Category Archives: Crypto Shorts

Short concise crypto updates on the important points without any of the fluff

Huge Trouble’ Looming for Bitcoin and Ethereum as $10 Billion Earthquake Could Cause Price Chaos

-Bitcoin and cryptocurrencies have been left reeling by the sudden collapse of major crypto exchange FTX this month (though Elon Musk has issued a surprise 2023 crypto prediction).

-The bitcoin price has plummeted under $17,000 per bitcoin, down from almost $70,000 12 months ago, while ethereum has collapsed toward $1,000 per ether with JPMorgan warning the price crash could be just getting started.

-Now, fears are swirling that $10 billion bitcoin and crypto giant Digital Currency Group (DCG) could be in trouble after its crypto lender Genesis was forced to pause withdrawals and reports emerged it’s seeking an emergency $1 billion loan.

-It’s in a brutal bear market that you need up-to-date information the most! Sign up now for the free CryptoCodexA daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market.

0x0 16 Huge Trouble' Looming for Bitcoin and Ethereum as $10 Billion Earthquake Could Cause Price Chaos

Crypto needs regulation to avoid washouts like FTX, says Coinbase CEO Brian Armstrong

Read Time:2 Minute

FTX declared bankruptcy after revelations about its business practices led to a surge of customer withdrawals, without sufficient funds to fulfill those withdrawals.
-Coinbase doesn’t have any material exposure to FTX, but I have a lot of sympathy for everyone involved in the current situation.
-FTX’s downfall appears to be the result of risky, unethical business practices, including conflicts of interest between deeply intertwined entities, and decisions to lend customer assets without permission.
-In the wake of this week’s events, we’re already seeing calls for more regulation of the crypto industry, with tighter restrictions on access and innovation.
-Crypto regulation in the U.S. has been hard to navigate, and regulators have so far failed to provide a workable framework for how these services can be offered in a safe, transparent way.
-This means that a swathe of crypto-based financial products including lending, margin trading, short selling and other tools that are fully legal and regulated in traditional financial markets are all but outlawed in the U.S.
-Entrepreneurial teams building new decentralized products are afraid to build out of the U.S. for fear of litigation. They don’t want to break the rules, and right now they don’t know what the rules are.
-As a result, American consumers and advanced traders alike have been engaging with risky, offshore platforms outside the jurisdiction and protection of U.S. regulators. Today, more than 95% of crypto trading activity happens on overseas exchanges.
-Part of the reason FTX was able to do what it did was because it operates in the Bahamas, a tiny island country with very little regulatory oversight and ability to oversee financial services businesses.
-Did regulators force FTX to conduct itself in the way it did? No. But they did create a situation where FTX could take dangerous risks with no repercussions.
-Instead of putting in place clear guidelines for crypto, U.S. regulators have focused on regulation by enforcement going after U.S.-based companies for not following the rules without actually establishing what those rules are.
-Coinbase itself fell victim to this practice earlier this year, when the SEC accused the company of listing unregistered securities, a charge that we strongly deny.
-It’s bad for U.S. competitiveness, and bad for Americans who lose money when overseas firms collapse.
-All of this helps explain why more heavy-handed regulation would just make the problem of crypto companies and crypto users going overseas worse.
-Instead, we need smarter regulation that protects consumers and makes the U.S. a more attractive place for crypto companies to operate.
-Despite the prevailing notion that crypto companies don’t want to be regulated, many if not most companies have been working with policymakers for years.

