Author: Free Bitcoin News

  • 🔴More Crypto Giants to Fall

    🔴More Crypto Giants to Fall

    El Salvador is buying one Bitcoin per day, Pantera Capital reveals its Bitcoin price target with a timeline and the FTX saga continues as contagion spreads through the crypto market. These stories and more this week in crypto.

    El Salvador Buys the DIP

    El Salvador President Nayib Bukele announced his country would be buying one bitcoin every day for the foreseeable future. Over the past year, Bukele has been outspoken about his policy of buying the dip during moments of crisis in the crypto markets. The Central American nation currently holds a bitcoin treasury of over 2000 BTC, valued at around $40 million.

    Crypto Fund Predicts Bitcoin Bull Run

    Crypto fund Pantera Capital says the next Bitcoin halving event will spark a bull rally. If history repeats, Pantera predicts Bitcoin’s price will soar to $36,000 in the lead-up to the next halving expected to occur in March 2024 and afterward continue its bull run to an all-time high of $149,000.

    At Least $1Bn FTX Client Funds Missing

    At least $1 billion of clients’ funds is missing from FTX.  $10 billion of customer funds were secretly transferred from FTX to the group’s trading company, Alameda Research and a large portion of that has reportedly disappeared. Newly appointed FTX CEO John Ray III scorched Sam Bankman-Fried for a total absence of trustworthy data and a complete failure of corporate controls.

    Bahamas Seizes FTX Digital Assets

    The Securities Commission of the Bahamas has taken the action of directing the transfer of all digital assets of the Bahamian subsidiary of FTX to a digital wallet controlled by the Commission, for safekeeping. The regulator said urgent interim regulatory action was necessary to protect the interests of FTX’s clients and creditors.

    FTX Contagion Spreads To More Firms

    As the FTX contagion spreads through the crypto market, multiple lending and earning platforms reportedly halted withdrawals. One of the first to stop withdrawals for its lending arm was Genesis. Some reports claim that crypto lender BlockFi has even begun exploring bankruptcy following halting withdrawals. SALT Lending has also admitted exposure to FTX and has paused deposits and withdrawals.

    Grayscale Discount Widens to Record Levels

    The share price of the Grayscale Bitcoin Trust has now dropped to a record discount on the value of its underlying assets. GBTC investors have experienced an 83% loss since last year, outstripping the 74% slide of Bitcoin’s price. However, some see this as an opportunity, with Cathie Wood’s Ark Invest picking up nearly $3 million in shares this week.

    Multiple Celebrities Are Named in FTX Lawsuit

    FTX founder Sam Bankman-Fried and celebrities including Tom Brady, Gisele Bündchen, Stephen Curry, and Shaquille O’Neal have been named in a class-action lawsuit for alleged engagement in deceptive practices. The complaint claims, FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors. As a result, American consumers collectively sustained over $11 billion dollars in damages.

    Major Increase in Ether Staking Yields

    The decentralized finance market is becoming more attractive in the face of the FTX scandal, with staked ether yields reaching a post-merge high. Users of staking services such as Lido are currently able to receive over 10% annually, while the yield earned by the more risky recursive borrowing strategies has reached as high as 25%.

    That’s what’s happened this week in crypto, see you next week.

  • Bitcoin Struggles As More Bearish Signs Appear; Can Bulls Defend ,500?

    Bitcoin Struggles As More Bearish Signs Appear; Can Bulls Defend $15,500?

    •  BTC’s price lost its all-time high as price struggled to break above $17,000. 
    •  BTC’s price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors. 
    • BTC’s price looks weak as the price struggles to hold above $16,000, with the possibility of reclaiming the daily 50 Exponential Moving Average (EMA) remaining bleak.

    The price action displayed by Bitcoin (BTC) has continued to look disheartening, with the FTX effect affecting small crypto projects like Genesis as the market continues to look weak on each passing day signifying the bottom is not yet in leading to the price of many altcoins, including Bitcoin (BTC), battling for survival. The Domino effect of the FTX saga and other huge investors has left the market at a standstill as the market has yet to make a major move after previous weeks saw the price of Bitcoin (BTC) perform well. Most altcoins have lost their key support and have traded with over 90% loss, with many hoping for a crypto revival. (Data from Binance)

    Bitcoin (BTC) Price Analysis On The Weekly Chart

    The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support holding off price decline.

