Why Bitcoin and the Crypto Market Are on the Rise

Audy Castañeda
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Why Bitcoin and the Crypto Market Are on the Rise

Bitcoin is up nearly 2%, taking the broader crypto market down with it.

In the last 24 hours, leading the altcoins is PEPE up 7.4%, closely followed by SHIB and HBAR each up 7%, TON up 5.6%, SNX up 5.4 %, and SOL with 4.6%. Total crypto market capitalization increased to $1.18 trillion (+1.35%), while Bitcoin dominance increased to 50.63%.

Reasons for the Rise

The market euphoria was initially sparked by the news from Bloomberg’s Eric Balchunas. He shared that sources inside BlackRock and Invesco suggest that the approval of a Bitcoin ETF is a matter of “when” rather than “if” and is likely to materialize within the next four to six months.

The source of this information was Galaxy Digital CEO Mike Novogratz, who made the disclosures during a recent earnings announcement. This news, hinting at the imminent approval of a Bitcoin ETF, made waves in the Bitcoin and crypto community, sparking optimism and speculation. Following this news, whale activity was also a key driver of the increase. CryptoQuant CEO Ki Young Ju tweeted that Bitcoin whales opened gigalong positions at $29k.”

In addition, he shared screenshots of the buyer-buyer-seller relationship on BitMEX, ByBit, Deribit, and Huobi Global. Each chart shows a sudden, extremely high jump in buying volume, presumably from whales, Ju said.

The Importance of the Open Interest (OI) Metric

Ali Martinez, a renowned analyst, addressed the importance of open interest. He noted that open interest, which represents the total number of open long and short positions across all crypto derivatives exchanges, hit a notable year-to-date high of $10.086 billion.

This metric is particularly notable because it has historically been highly correlated with the price of Bitcoin. Bitcoin’s recent drop to $28,700 seems to have been an opportune time for traders to take a bullish stance, suggesting that Bitcoin could be headed for further bullish momentum.

Open interest is a useful guide to see how much activity there is in the market. When the price of BTC is trending higher and the OI starts to rise very quickly, it may be an indication that the market may be becoming unsustainable as a lot of new money is coming in to trade. The opposite also happens. So it can be useful, in the toolkit for Bitcoin investors, to identify periods of extreme activity in the bitcoin derivatives markets.

CryptoQuant’s Julio Moreno noted a sharp rise in the Coinbase premium, indicating increased demand for Bitcoin in the US. This observation aligns with GB BTC’s declining discount, which many see as an indicator of the potential success of Grayscale vs. the US Securities and Exchange Commission (SEC) in its lawsuit over a spot ETF, but also as an indicator of the likelihood of Bitcoin Spot ETF approval.

From a market perspective, the euphoria in the market has led to a short tightening. A total of $37.19 million in BTC shorts were liquidated yesterday, $65.46 million in the general crypto market. Bitcoin’s short sale was the highest since July 13, when the price rose to its yearly high of $31,820.

As spot markets paid a premium and futures market funding rates fell, short sellers, were gradually liquidated. This means that the rally was mainly driven by cash markets rather than excessively leveraged long positions and whales played a key role in this.

By Audy Castaneda

Ray Dalio’s Fund Increases 70% Investment in Meta Shares

Leonardo Perez
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Ray Dalio’s Fund Increases 70% Investment in Meta Shares

The Bridgewater Associates founder would double the earnings on his investment in Meta by the end of the year. Bridgewater Associates increased its investment in Meta when shares were priced at $184, and these are now worth $312. The returns for investing in Meta are 71.8%, one of the highest in Ray Dalio’s portfolio, in regard to the purchase share price.

The billionaire and founder of the investment fund, Bridgewater Associates, Ray Dalio, increased his investment in Meta Platforms or META by 70% and added 446,000 shares in the first quarter of the year, when the shares cost $184. Currently, the company’s shares are trading at $312.64.

The Bridgewater Associates fund now has more than a million shares of META and a 70% investment in shares of Mark Zuckerberg’s company occurs in less than six months. By 2024, Ray Dalio would have doubled his investment returns, as Meta Platforms shares could exceed $350, according to TipRanks.

Ray Dalio’s Fund Scales Among Meta Shareholders

Until the first quarter of the year, the main shareholders of Meta were: Mark Zuckerberg, The Vanguard Group, BlackRock, Fidelity, SSgA Funds, Goode Capital, Capital Research, Norges Bank Investment, and T. Rowe Price Associates, who own between 14 and 1 .58% of Meta’s shares, according to Statista. Stock Circle data shows that Ray Dalio’s portfolio had a combined gain of 3.12% in one year.

