Good Morning Crypto Enthusiasts!

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

📰 Today’s Highlights:

1. Trump's AI and CBDC Warning: Donald Trump voices serious concerns about the dangers of AI and risks associated with CBDCs in a recent interview, highlighting their potential impact on society and finance.

2. Nayib Bukele's Re-Election Victory: El Salvador's President Nayib Bukele wins re-election, paving the way for further bitcoin-friendly policies and crypto-centric initiatives in the country.

3. Genesis Global's Liquidation Move: Genesis Global Capital seeks court approval to liquidate $1.6 billion in trust assets, including shares in Grayscale's Bitcoin and Ethereum Trusts, to reimburse creditors.

4. Binance Data Leak: Binance faces a security breach as sensitive data, including internal passwords and code, is leaked on GitHub, raising concerns about the exchange's cybersecurity measures.

5. Feature of the Day - Epic Games Store Welcomes "Shrapnel": Blockchain-based game "Shrapnel" joins the Epic Games Store, marking a significant step for blockchain games in mainstream gaming platforms.

6. Industry Insight - Solana's Memecoins Gain Traction: Solana's BONK and JUP tokens captivate market attention, while Shiba Inu (SHIB) faces uncertain territory amid shifting investor focus.

All this and more in today’s headlines!

📰 News Highlights:

Donald Trump’s Warning on CBDCs and AI Threats 🤖🚨 [Source][Source]

In a recent interview with Fox Business’ Maria Bartiromo, former President and Republican front-runner Donald Trump expressed deep concerns about the risks associated with artificial intelligence (AI) and central bank digital currencies (CBDCs). 

Trump labeled AI as "dangerous and scary," emphasizing the alarming potential of deepfakes, citing an incident where he was misrepresented in a speech. He underscored the urgency for action, stating that AI might be the most dangerous thing out there with no clear solution.

Trump also reiterated his apprehensions about CBDCs, branding them a "very dangerous thing." During the interview, he dismissed the possibility of replacing Jay Powell as the chair of the Federal Reserve, describing Powell as "political."

El Salvador's Bitcoin Pioneer Nayib Bukele Secures Re-Election Victory 🗳️ [Source][Source][Source][Source]

Exit polls indicate a resounding victory for El Salvador's bitcoin-friendly president Nayib Bukele, securing another five-year term. Bukele, who spearheaded El Salvador's adoption of Bitcoin as legal tender in 2021, enjoyed overwhelming popularity, as reflected in pre-election polling and exit poll results. The president took to Twitter, announcing a win with more than 85% of the votes and a significant majority in the Assembly.

Bukele's first term was marked by bold initiatives, including addressing gang violence and embracing bitcoin. El Salvador's groundbreaking move to make bitcoin legal tender, introducing the Chivo crypto wallet, and investing in the cryptocurrency highlighted Bukele's commitment to innovation. The re-election victory positions Bukele to continue steering El Salvador's crypto-centric policies, including plans to issue bitcoin-backed "Volcano bonds" and further developments in the country's cryptocurrency mining industry.

Genesis Global Capital Seeks Approval to Liquidate $1.6 Billion in Trust Assets 💼💰 [Source][Source][Source]

The bankruptcy saga continues as Genesis Global Capital, a crypto lending firm, seeks approval from the United States Bankruptcy Court to sell approximately $1.6 billion worth of shares in Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG). 

The debtors highlight the urgency of obtaining swift approval to navigate potential fluctuations in asset prices, emphasizing the goal of maximizing funds for distribution to creditors.

GBTC shares constitute a significant portion of Genesis' portfolio, making up approximately 87%. The move follows the recent conversion of GBTC to a spot Bitcoin exchange-traded fund, allowing for share redemption in cash.

Binance Faces Data Leak: Code, Internal Passwords Exposed on GitHub 🔐📉 [Source][Source]

Crypto exchange Binance encountered a significant security breach as sensitive information, including code, internal passwords, and infrastructure details, was reportedly leaked on GitHub.

The leaked data, attributed to an account named "Termf," remained publicly accessible for months, raising concerns about potential risks to Binance and user security. The exchange swiftly responded with a copyright takedown request to remove the exposed material.