    The current uncertainty surrounding the market has resulted in reluctance on the part of traders and investors to make altcoin purchases, as there is no assurance if they would be heading up any time soon.

    FTX and now Genesis news has had a huge impact on the price of BTC, sending the price into a spiral movement to a region of $15,500 as the price bounced off this region with what looked like a temporary demand zone to hold off a big sell-off.

    After the price of BTC closed below the weekly high of $17,000, there are high chances of the market going lower, with the prices of BTC looking more bearish with the weekly open.

    Weekly resistance for the price of BTC – $17,500.

    Weekly support for the price of BTC – $15,500.

    Price Analysis Of BTC On The Daily (1D) Chart

    Daily BTC Price Chart | Source: BTCUSDT On Tradingview.com

    The price of BTC remains considerably weak in the daily timeframe as the price trades below the $16,500 resistance after bouncing off from the region of $15,500.

    With rumor building of a likely bankruptcy of Genesis, this could affect the price of BTC and other smaller assets, with the price facing a possibility of losing the region of $15,500. 

    If the price of BTC breaks above $15,500, we could see more sell-off as this has been a temporary region to hold bears. 

    Daily resistance for the BTC price – $17,500.

    Daily support for the BTC price – $15,500.

    Featured Image From zipmex, Charts From Tradingview 

  • Brazilian Cryptocurrency Bill Resurfaces After General Ballot – Regulation Bitcoin News

    Brazilian Cryptocurrency Bill Resurfaces After General Ballot – Regulation Bitcoin News

    The Brazilian cryptocurrency bill, sidelined several times due to the general election ballot that happened on October 30, might be discussed and voted on during the following week. According to reports, the project identified as 4.401/2021 will be on the agenda for being discussed by the Chamber of Deputies, marked as urgent, and listed to be discussed on Nov. 22.

    Brazilian Cryptocurrency Bill Back on Agenda

    The Brazilian cryptocurrency bill, a project that seeks to regulate the actions of cryptocurrency exchanges and custody agents, as well as establish clear cryptocurrency mining rules, will be on the agenda of the Chamber of Deputies next week. The bill, which had been sidelined before the general ballot that happened on Oct. 20, is slated to be discussed on Nov. 22.

    The bill might be discussed and voted on if the chamber decides that it is of importance, as the document is the fourth item in the list to be discussed in that session. Still, deputies can change the agenda of the day, and postpone the discussion of the bill, as has happened in several opportunities before.

    According to local reports, there might be a window of opportunity for the project to be discussed, due to the laws that are currently being discussed in the Senate. However, others key actors have disregarded this possibility, as president Lula’s takeover might bring important changes to the budget law for 2023, requiring attention from both chambers.

    Crypto Personalities Talk on Speeding Regulation Due to FTX’s Downfall

    The events surrounding the withdrawal pause and the subsequent bankruptcy of FTX, one of the biggest cryptocurrency exchanges, made several personalities in the cryptocurrency industry in Brazil touch on the importance of the approval of the bill.

    Roberto Dagnoni, CEO of 2TM, the holding company of Mercado Bitcoin, one of the biggest exchanges in Brazil, stated:

    If there is a good side, it would be that it gets the law prioritized. The rules that currently exist have not been applicable to some players, so they can do whatever you want. This (law) would change a lot.

    Brazil is one of the countries that have been more affected by FTX’s debacle. Per Coingecko’s numbers, Brazil would be the tenth more affected country on the list, with Brazilians already organizing to take legal action in several jurisdictions. A proposed class action lawsuit will group customers with more than $100,000 on the exchange to try to recoup some of the losses.

    What do you think about the new opportunity that the Brazilian Congress has to approve the cryptocurrency bill? Tell us in the comments section below.

