In the past four weeks, digital asset investment products have seen a significant surge in inflows, totaling $742 million, according to the latest weekly report from CoinShares. This marks the largest run of inflows since the final quarter of 2021.
In the week ending July 17, 2023, these products attracted $137 million in inflows. Bitcoin, the leading cryptocurrency, accounted for the lion’s share, with inflows totaling $140 million, making up 99% of all inflows. This comes despite short Bitcoin investment products experiencing a 12th consecutive week of outflows, amounting to $3.2 million.
Trading volumes on investment products remained robust, totaling $2.3 billion for the week, well above the year’s average of $1.4 billion. This indicates that investment products are making up a larger proportion of total crypto volumes, accounting for 11% last week compared to the 2% average.
North America was the primary focus of inflows, with the US and Canada seeing inflows of $109 million and $28 million respectively. In the meanwhile, Europe experienced minor outflows, with the exception of minor inflows in Switzerland.
Despite Ethereum’s recent price appreciation, it did not attract inflows. Instead, it experienced outflows of $2 million last week, maintaining its position as the asset with the most outflows year-to-date.
Altcoins such as Solana, Polygon, and Litecoin saw minor inflows, ranging between $0.3 million and $0.5 million.
This data underscores the continued investor interest in Bitcoin, even as other digital assets show mixed fund flow trends.
In the latest update from CoinShares, digital asset investment products have seen a significant inflow of $136 million in the past week. This surge marks the third consecutive week of inflows, totaling $470 million, effectively offsetting the outflows observed in the preceding nine weeks.
Bitcoin continues to be the primary focus for investors, with inflows totaling $133 million last week. This trend indicates a strong investor preference for Bitcoin over altcoins. In contrast, short-Bitcoin saw outflows of $1.8 million, marking its 11th consecutive week of outflows.
Despite the general upward trend, trade volume has decreased. Investment goods totalled $1 billion last week, down from $2.5 billion on average over the preceding two weeks. This volume decline might be attributable to seasonal impacts, since lower volumes are normal in July and August.
Ethereum, another significant participant in the digital asset market, had $2.9 million in inflows last week. However, it has profited only little from increased market sentiment. Inflows during the previous three weeks account for just 0.2% of total assets under management (AuM), compared to 1.9% for Bitcoin. Ethereum continues to have negative net flows year to far, with outflows totaling $63 million.
Other altcoins, including Solana, XRP, Polygon, Litecoin, and Aave, also experienced inflows. However, Cosmos and Cardano saw minor outflows.
In another noteworthy development, blockchain equities recorded the largest inflows for a year, totaling $15 million.
According to CoinMarketCap, Litecoin’s price shows an impressive bullish trend, which is worth analyzing. The token price has risen by 28.05% in the past seven days and has subsequently entered the top 20, as per the price-tracking website for crypto assets.
At the time of writing, the price of Litecoin (LTC) was $68.65, with a 24-hour trading volume of $1,400,844,453. The token has been down 1.59% over the last 24 hours. The cryptocurrency is ranked #19, with a live market cap of $4,912,922,846, according to CoinMarketCap.
On October 21, Litecoin was worth $51.18 per coin. Like many cryptocurrencies, the coin has been affected by the overall crypto market downturn and is down 74% in the past year and 65% year to date. In comparison, Bitcoin is down about 69% over the past year and 59% year to date.
Litecoin opened in 2022 at $150.80, and today it is down by 54.39%. At the time of writing, the LTC price is $68.65, up 0.76% from the previous trading day.
On November 1, the price of Litecoin jumped nearly 8% after the payments company MoneyGram enabled users to trade and store several crypto assets, including Litecoin, on its app.
Besides Litecoin, Moneygram also allows users to trade and store Bitcoin and Ethereum. However, with Litecoin having a much smaller market cap and much less of a following, the news did not move Bitcoin and Ethereum in the same way it boosted Litecoin.
