Sentiment Recovers Stolen Funds with Bounty

Lending protocol A recent hacking incident using Sentiment resulted in the perpetrator stealing close to one million dollars. However, because to a reward of $95,000 that was offered to the hacker, the protocol was successful in recovering the stolen cash. Through the use of the Arbitrum blockchain, Sentiment spoke with the hacker, imploring them to “do the right thing” and restore the cash by April 6 at the latest. In addition, the policy guaranteed the same payment to anybody who was able to assist in determining who was responsible for the crime and bringing them to justice.

After monitoring the situation, the creator of MetaMask, Taylor Monahan, made the announcement that the hacker had returned 414 ether, which is equivalent to around $771,000 at the current exchange rate. After some time had passed, the hacker sent a further 51.75 ETH to the recovery address provided by Sentiment. The protocol said unequivocally that it had been successful in acquiring the monies and that the problem had been fixed.

On April 4, a hack was carried out, and it is thought that it was carried out as a consequence of a re-entry assault or a flaw. As was stated by a few members of the community, this episode underscores how critically important it is for businesses to take bug bounties seriously. Even one of the members gave the hacker kudos for “taking it by force” with their efforts. On the other hand, a different user of Twitter voiced their disapproval of the event, labeling it as “a bug bounty with a criminal step,” and asking businesses to provide greater and more open bug bounties.

Comparisons have been made between this attack and the recent one that occurred at Euler Finance, in which the Ethereum protocol awarded a reward to a hacker who returned almost 90% of the assets that had been taken. The hacker returned over 176.4 million dollars in digital assets while keeping roughly $20 million for themselves. Because of this occurrence, the significance of bug bounties as a method for resolving vulnerabilities in protocols for decentralized financial transactions has been further highlighted.

It is very necessary for businesses to take bug bounties seriously and provide awards that encourage ethical conduct in their employees. The usefulness of this strategy was recently shown by the fact that Sentiment was successful in regaining its data. Moving ahead, it is probable that other organizations will adopt similar tactics to manage possible security breaches in their systems. This will increase the likelihood that these breaches will occur.


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Crypto Market Drops Back Into ‘Extreme Fear’ As Prices Struggle

The crypto market has continued to struggle after running out of steam with its last rally. During the last lap of the year, the market as a whole is not doing too well, although prices of cryptocurrencies are way higher than they were this time last year. Nonetheless, there have been some interesting trends that have emerged with the market crash that has seen prices stagnate at this time.

The Fear & Greed Index has shown that market sentiment has gone into the extreme negative once again. With prices of top assets like bitcoin and ethereum trading below important support points, sentiment has fluctuated widely in the market but has mostly stayed in the negative. This time around, market sentiment has dropped low and landed in the ‘extreme fear’ territory.

Related Reading | Algorand, Solana, And More Lead List Of Biggest Losing Altcoins

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Crypto Market Basking In Fear

The crypto market has spent a good portion of the month of December in the fear territory. Market prices haven’t been the most favorable for the month and investors remain incredibly wary of getting into the market at such a time. Others have however seen this as a buying opportunity like in the case of MicroStrategy, which bought an additional 1,434 BTC bringing its total holdings to 122,480 BTC.

The aggregate for the month of November came out to neutral on the sentiment side of things after a tumultuous end to an otherwise wonderful beginning of the month. That has spilled into December as Christmas rolls around.

Chart showing Fear & Greed Index

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Market goes into extreme fear | Source:

Yesterday the Fear & Greed Index had peaked at 29 on the chart, putting the market in the fear territory. This was up a bit from last week where the market spent long stretches in extreme fear. Today, market sentiment again rolled into the extreme fear territory with a low 23 on the chart.

The index being this low shows that there are low buying pressures in the market and high selling pressures. Sell-offs are still underway in various digital assets that have seen their prices dip into the red. As the market heads into the weekend which is usually characterized by low volatility, will the market be able to pull itself out of extreme greed?

Bitcoin, Ethereum Suffer Losses

Bitcoin had made a splash in the market when it had hit its new all-time high slightly above $69,000 at the beginning of November. This had sent the crypto market on what would be a memorable bull run as Ethereum came close to hitting the $5,000 mark not too long after. But this would only be short-lived as the downtrend had begun not too long after.

Related Reading | Crypto Bull Cathie Wood Says Ethereum Is More Undervalued Than Bitcoin

For Bitcoin, the digital asset had lost as much as $10,000 in a single day that sent it towards the low $40,000s. Ethereum on the other hand had held out for a while but succumbed to the downtrend in time.

Bitcoin is now trading well below $50,000 after failing to hold above this price point this week. Ethereum is now trading below $4,000, a crucial support point for the digital asset. At the time of writing, bitcoin is trading at $47,141 and ethereum is trading at $3,826.

