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Est. read time: 4 minutes

The bear market blues are officially back…

Let’s digest: 

1. Crypto Fear & Greed Index Hits New Low

2. 3AC’s Ghost Bid: $59K NFT Purchase Triggered by Years-Old Offer

3. Crypto Thefts Surge to $1.4B This Year

📈 MARKETS

NFT Market Flash

📰 TODAY’S TOP STORY

Crypto Fear & Greed Index Hits New Low

Investor sentiment in the crypto market has hit new lows, reaching the most pessimistic levels since early 2023 when Bitcoin was trading at $17,000.

This sentiment is tracked by the Crypto Fear & Greed Index, which has plummeted to 28, signaling extreme fear among investors.

• The index assesses the emotional state of the crypto community through a range from 0 (extreme fear) to 100 (extreme greed.

• The fear and greed index experienced a sharp downturn following a sell-off that drove Bitcoin below $54,000.

• This recent dip in sentiment echoes the extreme fear levels observed in January 2023, after the devastating crypto winter of 2022.

Recent market pressures include significant sell-offs by the German and U.S. governments, and the initiation of user refunds from the defunct Mt. Gox exchange, adding billions of dollars worth of Bitcoin to the market. 

According to Rachel Lin, CEO of SynFutures, these factors create a substantial overhang that could suppress prices in the short term. Lin notes, "The market expects most Mt. Gox users to dump their tokens, but we might see a bounce back if the selling is lower than anticipated."

Looking forward, Markus Thielen of 10x Research suggests that Bitcoin could drop to $50,000 during historically weak upcoming months. However, he also highlights a potential catalyst for a rebound: "If the Federal Reserve cuts interest rates in September, Bitcoin could see another rally attempt."

While extreme fear often presents buying opportunities, investors are advised to consider the complex dynamics at play before making decisions in this volatile market.

 🖼️ NFTs

3AC’s Ghost Bid - $59K Purchase Triggered by Years-Old Offer

A wallet linked to the now-defunct crypto hedge fund Three Arrows Capital (3AC) has unexpectedly purchased an NFT for $59,821, due to an offer that was placed almost three years ago and never canceled.

This NFT, Neon Village by artist Seerlight, was bought through the Super Rare NFT marketplace, sparking surprise and discussion among the crypto community.

• The transaction was first spotted by the SuperRare Bot X channel and then examined by blockchain data enthusiasts who noted that the offer had been made back on August 21, 2021.

• It was only accepted by the seller on July 5, 2024, making it a rare instance of such a delayed transaction acceptance in the NFT world.

• NFT collector and X user, Brian, highlighted the unusual duration of the offer, sparking curiosity about the circumstances around this forgotten bid.

• Arkham Intelligence data further revealed that the wallet, though linked to 3AC, had made significant transfers associated with the hedge fund, suggesting it might belong to 3AC or one of its affiliates.

Three Arrows Capital had filed for bankruptcy in July 2022, and its wallets are currently managed by the liquidation firm Teneo.

This particular NFT purchase turned heads because the funds used had been tied up in SuperRare's escrow since the offer was made, invisible to most wallet balance checks.

🟠 Crypto

Crypto Thefts Surge to $1.4B This Year

The first half of 2024 has seen a stark rise in crypto thefts, with losses nearing $1.4 billion, predominantly from centralized exchanges (CeFi), according to a mid-year Web3 security report from Cyvers. 

This represents a 900% increase in losses on centralized platforms compared to the previous year.

• Centralized exchanges have become hotspots for cybercriminals, shifting focus from decentralized finance (DeFi) protocols, which have demonstrated increased security resilience.

• The report highlighted that "this shift may be attributed to the concentration of assets in centralized platforms and potentially lax security measures in some exchanges."

• Phishing attacks leading to access control breaches accounted for the largest portion of the losses, totaling approximately $490 million in the second quarter alone.

• In contrast, exploits on smart contracts drained less than $70 million during the same period.

Despite improved efforts by DeFi protocols to freeze compromised assets quickly, the report warns that exploit risks remain high. Cross-chain bridges have also been identified as a significant vulnerability, with the XBridge platform experiencing a notable $1.44 million exploit in April.

The impact of high-profile breaches was significantly felt in the second quarter, with Japanese exchange DMM losing over $300 million due to a compromised private key and Turkish exchange BtcTurk suffering a $50 million loss.

While recovery efforts have improved, with a 42% increase in recovered funds compared to last year, about 76% of stolen funds remain unrecovered.

Cyvers' report also cautions that emerging technologies like artificial intelligence and quantum computing could equip hackers with even more sophisticated methods to undermine crypto security measures.

Non-fungible News

• Gaming: Rumors that GTA 6 Will Include Crypto

• NFTs: Cardano Introduces CIP25 Metadata Validation

• Crypto: German Government Owns $2B in BTC

💡 INSIGHT

First Pipe Squiggle Sale in 8 Months

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