    Sergio Goschenko

    Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

    Image Credits: Shutterstock, Pixabay, Wiki Commons, Antonio Salaverry, Shutterstock.com

    Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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  • FTX-owned Liquid exchange pauses all trading after withdrawal halt

    FTX-owned Liquid exchange pauses all trading after withdrawal halt

    Liquid has suspended all trading operations on its platform in line with instructions from FTX Trading, the firm announced on Twitter on Nov. 20. The statement indicates that Liquid exchange paused “all forms of trading” because of the operation of the Chapter 11 process in the Delaware courts.

    “We have since done so while we assess the situation. We are working through these issues and will endeavor to give a fuller update in due course,” Liquid added.

    Liquid’s operational halt comes five days after the exchange suspended all withdrawals on its platform, citing compliance with the requirements of voluntary Chapter 11 proceedings. Japan’s Financial Services Agency previously also requested another FTX’s local subsidiary, FTX Japan, to suspend business orders on Nov. 10.

    As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that faced issues due to the ongoing bankruptcy proceedings of its parent firm. Bankrupt crypto lender Voyager Digital has been trying to find another buyer after FTX US acquired its assets in September. Crypto exchange CrossTower has been working on a revised offer for Voyager’s assets as the firm has reopened the bidding process, Cointelegraph reported on Nov. 13.

    Related: Ripple to consider deals for FTX assets: Brad Garlinghouse

    Other FTX subsidiaries, including LedgerX — which does business as FTX US Derivatives — have been actively working to spin out from FTX. According to a strategic review of FTX’s global assets, LedgerX was exempted as a debtor in FTX’s bankruptcy filing. According to a review by the financial services firm Perella Weinberg, many regulated or licensed subsidiaries of FTX have “solvent balance sheets, responsible management and valuable franchises.”

    Perella Weinberg found that some FTX’s subsidiaries — including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE and Zubr Exchange — are debtors.

    The Japanese cryptocurrency exchange Liquid is halting all trading due to FTX filing for Chapter 11 bankruptcy protection in the United States.

  • Ripple considers FTX trades Garlinghouse

    Ripple considers FTX trades Garlinghouse

    It has been claimed that the CEO of Ripple, Brad Garlinghouse, is considering purchasing key aspects of the defunct cryptocurrency exchange FTX. Garlinghouse told The Sunday Times that former FTX CEO Sam Bankman-Fried called him two days before the company filed for bankruptcy as he sought to round up investors to rescue the business. The conference was held on November 16 and 17, and it took place on the sidelines of Ripple’s Swell conference in London, which took place on November 16 and 17.

    During the call, according to the CEO of Ripple, the two discussed whether or not there were any FTX-owned firms that Ripple might acquire “would have a desire to possess.

    Garlinghouse does concede, however, that in light of FTX’s recent decision to file for bankruptcy under Chapter 11 in the United States, any potential transaction involving an FTX business will be more difficult “a radical departure from how things would have been done one-on-one.

    “It’s not that I don’t think we’ll take a look at those things; I’m certain we will.

    However, it is a more difficult road to transact, “he continued.

    There were around 130 firms connected to FTX that were listed in the bankruptcy petition that was filed in Delaware. One of the companies was FTX.US.

    Garlinghouse expressed his interest in purchasing the components that were geared toward catering to corporate clients.

    It would seem that the executives at Ripple, like with many others in the sector, are keeping up with the most recent developments in the situation involving FTX.

  • Under FSMA Rule 204(d), digital traceability can save lives by saving food supplies IBM Supply Chain and Blockchain Blog

    Under FSMA Rule 204(d), digital traceability can save lives by saving food supplies IBM Supply Chain and Blockchain Blog

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    An oft-overlooked clause of the US FDA’s Food Safety Modernization Act (FSMA) has the potential to drive global change in the way we sustainably source our food, providing a blueprint for governments around the world on how to create a lasting impact through regulation: digital traceability.

    In order to adequately and sustainably feed the world’s growing population, we can’t focus solely on food production. We have to also look at reducing food waste. Digital traceability gives organizations the ability to locate when and where foodborne illnesses begin.

