News Updates December 25, 2022

1. Historical Bitcoin ‘Merry Christmas Cycle’ could send BTC to $1,800,000 in 4 years. As 2022 comes to an end, Bitcoin (BTC) is extending its sideway trading pattern after a turbulent year mostly dominated by bearish conditions. However, despite Bitcoin consolidation, the asset price movement aligns with a historical trajectory that could build the foundation for the flagship cryptocurrency to reach new highs. 

In this line, reputable crypto analyst Vince Prince from TradingView pointed out that Bitcoin has once again formed the ‘Merry Christmas Cycle’ in 2022, a pattern that has emerged over the last three Christmases. 

According to Vince’s analysis, Bitcoin has always completed historic highs during the Christmas period under the cycle. Furthermore, he noted that Bitcoin had formed several new all-time highs on Christmas Eve each year.

With Bitcoin’s current price ranking among the yearly lows, the analysts stated that based on the cycle, the maiden crypto has always formed new bottoms that end the bear market and start the new Christmas Cycle.

“The important thing here with the underlying empirical significance of the cycle is that it always worked perfectly in the past, which means that there is a very high possibility given that Bitcoin shows up with the same cycle again,” he said.

Indeed, if the cycle holds, Bitcoin will likely skyrocket to around $1.8 million by Christmas 2026. If the price target is attained, Bitcoin will spike by about 10,614% from the asset’s price at the time of publishing.

Bitcoin holders hit a monthly high on Christmas Day

Although Bitcoin’s price remains depressed, investors are still accumulating the asset. In particular, as of December 25, Bitcoin holding addresses stood at 43,764,748, representing the monthly high. Bitcoin’s lowest monthly holding addresses value was recorded on December 11 at 43,497,484.

 Bitcoin price analysis

By press time, Bitcoin was trading at $16,823 as the sideway consolidation extended with no potential trigger for a decisive move in sight. 

Notably, Bitcoin has been impacted by macroeconomic factors, a situation complicated by the FTX crypto exchange collapse as investors await a possible price bottom. In this line, a Finbold report indicates that historical analysis points to a possible Bitcoin correction to $9,000. Notably, the position acted as the foundation for Bitcoin’s last all-time high of $69,000. 

Based on historical price movement, data also indicates that Bitcoin could be in line for another rally within the next three years. In particular, by considering Bitcoin’s movements in the past, a pattern emerges of a year when the asset achieved its all-time high (ATH) followed by a bear market year.

Notably, legendary investor Bill Miller believes that Bitcoin trading at $17,000 is a remarkable achievement considering the implication of the FTX collapse. Indeed, data indicate that following the FTX debacle, Bitcoin has recovered significantly faster than other capitulation events. 

In the meantime, investors will look for a possible Bitcoin rally as the asset aims to become digital gold. Interestingly, following Bitcoin’s previous rally, crypto skeptic Peter Schiff admitted that investor interest in gold faltered as the cryptocurrency tool took center stage.

2. Top 10 most active cryptocurrencies of 2022.

The cryptocurrency market across 2022 has been dominated by the bears, with most digital assets losing a significant share of their value. As the year comes to an end, it is time to evaluate how select digital assets performed under different metrics. 

In this line, social intelligence platform LunarCrash has released the 2022 top ten cryptocurrencies based on its Galaxy Score. Notably, the Galaxy Score leverages artificial intelligence and machine learning to break down crypto movements. A higher ranking shows the specified digital assets are performing well under metrics like social volume, market volume, and price moving average. Below are the top ten LunarCrash coins based on the Galaxy Score.

Crypto #1: Bitcoin (BTC)

The flagship cryptocurrency has lost its value by almost 75% in 2022 from its all-time high of $69,000 recorded in November 2021. Bitcoin has been impacted by high-profile events such as the Terra (LUNA) ecosystem crash and the FTX crypto exchange collapse. At the same time, BTC has taken a beating from the extended macroeconomic elements. 

As the year closes, Bitcoin has entered a consolidation phase below $17,000, with market actors keenly monitoring for a price bottom. Notably, there remain concerns that the asset could correct further before embarking on a new rally. By press time, Bitcoin was trading at $16,834. 

Crypto #2: Ethereum (ETH)

Ethereum (ETH) has had a formidable year in 2022, with the Merge upgrade that transitioned the network to the energy-efficient Proof-of-Stake (PoS) being the major highlight. Indeed, the upgrade was touted to impact the asset’s price, but it emerged as a buy the rumor, sell the news event. However, the Ethereum team maintains the upgrade is likely to materialize in more institutions embracing the asset. 

In 2022, Ethereum peaked at almost $4,000, but the extended bearish conditions have weighed down the asset. By press time, Ethereum was trading at $1,221. 