Crypto total market cap chart from

Crypto total market cap at $2.16 trillion | Source: Crypto Total Market Cap on
Featured image from Bitcoin News, chart from


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Crowd Sentiment Towards Bitcoin Tends to be More Positive Than Usual

Bitcoin (BTC) recently breached the psychological level of $40K, a fate which the leading cryptocurrency had tried for months in vain. As a result, crowd sentiment towards BTC has been on an upward trajectory because more traders have become optimistic about this cryptocurrency scaling the heights.

Crypto analytic firm Santiment explained:

“Bitcoin has settled into a $45K to $48K range that has encouraged traders to FOMO in anticipation of another run toward April’s ATH. Our data indicates optimism is up, but not euphoric in a way that leads to imminent BTC corrections.”


Bitcoin’s previous bull run touched an all-time high (ATH) price of $64.8K recorded in mid-April, prompted by significant institutional investment.

Nevertheless, a correction was imminent, which drove the price to lows of $28K as the crypto mining crackdown by Chinese authorities intensified from May. 

Bitcoin stands at a region encountering heavy resistance

According to market analyst Michael van de Poppe, Bitcoin faced notable resistance between the $46K and $48K range. He explained:

“Bitcoin looks a bit over-exhausted in this region + heavy resistance.”


Crypto trader tweeting under the pseudonym CryptoHamster had previously noted:

“Bitcoin broke the 200D MA. The price is facing the resistance of the previously built sideways area with a large volume. One could anticipate the rejection from here initially, but if BTC keeps testing it, we might see the further evolution of the bullish scenario.”

Meanwhile, the three major central banks, namely the Federal Reserve (Fed), the Bank of Japan (BoJ), and the European Central Bank (ECB), seem to play an instrumental role in Bitcoin adoption.

Specifically, the value of BTC rises almost in tandem with the combined balance sheet of the three central banks. The combined balance sheet of Fed, BoJ, and ECB stands at almost $25 trillion. 

Image source: Shutterstock


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Traders forecast $3K Ethereum price but derivatives data suggests otherwise

Ether (ETH) rallied 35% over the past ten days and reclaimed the critical $2,300 support, but the crucial $2,450 local top hasn’t been tested since June 17. Part of the recent recovery can be attributed to the London hard fork, which is expected to go live on Aug. 4. 

Traders and investors view the EIP-1559 launch as a bullish factor for Ether price because it is expected to reduce gas fees. However, Ether miners are not thrilled with the proposal because the proof-of-work model will no longer be necessary after ETH2.0 goes live.

The network fees will automatically be set, although users can choose to pay extra for faster confirmation. Miners (or validators in the future) will receive this additional fee, but the base fee will be burned. In a nutshell, Ether is expected to become deflationary.

Ether price in USD at Bitstamp. Source: TradingView

While it’s difficult to identify the main drivers of the recent rally, it is possible to gauge professional traders’ sentiment by analyzing derivatives metrics.

If the recent price move was enough to instill confidence, the futures contracts premium and options skew should clearly reflect this change.

Bullish sentiment is missing even after futures contracts entered contango

By analyzing the price difference between futures contracts and regular spot markets, one can better understand the prevalent sentiment among professional traders.

The 3-month futures should trade with a 6% to 14% annualized premium on neutral to bullish markets, which is in line with stablecoins’ lending rate. By postponing settlement, sellers demand a higher price, and this causes the premium.

Whenever the futures premium fades or turns negative, it raises an alarming red flag. This situation is also known as backwardation and indicates that there is bearish sentiment.

September Ether futures premium at OKEx. Source: TradingView

The above chart shows that the Ether futures premium flipped negative on July 20 as Ether tested the $1,750 support. However, even the massive rally up to $2,450 wasn’t enough to bring the September contract premium above 1.3%, equivalent to 8% annualized.

Had there been some excitement, the annualized futures premium would have been at 12% or higher. Therefore, the stance of professional traders seems neutral right now and is flirting with bearishness.

To exclude externalities exclusive to the futures instrument, traders should also analyze options markets.

Options markets confirm that pro traders are not bullish

Whenever market makers and whales lean bullish, they will demand a higher premium on call (buy) options. This move will cause the 25% delta skew indicator to shift negatively.

On the other hand, whenever the downside protection (put option) is more costly, the 25% delta skew indicator will become positive.

Ether 1-month options 25% delta skew. Source:

Readings between negative 10% and positive 10% are usually deemed neutral. The indicator had been signaling ‘fear’ between May 20 and July 19 but quickly improved after the $1,750 support held.

Despite this, the current 25% delta skew at negative 4 isn’t enough to configure a ‘greed’ indicator. Options markets pricing is currently well balanced between call (buy) and put (sell) options.

Both derivatives metrics suggest that professional traders gradually exited the ‘fear mode’ on July 20, but they are nowhere near bullish.

Currently, there is little confidence in the recent rally from these metrics’ perspective, which is understandable considering the risks presented by the upcoming hard fork and the uncertainty caused by unsatisfied miners.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.