    Knowing where sources of contamination occur along a food product’s journey from farm to table allows us to identify which product is contaminated, but equally important, which product is not. Too often, entire shelves and chains of potentially uncontaminated food products are thrown away due to the uncertainty and possibility of exposure to foodborne illnesses. But with digital traceability in place, we can ensure that we’re only pulling contaminated food prior to it affecting other products and making its way onto your dinner table. That means less wasted product—and that’s just the start of digital traceability’s potential for sustainability and responsible sourcing and handling.

    The potential to protect health and reduce waste

    In the US, the FDA is tasked with ensuring that the food that Americans consume is safe, which is no easy feat. The CDC estimates that 48 million Americans (one in six) get sick from food illnesses each year, of which 128,000 are hospitalized and 3,000 die from foodborne diseases. In 2011, the FDA launched the Food Safety Modernization Act to tackle some of the most prevalent food safety challenges. The major shift in focus was to specifically address and proactively prevent contamination in the food supply, rather than just responding to it.

    When the act was initially released, it was missing a key piece of legislation around product traceability. Traceability provides some of the most important insights and leading indicators required to anticipate and prevent foodborne illness. When companies and governments are able to see exactly where each product came from and where it’s been throughout its supply chain, they can anticipate where issues could occur and proactively remove risky products from future shelves. Especially in the event of identified cases of foodborne illness, this traceability information can help identify where the contamination stemmed from and what products need to be removed from which store shelves in order to prevent additional people from becoming sick.

    In addition to preventing foodborne illness, traceability data can also help dramatically reduce food waste. When recalls happen, it often takes companies a long time to sort through their paperwork and records to identify where contaminated products came from. If the company can’t identify those quickly enough, they need to remove all of the products in the contaminated category from store shelves. This typically includes large quantities of products that may be fine, but can’t be proven as such.

    Recalls typically make big headlines, dramatically affecting shoppers’ preferences and behaviors. Many people will avoid products that they’ve read recalls about, as they won’t trust that their grocery stores or restaurants are sophisticated enough to have removed all the contaminated products. This lack of consumer trust is often justified, as many companies don’t know if their products have been affected or not. This further exacerbates the food waste issue as many safe products go unsold and expire.

    More than food: Maximizing traceability efforts can reduce deforestation and greenhouse gas emission

    Today, the technology exists to instantly and precisely identify contaminated products. However, companies often resist implementing and leveraging this technology due to the added effort involved in capturing the required data. It’s also important that all members of a supply chain participate all the way back to the farms, as partial visibility is rarely able to provide the insights necessary to prevent and mitigate cases of foodborne illness.

    In situations like these, it’s necessary for governments to step in and enforce regulation to drive change for the common good. That’s exactly what the FDA has done with their FSMA Rule 204(d). This rule on traceability mandates that any company that processes or sells products in 16 categories of high-risk foods must maintain digital traceability records for their products.

    On a global scale, this rule sets a strong example for how a government agency can help tackle an issue that will have widespread implications. If a rule like this can help reduce food waste, we could be in a much better position to feed the growing global population. This reduction in food waste can also help alleviate the need for farmers to extract more value from their land using unsustainable farming practices that risk leaving the land unusable.

    In the case of palm oil, which is used in nearly 50% of the packaged products in supermarkets including pizza, doughnuts, chocolate, deodorant, shampoo, toothpaste and lipstick, the product has become a major driver of deforestation due to unsustainable harvesting practices. In addition to destroying the habitats of already endangered species including the orangutan and the Sumatran rhino, this deforestation accelerates the conversion of carbon-rich peat soil and produces millions of tons of greenhouse gases, contributing to climate change. These unsustainable farming practices put future generations at risk of dealing with an even worse challenge to feed their population.

    If this rule helps the industry prevent and respond more quickly to incidents of foodborne illness, it could save thousands of lives. If this rule reduces our current level of food waste by half, we would have more than enough food available to feed the estimated future population of 2050. And if the rule does all of that, it will reduce the drivers for deforestation and greenhouse gas emissions.