106868259 1618418339934 gettyimages 1144022591 775341711SF057 Consensus 20 Crypto needs regulation to avoid washouts like FTX, says Coinbase CEO Brian Armstrong

Slight Bitcoin Bullishness Continues Despite Market Cap Drop

Read Time:2 Minute

The total cryptocurrency market capitalization dropped by 5% between Nov. 14 and Nov. 21, reaching a notable $795 billion.
-However, the overall sentiment is far worse, considering that this valuation is the lowest seen since December 2020.
-The price of Bitcoin (BTC) dipped a mere 2.8% on the week, but investors have little to celebrate because the current $16,100 level represents a 66% drop year-to-date.
-Genesis Trading, part of the Digital Currency Group (DCG) conglomerate, halted withdrawals on Nov. 16.
-In its latest quarterly report, the crypto derivatives and lending trading firm stated that it has $2.8 billion worth of active loans.
-The fund administrator, Grayscale, is a subsidiary of DCG, and Genesis acted as a liquidity provider.
-The 5% weekly drop in total market capitalization was mostly impacted by Ethers (ETH) 8.5% negative price move.
-Still, the bearish sentiment had a larger effect on altcoins, with nine of the top 80 coins losing 12% or more in the period.
-Litecoin (LTC) gained 5.6% after dormant addresses in the network for one year surpassed 60 million coins.
-Near Protocols NEAR (NEAR) dropped 23% due to concerns about the 17 million tokens held by FTX and Alameda, which backed Near Foundation in March 2022.
-Decentralands MANA (MANA) lost 15% and Ethereum Classic (ETC) another 13.5% as both projects had considerable investments from Digital Currency Group, controller of the troubled Genesis Trading.
-Balanced leverage demand between bulls and bears
-Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours.
-A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.
-Perpetual futures accumulated 7-day funding rate on Nov. 21.
-The seven-day funding rate was slightly negative for Bitcoin, so the data points to excessive demand for shorts (sellers).
-However, the put-to-call ratio remained steady near 0.54.
-BTC options put-to-call ratio.
-Even though Bitcoins price broke below $16,000 on Nov. 20, investors did not rush for downside protection using options.
-As a result, the put-to-call ratio remained steady near 0.54.
-The Bitcoin options market remains more strongly populated by neutral-to-bearish strategies, as the current level favoring buy options (calls) indicates.
-Derivatives data shows investors resilience considering the absence of excessive demand for bearish bets according to the futures funding rate and the neutral-to-bullish options open interest.
-The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

pexels photo 6771900 Slight Bitcoin Bullishness Continues Despite Market Cap Drop

Ethereum to fuel bullrun to $2,000 in coming weeks

Read Time:1 Minute

– Ethereum’s performance last week outperformed Bitcoin’s by three times on the weekly chart.
– Experts believe that Ethereum’s burning mechanism will create deflationary pressure on the crypto. and will outperform Bitcoin over the long term.
– The world’s second-largest cryptocurrency Ethereum (ETH) has once again come on investors’ radar as it shoots past $1,600 levels during last week’s rally.
– Over the last week, the ETH price has appreciated by 20 percent shadowing Bitcoin’s 7 percent gains by nearly three times.
– This has been Ethereum’s biggest weekly gain since July 2022 wherein it once again outperforms industry leader Bitcoin.
– Last month in mid-September, Ethereum transitioned to a Proof-of-Stake (PoS) consensus model replacing miners with validators.
– Interestingly, Ethereum’s net issuance aka its inflation rate has dropped from 3.6 percent to nearly 0 percent.
– However, data from IntoTheBlock shows that Ethereum’s net issuance has actually dropped under zero. which means that Ethereum has turned deflationary, a coin whose supply reduces over time instead of increasing.
– The recent price rally has once again triggered the debate about ETH outperforming Bitcoin (BTC).
– On-chain data provider Santiment reports that while the ETH price is making solid gains, its address activity has been on a decline.
– Ethereum’s price dominance over #Bitcoin and most of #crypto has continued as October is coming to a close.
– But some market analysts believe that Ethereum will continue to outperform Bitcoin amid this current transition to PoS.
– Also, with the ETH burn mechanism, the falling supply with rising demand is likely to drive prices higher.
– Speaking to CoinDesk, Josh Olszweicz, head of research at digital asset fund manager Valkyrie Investments, said:
– Ether may continue to outperform bitcoin as ETHs annual issuance continues to fall rapidly. Therefore, thanks to the transaction fee burn mechanism, any increase in on-chain activity should bring Ethereum firmly into deflationary issuance territory and may have a substantial outsized effect on Ethereums price.
– He also believes that an increase in Ethereum network usage will tilt the demand-supply equation in favor of Ethereum (ETH).
– Since August 2021, more than 2.6 million ETH worth $8.65 billion has moved out of circulation.

