Bitcoin Just Reclaimed $64K. But There’s a Problem

Bitcoin Market Brief here - your go-to crypto source.

What’s on the menu today:

• Bitcoin Just Reclaimed $64K. But There’s a Problem

• The $165M Crypto Scam That Promised 25% Monthly Returns

• Binance to plan UK relaunch with FCA license application

A crypto investor says:

“I finally diversified my portfolio.”

Friend:

“Into what?”

Investor:

“Bitcoin, Ethereum, and three different ways to lose money.” 😂

Bitcoin is back above $64K after a pretty wild start to the week.

BTC climbed roughly 2% on Monday as US stocks started giving up some of their recent gains.

And there’s a lot going on behind the scenes. 👇

First up: gold is stealing the spotlight

The S&P 500 turned lower as tensions around the Strait of Hormuz continued to escalate.

Oil, surprisingly, remained pretty calm.

WTI was sitting around $82 per barrel at the time of writing.

Gold, meanwhile?

Up more than 1% to hit around $4,427 per ounce.

And gold-backed ETFs have seen nearly $12B in inflows over the past 30 days.

So while Bitcoin is bouncing…

A lot of capital is still flowing into the traditional safe-haven trade.

Then there’s Bitcoin’s funding problem

BTC funding rates hit 20-month highs of 0.022 on August 14.

That’s a pretty big signal.

It means long positions have become increasingly crowded, with plenty of people betting on Bitcoin moving higher.

And when too many people pile into the same trade?

Things can get spicy very quickly if the market moves the other way.

For now, liquidations remain relatively contained, with around $180M wiped out across crypto over the past 24 hours.

But Bitcoin is still sitting near the lower end of its recent range.

So here’s what I’m watching:

Bitcoin holding above $64K would be a good start.

But with gold ripping higher, geopolitical tensions still hanging over markets, and BTC longs becoming increasingly crowded…

There’s plenty of room for another big move.

And the next move could tell us a lot about where Bitcoin goes from here.

Here’s another reminder that crypto scams can get very, very expensive.

US authorities have brought the alleged mastermind of a $165M crypto Ponzi scheme back to the country to face fraud and money laundering charges.

His name is Edward Zimbardi.

And the allegations are wild. 👇

It started with a promise of 25% monthly returns

Between June 2022 and August 2023, Zimbardi allegedly promoted something called “The Crypto Program.”

The pitch?

Invest in advertising packages and receive guaranteed returns of 25% every month.

Thousands of people apparently bought in.

Together, they sent more than $165M worth of crypto to wallets allegedly controlled by Zimbardi.

But the money went somewhere else…

According to prosecutors, more than $34M was put into risky foreign currency trades.

Earlier investors were allegedly paid with money coming from newer investors.

And at least $10M was allegedly spent on personal expenses.

A house.

Luxury cars.

Alimony.

You know, the usual 25%-a-month investment expenses. 😬

Then the FBI came knocking

Prosecutors say Zimbardi learned about the investigation and fled to Fiji.

He stayed there for more than a year.

That run is now over.

Fijian authorities deported him to the US on Friday in coordination with the FBI and State Department.

He’s facing 12 counts of wire fraud, 12 counts of money laundering, and one count of money laundering conspiracy.

The takeaway:

Whenever someone promises guaranteed returns of 25% every single month…

Run.

Seriously.

Binance to plan UK relaunch with FCA license application

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Harmony plans rollback, wiping 109,000 transactions after ONE exploit

BitBox patches ‘severe’ wallet flaws that could put funds at risk

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.