    While this rule may seem small by a global standard, the implications are immensely positive, and could drive the use of technology to provide a safer and more sustainable supply chain for food.

    Learn more about Food Trust, a modular solution built on blockchain, benefiting all network participants with a safer, smarter and more sustainable food ecosystem.

    Learn how IBM Food Trust helps companies respond rapidly to regulators and ensure compliance Âť

  • 🔴 Will Crypto Go Down With FTX?

    🔴 Will Crypto Go Down With FTX?

    The world’s second largest crypto exchange files for bankruptcy, and trading platforms provide proof of reserves to halt the liquidity crisis. Will the crypto market recover? These stories and more this week in crypto.

    Crypto Exchange FTX Filed For Bankruptcy

    After shocking the industry with a liquidity crisis, FTX has filed for bankruptcy in the U.S. A statement detailed that FTX and around 130 affiliated firms have commenced voluntary proceedings to provide the FTX Group the opportunity to assess its situation and maximize recoveries for stakeholders. Sam Bankman-Fried has stepped down from the role of CEO.

    Binance Walked Away from FTX Rescue

    Just a day after Binance CEO, Changpeng Zhao announced that he had reached a nonbinding deal to buy FTX’s non-U.S. businesses, Binance did an about-face and backed out of the deal, effectively forcing FTX to file for bankruptcy.

    Millions of Tokens Blacklisted Following FTX Hack

    Several wallet addresses linked to FTX were found transferring millions of dollars worth of cryptos without an official notice just a day before the bankruptcy filing. Within hours, FTX confirmed on Telegram that the fund transfers were part of an ongoing hack. Tether proactively blacklisted $31 million worth of USDT tokens linked to the transactions.

    Crypto Exchanges Prove Reserves

    To calm worried investors and prevent bank runs, crypto exchanges have started issuing proof of reserves to halt the outflow of a ssets from their platforms. Binance confirmed they have over $70Bn spread across Bitcoin, Ethereum, BNB and stablecoins. Meanwhile, Crypto.com revealed that it holds 20% of its reserves in Shiba Inu – a highly speculative meme coin with no apparent utility.

    FTX Investors Suffer

    A long list of investors now suffer from the collapse of FTX, including the world’s largest asset manager, BlackRock. Sequoia invested in a $420 million round in the company last year while other venture investors, even Canada’s Teacher’s Pension Fund, are among the entities that lost big in the collapse of the exchange.

    FTX Supporters Plunge Into Losses

    Over the past couple of years FTX had managed to attract a ton of celebrities. NFL quarterback Tom Brady and basketball star Steph Curry are just a couple of the high profile names of its former partners. Mercedes Formula One suspended its sponsorship with FTX prior to its upcoming race in Brazil. Binance chief Changpeng Zhao, has warned that more companies may fail in the coming weeks resulting from the demise of FTX.

    The White House Weighs in on the FTX Collapse

    The White House and the Senate Banking Committee have called for proper crypto regulation following the collapse of FTX. White House press secretary Karine Jean-Pierre commented that it is crucial that financial watchdogs look into what led to FTX’s collapse, to fully understand the misconduct and abuses that took place.

    Volatility Rises Following the FTX Crisis

    Strategists at JPMorgan said in a note to clients that the FTX crisis injects significant volatility into the crypto market, calling it crypto’s “Lehman moment”, referring to the 2008 collapse of the investment bank, and stated that this situation could be more problematic, as entities with strong enough balance sheets to be able to rescue low capital, high leverage firms in the crypto ecosystem are becoming harder and harder to find.

    That’s what’s happened this week in crypto, see you next week.

  • BlockFills launches end-to-end enterprise crypto trading technology stack Âť CryptoNinjas

    BlockFills launches end-to-end enterprise crypto trading technology stack Âť CryptoNinjas

    BlockFills, a company specializing in building trading and management solutions for cryptocurrency market participants, today announced the launch of Vision Crypto Cloud, a secure, full-service, end-to-end digital asset trading, order management, and risk management platform.

