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Bitcoin at its lowest in five weeks. Artur He talks about selling everything. Chamat is burning happiness and is talking about Bitcoin possibly falling to zero. Artificial intelligence is changing the rules for Bitcoin Core, and a leak at Key Stone revealed customer addresses. So, unfortunately, we have another serious security incident here.
Welcome to today's crypto breakfast. Typical introduction, first a quick look at the prices. As you can see, Bitcoin is below $80,000, although currently very high. Just $79,917 in the last 7 days, down around 2%, down almost 1% in the last day . Ethereum has fallen 3.5% in the last 7 days, almost 1.5% in the last day , the current price is around $2313.
other major cryptocurrencies. You can see here on the screen that the crypto market is currently mostly in a worse mood, even though Zš, for example, has strengthened by almost 5% in the last seven days . So let's get started on that price. Eh, the biggest pressure on Bitcoin came on Saturday when it fell just above the $79,000 level.
It was the lowest price in the last five weeks. Over $.5 billion in leveraged positions were liquidated, affecting more than 116,000 traders. Koby Ler noted that $200 million worth of positions disappeared from the market in less than an hour. Bitcoin then rebounded, but ran into sellers again, and was still nearing $85,000 on Wednesday last week .
Altcoins have fared even worse in the last week. Several mid-cap tokens lost more than a tenth of their value in a week. ETF funds reversed course during the week. Over a billion dollars flowed into them from Monday to Wednesday . That's what I said at the crypto breakfast last week, that the beginning looked promising.
But that trend has reversed. On Thursday, the largest drop in October came in at almost 640 million. I mentioned that on Friday. Well, on Friday there was another outflow of around $140 million. Finally, last week, Bitcoin ETFs ended up with a profit of around $300 million, thanks mainly to the strong first three days, but the conclusion was not so optimistic and it showed that the mood was deteriorating.
Nevertheless, it was a positive week, which actually broke the streak of the previous two weeks, which were in losses. For the entire month of October, Bitcoin ETFs are still down by roughly the same amount they gained that week. Ether funds are worse off. They lost roughly $1.2 billion in a month .
The mood is also deteriorating on the prediction markets on the Miriad platform, i.e. on prediction marketplaces such as Kalip Polymarket or Miriad. On the Miriad platform, traders give Bitcoin only a 43% chance of falling to $7,700 by the end of October. So actually, I think almost half of it will fall, so I shouldn't have said that word there, but on the other hand, they give a very low probability that it will rise to any higher values, so the market is more likely to lean towards the possibility that it will be somewhere around here or slightly lower.
This is how prediction markets see it. Well, the fear and greed index according to Conek is at 44 points out of 100. Which means that the fear and greed index has currently fallen into the fear zone. Caution is spreading even among the big names. BitMX exchange co-founder Arthur Hay announced that his fund Melstrom sold Ethereum and other tokens to Macroeconomics and Geopolitics.
According to him, this currently looks very risky, so he will stay away until the signal comes that the air is clear. Eh, maybe we'll talk about this soon in the Markets Today column with Ondrej Greguš from XTBM. Overall, when it comes to geopolitics, the markets are very tense about whether there will be any new American attacks on Iranian targets, together with Israel.
Well, let's see how the situation in the Middle East develops. We know that when it comes to Ukraine, a lot is being resolved right now, so the tension in the world is escalating. In addition, the market is extremely tense, with Europe creating huge new local highs around the $116 level at the end of last week.
So these are probably the things that Arthur Hace is pointing out. As for the stock markets, they are also in tension. They are mainly talking about neoclouds, which are heavily financed with debt, and the market is simply very tense. Eh, there's talk of the AI bubble bursting, we'll see. So these are the reasons why Ace Hace is cautious.
Of course, we must also factor in the policy of the US Federal Reserve, which will decide on interest rates this week. Anyway, analysts from Lookin have calculated sales of over $20 million for Arthur Hes' Mailstrom. Of these, the cryptocurrency Ethereum is the one that is mostly selling. Heesatne did not mention the sale of Bitcoin on the X network, he wrote it his own way .
I sold everything. I think the market has to fall first before it can rise again. Here are some other tokens that Arthur Hay was supposed to sell this week. Of course, there can be significant market shocks. The Fed will decide on rates. eh quarterly results of entrustment, several technology giants Microsoft, Alphabet, Amazon.
These results may also shake up those markets and may also affect the sentiment in the cryptocurrency markets. There is talk that the Fed might raise rates, even though the prediction markets don't expect it, but some banks think the Fed could surprise and it could be a clear signal from Kevin Warsh of the Fed that it's not like he's under pressure from Trump or making decisions based on what Trump wants, but that the Fed is independent and that they take inflation very seriously.