Moneygram announced that users in almost all US states and the District of Columbia can purchase, sell and hold Litecoin and other cryptocurrencies. As a result, Litecoin has recently disassociated itself from altcoins and posted a massive rally against Bitcoin.
The price of Litecoin is rallying after temporary decoupling from the crypto market. The token has experienced an increase in the number of addresses holding 1,000 or more LTCs. Litecoin has added 314 new whale addresses; these wallets hold large volumes of LTC and contribute to a huge increase in on-chain activity.
The recent activity in Litecoin price comes after months of consolidation at the $55 level. Litecoin value is now past the key resistance level at $60, which has served as a barrier to a breakout on several occasions.
Besides the price boost, a few days ago, Litecoin mining difficulty set a new record high, peaking at just under 18 million hashes. Blockchian.News reported the matter on November 6. The rise in Litecoin’s mining difficulty means the competition rises as more miners enter the crypto network to reap the rewards.
Litecoin mining difficulty has reached a new record level at just under 18 million hashes, according to a post released on Friday by Litecoin Foundation on CoinMarketCap.
The increase puts Litecoin mining difficulty at 17.99 million hashes at block 2,363,707 as of Friday November 5.
Just like Bitcoin, Litecoin uses the proof-of-work consensus mechanism method. Miners of both cryptocurrencies race to complete extremely challenging math puzzles using a hash algorithm in order to achieve consensus throughout their respective networks, win the right to add blocks of valid transactions to their blockchains, and earn block rewards.
The rise of Litecoin’s mining difficulty shows that competition among miners has increased, which is likely due to more miners joining the network. It means that cryptocurrency mining is becoming more popular and that making a worthwhile profit is getting harder.
The Bitcoin mining industry has become extremely competitive in recent years because of the massive surge of individuals looking to make a profit through mining the crypto.
Bitcoin is now the most challenging cryptocurrency to mine. Because Bitcoin itself is very valuable, the mining rewards are pretty hefty. Currently, the Bitcoin block reward stands at 6.25 BTC, equating to around US$130,000, as at the time of writing.
While increasing mining difficulty means that chances of making profits become more difficult, it is not always a bad thing. The higher a crypto’s difficulty, the more secure its network is. This is because a malicious group would need a huge amount of power to take over and control the network through a 51% attack.
Litecoin has experienced a rise in mining difficulty since 2020. While many miners find increasing difficulty levels very frustrating, as highlighted above this element of proof of work blockchains is undoubtedly vital. Without mining difficulty, these networks couldn’t maintain security and control their circulating supply as easily. So, while it may appear like a downside when it increases, it also serves an important role to the network and, therefore, to its users.
Colorado has set the ball rolling as the first U.S. state to offer residents the option of paying taxes using cryptocurrencies.
Governor Jared Polis made the announcement, noting that it was a stepping stone toward making Colorado a digital innovation hub.
“As of right now, the state of Colorado is officially accepting cryptocurrencies as a payment option for all taxes. We’ve been talking about this for a while, and we said we would deliver by the end of the summer — we have,” Polis said.
The Colorado Department of Revenue highlighted that payments would be remitted through personal PayPal accounts, which support Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH).
The governor pointed out that the state would collect the crypto payments and deposit the converted value in dollars into the state treasury. He added:
“Taxpayers can now select cryptocurrency as a payment option, just showing again from a customer-service perspective how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents.”
To foster bold ideas in the state, Polis believes taking the crypto payment route is the way to go.
“As a state, we’re on the forefront of digital innovation, whether it’s applying blockchain and shared-ledger technology as a new model for funding, or whether it’s simply being consumer-friendly and making sure that we allow for the kind of innovation that will disrupt legacy business practices and government practices to make them more efficient,” Polis highlighted.
Earlier this year, the Colorado governor disclosed that the state was in high gear to permit crypto tax payments as early as this summer, Blockchain.News reported.
