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Paraguay's President Santiago Peña's personal X account recently posted a claim that the country had recognized Bitcoin as legal tender and established a $5 million BTC reserve, even providing a wallet address for investors. However, the post was quickly removed, and the official government account on X urged followers to ignore unconfirmed content, emphasizing that only information from official channels should be trusted. The president's office is collaborating with the social media platform to address the situation. This incident reflects a broader pattern of hackers exploiting platforms like X to spread cryptocurrency scams, as seen in past breaches of accounts belonging to figures like Indian Prime Minister Narendra Modi and the U.S. Securities and Exchange Commission. Meanwhile, some Central and South American nations are reportedly considering Bitcoin adoption, following El Salvador's 2021 move to recognize cryptocurrency as legal tender, though its legal status remains ambiguous after a recent IMF deal. The event underscores the challenges of misinformation in the crypto space and the importance of verifying information through official sources.
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The cryptocurrency market is experiencing a notable downturn, with the total market cap falling by $97 billion to $3.08 trillion in just 24 hours, driven by profit-taking after recent gains. Bitcoin, a market leader, dropped to $90,949 after failing to maintain support at $93,471, risking further declines to $90,000 or lower. Story (IP) emerged as the weakest performer, declining 7.7% to $1.97, with critical support at $1.87. Meanwhile, institutional interest persists, as Morgan Stanley filed for spot Ethereum ETFs with staking rewards, and Coinbase CEO Brian Armstrong advocated for stablecoin policies amid regulatory pushback. Despite the current bearish sentiment, recovery remains possible if key support levels are reclaimed—Bitcoin at $91,511 and the total market cap at $3.09 trillion—potentially paving the way for renewed bullish momentum. However, sustained selling pressure could deepen short-term volatility across the market.
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Bitcoin fell below $90,000 on Thursday, cooling off from an early-January rebound with a 2% drop over 24 hours, though it retains a 3% weekly gain. Ether also declined 3% daily but is up 6% for the week, while XRP lost 4.5% in a day (still up 17% weekly) and Dogecoin led with a 22% weekly surge, per CoinGecko data. U.S. spot bitcoin ETFs saw significant outflows of over $486 million, marking consecutive daily losses for the first time this year. Meanwhile, broader market dynamics, including a rally in global bonds and declining U.S. 10-year yields to 4.14%, bolster expectations of Federal Reserve rate cuts, which typically favor risk assets like crypto. Weak economic data, such as a December private-sector payroll increase of 41,000 against a forecast of 50,000, further fuels these bets. Analysts at B2BINPAY highlight macroeconomics as a key driver, noting crypto’s reliance on bitcoin sentiment. Despite supportive tailwinds like improving liquidity and a steadier policy outlook, Thursday’s pullback signals caution among traders, with crypto’s rebound vulnerable to shifts in traditional markets or bitcoin dominance.
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Venezuela, despite exporting less than 1% of global oil, remains a focal point in the energy market due to its claim of possessing the world's largest crude oil reserves, estimated at 300 billion barrels. This self-reported figure, published by OPEC but not independently verified, contrasts with expert estimates of 100-110 billion barrels due to low recovery rates. Historically, reserves were reported at 100 billion until a 2013 reclassification by state-run PDVSA, even as production stagnated. The country's oil industry has crumbled under corruption, mismanagement, and infrastructure neglect, particularly in the Orinoco Heavy Oil Belt, requiring an estimated $180 billion by 2040 to restore past production levels of 3 million barrels per day. The heavy, sulfurous nature of Venezuelan oil adds complexity and cost to extraction and refining, deterring investment. Current low oil prices (Brent crude around $60 per barrel) and the global market's lack of need for new barrels further diminish interest from major oil companies, including Chevron, the only consistent US operator in Venezuela. Despite geological potential, political and financial challenges, alongside a push for capital discipline among US oil majors, make revitalizing Venezuela's oil sector a daunting task, even with US government encouragement for investment.