Crypto #3: XRP

As the general crypto market traded in the red zone, XRP partly recorded significant gains inspired by the minor wins by the token’s parent company Ripple in the case with the Securities Exchange Commission (SEC). Indeed, the case has acted as the fundamental element for XRP. Analysts opine that if the case favors Ripple, it would be a bullish sentiment for XRP and vice versa. In the meantime, the community is waiting for a final ruling after both parties made final submissions. 

Notably, the XRP community has been buzzing, projecting a win, but legal experts have warned that the case could go either way. At the moment, XRP is trading at $0.35. 

Crypto #4: Litecoin (LTC)

The 14th-ranked cryptocurrency by market capitalization has been at the center of attention as the community looks forward to the halving event slated for next year. The August 2023 event will halve the rewards paid to Litecoin (LTC) miners for recording transactions, reducing the supply and making the asset scarce. 

At the same time, the asset has witnessed activity in other metrics, like recording the largest amount of dormant tokens being moved in four years and a decrease in the aging of the average token investments. Litecoin is currently trading at $65, with a target of $100 in sight. 

Crypto #5: Binance Coin (BNB)

The native token of the Binance crypto exchange has recently become the center of attention after the FTX trading platform collapse. BNB, at some point, recorded a sharp decline after concerns emerged regarding the Binance state of reserves at a point most exchanges were striving to promote confidence among investors. 

Furthermore, BNB was impacted negatively by the possible prosecution of Binance in the United States. By press time, the fifth-ranked crypto by market cap was trading at $245.

Crypto #6: Tezos (XTZ)

Although the general crypto market correction has impacted Tezos, the asset has remained the center of attention thanks to the robust on-chain development activity. At the moment, Tezos developers are focusing on scaling with lined-up upgrades. 

Some of Tezo’s selling points include the multiple smart contract languages, the network support, and the robust non-fungible tokens (NFT) ecosystem. Tezos is currently changing hands at $0.79.

Crypto #7: VeChain (VET)

Interest in VeChain (VET) has accelerated in 2022, considering that the native token VET can address the main problems in trustless data for various sectors, such as finance, the energy sector, and the food and beverage industry, among others.

Notably, the interest saw VeChain social mentions hit new peaks in 2023 as investors monitored the asset’s next price move amid the bear market. The token is now trading at $0.02.

Crypto #8: Quant (QNT)

Quant (QNT) is among the select cryptocurrencies that appeared unfazed by the crypto market correction. Amid the depressed conditions, the interoperability-based crypto project appeared to target previous highs powered by increased community activity. 

For instance, as of October 14, QNT’s six-month social engagements had spiked over 130%, but the asset has been hit by the impact of macroeconomic factors like surging inflation. The asset has since reclaimed the $100 position, trading at $106 by press time.

Crypto #9: Zilliqa (ZIL)

Zilliqa (ZIL) was among the best-performing assets across the crypto sector until the bears took over in November. Although Zilliqa works as a transaction processing blockchain utilizing sharing method, unconfirmed reports indicate that the network is working to venture into other sectors like gaming. The ZIL token is currently trading at $0.02.

Crypto #10: Hedera (HBAR)

The Hedera (HBAR) blockchain has built a reputation for supporting cryptocurrencies, smart contracts, and decentralized applications (DApps). The network’s goal is to transition Web2 gamers and programmers to Web 3.0 eventually. 

In the meantime, the network continues to record partnerships with different entities. The 36th-ranked crypto by market capitalization is currently trading at $0.04.

3. The 5 most important regulatory developments for crypto in 2022

The European Union has its regulatory framework, while the race is only kicking off in the United States.

2022 will surely be remembered as a year of crypto discontent — one when the price of Bitcoin crashed three times, many large companies went bankrupt and the industry experienced a series of significant lay-offs. However, it was a crucial year for crypto regulation worldwide. Although some regulatory developments are worrisome in terms of their tighter stance on digital assets, their effect could help the industry to mature in the long run.

Looking at the significant regulatory events of 2022 might fuel one’s optimism for the future. The controversial policy to restrict proof-of-work (PoW) mining was supported in New York, but a similar one failed in the European Union. In some jurisdictions, like Brazil and Russia, crypto is undoubtedly gaining momentum.

Of course, there were many more landmarks to remember, but Cointelegraph tried to choose those representing larger regional trends.

The Markets in Crypto-Assets bill

It is fair to put the European Markets in Crypto Assets bill in the first spot because it has passed all the voting stages in the European Parliament and should become law in 2024. The comprehensive crypto framework was first proposed by the European Commission in September 2020 and has been making its way through the various stages of deliberations ever since. Some in the industry, like Binance CEO Changpeng Zhao, expect it to become a regulatory standard copied worldwide.

