DIB 14 JUN 2024

BTC Daily Intelligence Bulletin (DIB)
Block: 847,891

DTG/ICOD: 0800EST 14Jun24

Precedence: Routine (RR)

Controls: Public Release

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BLUF: Israel-Hezbollah Clashes Intensify / G7 To Lend $50B to Ukraine / NATO Takes Over Ukraine Money Flows / Storms Continue in Sunshine State / New Greenpeace Report Targets Bitcoin Miners and Wall Street / Largest Brazil Bank Opens Bitcoin Trading / US Banks Not Interested in Retail CBDCs / Trezor Launches New Hardware Wallet / US Losing Bitcoin Developers

Market Data: Price: 1 BTC= $67,027, 28.72 oz Gold, .16 Median US House

24hr Hi: $68,337 / Lo: $66,304

Vol: $26B (Down 27%)

Mkt Cap: $1.32T (Down 1%)

HashRate: 558 EH/s

Avg Fee Rate: 39 sats/vBtye (Up 18%)

Nodes: 19,391

—Reports—

-International Events-

1. Hezbollah-Israel clashes intensify as fears grow of all-out war in Lebanon: The Israeli military said that its air force struck Hezbollah infrastructure in southeast Lebanon’s Deir Seryan. Earlier, the Israeli military said Hezbollah launched 40 projectiles toward northern Israel. Some were intercepted, but others landed and caused fires, the military said in statements. In a widely shared video on social media, Israeli forces were seen using a catapult to launch fireballs into Lebanon. Israel and Hezbollah have engaged in nearly nonstop cross-border exchanges since the Gaza war began last October, but the situation has escalated in recent weeks, leading to increased US concerns about an all-out war between the two. (ALMonitor)

2. G7 leaders agree to lend Ukraine billions backed by Russia’s frozen assets: Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia’s frozen central bank assets would be used as collateral. Most of the money would be in the form of a loan mostly guaranteed by the U.S. government, backed by profits being earned on roughly $260 billion in immobilized Russian assets. The vast majority of that money is held in European Union nations. (AP) (AC-Economic warfare usually has unintended consequences. Enter BRICS.)

3. NATO to take over part of US-led Ukraine aid channel: The shift is broadly perceived as a move by European allies to “Trump-proof” the Ukraine Defense Contact Group, given the possibility that former U.S. President Donald Trump could return to the White House in November elections. Trump is seen as likely to roll back U.S. commitments to Kyiv. The contact group mechanism has been firmly under the control of the U.S. Department of Defense since the outbreak of Russia’s full-scale war on Ukraine in February 2022. (Politico)

-US Events-

1. Storm-battered Florida braces for a fourth day of floods after downpours transformed roads into canals and stranded drivers: Even as the robust tropical moisture fueling the soaking storms slowly starts to shift out of the area, Friday marks yet another drenching day for South Florida and multiple cities could see more than 2 feet of rain Tuesday through Friday. (CNN)

2. Texas’s Title IX case is about a national abortion ban, not student attendance: A new case out of Texas, brought by Attorney General Ken Paxton for the state of Texas and joined by two University of Texas (UT) Austin professors, broadly challenges the U.S. Department of Education’s interpretation of Title IX — the federal law that prohibits sex discrimination in education — that is set to go into effect later this summer. The case is generating headlines partly because the two plaintiff professors have declared (in advance) that they will not comply with the Title IX guidance. They lodge a range of complaints about using non-binary gender pronouns and “cross-dressing” teaching assistants, and, notably, students who seek abortions. (TheHill)

-Regulatory and Legal-

1. Wall Street must be accountable for Bitcoin mining emissions — Greenpeace: The report, titled “Bankrolling Bitcoin Pollution: How Big Finance Supports a New Climate Threat” from the environment-focused NGO, differs from previous Greenpeace papers on the Bitcoin mining industry. The report names Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard and MassMutual as the top five financiers of carbon pollution from Bitcoin mining companies. (CoinTelegraph) (AC-An

-Institutional Concerns-

1. Bitcoin ETFs See $226M Outflows Led by Fidelity’s FBTC: BlackRock’s IBIT was the only ETF posting a net inflow on Thursday, while most of the funds recorded outflows. (CoinDesk)

2. Brazil’s Biggest Bank, with BRL 2.069 Trillion Assets under Management, Opens Bitcoin (BTC) Trading for Everyone: Itau Unibanco has made a significant expansion in its financial services. The bank has introduced cryptocurrency trading to all customers through its in-house investment platform, Ion. (CryptoNews)

-Central Bank Digital Currencies (CBDC)-

1. Do wholesale CBDCs compete with bank services?: Most banks are not keen on retail central bank digital currencies (CBDCs) because they fear it will lure away bank deposits. The recent support by the American Bankers Association for the anti-CBDC Bill is evidence of this. (LedgerInsights) (AC-Good perspective on banker’s incentives. Some bankers, however, DO support wholesale CBDCs.)

-Economic Indicators-

1. 10-Year Treasury Yield Falls for 4th Day: The yield on the US 10-year Treasury note declined for a fourth consecutive session to 4.21% on Friday, reaching the lowest level since the end of March, as lower-than-expected CPI and PPI and a rise in initial claims increased bets the Fed can deliver multiple rate cuts this year. (TradingEconomics)

2. US Producer Prices Unexpectedly Decline: Factory gate prices in the US went down 0.2% mom in May 2024, compared with market expectations of a 0.1% increase and after a 0.5% rise in April. (TradingEconomics)

-Security Incidents and Concerns-

NSTR

-Technology-

1. Trezor launches Safe 5 crypto hardware wallet, including a bitcoin-only version: The firm said the new device will enable users to securely store, manage, stake, and use thousands of cryptocurrencies in one place via the Trezor Suite desktop and mobile app. Unlike rival manufacturer Ledger, Trezor devices are open-source, meaning they are community-based and audited so vulnerabilities may be seen and fixed faster. On the other hand, it may make devices easier to crack when stolen. (TheBlock)

-Bitcoin Community-

1. From Silicon Valley to Global Hubs: US Crypto Developers Shift Overseas: The United States has long been a beacon of technological innovation, but in recent years, it has seen a troubling trend in the cryptocurrency sector. According to a recent report by Coinbase, since 2018, there has been a 26% drop in the proportion of crypto developers based in the US. Responding to this, Bill Morgan suggests that the actions taken by the SEC, particularly under Gensler’s leadership, have not only stifled innovation but also discouraged the broader market. (BItcoinist)

-Bitcoin Sentiment-

1. Fear(0)/Greed(100) Index: 74/100 (Down 2 pts)

Analyst Comments (AC): As the G7 countries continue to fight for relevance and political power, the shifts in global alliances are unsettling to a historical observer. All but the Italian leader have the world’s lowest popularity scores of developed nations. Ukraine money flows, until now handled by US DoD, is now firmly in NATO’s hands, and NATO is not well-known for its administrative prowess. Meanwhile, the BRICs organization continues to grow in opposition to US hegenomy. Even to a casual observer, it is obvious that world alliances are changing and economic maneuvering is in high gear.