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Latest Findings Show Bitcoin Holders Under Fire As Price Continues To Sink

The situation in the Bitcoin and crypto market has continued to follow a downward trend. Prices of most crypto assets are maintaining a southward movement over the past weeks. The collapse of FTX is still spinning the wheels negatively as the contagion spreads.

Glassnode, a blockchain analytics company, reports more doubts about the crypto market. On November 21, the firm concluded its ‘Week on-chain’ report and disclosed the impact of the market crisis on Bitcoin holders.

In its report, the firm checked the total increase in the Mean Inflow Volume to many exchanges and discovered that many whales are losing. Its report also shows that the average deposits on top exchanges increase in dollars as Bitcoin reaches its lowest levels/bottom.

The firm noted that the trend has been existing since May this year. This resembles the bear market of 2018/19. Also, Glassnode stated that the report indicates more considerable dominance on exchange deposits from whales, trading firms, and institutions.

The Rise Of An Old Pattern

The analysis of the previous bear market shows a mirroring of the events. The prices of BTC went down by 84% from their ATH. But within a year, the token bottomed out as it moved from $20,000 to $3,200 in November 2018.

The primary crypto asset follows a similar pattern in its timing. BTC has dipped by 77.3% from its ATH of $69K in Nov 2021 to a new cycle low of $15,665 in November 2022.

There’s still a different opinion on the trend for Bitcoin from analysts who believe in more time left. They relied on the asset several months after the 2018 bear market before witnessing a considerable bullish rise. In 2018, Bitcoin took five weeks before hitting bottom after the start of the capitulation.

Additionally, Glassnode reported the spot prices hovering around $16K, making it the first time since March 2020 that the whales should experience unrealized loss. A whale represents a wallet holding more than 1,000 Bitcoins.

As of last week, the market witnessed the fourth-largest increase in realized losses with a daily value of -$1.45 billion.

Bitcoin Hits A New 2022 Low

Recently, the prices of Bitcoin have been going south with little or no restriction. As a result, the token has finally hit its lowest levels for 2022 in the present market cycle.

Bitcoin dropped to a bottom of $15,665, but it has managed to surge above $16,000, indicating an increase.

Latest Findings Show Bitcoin Holders Under Fire As The Price Continues To Sink

Bitcoin price climbs above $16,000 l BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com

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Major Reveals From The FTX Bankruptcy Filing, What’s The Takeaway?

With the FTX crypto exchange’s collapse, many events erupted in the crypto space. As a result, more of FTX’s investors and partners record massive losses with no potential recovery system.

FTX filed for bankruptcy last week, but shocking revelations are now creeping out following its bankruptcy filing. A deeper examination of the crypto exchange disclosed that FTX operations have more than the eye could see with many coatings.

FTX Inappropriate Governance Structures

An examination of the FTX’s 30-page filing report indicates that the crypto exchange has inappropriate governance structures. A majority of the entities under the FTX Group, especially those in the Bahamas and Antigua, lack the right organizational lines in operation. For example, most of the branches do not have board members. Hence, they never held any board meetings.

Also, the company has no comprehensive and proper record of its staff. There were no apparent records of the working period and responsibility for its contractors and employees. All attempts to compile a list of all the staff were futile since some couldn’t be contacted or located.

No Proper Record for Customers’ Deposits

Further discovery from FTX’s filing is that firm has no records of its users’ deposited tokens on its balance sheet. Hence, upon its insolvency, there’s no presentation of a balance for the deposited assets on the platform.

Additionally, FTX Group firms use an unsecured group email account to store private keys to customers’ assets. The company has been using software to mask the inappropriate use of customers’ funds.

Also, the firm’s digital assets have been under the control of the founders, Sam Bankman-Fried (SBF) and Gary Wang.

Approves Expenses Using Online Chats

Further examination indicated that FTX has no proper disbursement control system. Instead, the firm’s staff uses online chats to submit expense requests and the managers and supervisors approve such using personalized emojis.

Lots of the organizational decisions were conveyed through chats. Also, SBF, co-founder and former CEO of the company, encouraged the staff to communicate with apps where messages were auto-deleted after a while. So, the firm has no permanent records of all decisions made.

Also, the crypto exchange has no cash management system. As a result, it is impossible to ascertain the amount of cash at hand at any point in time. FTX has no accurate record of its bank accounts and signatories without a centralised cash control system. As a result, the firm felt less concerned over the creditworthiness of its banking partners.