The bill includes a transparent licensing regime, with the European Securities and Markets Authority designated as the responsible body. Provisions include strit riteria for stablecoin operators and higher legal responsibility for crypto influencers. Positively, a proposed amendment to the bill that would have effectively banned PoW mining and the incomprehensible 200 million euro ($212 million) cap for daily stablecoin transactions did not make it to the final draft. The bill represents a moderate approach, with an understandable emphasis on investor protection.

4. Suspected North Korean hacker made $365,000 from 1,055 stolen NFTs.

A wallet address associated with a suspected North Korean APT Group stole more than 1,000 NFTs from victims of phishing attacks and made 300 ETH ($365,000) from their sale, according to a report by blockchain security firm SlowMist.

APT stands for advanced persistent threat, cyber criminals who access internet networks and can remain undetected for long periods to steal data. These entities use various attack vectors such as phishing, and a few of them are reportedly sponsored by the North Korean government.

The SlowMist report said that North Korean APT Groups have been leading a massive NFT phishing campaign. Phishing is an attack method used by hackers in which they pretend to be reputable organizations in order to trick victims into revealing sensitive information. In the NFT space, such attacks can be modified with hackers posing as known NFT projects or marketplaces to deceive victims into signing malicious transactions that can lead to losing valuable NFTs from their wallets.

“The North Korean APT group targeted Crypto and NFT users with a phishing campaign using nearly 500 different domain names,” the report said. SlowMist identified one wallet address associated with the group that had stolen 1,055 NFTs. The wallet sold the items for 300 ETH ($365,000).

Several “blue chip” NFTs have been stolen in multiple phishing attacks this year. Hackers stole 29 Moonbirds in May, valued at $1.5 million at the time. Before that, 35 NFTs including Bored Apes were stolen in phishing attacks within a one-week spell in March.

5. Top Crypto Scams and Trends in 2022.

BeInCrypto takes a look at the top trends for cryptocurrency scams and the largest incidents of 2022.

Between January and November 2022, hackers absconded with $4.3 billion worth of cryptocurrency, according to a recent report. This accounts for a roughly 37% increase from 2021 year-on-year. But while the overall amount increased, 2022 had the lowest individual transfers to crypto scams over the past four years.

Trending Crypto Scams

Just like last year, most cryptocurrency hacks and scams in 2022 resulted from attacks on DeFi protocols, exchange platforms, and blockchain bridges. Roughly 72% of cryptocurrency stolen by hackers in 2021 came from DeFi protocols, while 21% of all crypto hacks that year exploited vulnerabilities in DeFi. This year, roughly 97% of all stolen cryptocurrency was acquired from DeFi protocols. Meanwhile, breaches on cross-chain bridges account for an estimated loss of $1.4 billion in 2022.

According to Solidus Labs, 2022 saw a 20% increase in crypto scams compared to 2021, with rugpulls growing in prominence. In 2021, investors lost $2.8 billion lost to rugpulls, in which investment funds are suddenly stolen by project creators. Meanwhile, 2022 had more than 188,000 incidents on various blockchains, such as BNB and Ethereum. Solidus Labs also reported that 12% of all BEP-20 tokens were linked to scams, meaning Binance’s BNB Chain experienced the most scams this year.

One type of cryptocurrency scam on the rise this year was so-called pig butchering, or romance schemes. In these instances, con artists will seduce a victim online and convince them to periodically invest in crypto, only to eventually block them and abscond with the funds. 

According to a poll by Social Catfish, romance scams start on dating apps (35%), Facebook (10%), and other various apps. While victims lost over $139 million worth of crypto to these schemes in 2021, Americans lost $185 million worth of crypto to romance scams in Q1 2022 alone.

While Americans lost $329 million to cryptocurrency scams in Q1 2022, Australians lost $166 million throughout the year. Additionally, investors in Hong Kong lost $50 million to cryptocurrency scams in 2022. Meanwhile, hackers affiliated with North Korea have stolen around $1 billion worth of cryptocurrency from DeFi protocols.

Largest Incidents This Year

Yet as these forms of crypto scams proliferated this year, the biggest loss came from a far more trusted source. After cryptocurrency exchange FTX filed for bankruptcy, an investigation revealed that between $1-$2 billion of customer funds were missing. This makes it the largest cryptocurrency scam perpetrated this year.

However, the next two largest losses were attributed to more traditional means of crypto scamming mentioned above. In March, hackers stole some $615 million in USDC and Ethereum from Axie Infinity’s Ronin Network. The third largest loss took place early in February when a hacker exploited the Wormhole protocol for approximately $325 million in Ethereum.