Bitcoin Drops Below $40K & Down 20% from ETF Highs

Bitcoin Drops Below $40K, Down 20% from Post-ETF Highs

Bitcoin’s price recently fell below $40,000 for the first time since December, marking a nearly 20% drop from its high following the launch of new spot ETFs. This decline has brought Bitcoin to its lowest level since early December, although it remains significantly higher than its value a year ago. Analysts from 10x Research suggest $38,000 as a potential bottom. 

A crucial factor in this downturn is FTX’s bankruptcy estate selling approximately $1 billion worth of Grayscale’s Bitcoin Trust (GBTC), which was a major contributor to the over $2 billion worth of GBTC sold since its conversion to an ETF. This massive sale by FTX, amounting to 22 million shares, significantly influenced the market dynamics. With FTX’s sale completed, there is speculation that selling pressure might ease.

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Ethereum Bug Affects 8% of Validators, Raises Outage Concerns

A bug in Ethereum’s Nethermind client software disrupted a portion of the network’s validators, raising concerns about the network’s overreliance on a single client. Although the issue was resolved quickly, it highlighted the lack of client diversity in Ethereum, as around 85% of validators rely on Geth. 

If a critical bug were to affect Geth, it could potentially halt the entire network and lead to financial penalties for validators. Services like Coinbase, Binance, and Kraken also depend on Geth, putting user funds at risk. The incidents have sparked a debate on the need for greater client diversity to enhance network resilience.

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Tornado Cash Co-founder Vows “Strong Defense” in US Trial

Roman Storm, the co-founder of Tornado Cash, a controversial cryptocurrency mixer, expressed his apprehension about his upcoming criminal trial in a post on X (formerly Twitter). He called for support from privacy advocates and stated that his legal team would mount a robust defense against three charges he faces, including money laundering conspiracy. 

Storm believes the outcome of his case will set a significant precedent for the cryptocurrency and privacy communities. He was indicted in August 2023 but released on a $2 million bond. The charges relate to Tornado Cash allegedly aiding North Korean hackers in bypassing U.S. sanctions.

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Malware Exploits Pirated MacOS Apps to Hijack Crypto Wallets

A new macOS malware campaign has been uncovered by Kaspersky Labs. This malware infiltrates computers through pirated apps, replacing Bitcoin and Exodus wallets with infected versions. It targets macOS versions 13.6 and higher, obtaining users’ security passwords and private keys. To stay safe, users are urged to stick to trusted websites, keep their operating systems updated, and use security solutions. Hackers are increasingly using deceptive tactics like disguising malware as legitimate wallets or fake websites. 

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Other breaking news

• Binance and SEC Clash in Court, Judge Questions Both Parties
• Alameda Research Drops Lawsuit Against Grayscale Investments
• 2023 Crypto.com Report: Global Crypto User Base Surpasses Half a Billion
• SEC: Multi-Factor Authentication Was Disabled Before False ETF Post
• Mysterious Game Airdrops 21K Ordinals to Bitcoin Users

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