Major Reveals From The FTX Bankruptcy Filing, What's The Takeaway?

Cryptocurrency market to recover above $2 trillion | Source: Crypto Total Market Cap on TradingView.com

Some top employees have been taking loans from the sister Alameda Research. A report indicated that SBF, his co-CEO Ryan Salame and FTX’s executive Nishad Singh got $1 billion, $55 million, and $543 million, respectively.

FTX Executives Misused Customers’ Funds

Part of the shocking discovery on FTX is that the executives have been misappropriating customers’ funds. They acquired homes and other personal properties for top executives without proper documentation. They made the purchases of such properties under the employees’ names.

Featured image from Pixabay, chart from TradingView.com

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Ethereum Price Tumbles Down, What’s The Reason Behind The Decline?

The crypto market has recently witnessed different shades of events, impacting several assets negatively, such as Ethereum. The collapse of the FTX crypto exchange is still causing many downtrends in the market. The overall price trend in the market has maintained a southward move beyond expectations.

Besides the FTX saga, other activities have been erupting in the crypto space. Recently, Ethereum was hit with devastating selling pressure. The sudden move cut deep into the value of the second-largest crypto asset as it drops by over 8%.

At the time of writing, ETH is trading around $1,126, indicating a drop over the past 24 hours. Its market cap now sits at $137.49 billion. The token recorded a 24-hour trading volume of over $11.9 billion.

Ethereum Price Tumbles Down, What's The Reason Behind The Decline?

Ethereum price shows a decline l ETHUSDT on Tradingview.com

FTX Hacker Converts ETH To Bitcoin

Also, on Sunday, a recent report on the FTX hacker who stole about $600 million from the exchange revealed his latest activity. The fraudster has converted his ETH stash to Bitcoin. In his operations last week, The attacker converted all his stolen stablecoins to Ethereum, leading to a whopping amount of ETH worth $288 million.

With data from Etherscan, Colin Wu, a crypto journalist, reported on the hacker. Wu stated that the FTX hacker with address (0x59…d32b) is converting a massive ETH holding to BTC. As of Sunday, the hacker exchanged about 30,000 ETH into RenBTC. Subsequently, he later transferred 1,070 BTC to the Bitcoin network.

Ethereum Price Decline

Following the recent selling pressure on Ethereum, the second-largest cryptocurrency has now dropped in performance. Some experts think continuing the trend could push the price of Ether below the $1K level.

The broader crypto market is experiencing a correction as its dips by over 5% in a single day. Subsequently, the cumulative market cap has moved below the $800 billion region. At the time of writing, the value is $793.82 billion.

Ethereum’s price correction as of today is an off-shoot from that of the broader market. While ETH lost by over 8%, Bitcoin plummeted by just 4% as the price retracted to $16,109.16.

FTX Effects Still Raging

The collapse of the FTX exchange continues to damage the crypto space. The exchange is now indebted to the tune of $3.1 billion to its top creditors. Moreover, there are growing concerns that the crisis will cause more digital companies to crumble.

Reports from last week indicate that BlockFi, a crypto lender, is preparing for possible bankruptcy. The founder of MIT Cryptoeconomics Labs, Christian Catalini, spoke to Bloomberg TV on the crisis. He stated the collapse of FTX proves the need for more clarity in regulations and a robust regulatory framework for the crypto industry.

He noted that distractions come from the hype and speculation over the minting and trading of digital assets. Hence, there is no longer a focus on developing natural products and services that tackle customers’ problems.

Featured image from Pixabay, chart from TradingView.com

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Crypto Exchanges Record Massive Outflow Of Bitcoin, What Does This Indicate?

The growth of Bitcoin and crypto exchanges over the years reflects the industry’s evolution. Exchanges have been the most critical businesses supporting the blockchain and crypto protocols. In addition, the exchanges, led by the top figures in the industry, house most of the iconic brands in the crypto ecosystem.

Since the early days of Bitcoin till now, crypto exchanges have evolved and grown in many ways, gaining users’ trust. However, things have turned sour within the twinkle of an eye, and users have lost faith in crypto exchanges. The FTX collapse has spread its contagion across the crypto space, pulling most crypto exchanges down.

Bitcoin Records Highest Exchange Outflow Since 2018

This week recorded a massive outflow of Bitcoin from crypto exchanges after the collapse of FTX. Recent data from Glassnode reveals that Bitcoin flows out of exchanges quickly. According to the report, users and investors have withdrawn all Bitcoins that flowed into exchanges since 2018.