Polis’s crypto advocacy has not gone unnoticed, given that he was one of the initiators of the Congressional Blockchain Caucus back in 2016. He was also among the first politicians to accept crypto donations for his campaigns.
Colorado has set the ball rolling as the first U.S. state to offer residents the option of paying taxes using cryptocurrencies.
Governor Jared Polis made the announcement, noting that it was a stepping stone toward making Colorado a digital innovation hub.
“As of right now, the state of Colorado is officially accepting cryptocurrencies as a payment option for all taxes. We’ve been talking about this for a while, and we said we would deliver by the end of the summer — we have,” Polis said.
The Colorado Department of Revenue highlighted that payments would be remitted through personal PayPal accounts, which support Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH).
The governor pointed out that the state would collect the crypto payments and deposit the converted value in dollars into the state treasury. He added:
“Taxpayers can now select cryptocurrency as a payment option, just showing again from a customer-service perspective how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents.”
To foster bold ideas in the state, Polis believes taking the crypto payment route is the way to go.
“As a state, we’re on the forefront of digital innovation, whether it’s applying blockchain and shared-ledger technology as a new model for funding, or whether it’s simply being consumer-friendly and making sure that we allow for the kind of innovation that will disrupt legacy business practices and government practices to make them more efficient,” Polis highlighted.
Earlier this year, the Colorado governor disclosed that the state was in high gear to permit crypto tax payments as early as this summer, Blockchain.News reported.
Polis’s crypto advocacy has not gone unnoticed, given that he was one of the initiators of the Congressional Blockchain Caucus back in 2016. He was also among the first politicians to accept crypto donations for his campaigns.
Colorado has set the ball rolling as the first U.S. state to offer residents the option of paying taxes using cryptocurrencies.
Governor Jared Polis made the announcement, noting that it was a stepping stone toward making Colorado a digital innovation hub.
“As of right now, the state of Colorado is officially accepting cryptocurrencies as a payment option for all taxes. We’ve been talking about this for a while, and we said we would deliver by the end of the summer — we have,” Polis said.
The Colorado Department of Revenue highlighted that payments would be remitted through personal PayPal accounts, which support Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH).
The governor pointed out that the state would collect the crypto payments and deposit the converted value in dollars into the state treasury. He added:
“Taxpayers can now select cryptocurrency as a payment option, just showing again from a customer-service perspective how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents.”
To foster bold ideas in the state, Polis believes taking the crypto payment route is the way to go.
“As a state, we’re on the forefront of digital innovation, whether it’s applying blockchain and shared-ledger technology as a new model for funding, or whether it’s simply being consumer-friendly and making sure that we allow for the kind of innovation that will disrupt legacy business practices and government practices to make them more efficient,” Polis highlighted.
Earlier this year, the Colorado governor disclosed that the state was in high gear to permit crypto tax payments as early as this summer, Blockchain.News reported.
Polis’s crypto advocacy has not gone unnoticed, given that he was one of the initiators of the Congressional Blockchain Caucus back in 2016. He was also among the first politicians to accept crypto donations for his campaigns.
Major crypto exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have announced their intention to delist Litecoin from their trading services subject to the new privacy-based MimbleWimble upgrade on the Litecoin blockchain.
The idea of delisting has been brewing for a while. On May 20, Litecoin developers activated a privacy-preserving protocol called MimbleWimble Extension Blocks (MWEB) on the cryptocurrency. The new MimbleWimble update has added a ‘confidential transactions’ feature to the Litecoin blockchain, allowing users to transfer coins while concealing transactional data.
But South Korean crypto exchanges have not been comfortable with the new upgrade because they have to comply with strict laws regarding privacy coins.
A few days later on May 23, Upbit and Bithumb informed investors about the risk associated with Litecoin following the MimbleWimble upgrades. The two exchanges referred to Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, which mandates that cryptocurrency exchanges must comply with KYC and AML measures.