Currently, the price of Meta’s shares exceeds $312, being one of those that offer the highest returns to its investors, since the shares have risen 85.51% in the past year. In November 2022, Meta Platforms shares were trading at $90.54 and as of July 31, they were above $318.60, according to Google Finance.

However, the returns for investing in Meta are among the highest in Ray Dalio’s portfolio, at 71.8% compared to the purchase share price. Another large percentage of the portfolio is allocated to BlackRock, which together exceeds 10% of its portfolio, and Mastercard, barely 0.7%.

The fund has investments in Web 3.0, while the second company is partnering with FinTechs on cryptocurrency-related projects. Ray Dalio’s portfolio totals $17.2 billion, higher than other investors like Cathie Woor (ARK Invest), which is $15.3 billion. It is even higher than that of George Soros, which is $2.42 trillion.

Ray Dalio Predicted a Year Ago the SEC Conflict Against Cryptocurrencies

Ray Dalio has not been a critic of cryptocurrencies, but he has been a skeptic, since two years ago he argued that regulators will take control of Bitcoin if the cryptocurrency ends up spreading en masse among citizens.

The billionaire (worth $19.1 billion) was right. It was, after the recent actions of the United States Securities and Exchange Commission (SEC) against some tokens that it described as “securities”. However, Ray Dalio has stated in the past that he owns Bitcoin.

Ray Dalio announced at the end of 2022 that he was giving up control of the world’s largest hedge fund. He was reported to have transferred all his voting rights to the board of directors, but that he would remain on the board as founder. Since the announcement, all of Bridgewater’s investments have been held by Bob Prince and Greg Jensen.

By Leonardo Pérez

AI is Already Capable of Stealing Passwords by Listening to Computer Keys, Says Report

Audy Castañeda
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AI is Already Capable of Stealing Passwords by Listening to Computer Keys, Says Report

A team of researchers has managed to train an AI model capable of stealing data from keystrokes recorded through a microphone. The AI ​​model has been shown to be 95% accurate. Keystrokes can also be recorded via a Zoom call where a malicious participant makes correlations between messages typed by the target and their sound recording.

A team of researchers from British universities has managed to train a deep learning AI model capable of stealing data from keystrokes recorded by a microphone with 95% accuracy.

When Zoom was used to train the sound classification algorithm, the prediction accuracy dropped to 93%, which is still dangerously high and a record for that medium.

In the Future, AI Could Crack Passwords with Relative Ease

This type of attack severely affects the security of the target’s data, as it could leak passwords, conversations, messages, or other sensitive information to malicious third parties.

This risk differs from other side channel hacks that require special conditions and are subject to data rate and distance limitations. Acoustic attacks have also become much simpler due to the abundance of microphoned devices that can capture high-quality audio.

Combining AI analytics with frequent key-click feedback would scare most users away. This, combined with rapid advances in machine learning, makes sound-based side channel hacks feasible. As well as harder to detect and far more dangerous than previously anticipated.

The first step of the hack is to record keystrokes on the target’s keyboard. Such data is needed to train the prediction algorithm. This can be accomplished by using a nearby microphone or the target’s phone that might have been infected by malware with access to their microphone.

AI Could Be Listening to Keys in the Middle of a Conversation

Alternatively, keystrokes can be recorded via a Zoom call where a malicious participant makes correlations between messages typed by the target and their sound recording.

The researchers collected training data by pressing 36 keys on a modern MacBook Pro 25 times each and recording the sound produced by each press. They then generated waveforms and spectrograms from the recordings that display identifiable differences for each key.

They then performed specific data processing steps to augment the signals that can be used to identify keystrokes.

Spectrogram images were used to train ‘CoAtNet’. CoAtNet is an image classifier trained based on the AI ​​model. While the process required experimentation with epoch parameters, learning rate, and data splitting until the best prediction accuracy results could be achieved.

In their experiments, the researchers used the same laptop, the keyboard which has been used on all Apple laptops for the past two years. An iPhone 13 mini was placed 17 cm from the lens and Zoom was added to the device. The CoAtNet classifier achieved 95% accuracy on smartphone recordings and 93% on Zoom captures. Skype produced a lower but still usable accuracy of 91.7%.

Ways to Prevent a Potential Hack Using AI

For users who are overly concerned with side-channel acoustic attacks, they may try changing typing styles or using random passwords. Other possible defensive measures include the use of software to reproduce keystroke sounds, white noise, or software-based audio filters.

Ultimately, the use of biometric authentication where possible, as well as of password managers, is recommended, so as to avoid the need to manually enter sensitive information, thus mitigating factors in the face of this emerging data security threat.