Crypto Exchanges Record Massive Outflow Of Bitcoin, What Does This Indicate?

Bitcoin price struggles to surge l BTCUSDT on Tradingview.com

Since the FTX insolvency, primarily due to asset mismanagement, the demand for self-custody and spot-driven BTC markets has increased. This action has never been recorded in all previous bear markets that Bitcoin has survived.

Bitcoin wasn’t the only asset that recorded massive withdrawals. Stablecoins such as BUSD and USDC also recorded massive outflow from exchanges in the last seven days. On-chain data shows that a large number of the outgoing stablecoins have been moving into self-custody wallets. Santiment’s data confirmed this report.

According to Santiment, there was a constant inflow of stablecoins such as USDC, BUSD, and USDT into the crypto market in early 2022. In addition, the data suggested that new investors were buying assets as the prices declined.

The stablecoins market cap rose to $134.07 billion, with the inflow of coins at the same time BTC peaked. However, things have changed since the fed’s interest rate hike in June.

Furthermore, the stablecoins market has been recording massive holdings reshuffle after Binance revealed its plans to convert USDC to BUSD.

Self-Custody Is The Way To Go: Santiment Report

Santiment highlighted that the recent crisis teaches everyone to embrace self-custody. The market has learned, reflected in the increased outflow of USDC and BUSD from exchanges.

Several crypto firms and investors are facing the heat from the FTX downfall. For example, Crypto venture capital firm Multicoin Capital lost nearly $1 billion in assets held on FTX. The extent of damage in the crypto space and the massive outflow of assets and value declines has left questions on everyone’s minds. Many are wondering if crypto is still alive or dead.

There might still be hope since the crypto space has survived similar blows. The Mt.Gox collapse is one event that left a cascade effect on the crypto industry. The Terra collapse also had a similar impact on crypto.

Featured image from Pixabay, chart from TradingView.com

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This Crypto Venture Capital Loses Almost $1B On FTX, When Will This FTX Fiasco End?

The collapse of the FTX crypto exchange is one of the biggest shocks to hit the industry. The impact of the fall is spreading to different crypto assets and several investors on the exchange.

The crypto market has been experiencing massive downward performance as prices of assets kept declining. Hence, the overall value is far below expectations, creating more fears and doubts in crypto.

Following the unfolding events and crisis, the CEO of FTX, Sam Bankman-Fried (SBF), filed for bankruptcy for the distressed FTX exchange. He also resigned from his position as CEO.

On the part of FTX  investors, the story is getting more intense. Several venture investors and individuals have started counting the losses following the bankruptcy filing. Also, the contagion from the collapse of the exchange is still spreading. One such recipient of the negative effect is Multicoin Capital.

Multicoin Capital Exposure To FTX Crypto Exchange

In the new development, a crypto venture company, Multicoin Capital, has disclosed its exposure to FTX. On Thursday, the firm reported how the fund plummeted by a whopping 55% over last month. It revealed to its investors that the drop in performance was due to the collapse of FTX.

The events surrounding FTX gave a huge blow to Multicoin. In July, the firm launched its $430 million fund. As the FTX saga was unwinding last week, the crypto venture firm recovered just one-quarter of its assets from the exchange. But, about 15% of its total assets are still trapped on FTX.

Currently, Multicoin Capital plans to write down its assets on the distressed FTX to zero. It noted that it’s the only sensible action to take as the exchange is already immersed in its bankruptcy proceedings. However, it still believed that it would recover some of its assets from the collapsed exchange in the future.

At the moment, the crypto venture giant didn’t state the amount it’s writing off regarding the FTX crisis. But some crypto market experts think the value would be more than $850 million.

The managing partners of Multicoin, Kyle Samani and Tushar Jain, reacted to the situation in the post. They wrote that they over-trusted their relationship with FTX, which made them lay many assets on the exchange.

Multicoin Capital Now Resorts To A Majorly Self-Custodian

Before now, Multicoin Capital distributed all its assets across the three leading crypto exchanges; Binance, Coinbase, and FTX. Following the collapse of FTX, the venture firm moved all its remaining assets to either self-custody or Coinbase.

This Crypto Venture Capital Loses Almost $1B On FTX, When Will This FTX Fiasco End?

