Autor Cointelegraph By Brayden Lindrea

A crypto market sentiment index has risen to its highest level in over three months on Wednesday after Bitcoin rallied nearly 6% to within striking distance of $80,000.The Alternative.me Crypto Fear & Greed Index rose 14 points to 46 out of 100, its highest level since Jan. 18 and its largest single-day gain in more than three months.Change in the Crypto Fear & Greed Index score over various time intervals. Source: Alternative.meWhile still in the “Fear” zone, the current reading marks a sharp rebound from the all-time low of 5 recorded on Feb. 23 after the Trump administration imposed a 15% global tariff, sending Bitcoin (BTC) down to about $63,000.The crypto sentiment index has been stuck in the Fear zone since Jan. 18. This has come despite continued institutional crypto adoption on Wall Street and a crypto-friendly regulatory agenda in Washington. However, Bitwise chief investment officer Matt Hougan and others have noted that retail traders haven’t shown up in the same numbers as previous market cycles. The Crypto Fear & Greed Index score incorporates metrics such as social media posts and Google search volume related to crypto, which are mostly retail-driven metrics. Bitcoin rose 5.9% to nearly $79,400 over a 20-hour period on Wednesday but has since cooled to $77,920, according to CoinGecko data.Perps market has fueled Bitcoin rally: CryptoQuantIn a post to X on Wednesday, CryptoQuant’s head of research, Julio Moreno, said Bitcoin’s rally was “completely driven by demand” in the perpetual futures market.However, he noted that spot demand has been contracting, albeit at a slow pace, and warned that a market correction could arise if traders start taking profits as spot demand continues to contract.Related: LONGITUDE recap: Adam Back on Satoshi, crypto regulation needs tweaks In a separate X post, CryptoQuant noted that over 300,000 Bitcoin have moved into long-term holder wallets over the last 30 days, while shorter-term holders have offloaded the cryptocurrency.“Bitcoin supply is moving into stronger hands,” CryptoQuant said, noting that Strategy has scooped up 53,000 Bitcoin alone in the last month.Bitcoin’s rise toward $80,000 has come despite continued uncertainty in the Middle East, with the US and Iran struggling to reach a resolution over management of the Strait of Hormuz.Magazine: Ripple joins Singapore sandbox, Bhutan’s big Bitcoin selloff: Asia ExpressCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

Institutional crypto trading platform GSR launched its first crypto exchange-traded fund on Wednesday, recording nearly $5 million in trading volume on its first trading day. The GSR Crypto Core3 ETF (BESO) tracks the spot price of Bitcoin (BTC), Ether (ETH) and Solana (SOL) and offers staking rewards, GSR said in a statement on Wednesday. In a separate post on X, GSR said it will be adopting a “dynamic allocation strategy” to optimize returns for the fund, which carries a 1% management fee.Source: GSRBESO saw 185,574 shares traded worth about $4.8 million on its opening day, Nasdaq data shows. The fund closed at $26.04 but rose to $33 in after-hours trading.GSR’s market entry coincides with a wave of Wall Street firms that have recently launched or signaled their intention to launch a crypto ETF.Among them is investment bank Morgan Stanley, which launched a spot Bitcoin ETF on April 8 that has already attracted $163.8 million in net inflows. On April 14, Goldman Sachs filed for a Bitcoin Premium Income ETF, enabling investors to earn passive income while still benefiting from potential price appreciation in Bitcoin.GSR was founded by former Goldman Sachs traders Cristian Gil and Richard Rosenblum in 2013, making it one of the most established crypto market-making platforms in the industry.Related: Charles Schwab to roll out spot Bitcoin, Ether trading for retail clientsGSR CEO Xin Song said the company expanded into the crypto ETF market to make its services available to a broader range of investors, adding:“Our ETF strategy reflects our deep understanding of how this asset class is evolving.”Bitcoin takes back seat in GSR fund model portfolioGSR said allocations between Bitcoin, Ether and Solana for BESO will be rebalanced weekly based on “research-driven signals designed to pursue additional returns.“GSR published a model portfolio analysis on Wednesday showing an optimized allocation between the cryptocurrencies, with Ether and Solana dominating at 51.4% and 41.67% respectively, while Bitcoin holds a smaller position at 6.93%.Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1MCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

