.

According to Wu Blockchain, the reason behind the negative “Kimchi Premium” is that Korean exchanges do not allow institutional market makers. This, alongside the excessive traffic, “caused prices to be unable to synchronize in a short period of time.”

Ultimately, the latest reports revealed that the Parliament passed the vote to nullify the martial law, ending it after three hours. As of this writing, Bitcoin is trading at 133.2 million KWR in Upbit.

Bitcoin, BTC, BTCUSDT