FTT price continues to decline l FTTUSDT on Tradingview.com

Multicoin stated that it currently has no assets exposed to any counterparties. However, it plans to diversify its custodial exposure picking Coinbase as its primary custodian. It noted that it would resume trading with other exchanges once the situation in the market becomes calm.

Further, the crypto venture firm believes that the contagion from the FTX will continue to spread. It mentioned that several trading firms would shut down from the collapse of FTX and its sister trading platform, Alameda Research.

Featured image from Pixabay, chart from TradingView.com

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Bitcoin Price Trends Below $17,000, What’s Ahead For The Crypto King?

The Bitcoin and crypto market has been volatile for most of 2022. Judging from the prolonged bear market, most experts were optimistic that it was close to an exit point. However, recent trends in the crypto world and macro-financial activities have prolonged the downtrend.

The feds’ rate hike continues to affect crypto assets adversely. XRP’s case with the SEC also has hurt crypto holdings. With their recent victory over crypto giants LBRY, the XRP case is viewed with anxiety.

XRP and LBRY cases bear striking similarities, although the XRP’s legal team has expressed confidence in their chances.

More recently, FTX’s collapse has also sent investors into a withdrawal frenzy, preferring to hold their assets. In addition, trust in central exchanges is now at an all-time low and has called to question the legitimacy of cryptocurrencies.

In the past 24 hours, prices of cryptocurrencies have significantly changed, with changes recorded in most projects.

Bitcoin’s Price Drama

BTC price recorded a brief bullish rally credited to the tweets of Elon Musk and Binance’s CEO Changpeng Zhao. Zhao talked about creating an industry recovery fund to help crypto projects that are strong but face liquidity problems.

This announcement comes on the heels of the FTX disaster and Binance’s proposed bailout that was suspended.

Elon Musk had responded to a tweet from Michael Saylor about converting his Tesla holdings to Bitcoin and its positive effect on the Market. The Twitter exchange between the two entrepreneurs created a brief rally for the world’s number one cryptocurrency.

Bitcoin’s price recorded an intraday high of $17,190. However, it could not withstand the resistance and succumbed to bearish pressure falling to $16,191 subsequently. BTC’s price has slightly recovered and is currently trading at $16,713.

The total market capitalization for crypto is around the $890 billion mark. These figures show a $10 billion increase in the market cap. However, Bitcoin’s dominance took a hit and is currently at 36.6%.

With the current volatile market phase, investors will likely proceed cautiously as events unravel. However, Bitcoin will likely lead the rally if the prices recover in the coming days.

Bitcoin Price Performance

Bitcoin’s recent price performance shows that the coin is observing a price downtrend. The FTX collapse might also have aided this downward spiral. Investors have gone short on losing positions to cut losses and prevent total bankruptcy.

Bitcoin’s current support levels are at $16,265 and $16,404.8. However, market volatility will have a say in Bitcoin price, with the coin crossing the critical pivot point of 16541.7.

Bitcoin Price Trends Below $17,000, What's Ahead For The Crypto King?

Bitcoin price declines by 1% on the candle l BTCUSDT on Tradingview.com

The MacD indicator clearly shows Bitcoin’s brief rally and descent into a complete bearish phase. The volatility is high, and a risky investment for investors since a further drop is still likely.

The SMA 50 and 200 also reflect the bearish trend of BTC and will likely continue their descent on the chart. It is not likely that bitcoin will go on a bullish spree.

Featured image from Pixabay, chart from TradingView.com

Posted on

Bitcoin Price Trends Below $17,000, What’s Ahead For The Crypto King?

The Bitcoin and crypto market has been volatile for most of 2022. Judging from the prolonged bear market, most experts were optimistic that it was close to an exit point. However, recent trends in the crypto world and macro-financial activities have prolonged the downtrend.

The feds’ rate hike continues to affect crypto assets adversely. XRP’s case with the SEC also has hurt crypto holdings. With their recent victory over crypto giants LBRY, the XRP case is viewed with anxiety.

XRP and LBRY cases bear striking similarities, although the XRP’s legal team has expressed confidence in their chances.

More recently, FTX’s collapse has also sent investors into a withdrawal frenzy, preferring to hold their assets. In addition, trust in central exchanges is now at an all-time low and has called to question the legitimacy of cryptocurrencies.

In the past 24 hours, prices of cryptocurrencies have significantly changed, with changes recorded in most projects.