The leaked information encompassed Binance's security measures, with exposed passwords for live site systems. While Binance asserted that the leaked data posed negligible risks to user security, the incident underscores the ongoing challenges faced by crypto exchanges in maintaining robust cybersecurity measures. The episode prompts a broader conversation about the industry's vigilance in safeguarding user data and sensitive information.

💡 Feature of the Day:

Epic Games Store Welcomes Blockchain Game "Shrapnel"🕹️🎮 [Source][Source]

The gaming industry witnesses a significant milestone as the blockchain-powered game "Shrapnel," styled after Call of Duty, makes its entry onto the Epic Games Store.

Developed by Neon Machine, the AAA first-person extraction shooter aims to revolutionize early-access gaming by actively involving the community in every stage of development. The move signifies a growing competition among blockchain games to break into the mainstream, joining other titles like "Illuvium" and "Star Atlas" on the Epic Games Store.

Neon Machine's approach to early-access gaming sets a new standard, allowing players to shape the game's characters, weapons, and in-game maps. With a team comprising industry veterans from Xbox and Electronic Arts, "Shrapnel" garnered $20 million in Series A financing and boasts a thriving online community on Discord with over 100,000 members. As blockchain games seek wider acceptance, "Shrapnel" emerges as a frontrunner, challenging traditional release schedules and embracing a community-driven development model.

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🔍 Industry Insight:

Solana's BONK and JUP Captivate Market Attention, Leaving Shiba Inu (SHIB) in Uncertain Territory [SOURCE] 

The recent cryptocurrency market downturn, initiated on January 23rd, 2024, has left Shiba Inu (SHIB) grappling to recapture its previous momentum. A significant contributing factor to this struggle could be the growing media focus and investor interest directed towards Solana's memecoin, BONK, and the highly anticipated Jupiter (JUP) token airdrop.

Shifting Tides in Media Attention:

An analysis of on-chain social trends metrics reveals a concerning development for SHIB. Over the past two weeks, its media traction has experienced a precipitous decline of 56%. This coincides with the meteoric rise of Solana's BONK and the impending JUP airdrop, both of which have garnered significant media coverage and investor attention.

BONK's Meteoric Rise:

BONK, a memecoin native to the Solana blockchain, has witnessed a surge in popularity, captivating the interest of the cryptocurrency community. This rising interest is likely fueled by its association with Solana, a rapidly growing blockchain platform, and the inherent appeal of memecoins within the crypto market.

JUP Airdrop Anticipation:

Further compounding the challenge for SHIB is the upcoming JUP airdrop, anticipated to distribute a substantial $700 million worth of JUP tokens. This event has generated considerable excitement within the cryptocurrency community, potentially diverting attention and investment away from established memecoins like SHIB.

Technical Analysis Suggests Potential Downturn for SHIB:

Technical indicators employed in financial analysis also suggest potential headwinds for SHIB's price action. The Parabolic Stop and Reverse (SAR) indicator hints at growing bearish momentum, highlighting the possibility of further price depreciation. Additionally, SHIB faces resistance at the $0.00001 mark and needs to hold support at $0.000086 to avoid a deeper decline.

Conclusion:

The confluence of declining media traction, the allure of Solana's BONK and the JUP airdrop, and technical indicators suggestive of bearishness paints a potentially challenging picture for SHIB's immediate future. While upside potential remains theoretically possible, overcoming the current headwinds and regaining investor interest appear crucial for SHIB to recapture its previous momentum.

📈 Technical Analysis:

Crypto Price Prediction 05/02: BTC, ETH, XRP, VET, and SOL

In the dynamic world of cryptocurrency, the past 12 hours have been packed with excitement and activity. From the rise of influential tokens to upcoming project launches and strategic token burns, the market landscape remains lively and ever-changing. With Farcaster's $DEGEN token making waves reminiscent of past market impacts and Aptos gearing up to unlock a significant circulating supply, investors are navigating through a market in constant flux. As projects like Bouncebit and Dymension Mainnet prepare for major releases and Frax Finance offers incentives to stakers, the crypto sphere is poised for a whirlwind of developments. Meanwhile, recent launches of inscription markets for BRC-20 and other assets by Binance and Bybit have injected a surge of volume into the market, promising a boost to the BTC ecosystem. In a curious turn of events on the perpetual futures market, SATS and LUNC have experienced noteworthy surges, with LUNC notably outperforming BTC by 20%. However, ACE has seen a -10.7% underperformance against BTC, underscoring the dynamic and diverse nature of crypto markets. Join in as we delve into these recent happenings and their implications for the broader cryptocurrency landscape.