More further developments have continued to unfold. Upbit announced yesterday that it would delist Litecoin because of the anti-money laundering rules that require exchanges to record data on cryptocurrency transactions. Upbit stated that because of the nature of the Mimblewimble privacy protocol, it will not support Litecoin transfers and will remove the coin from its exchange.
Upbit further mentioned that it would halt trading of Litecoin on June 20 and give users one month’s notice to withdraw their funds.
Bithumb also announced yesterday that it will halt all Litecoin deposits from June 8 (that is yesterday). The exchange has given customers until July 25 to withdraw their Litecoin funds, after which it would not support such withdrawals.
Three other South Korean exchanges, namely Gopax, Korbit, and Coinone, have also made official announcements about delisting Litecoin transactions to their customers.
South Korea’s crypto market first rose to fame in late 2017, when Bitcoin trading skyrocketed in popularity among ordinary citizens who looked to cash in on the virtual currency’s rising price. Since that time, crypto demand has remained so high in the country.
In recent months, Seoul has ramped up the control of its crypto industry to rein in illicit activities such as money laundering and tax evasion. Regulators view cryptocurrency as a risky financial activity among young retail traders.
In 2022, the government announced plans to introduce a crypto capital gains tax. Investors who make over $2,135 in trading profit are expected to face a 20% tariff.
Recently, South Korean financial authorities announced plans to enhance monitoring of local crypto exchanges and introduce legal safeguards in the industry. This came after hundreds of thousands of local investors fell victim to the collapse of the Terra stablecoin and its sister token, LUNA.
Authorities expect local exchanges to play their role properly. Exchanges that violate rules are held legally responsible for their actions.
Last month, the country’s Financial Services Commission (FSC) collaborated with the Financial Supervisory Service to enforce emergency inspections into local crypto exchanges, asking for data on the number of transactions and investors.
The digital currency ecosystem had wild price swings this past week, with the global cryptocurrency market capitalization recording a low valuation of $1.71 trillion in the trailing seven-day period.
The volatility has helped the digital assets ecosystem print new highs with the market cap topping the iconic $2 trillion at some point before thebearish weekend correction crept in.
The majority of digital currencies have shed off their gains over the week. With a significant bear depression, most are ready to retest some ambitious price highs this coming week. As the new week unravels with its own fundamentals, here are the top three coins to watch.
BTC traded at a low price of $37,268.98 after hitting a weekly high of $45,077.58, according to CoinMarketCap. While the bulk of these gains has been shed off with the cryptocurrency’s price trading at $39,024.00 at the time of writing, on-chain data shows Bitcoin whales are not selling, with more on track to accumulate much more.
Bitcoin is the industry’s flagship digital asset and it is the reference point for all other cryptocurrencies’ performance. This coming week might be the time for these ambitious buy-ups, and should this happen, BTC will undoubtedly surpass its previous weekly high above $45,000.
Litecoin (LTC)
Litecoin is one of the most resilient digital currencies around and is arguably one of the legacy cryptocurrencies. The resilience of Litecoin is visible in its inherent capabilities as a coin for fast payment, one with a strong community and investor base. Despite a very bearish outlook with the coin trading at 74% below its All-Time High (ATH) of $412.96, retail investors still consider LTC as the go-to assets should they wish to wade off extreme volatility. This recognition can help uplift the coin’s price from the current $103.57 price in the coming week.
Polkadot (DOT)
Polkadot is a very innovative blockchain protocol with many ecosystem activities brewing at this time. Polkadot has seen a very wild price depression and its current price of $17.10 will be considered as a discount for investors looking for an established digital currency to pitch tents with this week. Polkadot and its host of parachains hosted protocols lend the fundamentals that can increase the demand on the DOT tokens and further help uplift the price of the digital assets this week and the other weeks to come.
