Market update
Cointree Crypto Market Update - October 16th 2024
Market report for traders
đź”® BTC and altcoins
The market is looking up this week! Over the last 7 days, Bitcoin ends at AU$98,977, moving +8.19% at the time of writing. Meanwhile, Ethereum ends at AU$3,849 moving +7.18% week-on-week. On the Altcoin side, Solana pumps +7.65%, Cardano +5.14%, and XRP +2.60%.
🗞 What’s happening in the news?
🚀 Google's Nuclear Move: A Game-Changer for Crypto Mining?
Ever worried about the environmental impact of cryptocurrency mining? Google might have a solution up its sleeve. The tech giant has partnered with Kairos Power to develop Small Modular Reactors (SMRs) by 2030, aiming to provide clean, carbon-free energy 24/7.
What's the Big Deal About SMRs?
Unlike traditional nuclear reactors, SMRs are compact and can be manufactured in a factory setting. They produce up to 300 megawatts of energy and can be transported to various locations, making them highly versatile. These reactors promise safer operations, reduced maintenance, and a smaller infrastructure footprint.
Why It Matters for Crypto Mining
Crypto mining consumes a massive amount of energy, often drawing criticism for its environmental impact. With SMRs, mining facilities could tap into a clean and reliable energy source. Michael Terrell, Google's Senior Director of Energy and Climate, stated:
"This landmark announcement will accelerate the transition to clean energy as Google and Kairos Power look to add 500 MW of new 24/7 carbon-free power to U.S. electricity grids.
While the initial investment is significant, the long-term benefits could revolutionise how energy-intensive industries like crypto mining operate. It's a step towards a more sustainable future for both technology and the environment.
đź’° Is Elon Musk Selling Bitcoin? Tesla's AU$1.2 Billion BTC Transfer Raises Eyebrows
Tesla has set the crypto world abuzz by moving nearly all its Bitcoin holdings—worth about AU$1.2 billion—to unknown wallets. This mysterious move has led to speculation about whether Elon Musk's company is offloading its BTC stash.
A Curious Case of Crypto Movement
According to Arkham Intelligence, wallets associated with Tesla transferred over 11,500 BTC to unknown destinations, leaving just AU$10 worth of Bitcoin behind. Tesla had initially purchased US$1.5 billion (approximately AU$2.4 billion) worth of Bitcoin in February 2021 but sold 75% of its holdings in early 2022.
What Could This Mean?
It's unclear whether Tesla has sold its Bitcoin or is simply repositioning its assets. Elon Musk has had a complicated relationship with cryptocurrencies. In a July interview, he remarked:
"There's some merit in Bitcoin, and maybe some other crypto."
However, he's expressed a particular fondness for Dogecoin (DOGE) in the past.
Is this a strategic move or a sign of changing tides in Tesla's crypto strategy? Only time will tell, but the crypto community is watching closely.
🧩 Quantum Computers Challenge Crypto Security: Should We Be Concerned?
In a groundbreaking development, Chinese researchers claim they've used a quantum computer to breach cryptographic algorithms that secure cryptocurrency wallets. Could this be a game-changer for crypto security?
The Quantum Leap
A team led by Wang Chao from Shanghai University reportedly used a quantum computer from Canada's D-Wave Systems to crack algorithms underpinning advanced encryption standards (AES), which are widely used in crypto wallets. They utilised a method called quantum annealing to achieve this feat.
How Did They Do It?
Quantum annealing allows the computer to find optimal solutions more efficiently than traditional methods. Wang's team explained:
"This is the first time that a real quantum computer has posed a real and substantial threat to multiple full-scale SPN structured algorithms in use today."
Should You Be Worried?
While this sounds alarming, there are still significant limitations. The quantum computer didn't reveal specific passwords, and factors like hardware constraints and environmental conditions prevent a full-scale hack—for now.
Although quantum computing isn't yet capable of cracking crypto security on a large scale, this development serves as a wake-up call. It's a reminder of the ever-evolving landscape of technology and the need for robust security measures.
Looking Ahead
The crypto industry may need to accelerate the development of quantum-resistant encryption to stay ahead. For now, your crypto assets remain secure, but staying informed is more important than ever.
📖 What we’ve been reading
Bitcoin Price Could Return to All-Time High Before Election
Will Bitcoin return to AU$111,440 before the next U.S. president is picked? Here's why Standard Chartered expects big gains ahead.
Scientists breach cryptographic algorithms with quantum computer
Researchers said it was the first time a quantum computer “posed a real and substantial threat” to encryption, but multiple limitations still hamper a full-scale hack.
Avalanche Foundation to buy back nearly 2M AVAX sold to Terra in 2022
In 2022, the Avalanche Foundation sold 1.97 million AVAX worth $100 million at the time to Terra’s foundation before its collapse. It’s now buying it all back for $45.5 million.
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.
