BTC Daily Intelligence Bulletin (DIB)

Block: 825,460

DTG/ICOD: 0800EST 12Jan24

Precedence: Routine (RR)

Controls: Public Release

QQQQ

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BLUF: US and UK strike over 60 Houthi targets in Yemen / Texas takes control of migrant park on border from CBP / BTC ETFs see $4.6B in volume on 1st day / Inflation rising again

Market Data: Price: 1 BTC= $45,877, 22.3oz Gold

24hr Hi: $48,969 / Lo: $45,620

Vol: $43.1B (Down 16%)

Mkt Cap: $898B (Down 3.3%)

HashRate: 530 EH/s

Avg Fees: 10,235 sats/tx (Down 65%)

Nodes: 16,796

---Reports---

-International Events-

1. US and UK carry out strikes against Iran-backed Houthis in Yemen: In response to repeated drone and missile attacks on commercial shipping in the Red Sea. US and coalition forces struck over 60 targets at 16 Iranian-backed Houthi militant locations, US Air Forces Central Commander Lt. Gen. Alex Grynkewich said. The Houthi assets included command and control nodes, munitions, depots, launching systems, production facilities, and air defense radar systems, he added. Oil Prices are up 4% on the news(CNN/Reuters)

2. Taiwan is preparing to elect a president and legislature Saturday in what many see as a test of control with China, which claims the self-governing island republic as its own territory to be unified with force if necessary. The presidential race is tight, and both China and Taiwan’s key ally, the U.S., are weighing in on political and economic issues they hope will sway voters.(AP)

-US Events-

1. Texas Military Dept seizes control of park, blocks Border Patrol from entering, as part of anti-illegal immigration efforts: The state government has taken control of Shelby Park in the city of Eagle Pass, Texas, which has been at the center of the migrant crisis that has engulfed the U.S. border. Authorities have now set up razor wire and fences to block off the area.(Fox)

-Regulatory and Legal-

1. Bitcoin ETFs make case for US crypto regulation: Sen. Lummis: On Wednesday, Senator Cynthia Lummis (R-Wy.) noted that SEC-sanctioned crypto funds allow expanded access for investors who "want exposure to bitcoin but are reluctant to self-custody" of digital assets. With traditional finance embracing crypto's "long-term benefits," she says that "helps make the case" for more policy guardrails in the crypto space.(Yahoo)

-Central Bank Digital Currencies (CBDC)-

1. South Dakota Bill Would Exclude CBDC from State Definition of Money: A bill filed in the South Dakota Senate would expressly exclude a CBDC from the definition of money in the state, creating potentially significant roadblocks to its use as such in South Dakota. The bill was introduced as Senate Bill 58 (SB58) on Jan. 9. Similar legislation has already been signed as law in Indiana and Florida.(10th Amendment Center)

-Institutional Concerns-

1. US bitcoin ETFs see $4.6 billion in volume in first day of trading: Eleven spot bitcoin ETFs - including BlackRock's iShares Bitcoin Trust (IBIT.O), Grayscale Bitcoin Trust (GBTC.P), and ARK 21Shares Bitcoin ETF (ARKB.Z), among others - began trading Thursday morning, kicking off a fierce competition for market share.

Grayscale, BlackRock and Fidelity dominated trading volumes, the LSEG data showed.

"Trading volumes have been relatively strong for new ETF products," said Todd Rosenbluth, strategist at VettaFi. "But this is a longer race than just a single day's trading.(Reuters)

2. Vanguard users threaten to close accounts after firm blocks spot Bitcoin ETFs: Vanguard said it won’t offer the new spot Bitcoin ETFs on its brokerage platform as they do not align with its traditional offerings. Spot Bitcoin ETFs were also reportedly not currently available for purchase on the brokerage platforms of Citi, Merill Lynch, Edward Jones and UBS.(CoinTelegraph)

3. CoinShares Exercises Option to Buy Bitcoin ETF Provider Valkyrie to Add U.S. Arm: CoinShares, based in Jersey, England, secured the option on Valkyrie Funds in November and said on Friday the decision to exercise it was a direct result of the US SEC's approval of the listing of spot bitcoin ETFs, including Valkyrie's Bitcoin Fund (BRRR).(CoinDesk)

-Economic Indicators-

1. Inflation Edged Up in December: The consumer-price index increased 3.4% from a year earlier in December, the Labor Department said Thursday. The acceleration from November’s 3.1% advance shows inflation isn’t fully beaten. The December reading is well down from a 6.5% rise at the end of 2022, and inflation-adjusted wages rose 0.8% last year.(WSJ)

2. Companies Aren’t Done Cutting White-Collar Jobs: Companies including Amazon, Google and BlackRock this month have announced plans to trim their workforces. Some of the companies now cutting jobs conducted larger-scale layoffs over the past year.(WSJ)

-Technological Updates-

NSTR

-Security Incidents and Concerns-

1. Telcoin Restores User Balances After Exploit, Records 400% Increase in Deposits: Telcoin has restored all user balances just weeks after an exploit that resulted in $1.2 million worth of funds being transferred out of some users' accounts. The issue apparently resulted from a fault in the interaction between Telcoin’s digital wallet and a proxy contract that incorrectly performed certain storage functions.(CoinDesk)

-Bitcoin Community-

NSTR

-Bitcoin Sentiment-

1. Fear(0)/Greed(100) Index: 71/100 (Down 5 pts)

Analyst Comments (AC): The response attack against the Houthi in Yemen open up yet another conflict for the US. Following Israel's response to the Hamas attacks, the US has now conducted strikes in Syria, Iraq and now Yemen in support of Israel. The fact that President Biden and the UK Prime Minister Sunak did not gather congressional/parliamental support before conducting strikes is being condemned within thier own countries. Although considered strategically necessary to thwart Iranian proxies worldwide, this campaign is not garnering political support at home. Most Americans do not understand the proxy system in place by Iran, and therefore the US reason for many of these strikes. This does not bode well politically for the current administration.