    The software-as-a-service (SaaS) platform enables institutions to quickly access the crypto ecosystem out of the box, without the multi-year timeline and expense associated with building an in-house solution.

    Noteworthy, BlockFills deploys an integrated liquidity solution that licensees of Vision Crypto Cloud can utilize as part of the service. Vision Crypto Cloud is a technology stack that BlockFills has operated for its own use for several years.

    “Our software division is very proud to launch Vision Crypto Cloud as a new and innovative SaaS product for the sector. Vision Crypto Cloud represents a simple and flexible path for entities to enter into the digital asset space which is wrought with challenges for top-tier institutions. BlockFills can provide a turn-key, yet scalable software solution with integrated liquidity in the spot, derivatives, and lending markets to institutions seeking to enter the market or better manage their current digital trading business.”
    – Nick Hammer, Co-Founder & CEO of BlockFills

  • Elon Musk says BTC ‘will make it’ — 5 things to know in Bitcoin this week

    Elon Musk says BTC ‘will make it’ — 5 things to know in Bitcoin this week

    Bitcoin (BTC) starts a new week on shaky ground after its lowest weekly close in two years.

    The largest cryptocurrency, considerably weakened after last week’s implosion of exchange FTX, continues to grapple with the fallout.

    In what is becoming an increasingly erratic market, investors are unsure what will happen next as more firms sound the alarm over solvency and regulators step up investigations in the crypto space.

    The mood among the majority is intensely fearful, and even some of the industry’s best-known names warn that it has been set back several years as a result of last week’s events.

    At the same time, for Bitcoin, it is business as usual. FTX is not the first such debacle it has weathered, and under the hood, the network remains as robust as ever.

    Cointelegraph takes a look at the factors set to influence BTC price action in the coming days as the average hodler gets to grips with major losses and ongoing volatility.

    Crypto braces for fresh FTX fallout

    While little is for certain in the current crypto market environment, it is safe to say that FTX and its aftermath is now the number one source of Bitcoin price volatility.

    The weekly chart says it all — a -$5,500 “red” candle for the seven days through Nov. 13 to the lowest weekly close since mid-November 2020, data from Cointelegraph Markets Pro and TradingView shows.

    BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

    At the time of writing, BTC/USD is still around that close — $16,300 reappearing as a relief bounce after the pair wicked to just $15,780 on Bitstamp overnight.

    BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

    The story is far from over when it comes to FTX, as firms with exposure to the exchange and related entities find themselves in trouble.

    As such, commentators forecast, there may be repeat performances in the coming days and weeks as the knock-on effects put more and more crypto names out of business.

    Exchanges are particularly on the radar, with Crypto.com, Kucoin and others becoming the source of suspicion over liquidity.

    On the day, a spike in withdrawal transactions at Crypto.com and Gate.io led to warnings that it may be the latest exchange seeing a “bank run” as investors seek to take control of their funds.

    Data from on-chain analytics firm CryptoQuant showed 1,500 BTC leaving Gate.io on Nov. 13, with Nov. 14 currently at nearly 800 BTC and rising.

    Bitcoin outflows (Gate.io) chart. Source: CryptoQuant

    More broadly, data showed exchange BTC reserves at an estimated 2.09 million BTC, CryptoQuant noting that due to the turmoil it may not reflect the true state of affairs.

    The last time that reserves were so low was in early 2018.

    Bitcoin exchange reserves chart. Source: CryptoQuant

    Bitcoin bounces from $15,700 as Musk puts faith in BTC

    Against the backdrop of ongoing uncertainty, making BTC price predictions is thus no easy task.

    Turning to the moving average convergence divergence (MACD), analyst Matthew Hyland warned that the BTC/USD 3-day chart was about to repeat a bearish setup, which led to losses both times it appeared in 2022.

    “Bitcoin 3-Day MACD is in position to cross Bearish tomorrow for the first time since April,” he wrote.

