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⚡Institutional Demand Squeezes Bitcoin Supply🦸

Croxroad

01 Apr 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🍤 Spot ETFs and Halving Combine

Since the launch of United States spot exchange-traded funds (ETFs), nearly $10 billion worth of Bitcoin has departed from crypto exchanges, signalling a significant shift in market dynamics. Data from Glassnode reveals that exchanges have witnessed a withdrawal of over 136,000 BTC since January 11, with the trend showing no signs of abating. As of March 28, exchange balances tracked by Glassnode reached their lowest point since April 2018, standing at a combined 2,320,458 BTC.

On March 27 alone, withdrawals surged to over 22,000 BTC, totaling $1.54 billion and marking the third-largest daily withdrawal tally of 2024. Concurrently, a notable transfer of stablecoin USD Coin (USDC) to Coinbase, the largest U.S. crypto exchange, was observed. This influx amounted to a historic $1.4 billion, prompting speculation about impending strong buying pressure in the market.

The emergence of U.S. spot Bitcoin ETFs has fueled discussions among market observers regarding their long-term impact on Bitcoin's supply dynamics and price. With several sources predicting a forthcoming "squeeze" in supply, where demand outpaces available BTC for sale, attention has turned to the impending block subsidy halving event in mid-April. Following this event, the BTC supply will expand by just 3.125 BTC per newly mined block, further tightening supply dynamics. Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, anticipates significant developments in April, noting Bitcoin's ascent as the world's hardest asset amidst pent-up institutional demand via ETFs and a programmatic supply squeeze.

🎮 Gamer's Nightmare

A shadowy group of cybercriminals has emerged as a formidable adversary for video game cheaters, deploying sophisticated information stealer malware to target players indulging in unfair advantages, particularly in Call of Duty. According to reports from malware market informer @vxunderground, this malware has already impacted hundreds of thousands of players and continues to spread rapidly.

The malware's primary targets are individuals utilising cheat software, commonly known as "Pay-to-Cheat," in video games like Call of Duty. Notably, some affected users were innocently using gaming software for latency improvement, VPNs, and controller boosting software, underscoring the indiscriminate nature of the attack.

The suspicious activity was first noticed by a Call of Duty cheat provider, "PhantomOverlay," after users reported unauthorised purchases. Similar attacks were confirmed by rival cheat providers, such as Elite PVPers, indicating a coordinated effort by cybercriminals.

The stolen data comprises freshly acquired credentials, with some victims reporting the depletion of their Electrum wallets. While the total amount of crypto stolen remains unknown, the scale of the breach is alarming. Activision Blizzard, the developer of Call of Duty, is reportedly collaborating with cheat code providers to assist affected players. Current estimates suggest over 3.6 million Battlenet accounts, 561,000 Activision accounts, and 117,000 Elite PVPers accounts have been compromised.

In response to the escalating situation, PhantomOverlay has disputed the reported number of hacked accounts, claiming them to be inflated. This incident echoes previous instances where game cheaters were targeted by exploiters, demonstrating the enduring cat-and-mouse game between cybercriminals and gamers. Notably, in 2018 and 2019, similar attacks were launched against Fortnite players, highlighting the persistent threat posed by malware disguised as cheat software.

🍩 Donating Crypto To A Qualified Tax-exempt Charity Or Non-profit

Donating crypto directly to a 501(c)(3) charitable organisation, such as GiveCrypto.org, could potentially qualify you for a charitable deduction. In our upcoming series, we'll explore the tax benefits associated with charitable contributions of cryptocurrency and guide you through the process of claiming deductions for your philanthropic endeavours in the crypto space.