BTC ETH Ethereum to fuel bullrun to $2,000 in coming weeks

JPMorgan’s Recent Experiment Proves Crypto is Here to Stay!

Ethereum was created in 2013, laying the foundation for cryptocurrency to take the largest step in its evolution since the creation of Bitcoin.
-DeFi is a sector of blockchain that is known today as decentralized finance or “self-executing code.”
-With DeFi, many traditional financial operations were revolutionized and gave way to entirely new methods of crypto-based finance like yield farming.
-After the success of the experiment, the chief fintech officer of the Monetary Authority of Singapore asserted that “digital assets and decentralized finance have the potential to transform capital markets.”
-Ethereum, Polygon, and Aave are at the forefront of DeFi integration with traditional finance. The potential these cryptocurrencies possess is just starting to be realized.

copy of front of a bank JPMorgan's Recent Experiment Proves Crypto is Here to Stay!

tWhy Bitcoin and Ethereum Investors Are Losing Money

– Investors in Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies are losing money at a historic pace
– The news follows recent reports that the number of Bitcoin addresses holding at least 1,000 BTC – for a minimum value of about $15.9 million as of press time – reached a three-year low of 2,090
– This is an important data point since such big holders are a major influence in the crypto economy and some of the biggest experts in riding its waves. When those holders sell, major downturns usually follow.

tWhy Bitcoin and Ethereum Investors Are Losing Money

“Bitcoin is Dead” – Mainstream Media 466 Times

The mainstream media has been publishing articles blaming crypto for the collapse of the FTX exchange and Sam Bankman-Fried’s crypto empire.
-These articles are similar to articles published during the previous crypto winter, when markets lost more than 80%.
-The markets are down again this Monday morning, likely due to the mainstream media’s FUD.

pexels photo 6780838 "Bitcoin is Dead" - Mainstream Media 466 Times

Bitcoin hits highest in nearly a month, eyes inflation data

Cryptocurrencies have been battered This year due to increased inflation rates and The collapse of key projects
-The Ethereum Network will complete a long-awaited upgrade called The Merge which could pave The way for a broader use of Ether
-The Ethereum Merge is important because it will reduce The amount of energy required for The Network to operate

107091307 1658311312247 gettyimages 1241545732 US Dollars Bitcoin Bitcoin hits highest in nearly a month, eyes inflation data

Banks band together to create digital dollar using blockchain technology

Traditional finance entities are starting to warm up to The idea of using blockchain technology for various purposes, such as enhancing their core operations or making their current services more efficient.
-An ETF with An eye on growth, The Global X blockchain ETF, is based on The idea that The Global blockchain market is poised for growth.
-The FTX collapse has caused lawmakers to call for more regulation in The crypto market, which could be a step towards that direction where digital currencies meld with The regulatory infrastructure of The federal government.

Banks Collaborate to Create Digital Dollar Using Blockchain Technology Banks band together to create digital dollar using blockchain technology

Ex-Meta Employees Launch Testnet of Their New Blockchain, Sui Network

-Sui is a blockchain platform that is seen as a competitor to the Aptos blockchain -both platforms use the same programming language called Move
-Sui has gained a lot of momentum in the past few months
-Bullet points:
-Sui is a blockchain platform that is seen as a competitor to the Aptos blockchain -both platforms use the same programming language called Move
-Sui has gained a lot of momentum in the past few months, with the aim of becoming the preferred blockchain platform.

KCUS3RQDPRFJ5AFEA62VATWLGM Ex-Meta Employees Launch Testnet of Their New Blockchain, Sui Network