Bitcoin’s Price Drama

BTC price recorded a brief bullish rally credited to the tweets of Elon Musk and Binance’s CEO Changpeng Zhao. Zhao talked about creating an industry recovery fund to help crypto projects that are strong but face liquidity problems.

This announcement comes on the heels of the FTX disaster and Binance’s proposed bailout that was suspended.

Elon Musk had responded to a tweet from Michael Saylor about converting his Tesla holdings to Bitcoin and its positive effect on the Market. The Twitter exchange between the two entrepreneurs created a brief rally for the world’s number one cryptocurrency.

Bitcoin’s price recorded an intraday high of $17,190. However, it could not withstand the resistance and succumbed to bearish pressure falling to $16,191 subsequently. BTC’s price has slightly recovered and is currently trading at $16,713.

The total market capitalization for crypto is around the $890 billion mark. These figures show a $10 billion increase in the market cap. However, Bitcoin’s dominance took a hit and is currently at 36.6%.

With the current volatile market phase, investors will likely proceed cautiously as events unravel. However, Bitcoin will likely lead the rally if the prices recover in the coming days.

Bitcoin Price Performance

Bitcoin’s recent price performance shows that the coin is observing a price downtrend. The FTX collapse might also have aided this downward spiral. Investors have gone short on losing positions to cut losses and prevent total bankruptcy.

Bitcoin’s current support levels are at $16,265 and $16,404.8. However, market volatility will have a say in Bitcoin price, with the coin crossing the critical pivot point of 16541.7.

Bitcoin Price Trends Below $17,000, What's Ahead For The Crypto King?

Bitcoin price declines by 1% on the candle l BTCUSDT on Tradingview.com

The MacD indicator clearly shows Bitcoin’s brief rally and descent into a complete bearish phase. The volatility is high, and a risky investment for investors since a further drop is still likely.

The SMA 50 and 200 also reflect the bearish trend of BTC and will likely continue their descent on the chart. It is not likely that bitcoin will go on a bullish spree.

Featured image from Pixabay, chart from TradingView.com

Posted on

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

The BIS (Bank of International Settlements) is a Switzerland-based bank belonging to 63 national central financial institutions that recently revealed a new survey based on Bitcoin.

Primarily, the BIS offers various banking services to several national central banks. Also, it creates a platform for regulatory policies and monetary discussions. The organization also delivers analysis based on the economy of the nations.

The member central financial institutions of the BIS elected about 18 directors to govern its operations. The central member financial institutions consist of the governors of the central banks in France, Belgium, the United States, Germany, the United Kingdom, and Italy. These are the permanent directors of the board.

They may also collectively appoint another director from one of the member central banks. Finally, the governors from the other member major financial institutions are to elect the 11 directors left of the entire board.

The BIS Study

Considering the ongoing movement of the crypto market, it’s no surprise that many investors are at a loss. Therefore, the BIS decided to look at the situations of crypto investors regarding the current state of the crypto market.

Its findings revealed that about one-third of BTC retail investors are currently at a loss. The study was based on the activities of retail investors on different exchange applications.

According to the survey, most exchange application downloads occurred when BTC was still above $20K. The study covered data from 2015 to 2022, spanning about 95 nations.

The survey showed that the retail investors bought an average of $100 worth of BTC monthly. From this data, about 81% of retail investors are currently at a loss.

This occurrence is raising concerns about venturing into crypto investments. The BIS believes the crypto ecosystem is one of the riskiest investments for anyone. Moreover, its implementation may not do the economy any good as it stands now.

Bitcoin Still Attracts Retail Investors

As opposed to the belief of the BIS, investors are still showing more interest in Bitcoin regardless of the current situation. The BIS, however, noted that digital currencies are pretty volatile. Therefore, should intending investors venture into it, they could also incur losses.

Moreover, these digital assets are still not recognized as global payment methods. This fact also indicates that cryptocurrencies have no governmental backing.

The Bank of International Settlements also cited that despite the fall of Bitcoin, investors still perform trading transactions with this token.

About 75% of the BTC price is lost within the space of a year, and that’s not all. Considering the crash of FTX and 3AC, the BIS noted that investors’ confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

Bitcoin price declines on the chart l BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com

Posted on

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

The BIS (Bank of International Settlements) is a Switzerland-based bank belonging to 63 national central financial institutions that recently revealed a new survey based on Bitcoin.

Primarily, the BIS offers various banking services to several national central banks. Also, it creates a platform for regulatory policies and monetary discussions. The organization also delivers analysis based on the economy of the nations.

