DIB 5 MAR 2025

BTC Daily Intelligence Bulletin (DIB)
Block: 886,422
DTG/ICOD: 1200Z 05Mar2025
Precedence: Routine (RR)
Controls: Public Release
QQQQ
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BLUF: Arab States Adopt Alternative Gaza Plan / Houthis Now ‘Foreign Terrorist’ / China Plans 7.2% Defense Increase / HK Billionaire to Sell Panama Canal Ports to BlackRock / Trump Speech to Congress Ignites / IRS May Fire Half of Staff / Peter Schiff Calls for Investigation / WH to Host Crypto Summit Friday / Five Options for US to Build an SBR / US Business Optimism, Stocks, Yields Down / Multi-Sig Wallet Led to ByBit Hack / Chinese Say Quantum Computing Breakthrough Takes Lead / Bukele-IMF Needs a Rap Battle / Tariff War Could Hit US Hashrate

Market Data: Price: 1 BTC= $89,704, 30.83 oz Gold, .21 Median US House
24hr Hi: $90,933 / Lo: $81,529
Vol: $63B (Down 13%)
Mkt Cap: $1.77T (Up 8%)
HashRate: 796 EH/s
Avg Fee Rate: 1 sats/vBtye (Down 80%)

—Reports—
-International Events-
1. Arab states adopt Egyptian alternative to Trump’s ‘Gaza Riviera’: Arab leaders adopted an Egyptian reconstruction plan for Gaza on Tuesday that would cost $53 billion and avoid displacing Palestinians from the enclave, in contrast to U.S. President Donald Trump’s”Middle East Riviera” vision. The major questions that need to be answered about Gaza’s future are who will run the enclave and which countries will provide the billions of dollars needed for reconstruction. (Reuters) (AC-Details matter in this situation and there are none.)

2. US designates Yemen’s Houthis as ‘foreign terrorist’ organization: US Secretary of State Marco Rubio announced the department had restored the designation, which carries with it sanctions and penalties for anyone providing “material support” for the group. (AlJazerra)

3. China will increase its defense budget 7.2% this year: Tensions with the U.S., Taiwan, Japan and neighbors who have overlapping claims to the crucial South China Sea are seen as driving spending on increasingly high-tech military technologies. Those include stealth fighters, the country’s three — soon to be four — aircraft carriers, and a broad expansion of its nuclear arsenal. (AP)

4. Hong Kong billionaire to sell Panama Canal ports to US firm: A Hong Kong-based company has agreed to sell most of its stake in two key ports on the Panama Canal to a group led by US investment firm BlackRock. Through a subsidiary, CK Hutchison Holding operates ports at the Atlantic Ocean and Pacific Ocean entrances to the canal. It said Tuesday that it would sell its interests as part of a deal worth $22.8bn. (AC-BlackRock?)

-US Events-
1. Tariffs, Elon Musk, Ukraine: Key Takeaways From Donald Trump’s First Congress Address: Trump reiterated that his tariffs will push through even as some countries have said they will definitely retaliate. Trump also announced reciprocal tariffs, including on India, China, the European Union, and Brazil. He once again called for Greenland and the Panama Canal to be placed under US control. He praised Elon Musk’s ‘hard work’ and claimed that ‘everybody’ in Congress appreciates the Tesla CEO’s efforts. Ukraine and Zelensky were briefly mentioned following last week’s Oval Office drama. (IBTimes)

2. IRS drafting plans to slash as much as half of its 90,000-person workforce leaving agency ‘dysfunctional”: The federal tax collector employs roughly 90,000 workers total across the United States, according to the latest IRS data. People of color make up 56% of the IRS workforce, and women represent 65%. Already, roughly 7,000 probationary IRS employees with roughly one year or less of service were laid off from the organization in February. (PBS)

-Regulatory and Legal-
1. Schiff Demands Investigation Into Trump’s Crypto Reserve ‘Announcement,’ Citing Insider Trading Concerns: Bitcoin critic Peter Schiff is calling for a Congressional investigation into U.S. President Donald Trump’s two Truth Social posts, which he claims were part of a “pump and dump scheme.” (BitcoinCom)