Bitcoin Market Analysis

Bitcoin is currently hovering around its yearly open is crucial for bullish momentum, with any drop signaling potential bearish control. While the Relative Strength Index (RSI) and Stochastic indicators hint at current weakness, a surge in spot buying could swiftly alter this dynamic. Binance's spot market showcases a wide price range between buy and sell orders, highlighting substantial buyer interest between $42K to $40K, but significant sell orders between $43.5K and $45K may impede further upward movement without strong buyer support. Overall, Bitcoin's market depth zones reveal a thick layer of sell orders between $45K and $50K and solid support between $38K and $35K. Additionally, Cumulative Volume Delta (CVD) data indicates consistent selling pressure in the spot market, while perpetual CVDs align with price decreases, reflecting a prevailing preference for short positions amidst a lack of enthusiasm for long positions in the current market landscape.

Ethereum Market Analysis

The current market scenario for Ethereum is a bit choppy, with prices stuck in a range around the mid-level. Without a clear bias, it's like being in the middle of a seesaw ride. However, there's potential for a long setup if the price dips a bit and triggers some SSL action, aiming for the range highs. Conversely, failing to reclaim the mid-range could lead to a drop back towards the range lows. Breaking and holding above ±2350 could signal a bullish move towards the range highs. In recent whale activity, a significant withdrawal of 12,600 ETH ($29M) from Binance occurred two hours ago, adding up to a total withdrawal of 19,980 ETH ($46M) over the past week. This signals that whales are accumulating ETH and putting it on cold wallets or safe wallets, while centralized exchange supply of Ethereum decreases due to this activity.

Altcoin Watchlist

XRP

In the aftermath of its legal win, XRP finds itself at a crucial juncture once again. Currently resting on the same diagonal support, XRP has been steadily declining over the past few days, signaling weakness and a lack of volume in the market. The absence of buying pressure has contributed to this gradual bleed. However, there's a glimmer of hope if XRP manages to bounce from this support level, potentially propelling it to new yearly highs. On the flip side, a breakdown from this critical support could result in significant losses and trigger another capitulation event for XRP holders. This precarious situation underscores the importance of monitoring XRP's performance closely in the coming days to gauge its future trajectory.

VET

In addition to the XRP update, VET, also known as VeChain, is currently positioned just above its previous resistance level, which has now transitioned into a crucial support zone. The significance of this support-turned-resistance lies in its potential to dictate VET's price trajectory in the near term. Should momentum or volume pick up in the coming days or weeks, there's a possibility of VET surging to reach a new two-year high, highlighting the potential for significant upside. Conversely, failing to hold onto this support could lead to VET consolidating within its current range, resulting in continued lackluster and choppy price action. As such, monitoring VET's performance and the strength of its support level will be key in determining its short-term direction.

SOL

Expanding on the previous updates, let's dive into Solana (SOL). The Solana ecosystem has been bustling with activity, particularly with the emergence of meme coin projects and the recent Jupiter Airdrop. The Jupiter Airdrop stirred up considerable excitement and drama within the community due to its experimental nature. Despite this, SOL has recently been experiencing a period of consolidation, hovering within a range after breaking its previous trendline. However, this consolidation phase has been accompanied by a lack of volume and momentum, resulting in rather lackluster price action. Looking ahead, if SOL forms a swing failure pattern at the bottom of its current range and deviates, there could be potential for upside movement. Conversely, if this pattern fails to materialize, SOL may continue to range until clearer price action emerges to provide direction or momentum. Keeping a close eye on SOL's price movements and any developments within its ecosystem will be crucial for anticipating its next move.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com