We'll see what the US central bank decides on Wednesday . Now let's move on to the key topic of the day and artificial intelligence and Bitcoin security. Investor Chamat Paliha Piti and former Facebook executive and co-founder of eh and host of the podcast All has significantly changed his mind about Bitcoin.
After all, if you've been following crypto for a long time or the events surrounding Bitcoin in general, you know that Camat Pali HPD was a big fan of Bitcoin. Anyway, Peter Diamondis' podcast now says that the value of Bitcoin has a ceiling, someone will hack it and the price will drop to zero. He sees three main problems with Bitcoin.
According to him, Bitcoin is not fungible enough and lacks privacy. Therefore, central banks will not easily hold it as a reserve. Another risk is disclosing assets in cryptocurrencies. He referred to France, where it led to a wave of kidnappings, which he also said was actually creating pressure for Bitcoin adoption.
Eh, that's a known issue. I've talked about it 1000 times, I'm not going to dwell on it today. His script with artificial intelligence attracted the most attention . Eh, self-improving AI models could one day crack the wallets attributed to Satoshi Nakamoto, he says. The attacker would earn twice. First, he would actually steal Satoshi Nakamoto's coins.
This would immediately lead to some initial panic, because we would see that the person is actually moving those bitcoins. And he would cause even more panic by actually starting to reveal information that he had actually stolen the bitcoins or that the bitcoins were moving, and he would start shorting the market, meaning he would make double the profit.
First, he would quickly sell what he could, then he would short Bitcoin, because Bitcoin would then fall sharply. According to him, this could lead to Bitcoin falling to zero. Erm, I wouldn't see such a black scenario , although of course it would certainly cause a major panic in the market if, for example, AI were able to crack the security of Bitcoin or those Satoshi eh Bitcoins.
These are of course the views of Chamat Pali Hapitu. I'm just passing it on to you. The solution, he said, would be to switch to cryptography resistant to quantum computers. However, he considers this to be almost impossible with Bitcoin, because the community is allegedly unable to agree even on basic things.
Bitcoin.com News reminds us that these are hypothetical threats, not known vulnerabilities, and the protocol has not been breached yet. Well, the turnaround in the case of Paliha Piti is all the more significant because Paliha Piti was among the first major supporters of Bitcoin, buying Bitcoins for around $100 more than 10 years ago and predicting a price of $1 million per Bitcoin.
However, he sold most of the coins. For example, he bought land near Lake To with part of it and later called it a big investment mistake worth three to four billion dollars. Eh, because actually, if he had kept those bitcoins and had rather financed it from some other sources that he has, he's a billionaire, those bitcoins would simply be worth much more now.
He simply sent them out for the land. Eh, Chamat Paliha Pitia claims that he does not directly hold Bitcoin today. He traded his investment for a stake in Digital Currency Group, the main investment theme of the next decade. He considers energy personally. So interesting opinions from Chamat Palihapit.
You can express your thoughts about it in the comments. Let's move on. Now back to AI and security, specifically Bitcoin Core. This is the software that runs most of the nodes of the network, i.e. the Bitcoin network. It has changed the way it discloses security vulnerabilities. The developers are thus admitting that artificial intelligence has made some vulnerabilities so easily discoverable that keeping them secret for so long no longer makes sense.
The change was proposed by Anthony Point Sot of eh Chain Code Labs. According to him, the project has received more bug reports. which can be easily rediscovered and are mainly due to large language models. These significantly reduced the effort for finding bugs and for revealing fixes that were released quietly.
Until now, more serious bugs have been hidden for a year so that node operators have time to switch to fixed software. Now, the project can mark an error as easily discoverable, meaning one that can be found by a simple artificial intelligence query, and issue a fix as quickly as possible along with a notification.
Points admits that such fixes will have less time for testing. Critical bugs that would allow protocol-level coin theft , supply increases, or chain splits will continue to be addressed on an individual basis. The pressure surrounding this AI-powered bug-finding has been going on for months. Last summer, the Bitcoin Red Team used artificial intelligence to scan nearly 400 repositories in one day and found over 80 critical findings.
One flaw in the BTC Pay server was exploited by attackers on live merchant servers shortly thereafter. One Bitcoin bridge even ended because it decided that artificial intelligence was finding bugs faster than they could fix them. The open question is whether node operators will be able to update these protocols quickly enough.
I will also be talking today, and on the podcast we were also interested in some other security findings and how AI is advancing brutally when it comes to cybersecurity. I'm also Oldm Open AI, I'll just say it as a side note to this topic or I think it overlaps. Eh, he said that eh he thinks that the current internet will slowly not be able to be saved or that it will not be possible to fix everything, that eh those AI models can fix those errors so extremely quickly, sorry, look for those errors, that the pace of those fixes is simply extremely slow.