2. White House Prepares for its First Crypto Summit. Here’s What to Expect: The White House is preparing for its first crypto summit, with industry leaders like Michael Saylor and Brian Armstrong confirmed to attend. The summit replaces Trump’s abandoned crypto council due to industry infighting and overwhelming demand for seats. (Decrypt)

-CBDCs/World Currencies/Strategic Reserves-
1. 5 Aggressive Strategies Trump Could Use to Build a Colossal Federal BTC Reserve: The U.S. government could rapidly build a strategic bitcoin reserve under the Trump administration through five key methods: seizing assets, accepting tax payments, purchasing directly, selling federal assets for BTC, and borrowing bitcoin via loans or bonds. (BitcoinCom) (AC-Interesting option analysis)

-Institutional Concerns-
NSTR

-Economic Indicators-
1. US Economic Optimism Index Falls to 5-Month Low: The RealClearMarkets/TIPP Economic Optimism Index in the US fell to 49.8 in March 2025 from 52.0 in February, the lowest in five months and missing market expectations of 53.1. (TradingEconomics)

2. US 10-Year Treasury Yield at Over 4-Month Lows: The yield on the US 10-year Treasury note fell to 4.13% on Tuesday, a level not seen since late October, as the escalating trade war raised further concerns about the economic impact of the new trade policies. (TradingEconomics)

3. US Stocks Extend Losses on Tariffs: US stocks were lower on Tuesday, with the three major averages falling more than 1%, extending significant losses from the previous session, as the escalating trade war triggered a flight to safety, raising further concerns about the economic impact of the new trade policies. (TradingEconomics)

-Security Incidents and Concerns-
1. Multisig cold wallets: How secure are they really?: In February 2025, the Bybit exchange lost $1.5 billion worth of Ether. Here’s how the attack happened: Bybit used a 3-of-5 multisig cold wallet, meaning any three authorized signatures were needed to move funds. Attackers breached the infrastructure of a third-party wallet provider (SafeWallet). They compromised a developer’s device at SafeWallet, injecting malicious code that altered the multisig signing process. Bybit’s security team approved transactions that appeared legitimate, but in reality, the funds were redirected to hacker-controlled addresses. (CoinTelegraph) (AC-The article gives a good primer on multi-sig and the risks involved, for longer reading.)

-Technology and Science-
1. Chinese Quantum Computer Surpasses Supercomputers by 15 Orders of Magnitude: Chinese scientists unveiled Zuchongzhi-3, a 105-qubit quantum computer that processes tasks quadrillion times faster than traditional supercomputers. Announced Monday, it outperforms Google’s latest results by 6 orders of magnitude, marking a significant leap in quantum supremacy. This advancement positions China at the forefront of quantum computing, with potential applications in quantum error correction, entanglement, and chemistry. The system’s high-fidelity performance and advanced architecture represent a crucial step toward practical quantum computing applications.(GroundNews)

-Bitcoin Community-
1. Bukele Dismisses IMF Terms, Vows El Salvador’s Bitcoin Strategy ‘Won’t Stop’: “‘This all stops in April.’ This all stops in June.’ This all stops in December.’ No, it’s not stopping,” Bukele wrote Tuesday in a post on X. The new rules set by the IMF’s March 2025 country report this week, seek to establish a “continuous quantitative performance criteria” with a “ceiling of 0” on government Bitcoin purchases. (Decrypt) (Ac-The incongruity of the IMF ‘demand’ and Bukele’s continued purchasing has watchers a bit confused, but the media surrounding the issue may have some consequences on Bukele or the IMF. The heavy-handedness of the IMF may come under world scrutiny or it may end up denying El Salvador continued credit lines. TBD)

2. Bitcoin Hashrate At Risk? US Trade War Could Hit 5% Mining Power: Bitcoin faces significant uncertainty as the trade war between the US and Canada could disrupt mining operations. Miners in the US Northeast face a significant risk should Ontario curtail or halt electricity exports. According to Maloney, more than 300 megawatts (and possibly up to 500 MW) of Bitcoin mining capacity is located along the New York–Canada border, accounting for “between 2.5% and 5% of global hashrate.” (Bitcoinist)

-Bitcoin Sentiment-
1. Fear(0)/Greed(100) Index: 20/100 (Up 5 pts)

Analyst Comments (AC): NSTR

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Analyst: BV2A
END REPORT
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*NSTR-Nothing Significant To Report