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- 🥜 How to lose $510,000 in Bitcoin
🥜 How to lose $510,000 in Bitcoin
PLUS: Extreme Volatility is coming
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The crypto newsletter that's more serene than living on a street where neighbours are a bit too perfect... 🏠🍪
Today, we’ll discuss:
Who was behind the $510,000 transaction fee? 🤔
Who is selling their Bitcoin? 🤷
Network activity rising 📈
And more…
MARKET WATCH ⚖️
Prices as at 7:50am ET
Only the top 20 coins measured by market cap feature in this section
$510,000 FEE CULPRIT IDENTIFIED 💰
JUST IN: Paxos has confirmed they were responsible for the $510,000 Bitcoin transaction fee
The other day we mentioned that one unfortunate Bitcoin user accidently spent $510,000 in transaction fees to transfer $2k worth of Bitcoin… 🤯🤯
Well there was a rumour going around Twitter this morning that PayPal was actually responsible for this error based on a wallet linked to the transaction.
🚨🚨🚨 BREAKING 🚨🚨🚨
The fat fingers belong to PayPal— mononaut (@mononautical)
2:36 PM • Sep 13, 2023
However it turns out that the real culprit was Paxos. Funnily enough, Paxos is still “linked” to PayPal in that they assist with the issuing of PayPal’s new stablecoin PayPal USD.
A Paxos representative has since come forward with this statement:
“Paxos overpaid the BTC network fee on Sept. 10, 2023. This only impacted Paxos corporate operations. Paxos clients and end users have not been affected and all customer funds are safe. This was due to a bug on a single transfer and it has been fixed. Paxos is in contact with the miner to recoup the funds.”
So at the end of the day Paxos is in the process of recovering the funds. A happy ending to an unfortunate mistake. 😁
Although it might not be the happiest of endings for the intern responsible for this software “bug”… ☠️
For the full article click here
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WHO IS SELLING BITCOIN?🤔
There’s so many major catalysts on the horizon for Bitcoin. 🌇
FASB accounting changes, effective EOY 2024
Bitcoin halving, April 17, 2024
Bitcoin ETF final deadlines, Q1 2024
Yet Bitcoin has been trading in the $25,000 to $30,000 range for months now.
Which begs the question, with all these positive catalysts… who on earth is selling? 🤔
In his latest interview, Michael Saylor believes he knows the answer.
He argues the majority of sellers at the moment are the Bitcoin miners.
They can’t just HODL their Bitcoin, they’re businesses with bills they need to pay.
They need to sell the bitcoin they mine to pay for electricity, computer costs & operating expenses.
“As far as I can see, most of the selling of Bitcoin in the market is the Bitcoin miners. They have to sell in order to pay their electricity bills and pay their their debt expenses and their operating expenses. So that means the amount of selling pressure is going to be cut in half in a few months. So we know that's coming.”
The good news? That selling pressure will be cut in half in a few short months from now. ✂
In fact we even know the specific day. April 17 2024.
The Bitcoin halving. 🤑
Bottom line: Enjoy the peace and stability whilst it lasts. In just a few short months, the Bitcoin ecosystem will be flipped on its head. This will undoubtedly bring with it extreme volatility. 🌋
NETWORK ACTIVITY RISING 📈
Today we’ll be taking a look at one particularly interesting metric from Glassnode’s Recovering from a Bitcoin Bear dashboard (highly recommend checking out the full thing).
An uptick in New Address Momentum is often a bull market indicator. This means that the market is experiencing an increasing amount of new daily users, more transactions being put through and increased blockspace demand. 🐂
🔴 New Addresses 30-day moving average
🔵 New Addresses 365-day moving average
When 🔴 is above 🔵: expansion in on-chain activity and growing demand (yellow blocks indicate when this condition is met)
Taking a look at the chart above you’ll notice that 🔴 is convincingly above 🔵 and has been for quite some time. So we’re in a period of expanding and increasing on-chain activity and everything’s all good right?
Well… It’s not that simple… 🤔
Back in January a thing called Bitcoin Ordinals (short explanation video here) was launched. If you’re not sure what Ordinals are, they’re pretty much the equivalent of NFTs for the Bitcoin Blockchain.
If you'd like us to do a deeper dive into what Ordinals are and how they work, please let us know in the poll at the bottom of this newsletter 👇
With the boom in Ordinals came a boom in new addresses to utilise the new technology. As of today, Glassnode estimates that 40% of this new address momentum is the result of Ordinals usage.
So a large chunk of this new address momentum is the result of Ordinals. This is new for the Bitcoin Network and still represents expanding on-chain activity in a way that we haven’t seen before. Overall, a different kind of demand for the Bitcoin Network is a bullish signal and one to watch. 🐂
WHAT WE’RE READING 📚
Want to get even smarter in Crypto before the bull run? Check these out.
p.s. both completely free
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CRACKING CRYPTO 🥜
CAN YOU CRACK THIS NUT? ✍️
Bitcoin is a decentralised digital currency. What do we mean by decentralised?
A) It requires the use of a middle-man to transfer funds
B) It is not controlled by any one government or organisation
C) It is completely free to use
D) It is distributed equally to everyone
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) It is not controlled by any one government or organisation 🥳
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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