By Audy Castaneda

This Presidential Candidate Wants to “Put the Fed Back in Its Place” With Massive Cuts

Audy Castañeda
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This Presidential Candidate Wants to “Put the Fed Back in Its Place” With Massive Cuts

Presidential candidate Vivek Ramaswamy vows to cut Federal Reserve staff by 90% if elected. Several Republican contenders are united in their push for financial freedom, including supporting investing in Bitcoin. The influence of cryptocurrencies and the role of the Federal Reserve are emerging as key issues in the elections.

US presidential candidate Vivek Ramaswamy is charting a bold path to the 2024 election by targeting the central bank. If elected, he has promised to cut Federal Reserve staff by a staggering 90%.

In an interview with Fox News, he said: “I think we don’t need 23,000 employees at the US Federal Reserve.”

Ramaswamy Targets Fed for Price Stability

The Republican primary candidate advocates a system rooted in efficiency. Ramaswamy told Fox: “I think we could have a 90% downsizing in that system in place, stabilized in the dollar. That’s what I said.”

Ramaswamy has long been a vocal critic of the expansionary role of the Federal Reserve. Earlier this year, at the 2023 Bitcoin conference in Florida, he advocated for a change in the main bank’s mandate.

In a conversation, Ramaswamy said that he “would put the Fed back in place to have a single term, to focus on stabilizing the US dollar as a unit of measure, period.” And added that “instead of trying to focus on multiple other terms.”

Vivek Ramaswamy’s remarks have elevated the central bank’s role in the economy to a prominent issue in the presidential race.

Making his stance on cryptocurrency clearer, Ramaswamy announced in May his intention to accept Bitcoin donations ahead of the primaries. While he wasn’t the only one breaking away from traditional campaign finance, he has strengthened the broad Republican stance on enabling innovation and financial freedom in cryptocurrency.

According to the latest data from PredictIt, Ramaswamy is in second place in the race, behind former President of the United States Donald Trump.

Republicans Advocate for Financial Freedom through Bitcoin Investment

Florida Governor and another possible Republican contender, Ron DeSantis, is next in line. He vows to “brake” the central bank and believes in ousting Chairman Jerome Powell before his term ends in 2026.

DeSantis has opposed the concept of a central bank digital currency (CBDC), advocating instead for greater freedom with cryptocurrency investments.

“Biden’s war on Bitcoin and cryptocurrencies will end when I am president,” DeSantis recently declared. Ramaswamy recently edged out DeSantis in the odds for the Republican nomination in recent reports.

Former President Trump is also campaigning on a pitch for financial reform. He has promised to fire IRS agents hired by President Biden. “I will say ‘no’ to 87,000 IRS agents who want to take your money and destroy your lives,” Trump recently told supporters.

The GMI PAC, a cryptocurrency-focused political action committee, found that 44% of American voters own or consider owning digital assets. With Millennials and Gen-Zers expected to make up a large portion of American voters, cryptocurrency has emerged as a key issue in the upcoming election.

As Balaji Srinivasan pointed out, the prominence of Bitcoin in this election cycle is unprecedented. It leads him to call 2024 the “the first Bitcoin election”. This parallels the first “Twitter election” in 2016, which demonstrated the influence of technology and social media on American politics.

By Audy Castaneda

China Implements Aggressive Measures Against Cryptocurrency and AI Fraud

Audy Castañeda
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China Implements Aggressive Measures Against Cryptocurrency and AI Fraud

China implements aggressive measures to fight cryptocurrency and artificial intelligence fraud, focusing on international collaboration and public education.

The Communist Party of China has announced its firm commitment to address the growing wave of fraudulent activities carried out through emerging technologies such as cryptocurrency and artificial intelligence (AI).

The resolution was passed in a recent plenary session, emphasizing the need for a systematic governance approach and a strong legal framework to curb the infiltration of illegal activities into the nation’s digital landscape.

Target: Foreign Telecommunications Companies

The Chinese government is targeting foreign telecommunications companies that are reportedly exploiting new technologies to orchestrate deceptive schemes and lure locals into committing fraudulent activities. Reports indicate that entities operating outside of China have been using deceptive tactics, such as offering lucrative job opportunities to recruit unsuspecting victims.

Fraudulent players have been accused of leveraging technologies like Blockchain, Metaverse, cryptocurrency, and artificial intelligence to devise more sophisticated and stealthy criminal tools.

Call for International Collaboration

To effectively fight this transnational threat, the ruling party has advocated for strengthened international law enforcement collaboration. In addition, the Chinese government is stepping up public awareness campaigns and educational initiatives to empower people, especially the younger generation, with the knowledge and skills to identify and thwart telecom and network fraud.