Um, anyway, from what he said, I somehow understood it that a completely new internet must emerge, resistant to this new technology. Eh, we are entering strange times, whether it's geopolitics, macro, the world of investing. Eh, but that's also why I think it's still good to have some Bitcoin, because we really don't know what awaits us.
Even though there is talk that artificial intelligence can also mine Bitcoin, I still believe that Bitcoin will be sufficiently secure at the basic layer . But these are interesting times, I won't deny it. Let's move on. The popular wallet Elektrum also fixed the bug over the weekend, releasing a new version 483.
Well, because the bug was already being exploited by malicious software. The attackers considered fraudulent transactions as pending payments, and the user may have inadvertently triggered them by increasing the fee. Developers have confirmed at least one case of stolen bitcoins. The error affected all older bonds.
So if you use Electrum as a wallet, update it as soon as possible. We stand by this news regarding security, but from a different angle, Kstone, a hardware wallet manufacturer, has admitted to a data breach. The attackers accessed customer shipping data through Shopify , so the wallets themselves were not compromised, but unfortunately the data, contacts, shipping addresses, and order details of the people who ordered this hardware wallet were actually leaked.
Another huge bummer, because they may actually be at risk of some physical attacks. If some criminals find information about these people on some dark web marketplace, they will know that they are actually hardware wallets for cryptocurrencies. Then they may believe that the cryptocurrencies are actually of a higher value and can theoretically threaten the owners of these hardware wallets.
It's a big problem. Well, security researcher Taylor Monehen warns that leaked addresses can expose people not only to fraud, but also to physical attacks, as she wrote. Questions also arise about how long the company kept the data. Ke Stone claimed three years ago that he only keeps them for half a year.
But people who purchased more than two years ago also received warnings. So it is questionable whether Cave Stone actually got rid of data about its customers quickly or quickly enough, which, for example, I think Trezor also claims is getting rid of that data quickly. The question is whether it is true.
Unfortunately, unfortunately, these are the times or are we in a time where hardware wallet manufacturers are getting into trouble. Not entirely, that's always the case, fortunately, because the hardware wallets would be compromised, but at least they're not leaking such key data. But even hardware wallets, as the Ledger case showed , can be dangerous in some way when the supply chain is disrupted.
This was about Ledger. Eh, we had that case before, where it turned out that even the security of the hardware wallet, oh my god, I can't remember what company it was, but it wasn't Leder Trezor. Eh, it was also actually eh disrupted at the level of the protocol itself, that the SIT phrase was not being created in a sufficiently secure way.
So unfortunately, uh, hardware wallet manufacturers are also getting a bad light cast on them now and uh this is not something we were used to in the past. Um, I 'm still a fan of Trezor. I believe that Trezor is a secure wallet. I hope that a similar type of message does not appear in connection with Satosabbs.
Not now, not ever in the future. And finally, a few quick messages. Israeli Prime Minister Benjamin Netanyahu is considering a blockchain backup plan in case of banking sanctions against Israel. The central bank flatly refused. According to them, cryptocurrencies cannot be used to circumvent sanctions and politicians should rather protect relationships with business partners.
The dispute comes just before Tuesday's elections in Israel. Meanwhile, Netanyahu is posting tweets where he depicts an AI apocalypse, but he posted an image generated by artificial intelligence. Well, uh, uh, it's election season and, uh, as I said, the geopolitical uncertainty is really great. In Europe, Piero eh Kipolons of the ECB argues that a digital euro could give Europe back control over payments, which today depend on companies outside the EU.
According to him, we learned the same lesson in energy and today in defense. Well, the pilot with real transactions is to begin in the case of the ECB in 2027. The digital euro itself is not expected until 2029 at the earliest. However, the ECB first needs a regulation that Brussels could approve by the end of the year.
That's all for today's news from the world of cryptocurrencies. If you liked it, thanks for the like, thanks for subscribing, also watch my other YouTube channel, za ma AI, where on Friday I released a regular weekly summary of news from the world of artificial intelligence and over the weekend I also tested AI video, models for generating AI videos.
They all got the same prompt and you can compare the results, there are also prices. So you can find this on my YouTube channel, eh channel. I'm interested in AI. Well, on the podcast channel Zaujalo nás, today we will be recording a new podcast where we will discuss all important topics related to finance, artificial intelligence, technology, but also events in the world.
The podcast will be released tomorrow evening, so follow this channel as well, and of course I'm going to film the Markets section for you today. Today will be an interview with Ondrej Greguš, as we are typically used to, on Mondays, so don't miss that either. Hello and have a nice start to the new week.
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