- X Platform experienced a “massive cyberattack” confirmed by Elon Musk, potentially linked to coordinated efforts against his various business interests.
- Cryptocurrency ETPs recorded $876 million in outflows during the past week, marking the fourth consecutive week of negative flows and reducing year-to-date inflows to $2.6 billion.
- Utah’s Senate passed a Bitcoin protection bill but removed the originally proposed provision that would have established a state Bitcoin reserve.
Cryptocurrency markets faced multiple headwinds this week as Elon Musk’s X platform battled a significant cyberattack, crypto investment products continued bleeding funds, and Utah lawmakers advanced Bitcoin legislation with key modifications. These developments highlight ongoing tensions in both the technical infrastructure and regulatory landscape surrounding digital assets.
Musk Confirms “Massive Cyberattack” Against X Platform
Elon Musk confirmed on March 10 that the X social media platform was targeted by what he described as a “massive cyberattack” that temporarily prevented user access to the site. Downdetector registered more than 33,000 reports of X outages on the same day.
“We get attacked every day, but this was done with a lot of resources. Either a large, coordinated group and/or a country is involved,” Musk stated, implying that the attack was still ongoing even after user functionality had been restored.
Musk’s confirmation came in response to a user who detailed a series of attacks against his business interests. According to Tesla-facilities-face-wave-attacks-elon-musk-delves-politics-rcna195458″>NBC News, at least 10 acts of vandalism have been committed against Tesla stores and vehicles, potentially in response to the billionaire’s involvement with the Trump administration.
Crypto ETPs Record Fourth Week of Substantial Outflows
Investment funds tracking cryptocurrency prices continued their downward trajectory, with crypto exchange-traded products (ETPs) recording $876 million in outflows during the past trading week, according to data from CoinShares. This marks the fourth consecutive week of negative flows, bringing the cumulative outflow to $4.75 billion over this period.
While less severe than the previous week’s record $2.9 billion outflow, investor sentiment remains bearish, according to James Butterfill, head of research at CoinShares. Butterfill noted in his report that the market has shown signs of capitulation.
Bitcoin ETPs accounted for the majority of the withdrawals, representing $756 million or approximately 85% of last week’s total. Even short-Bitcoin ETPs experienced outflows of $19.8 million, the highest since December 2024.
The sustained outflows have reduced year-to-date inflows to $2.6 billion, while total assets under management (AUM) fell by $39 billion to $142 billion—the lowest level since mid-November 2024. This decline reflects both negative price movements and continued investor withdrawals.
The bearish sentiment extended to altcoins as well, with Ether ETPs seeing $89 million in outflows. Tron and Aave also experienced significant investor exits, with outflows of $32 million and $2.4 million respectively.
Utah Advances Bitcoin Bill Without Reserve Provision
The HB230 “Blockchain and Digital Innovation Amendments” bill has cleared Utah’s state Senate, but lawmakers removed a key provision that would have established America’s first state-level Bitcoin reserve.
In its current form, the legislation still provides Utah residents with fundamental protections for Bitcoin custody, mining, node operation, and staking participation. The bill now awaits Governor Spencer Cox’s signature to become law.
The originally proposed reserve clause would have authorized Utah’s treasurer to invest up to 5% of digital assets with market capitalizations exceeding $500 billion in five state accounts. However, this cornerstone provision was eliminated during the bill’s third and final reading.
“There was a lot of concern with those provisions and the early adoption of these types of policies,” explained Senator Kirk A. Cullimore, one of the bill’s sponsors, during Utah’s March 7 floor session. “All of that has been stripped out of the bill.”
Had the reserve provision remained intact, Utah would have become the first U.S. state to maintain its own Bitcoin holdings, potentially setting a precedent for other states considering similar legislation in the evolving regulatory landscape for digital assets.
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