New York Governor Kathy Hochul has signed an executive order banning state employees from betting on prediction markets, following a similar move by Illinois earlier this week. “Getting rich by betting on inside information is corruption, plain and simple,” Hochul said on Wednesday, adding: “Our actions will ensure that public servants work for the people they represent, not their own personal enrichment.”Hochul also slammed the Trump administration and congressional Republicans for allowing an “ethical Wild West” to take hold around prediction markets without implementing any “meaningful ethical standards” to protect against insider trading.Executive order banning New York state officials from trading on prediction markets. Source: New York StateAdoption in prediction markets is rapidly accelerating, with monthly trading volumes rising over the last seven consecutive months to an all-time high of $23.6 billion in March, with markets covering everything from sports and elections to financial results and cultural outcomes.However, the rise has been accompanied by increasing concerns about insider trading and market manipulation. Illinois Governor JB Pritzker also signed an EO banning state employees from betting on prediction markets on Tuesday, stating:“Illinois is doubling down on its commitment to a transparent and ethical government by bolstering its current state laws to prevent insider trading amid the rapid growth of online prediction markets and event-based gambling contracts.”Insider trading accusations in prediction marketsHochul’s EO made reference to several suspected insider trading instances involving US military action. One of them was a Polymarket trader who placed a low-odds bet that Nicolás Maduro would be ousted as Venezuelan president just hours before he was captured by US forces, profiting around $400,000.Another related to suspicious trades placed on the invasion of Iran and the death of its Supreme Leader, Ayatollah Khamenei, in late February. Hochul’s EO stated that any violation may result in dismissal and law enforcement action, and also noted that New York state employees and officers cannot assist others in profiting on confidential information through prediction markets.Prediction markets, meanwhile, have been fighting potential insider traders their own way. In February, Kalshi said it banned a former contender for governor of California after he had bet $200 on his own candidacy last year.Kalshi did not name the politician. However, details in the enforcement summary align with public posts by Kyle Langford, a former Republican turned Democrat who is now running for election to the US House representing California’s 26th Congressional District.Related: Charles Schwab, Citadel Securities are eying prediction marketsKalshi faces regulators in Nevada and New York The latest EO adds to a wave of action from US states to attempt to police prediction markets. The New York State Gaming Commission sent prediction market platform Kalshi a cease-and-desist letter in October for illegally operating an unlicensed mobile sports wagering platform in the state.Kalshi is also engaged in a court battle with the Nevada Gaming Control Board after a lower court temporarily blocked Kalshi from operating in the state, with the regulator arguing that Kalshi’s contracts facilitate unlicensed gambling. Coinbase chief legal officer Paul Grewal has predicted that the case could reach the US Supreme Court, potentially creating precedent over the regulatory treatment of prediction markets and event-based derivatives.Magazine: How to fix suspected insider trading on Polymarket and KalshiCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

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A senior US military commander has lauded Bitcoin as a “valuable computer science tool,” arguing its usefulness extends beyond monetary applications and can support US national security interests.“It is a valuable computer science tool, as a power projection,” Admiral Samuel Paparo said at a Senate Armed Services Committee hearing on Tuesday, adding that Bitcoin’s proof-of-work technology “imposes more cost” on attackers attempting to compromise the network:“Outside of the economic formulation of it, it has got really important computer science applications for cybersecurity.”The Senate hearing looked into the strategic posture of US forces in Indo-Pacific, including ongoing conflicts in Ukraine and the Middle East, China’s military expansion and coordination with foreign adversaries, and threats from North Korea. Admiral Samuel Paparo at the Senate Armed Services Committee hearing on Tuesday. Source: US Senate Committee on Armed ServicesPaparo’s remarks echo similar comments from US Space Force member Jason Lowery in December 2023, who said Bitcoin and other proof-of-work blockchains could protect the US in cyberwarfare.At the time, he said that while Bitcoin is mostly seen as a “monetary system” to secure funds, few know that Bitcoin can be used to secure “all forms of data, messages or command signals.”“As a result, this misconception underplays the technology’s broad strategic significance for cybersecurity, and consequently, national security.”Research into Bitcoin’s use as a cybersecurity tool comes as many adversaries — including state-linked actors — have turned to cyberattacks such as phishing, ransomware and distributed denial-of-service to sabotage infrastructure and secure economic advantages.North Korea’s notorious Lazarus Group is one of the most notable examples of this, having stolen billions of dollars in crypto over the past decade to support its nuclear program.Paparo’s comments came in response to a question from US Senator Tommy Tuberville, who asked how the US and Congress can lead on Bitcoin competition, noting that China’s top monetary think tank now also views Bitcoin as a strategic asset.Paparo didn’t address the question directly but added, “Bitcoin is a reality. It is a peer-to-peer zero-trust transfer of value. Anything that supports all instruments of national power for the United States of America is to the good.”Senators introduce national security-focused Bitcoin billThe US holds the largest Bitcoin reserves among nation-states and holds the largest share of Bitcoin hashrate. However, it remains reliant on foreign-manufactured mining equipment, an issue that has raised national security concerns related to supply chain risks.Related: Quantum threat to Bitcoin still years away, says Borderless Capital partnerLast month, US Senators Bill Cassidy and Cynthia Lummis introduced the Mined in America Act to resolve that issue by bringing more Bitcoin mining manufacturing back to the US. It also seeks to codify Trump’s executive order establishing the Strategic Bitcoin Reserve.Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1MCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy