Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Coinbase Teases ‘cbBTC’: Coinbase has hinted at a new product called "cbBTC," sparking speculation that it might be launching its own wrapped Bitcoin token.

2. Australian Stock Exchange Sued: The Australian Securities and Investments Commission (ASIC) has sued the Australian Securities Exchange (ASX) for allegedly making misleading statements about its failed blockchain upgrade project.

3. 📈Technical Analysis Masterclass - Ever wonder why Bitcoin's price remains low even when big institutions like BlackRock are buying more Bitcoin? Watch UseTheBitcoin’s latest Youtube video “Why Bitcoin’s Price Stays Low Despite Big Players Buying?” to see the breakdown of what's happening or join our Official Telegram Channel for more alpha!

4. FBI on Satoshi Nakamoto Records: The FBI responded to a Freedom of Information Act (FOIA) request regarding Bitcoin creator Satoshi Nakamoto with a "Glomar response," neither confirming nor denying the existence of related records.

5. Kamala Harris Crypto Crackdown: U.S. Vice President Kamala Harris is expected to continue the Biden administration’s strict regulatory stance on cryptocurrency as she prepares to announce her economic policy.

6. 💡Feature of the Day - Goldman Sachs Bitcoin ETF Holdings: Goldman Sachs has revealed significant investments in Bitcoin-related exchange-traded funds (ETFs), with holdings totaling $418 million.

   All this and more in today’s headlines!

   

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📰 News Highlights:

Coinbase Teases ‘cbBTC’ [Source][Source][Source][Source]

Coinbase has hinted at a new product called "cbBTC," sparking speculation that the crypto exchange might be launching its own wrapped Bitcoin token. On August 13, Coinbase made a cryptic post on X (formerly Twitter), stating "cbBTC" followed by "coming soon."

Jesse Pollak, head of Coinbase’s layer-2 network Base, further fueled speculation by expressing his enthusiasm for Bitcoin and hinting at a "massive Bitcoin economy" on Base.

This announcement comes on the heels of a controversy involving BitGo and Tron founder Justin Sun over the control of Wrapped Bitcoin (WBTC).

Concerns arose within the DeFi community when BitGo announced plans to transfer WBTC control to a joint venture involving Sun.

In response, Block Analitica proposed halting new borrowing against WBTC collateral, citing risks associated with Sun's involvement. BitGo's CEO Matt Belshe downplayed the concerns, attributing them to Sun's reputation rather than actual security risks.

Australian Stock Exchange Sued [Source][Source][Source]

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against the Australian Securities Exchange (ASX) for allegedly making misleading statements regarding its now-abandoned blockchain upgrade project.

The project aimed to replace ASX's Clearing House Electronic Subregister System (CHESS) with a blockchain-based system, but after years of delays and a $170 million expenditure, it was ultimately shelved in 2022.

ASIC claims that ASX falsely asserted in early 2022 that the blockchain project was "on track for go-live" and "progressing well," despite internal knowledge that the project was facing significant challenges.

ASIC's Chair, Joe Longo, accused ASX's board and senior executives of failing to manage the project effectively, leading to a loss of confidence in the Australian market.

 📈Technical Analysis Masterclass:

Why Bitcoin’s Price Stays Low Despite Big Players Buying?

What’s Happening?

• Miners Holding Bitcoin: Bitcoin miners are holding onto their Bitcoin instead of selling.

• Whales Accumulating: Wealthy investors, known as whales, are also buying more Bitcoin.

Despite this, the price isn’t skyrocketing. Why?

The Role of OTC Trading

• OTC Trading Explained:

  • Unlike public exchanges, Over-the-Counter (OTC) trading is a private transaction.

  • In OTC trades, big players buy Bitcoin without making their transactions visible to the public market.

  • Imagine buying something valuable in a private room, away from the crowd—this is how OTC trades work.

How OTC Trading Stabilizes Prices

• Price Stability:

  • Since OTC trades don't appear on public exchanges, they don’t trigger massive price changes.

  • The market doesn't see these large orders, so the price remains stable.

  • Although every transaction is recorded on the blockchain, the details of OTC deals, like the amount paid, remain hidden.

Big institutions and whales may be buying Bitcoin, but they do it through private OTC trades. This keeps the market calm and prevents sudden price spikes. In Bitcoin, what's happening behind the scenes can be just as important as what you see on the surface.

FBI on Satoshi Nakamoto Records [Source]

The FBI has responded to a Freedom of Information Act (FOIA) request regarding Bitcoin creator Satoshi Nakamoto with a "Glomar response," neither confirming nor denying the existence of any related records.

Investigative journalist Dave Troy, who filed the request, noted that the FBI’s response intriguingly suggested that Satoshi might be considered a "third party individual."

Troy emphasized that his intent was not necessarily to uncover Satoshi’s identity but to understand what information, if any, the FBI holds on the subject. The identity of Satoshi Nakamoto, whether an individual or a group, remains one of the biggest mysteries in the crypto world.

Various theories have surfaced over the years, including the possibility that early Bitcoin contributor Hal Finney was Satoshi. However, no definitive proof has been provided.

Kamala Harris Crypto Crackdown [Source][Source][Source]

U.S. Vice President Kamala Harris is expected to maintain the Biden administration's stringent regulatory stance on cryptocurrency.

Harris, who is reportedly preparing to announce her economic policy in mid-August, has chosen former Biden economic advisers Brian Deese and Bharat Ramamurti, both known for their critical views on crypto, to assist her.

These advisers were involved in opposing the Clarity for Payment Stablecoins Act of 2023, arguing that it was too lenient toward issuers.

Their involvement suggests that Harris will continue the administration's tough approach, particularly following the collapse of several crypto-friendly banks earlier this year, an event dubbed "Operation Chokepoint 2.0" by some in the industry.

💡 Feature of the Day: 

Goldman Sachs Bitcoin ETF Holdings [Source][Source]

Goldman Sachs has revealed substantial investments in several Bitcoin-related exchange-traded funds (ETFs), marking a significant move into digital assets for the financial giant.

In its latest quarterly filing, Goldman disclosed holdings of $238.6 million in BlackRock’s iShares Bitcoin Trust, among other Bitcoin ETFs, bringing the total to $418 million.

This disclosure highlights a broader trend of institutional adoption of Bitcoin ETFs, with Goldman’s positions reflecting a shift from skepticism to cautious acceptance of digital assets within mainstream finance.

Other notable holdings include $79.5 million in Fidelity’s Bitcoin ETF and $35.1 million in the Grayscale Bitcoin Trust.

The surge in institutional interest, particularly in 2024, has led to explosive growth in Bitcoin ETF inflows, with iShares Bitcoin ETF alone attracting $20.5 billion this year.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com