🧠 Bitcoin is not in a good place

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Good morning - Arsen here. ☕

Welcome back to Bitcoin Therapy. Your double-shot espresso of Bitcoin.

First, happy and relaxing Sunday to 7,432 patients reading today. 👋 

Giveaway time! As a thank you for being a reader, I’m giving away 2 Bitcoin Stamps from Stamp Seed.

All you need to do is reply ‘stamp seed’ to his email and you’re in. Good luck! 🍀

Alright, here’s what I got for you this week:

  • 3 bear signals to watch 🐻

  • This user lost $70M in a clever hack

  • CZ is officially going to jail 👮

Estimated read time: 2 minutes and 53 seconds

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Alright, let’s Bitcoin…

3 BEAR SIGNALS TO WATCH 🐻

Not going to lie; this week was brutal.

Bitcoin price has been in a free fall the whole week.

Here are the top 3 bear signals you should watch:

1/ Bitcoin’s 7-month streak is over

Nothing good lasts forever (I learned that from my ex gf).

The same applies to Bitcoin: its 7-month green streak is over.

April 2024 is the first red month since August 2023

It was a good run, orange coin. 🤝

2/ Hong Kong ETF flopped massively

In case you missed it, Hong Kong launched its own Bitcoin spot ETF this week.

They saw what a massive success it was in the US ($655M trading volume on day 1) and decided to follow.

The result? They saw a whopping…$8.5M in volume on day 1.

Womp womp.

And analysts predicted a $300 million volume

Talk about a nothinburger.

3/ Bitcoin ETFs saw $500 M in outflows

Monday was a rough day for Bitcoin ETFs.

All 11 Bitcoin ETFs saw the largest sell-off ever in a single day: a whopping $563.7M 💀

That’s not all: Bitcoin ETFs have been bleeding for 8 days straight.

Over $1.5B has been withdrawn from the ETFs since April 24. 👀

Translation: investors are panicking the f*ck out.

WE NEED MOAR BITCOIN EDUCATION

That’s the key to Bitcoin adoption. As you might’ve noticed, education is essential to me. I always try to have a good mix of humor and knowledge.

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I’ve used Yzer for a while now and can 100% vouch for them. You can install Yzer on both Android and iOS.

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THIS USER LOST $70M IN A CLEVER HACK

Look, we all have our bad days.

But this guy took having a bad day on another level.

What happened? A crypto user lost $70 million in WBTC (wrapped Bitcoin on Ethereum) after sending it to the wrong address.

He fell victim to what’s called an ‘address poisoning attack’. 

Here’s how it works:

  1. 6 hours before the attack, the victim sent some ETH to an address. This was likely a test transaction.

  2. Immediately after, the attacker sent 0 ETH to the victim using an address that LOOKS LIKE the address he had just used for the test transaction. The goal? Trick the victim into thinking that’s his address.

  3. And that’s exactly what happened. 6 hours later, the victim sent $70 M in WBTC to the attacker.

  4. The victim is rekt.

“But why the heck did the victim send $70M to the attacker?”

Well, that’s how address poisoning works: the attacker sends the victim an address that begins and ends with the same 6 digits.

And that’s exactly what happened to the victim:

Here’s the wrong address: 0xd9A1C3788D81257612E2581A6ea0aDa244853a91

Here’s the correct address: 0xd9A1b0B1e1aE382DbDc898Ea68012FfcB2853a91

The result: money goes poof

Imagine sending $70 M in one clip without quadruple-checking EVERY SINGLE letter/number in the address. Lmao.

Anyways, here’s how to avoid this attack:

  1. Triple-check your address

  2. Don’t blindly trust your clipboard (there can be malware that corrupts it)

  3. Stick to Bitcoin only. This attack is not possible in Bitcoin, as 99% of Bitcoin wallets generate new addresses for every transaction

CZ IS OFFICIALLY GOING TO JAIL 👮

sniff sniff…smell that? That’s the smell of someone going to jail.

It’s no other than the man himself, CZ from Binance.

The criminal investigation against Binance since 2018 has finally ended.

The verdict? CZ pleads guilty to money laundering and will go to jail 👮

Here are the juicy deets:

  • Pled guilty to money laundering violations

  • Binance has to pay $4.B

  • Has to personally pay $200M in fines (pocket change for CZ, who is worth $10B+)

For how long will he be locked up? Tell em’ CZ:

4 months.

$4 Billion fine.

He tried to tell us this whole time.

Simulation confirmed

WHAT I’M READING 📖

  • Bay Area Times - My favorite business newsletter - those visuals are 🔥

  • TLDR Newsletter - These guys are the kings of summarizing tech news. Perfect for busy people (like me)

  • The Hustle - The OG of business news and tech news. Some of the best writing and storytelling I’ve seen.

THIS WEEK IN A MEME 📅

FROM THE ARCHIVE 📁

13 years ago, Gavin Andresen (the lead Bitcoin developer at the time) went to the CIA to talk about Bitcoin.

That was the last time Satoshi spoke to him.

PATIENT REVIEW 🧠

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See you next Sunday,

Arsen

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