    “It can be avoided if BTC can get positive price action before the 3-Day closes. Previous two crosses in the past year resulted in further downward price action.”BTC/USD annotated chart. Source: Matthew Hyland/ Twitter

    Hyland nonetheless noted that after the 2014 Mt. Gox hack, Bitcoin took almost a year to find a macro price bottom after the initial shock.

    “It hasn’t even been 11 days since FTX closed up,” he added.

    Fellow analyst Il Capo of Crypto meanwhile argued that the market was prepared for a “final capitulation,” which may come sooner rather than later.

    This, he said in a series of tweets, would come in the form of a “bull trap” first then firm rejection, sending the market to new lows.

    For altcoins, he said, the comedown would amount to “40-50% on average.”

    On shorter timeframes, popular trader Crypto Tony feared that even the lowest weekly close in two years might fail to hold as support.

    “Nice breakout, but if we cannot hold the swing low at $16,400 then this was just a fake out and we wait for a test lower,” he commented about the recovery from $15,780 intraday lows.

    The move came as Twitter CEO, Elon Musk, came out in tacit support.

    “BTC will make it, but might be a long winter,” he wrote on the day in a Twitter debate.

    Twitter debate (screenshot). Source: Twitter

    A further short-term price catalyst came in the form of largest exchange Binance opting to create a dedicated recovery fund to help shield businesses.  

    Quiet macro week sees focus on stocks correlation

    The picture outside of crypto further underscores the extent to which FTX has marked a “black swan” event for the industry.

    While Bitcoin and altcoins were busy shedding in excess of 25% in days, United States stock markets recovered from losses earlier in the month.

    As such, as research firm Santiment notes, there is a clear divergence occurring between Bitcoin and risk assets, this helping break a correlation that has endured throughout the past year.

    “As the trading work week closes, the week’s story is the distinct separation between crypto (after FTX’s fall from grace) & equities,” it summarized in a tweet last week.

    “Should $BTC traders’ trust recover after unfortunate events, there is a bullish divergence forming with the SP500.”BTC, ETH vs. stocks, gold correlation annotated chart. Source: Santiment/ Twitter

    Markets commentator Holger Zschaepitz additionally noted the widening gap in performance of Bitcoin versus the Nasdaq.

    “Gap in weekly performance of sliding Bitcoin, rallying Nasdaq largest since 2020. Crypto universe shrank to the equivalent of 1% of global equities,” part of new comments read on the day. 

    That decreasing correlation may come at a useful time macro-wise, as U.S. dollar strength makes some erratic moves of its own.

    The U.S. dollar index (DXY), having attempted a rebound past 107, failed prior to the Nov. 14 Wall Street open, with the implication that risk assets should rise as a result.

    Any return towards recent highs, however, and the picture could swiftly look very different.

    The intraday DXY lows nonetheless saw the index return to support not tested since mid-August.

    U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

    Commenting on the longer-term performance, however, popular trading outfit Stockmoney Lizards said that DXY had broken a parabolic curve in place since 2021.

    “Correction will be good for Bitcoin,” part of Twitter comments added.

    U.S. dollar index (DXY) annotated chart. Source: Stockmoney Lizards/ Twitter

    “Buy the dip” fever hits as miner sales slow

    While many existing hodlers are attempting to withdraw coins from exchanges or figure out how to nurse losses, not everyone is sitting still.

    On-chain data suggests that as BTC/USD hit multi-year lows last week, investors both big and small took the opportunity to “buy the dip.”

    According to on-chain analytics firm Glassnode, wallets containing between 1 and 10 BTC saw a dramatic increase.

    Bitcoin addresses with 1-10 BTC chart. Source: Glassnode

    The trend also appears to be playing out among the largest hodler cohort, the “mega whales” of Bitcoin. These entities with a wallet balance of 10,000 BTC or more are also growing, and now number almost 130, Glassnode shows.

    “Whales are accumulating at a pace never seen before,” popular social media commentator Crypto Rover reacted.

    Bitcoin addresses with 10,000 BTC or more chart. Source: Glassnode

    A group firmly not in accumulation mode at present, meanwhile, is miners. After a sharp reduction in their reserves last week, the BTC hodled by miners tracked by CryptoQuant is still trending downward.