Amid a growing wave of cryptocurrency seizures and government cybercrime crackdowns, Russian authorities have taken down massive swaths of the illicit credit card market as the nation looks to bolster legal cryptocurrency adoption, shutting down four sites this week that together have pulled in hundreds of millions of dollars from the sale of stolen credit cards, according to cybersecurity firm Elliptic.
As Russia’s government looks to welcome cryptocurrency as legal currency, it’s also ramping up … [+]regulation in the space and clamping down on illicit activity.
TASS via Getty Images
Key Facts
Four illicit websites seized by the Russian Ministry of Internal Affairs on Monday made more than $263 million in cryptocurrency proceeds from the sale of stolen credit cards, representing roughly one-fifth of the global market for illicit cards, according to an Elliptic analysis released Wednesday.
Among sites taken down, Ferum Shop was the world’s largest marketplace for stolen credit cards, making an estimated $256 million in bitcoin since its launch in 2013, according to Elliptic, while marketplace Trump’s Dumps, which infamously used former President Donald Trump’s likeness to help sell raw magnetic strip data from stolen cards, raked in about $4.1 million since 2017.
Notices posted on both websites Wednesday morning warned users that the platforms had been seized by police and were pending criminal investigations, while in another seized marketplace, dubbed SkyFraud, Russian authorities left an emoji-laden message buried in the sites’ source code teasing, “Which of you is next?”
Investigators on Monday asked a Mascow court to arrest six members of an unnamed hacking group for allegedly circulating illegal “means of payment,” according to state-owned Russian news agency TASS, but it’s still unclear whether the suspects are directly linked to the dark web credit card sites.
The seizures come less than a month after Russian authorities seized the then-largest illicit credit card dealer, UniCC, which facilitated some $358 million in transactions over nine years.
According to Elliptic, closures and seizures of carding sites this year have already accounted for almost 50% of sales in the dark web market for stolen credit cards—part of a broader slowdown in illicit dark web activity as tightening cryptocurrency regulation makes it more difficult to launder funds.
Key Background
Earlier this week, Russia’s government said it had reached an agreement with its central bank to draft legislation recognizing cryptocurrency as a form of currency by February 18, largely as an effort to help curb cybercrime. According to a draft document, the move would force users to undergo identity checks conducted by the country’s banking system or licensed intermediaries and make it a criminal offense to transact cryptocurrencies without the checks. “The establishment of rules for the circulation of cryptocurrencies and control measures will minimize the threat to the stability of the financial system and reduce the use of cryptocurrencies for illegal purposes,” legislators said, lamenting that a complete ban on cryptocurrencies would be “impossible.”
Big Number
$214 billion. That’s roughly the value of Russia’s crypto market, representing about 12% of the total value of the world’s cryptocurrencies, according to United Kingdom broker GlobalBlock.
What To Watch For
Amid simmering tensions with Russia over state-sanctioned cybercrime, President Joe Biden is reportedly slated to release an executive order that will task federal agencies with regulating cryptocurrencies as a matter of national security as soon as this month.
Tangent
Russia’s not alone in cracking down on cybercrime. U.S. authorities arrested a New York City couple on Tuesday for allegedly conspiring to launder $4.5 billion worth of bitcoin stolen during a hack of cryptocurrency exchange Bitfinex in 2016, $3.6 billion of which federal authorities have recovered in what the Department of Justice is calling the largest financial seizure ever. According to court filings, 34-year-old Ilya Lichtenstein and his wife, Heather Morgan, 31, conspired to launder the proceeds of 119,754 bitcoins by employing “numerous sophisticated laundering techniques”—including using fake identities to set up online accounts and running computer programs to automate transactions.
Editor’s Note: Heather Morgan was a ForbesWomen contributor from July 2017 until Forbes ended the relationship in September 2021, and was never an employee.
Further Reading
Feds Seize $3.6 Billion In Stolen Bitcoin, Arrest Couple Five Years After Massive Crypto Exchange Hack (Forbes)
Internet’s Biggest Marketplace For Stolen Credit Cards Will Shut Down (Forbes)