Educational Initiatives and Public Awareness

In addition to law enforcement efforts, the Chinese government is stepping up public awareness campaigns and educational initiatives. These efforts aim to empower individuals, especially the younger generation, more susceptible to such schemes, with the knowledge and skills necessary to identify and thwart telecommunications and network fraud.

It is notable that although China identifies cryptocurrencies as an avenue for fraud, the country has had a difficult relationship with the sector. For example, the government has banned crypto activities, a factor that has resulted in significant sales in the market.

It is worth recalling that in May, Lesperance & Associates founder David Lesperance stated that “with the Chinese government coming down hard on the financial sector, it’s hard to imagine China loosening its grip on the ability of Chinese citizens to use crypto.”

According to Lesperance, China wants to increase its foreign currency deposits, either fiat to buy cryptocurrency or cryptocurrency itself. “They are bifurcating markets to keep out domestic Chinese customers but attract foreign customers,” he said.

The lawyer also noted that the cryptocurrency market in mainland China is “still effectively closed.”

China’s Relationship with Cryptocurrencies

Although China identifies cryptocurrencies as an avenue for fraud, the country has had a strained relationship with the sector, including banning crypto activities. However, there have been signs that the country may soften its rigid stance, such as China’s Supreme Court guidelines on cryptocurrency-related disputes, stating that if both parties agreed, settling a debt using a small number of digital assets would be considered legal.

An Important Step

China’s decision to implement aggressive measures against cryptocurrency and AI fraud is a significant step in the fight against illegal activities in the country’s digital landscape. International collaboration and public education will be key in these efforts, and the world will be watching how these initiatives play out in a country that has had a complex relationship with cryptocurrency technology.

By Audy Castaneda

Investment Analyst Predicts a 50% Chance of Bitcoin Falling Below $25,000 Before a Bull Run

Leonardo Perez
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Investment Analyst Predicts a 50% Chance of Bitcoin Falling Below $25,000 Before a Bull Run

Timothy Peterson, a leading alternative investment expert, suggests that such a possible drop could be the precursor to the next significant cycle of bull runs.

In a recent post on X, the platform formerly known as Twitter, Timothy Peterson, a leading alternative investment expert, made a bold prediction about the future of Bitcoin.

According to Peterson, who works for Cane Island Alternative Advisors (which is a registered investment adviser offering advisory services in the state of Texas and other jurisdictions where they are exempt or permitted), there is a 50/50 chance that the value of Bitcoin falls below the $25,000 mark before the end of September.

However, it does suggest that this potential drop could be the precursor to the next significant bull run cycle.

Peterson published his prediction on August 6 via X, stating that “There is a 50% chance that Bitcoin will drop below $25,000 before the end of September.  This would be the last big dip before the next big bull run cycle commences.”

Who is Timothy Peterson?

Peterson is a highly respected figure within the financial community, particularly for his experience in alternative investments. He has made significant contributions to the understanding of cryptocurrency investment and valuation.

One of his most notable papers is “Metcalfe’s Law as a Model for Bitcoin Value,” a peer-reviewed research paper published in the Alternative Investment Analyst Review in 2018. This article is one of the first to provide empirical evidence that Bitcoin’s medium to long-term price follows Metcalfe’s Law, a principle used to explain the growth of networks.

In addition to his research on Bitcoin, Peterson is the author of the book “Measuring Performance for Alternative Investments,” published in June 2015. This book serves as a valuable resource for understanding the intricacies of measuring the performance of alternative investments.

Peterson’s insights are in high demand in the investment world. He has been invited to speak at investment conferences globally, discussing a wide range of topics from risk management to the ethics of investment managers.

With more than 25 years of global investment experience, Peterson’s credentials are impressive. He is a Chartered Financial Analyst (CFA), Chartered Alternative Investment Analyst (CAIA). He holds an MFA in Finance (with honors) and a BA in Economics from the University of Colorado.

Another Expert’s Input

According to James Butterfill, head of research at CoinShares, a European digital asset investment firm, during the week ending August 4, 2023, total outflows from digital asset investment products amounted to $107 million, which marks a continuation of the profit-taking trend. which has been accelerating in recent weeks.

According to Butterfill’s blog post, published today, Bitcoin, the world’s largest cryptocurrency by market capitalization, was the main focus of these outings. Investors withdrew a total of $111 million from Bitcoin, marking the largest weekly outflows since March. This period was highlighted by increased regulatory scrutiny in the US, which has significantly influenced cryptocurrency market dynamics.

However, in a surprising turn of events, Bitcoin short outflows, which have been constant for 14 weeks, have stopped. This development could signal a potential shift in investor sentiment, suggesting that the bearish outlook on Bitcoin may be slowing.

By Leonardo Pérez

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