Shocking Statement by Musk Causes Violent Bitcoin Plunge to 67400 US Federal Reserve and EuropeanAmerican Crypto Community Alarmed

Coin World News Report:
On Tuesday, October 22nd, Bitcoin experienced a violent pullback to $67,447, reaching a low of $69,519, with a daily decline of nearly $3,000. Billionaire Elon Musk stated that he is not actively involved in cryptocurrencies and avoided important issues regarding blockchain. Additionally, Tesla has transferred its entire $765 million Bitcoin holdings to an unknown wallet. Crypto gateway company Transak disclosed a data breach incident that affected over 92,000 users in the European and American cryptocurrency community. The Federal Reserve called for the taxation or prohibition of Bitcoin by the US government to maintain the deficit.
Source: WeChat Official Account: Pepe Soha


Important Statement by Elon Musk: Not Actively Involved in Cryptocurrencies
During a campaign rally for former US President Donald Trump in Pittsburgh, Elon Musk responded to a question from the audience, saying, “I think cryptocurrency is an interesting and potentially valuable defensive measure against centralized control.” At the time, an attendee asked if Musk would consider incorporating Ripple (XRP) into the financial system.


He continued by stating that the nature of cryptocurrencies contributes to individual freedom and added that he does not endorse XRP or any other specific cryptocurrency.
Musk later clarified that he is “not actively involved in cryptocurrencies” and avoided the question of whether blockchain (the underlying technology of Bitcoin and other cryptocurrencies) could be used in future elections to reduce or eliminate voter fraud.
According to Forbes, Musk has been a key driver of the Bitcoin and cryptocurrency market during the COVID-19 pandemic, frequently posting about Bitcoin and cryptocurrencies. However, recently he has shifted his focus to criticizing US spending and has repeatedly warned that the US is heading towards bankruptcy.
Musk agreed to lead what former President Trump proposed as the “Department of Government Efficiency” and named it D.O.G.E, derived from a meme and the basis for Dogecoin (DOGE).
Last week, Musk suddenly transferred his remaining Bitcoin holdings, causing panic in the Bitcoin market.
The crypto wallet marked as Tesla has recently transferred nearly all of the company’s 11,500 Bitcoins.
According to Arkham Intelligence data, on October 15th, the address made 26 transactions, including test transfers. Prior to this sudden transfer, Tesla’s Bitcoin wallet had been idle since June 17, 2022.


The current situation remains unclear, with no signs indicating that the Bitcoin has been sent to a cryptocurrency exchange, and Tesla has not publicly disclosed any plans to sell its cryptocurrency.
Transak Data Breach: Information of 92,000 Users Exposed
According to a blog post on Monday, Transak discovered that a malicious actor gained access to an employee’s laptop through a phishing attack, allowing them to access “specific user information stored in the vendor dashboard.”
The attacker stole employee credentials and successfully logged into the system of a third-party “Know Your Customer” (KYC) provider, which is used for document scanning and verification services. Sensitive information such as names, dates of birth, passports, driver’s licenses, and selfies of 92,554 users (1.14% of Transak’s user base) was leaked.


Transak provides a fiat-to-crypto gateway that enables users to buy and sell digital assets using fiat currencies. It integrates directly with crypto wallets and decentralized applications (DApps) for transactions. The company serves major crypto wallets and exchanges such as Binance, MetaMask, and Coinbase as a non-custodial gateway.
According to Transak, no financial information was compromised during the attack: “Through a thorough investigation, we can confidently confirm that no financial sensitive information, including email addresses, phone numbers, passwords, credit card details, social security numbers, or any other financial data, has been compromised in any way.”
Transak is reaching out to affected users and stated, “If we haven’t emailed you, you have not been affected.” The UK data protection authority, as well as regulatory authorities in the EU and the US, have also been notified.
Another similar incident affected users of Fidelity Investments. The financial company, which is one of the issuers of cryptocurrency exchange-traded products (ETPs), recently disclosed that personal information of over 77,000 customers was exposed between August 17th and August 19th.
This incident marks the fourth data breach for Fidelity in the past 12 months, with the previous three occurring on March 4th, March 18th, and July 19th.
Federal Reserve: US Government Must “Ban Bitcoin” to Maintain Deficit
A recent research report from the Minneapolis Federal Reserve suggests taxing or banning assets like Bitcoin to help the government maintain the deficit. In an economy where the US is attempting to sustain a permanent deficit with nominal debt, the existence of Bitcoin poses challenges to policy implementation.


The Federal Reserve writes that Bitcoin introduces a “balanced-budget trap,” where the government is forced into an alternative state of balancing the budget.
The researchers use Bitcoin as an example and argue that it is a fixed-supply “private sector security” with no actual resource requirements. Their conclusion is that a legal ban on Bitcoin or taxation of it should be implemented to address this problem. “A legal prohibition of Bitcoin could restore the unique implementation of a permanent basic deficit, as could taxation of Bitcoin.”


A basic deficit occurs when government spending exceeds its tax and other revenue (excluding interest payments on debt). The word “permanent” is crucial for a basic deficit, as it means the government plans to maintain a level of expenditures exceeding income indefinitely.
The total accumulated US national debt has reached $35.7 trillion. However, the primary deficit, which is the annual gap between spending and tax revenue, is currently around $1.8 trillion.
According to Reuters on October 19th, the largest driving factor behind the deficit for the fiscal year 2024 (which is the largest deficit outside of the COVID-19 era) is a 29% increase in US debt interest costs due to rising interest rates and increased debt financing needs, reaching $1.13 trillion.
Bitcoin Technical Analysis
FXEmpire analyst Ibrahim Ajibade stated that despite a 3% intraday pullback, the technical indicators on the daily chart of Bitcoin still lean towards a bullish outlook. Firstly, Bitcoin’s 10-day moving average (MA) has crossed above the 20-day moving average, strengthening the optimistic outlook.
Historically, this crossover suggests that an upward trend may continue with strong buying interest. The 10-day average is currently at $66,700, closely related to the key psychological support level of $66,000. This support is crucial for maintaining the bullish outlook, as breaking below this area could trigger more significant downward pressure, with a target of the 20-day average at $64,150.
Additionally, the Relative Strength Index (RSI) has recently pulled back from overbought levels and is hovering around 59.98. While not excessively bearish, the recent 3% intraday correction may be a necessary shakeout of weak hands, clearing the path for a more sustained breakthrough of the $70,000 level.
Therefore, the RSI near 59.98 indicates that Bitcoin now has enough room to gather strength due to the initial correction and attempt to break through the $70,000 level in the next breakthrough.
If this scenario occurs, bulls may target $75,000 as the next major objective.
However, in the short term, the bull market must maintain a closing price above $66,000 to sustain positive momentum.