    From 1,858,271 BTC on Nov. 8, miners’ reserves now total 1,853,606 BTC as of the time of writing on Nov. 14.

    Despite this, reserves remain higher than at the start of 2022, and recent sales amount to an insignificant portion of miners’ overall position.

    Bitcoin miner reserves chart. Source: CryptoQuant

    Sentiment data offers a modicum of hope

    Predictably, overall crypto market sentiment took a major hit thanks to FTX — but is it really all that bad?

    Related: $3 billion in Bitcoin left exchanges this week amid FTX contagion fears

    According to the Crypto Fear & Greed Index, the industry may in fact be taking the slew of bad news in its stride.

    Over the weekend, the Index’s score touched a local low of 20/100 — firmly characterizing the market mood as one of “extreme fear.”

    That represents a 50% drop versus the peak of 40/100 seen on Nov. 6, these marking a three-month sentiment high.

    Nonetheless, 2022 has seen much lower scores, Fear & Greed reaching just 6/100 over the course of the year.

    Should further fallout hit, even a fresh 50% dive from current levels would only take sentiment to the area which normally marks macro price bottoms for BTC/USD — around 10/100.

    Crypto Fear & Greed Index (screenshot). Source: Alternative.me

    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

  • Multiple Crypto Exchanges Suffer from FTX’s Aftermath

    Multiple Crypto Exchanges Suffer from FTX’s Aftermath

    The crash of bankruptcy from the crypto exchange FTX escalates to the crypto industry. Huobi-related subsidiary is the latest victim.

     

    Citing “Failure to withdraw cryptocurrency assets from crypto exchange FTX”, Hong Kong-listed company New Huo Technology Limited (HKEX: 1611) announced inside information Monday that around $18.1 million worth of cryptocurrencies owned by its subsidiary Hbit Limited, are deposited in crypto exchange FTX, per the latest announcement published on Hong Kong Exchange.

     

    Among 18.1 million capital, around $13.2 million is “client’s asset based on the client’s trading request and approximately USD4.9 million is asset of Hbit Limited”. The listed company warned that the crypto assets “may not be able to be withdrawn from FTX” due to the filing of bankruptcy protection declared by FTX on Nov 11, which is suffering from a liquidity crunch.

     

    The board of the company emphasised will continue to provide compliant, professional and safe virtual assets financial service to clients:

     

    “The Board is of the view that the Incident currently does not affect the normal business operations of the Group. As Hbit Limited is legally and operationally separated from other business entities of the Group, other assets and business lines of the Group will not be affected.”

     

    The Board acknowledged its financial performance could be affected if “the incident is not solved.”

     

    Meanwhile, another Hong Kong-based crypto exchange, AAX, is also suffering from the recent turmoil. AAX said Sunday that the exchange continues the suspension of withdrawals for seven to ten days due to “a scheduled system upgrade” to protect users from the malicious attacks

     

    Ben Caselin, AAX Vice President, tweeted in the early morning Monday, acknowledging this is “bad timing for a scheduled maintenance at @AAXExcahnge,” adding that the exchange “aimed to address serious vulnerabilities, to be prolonged for more than 24 hours. Out of extra precaution this will take longer,” urging the public to allow AAX to open up gradually.

     

    However, AAX emphasized that the exchange has no financial exposure to FTX or its affiliates, and its digital assets remain intact, with a significant amount stored in cold wallets, according to the statement.

     

    FTX filed bankruptcy protection last Friday after its exchange experienced a critical liquidity crunch, as its native token, FTT experienced a massive price plunge. FTX failed to get rescue from its major competitor Binance through acquisition, citing “the issues are beyond our control or ability to help.”

     

    Reportedly FTX was accused of unauthorizedly using its client’s capital to foster its sister trading Alameda Research. In addition, FTX also suffered from a hacking incident last Friday. Over $600 million was bleached from its crypto wallets. Founder and former CEO Sam Bankman-Fried has stepped down.

     

     

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