Bitcoin at $85,824!

The Fear & Greed Index stands at 26 – Fear, indicating growing uncertainty in the market as key developments impact the crypto industry.

Lazarus Group Launders Funds from the Largest Crypto Hack in History

Following the Bybit hack, the Lazarus Group has already laundered a significant portion of the stolen funds, while $900 million remains in inactive wallets.

• The group converted $200 million worth of staking tokens into Ethereum, making the assets easier to move.
• The funds were laundered through decentralized exchanges, cross-chain bridges, and anonymous swap services to obscure the trail.
• Most of the stolen ETH was swapped for Bitcoin and stablecoins like DAI.
• The hackers split the stolen funds across thousands of wallets to make tracking more difficult.
• $900 million in stolen assets remain untouched as the hackers wait for public attention to fade.

With $1.5 billion stolen, this is the largest crypto hack in history, raising concerns about the security of centralized exchanges.

 Bitcoin Reserves in the U.S. Could Start at the State Level Before Federal Adoption

U.S. Senator Cynthia Lummis believes individual states will establish Bitcoin reserves before the federal government.

• Lummis’ “BITCOIN Act” proposes that the U.S. Treasury acquire 1 million BTC as part of a national reserve strategy.
• 18 U.S. states have already introduced bills to establish Bitcoin reserves.
• Arizona and Utah are close to approval, while others like Montana and Wyoming have rejected similar proposals.
• President Donald Trump has already signed an executive order directing federal officials to assess the feasibility of a national Bitcoin reserve.

Analysts predict that a U.S. Bitcoin reserve could have a greater long-term impact than the ETF approvals in 2024.

Strategy Buys Another 20,356 BTC for $2 Billion – Nearing 500,000 BTC Holdings

Michael Saylor and Strategy (formerly MicroStrategy) continue to expand their Bitcoin reserves.

• New purchase: 20,356 BTC for $1.99 billion at an average price of $97,514 per BTC.
• Total holdings: 499,096 BTC, acquired for $33.1 billion at an average price of $66,357 per BTC.
• The purchases were financed through a $2 billion convertible debt issuance.
• The company’s “21/21 Plan” aims to raise $42 billion over the next three years to buy even more Bitcoin.
• Strategy now holds over $14.8 billion in unrealized gains on its Bitcoin holdings.

With nearly 500,000 BTC, Strategy remains the largest corporate Bitcoin holder outside the financial sector.

This week highlights how government adoption, institutional investments, and cybercrime continue to shape the crypto landscape.