The member central financial institutions of the BIS elected about 18 directors to govern its operations. The central member financial institutions consist of the governors of the central banks in France, Belgium, the United States, Germany, the United Kingdom, and Italy. These are the permanent directors of the board.

They may also collectively appoint another director from one of the member central banks. Finally, the governors from the other member major financial institutions are to elect the 11 directors left of the entire board.

The BIS Study

Considering the ongoing movement of the crypto market, it’s no surprise that many investors are at a loss. Therefore, the BIS decided to look at the situations of crypto investors regarding the current state of the crypto market.

Its findings revealed that about one-third of BTC retail investors are currently at a loss. The study was based on the activities of retail investors on different exchange applications.

According to the survey, most exchange application downloads occurred when BTC was still above $20K. The study covered data from 2015 to 2022, spanning about 95 nations.

The survey showed that the retail investors bought an average of $100 worth of BTC monthly. From this data, about 81% of retail investors are currently at a loss.

This occurrence is raising concerns about venturing into crypto investments. The BIS believes the crypto ecosystem is one of the riskiest investments for anyone. Moreover, its implementation may not do the economy any good as it stands now.

Bitcoin Still Attracts Retail Investors

As opposed to the belief of the BIS, investors are still showing more interest in Bitcoin regardless of the current situation. The BIS, however, noted that digital currencies are pretty volatile. Therefore, should intending investors venture into it, they could also incur losses.

Moreover, these digital assets are still not recognized as global payment methods. This fact also indicates that cryptocurrencies have no governmental backing.

The Bank of International Settlements also cited that despite the fall of Bitcoin, investors still perform trading transactions with this token.

About 75% of the BTC price is lost within the space of a year, and that’s not all. Considering the crash of FTX and 3AC, the BIS noted that investors’ confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

Bitcoin price declines on the chart l BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com

Posted on

Bitcoin Price Trends Below $17,000, What’s Ahead For The Crypto King?

The Bitcoin and crypto market has been volatile for most of 2022. Judging from the prolonged bear market, most experts were optimistic that it was close to an exit point. However, recent trends in the crypto world and macro-financial activities have prolonged the downtrend.

The feds’ rate hike continues to affect crypto assets adversely. XRP’s case with the SEC also has hurt crypto holdings. With their recent victory over crypto giants LBRY, the XRP case is viewed with anxiety.

XRP and LBRY cases bear striking similarities, although the XRP’s legal team has expressed confidence in their chances.

More recently, FTX’s collapse has also sent investors into a withdrawal frenzy, preferring to hold their assets. In addition, trust in central exchanges is now at an all-time low and has called to question the legitimacy of cryptocurrencies.

In the past 24 hours, prices of cryptocurrencies have significantly changed, with changes recorded in most projects.

Bitcoin’s Price Drama

BTC price recorded a brief bullish rally credited to the tweets of Elon Musk and Binance’s CEO Changpeng Zhao. Zhao talked about creating an industry recovery fund to help crypto projects that are strong but face liquidity problems.

This announcement comes on the heels of the FTX disaster and Binance’s proposed bailout that was suspended.

Elon Musk had responded to a tweet from Michael Saylor about converting his Tesla holdings to Bitcoin and its positive effect on the Market. The Twitter exchange between the two entrepreneurs created a brief rally for the world’s number one cryptocurrency.

Bitcoin’s price recorded an intraday high of $17,190. However, it could not withstand the resistance and succumbed to bearish pressure falling to $16,191 subsequently. BTC’s price has slightly recovered and is currently trading at $16,713.

The total market capitalization for crypto is around the $890 billion mark. These figures show a $10 billion increase in the market cap. However, Bitcoin’s dominance took a hit and is currently at 36.6%.

With the current volatile market phase, investors will likely proceed cautiously as events unravel. However, Bitcoin will likely lead the rally if the prices recover in the coming days.

Bitcoin Price Performance

Bitcoin’s recent price performance shows that the coin is observing a price downtrend. The FTX collapse might also have aided this downward spiral. Investors have gone short on losing positions to cut losses and prevent total bankruptcy.

Bitcoin’s current support levels are at $16,265 and $16,404.8. However, market volatility will have a say in Bitcoin price, with the coin crossing the critical pivot point of 16541.7.

Bitcoin Price Trends Below $17,000, What's Ahead For The Crypto King?

Bitcoin price declines by 1% on the candle l BTCUSDT on Tradingview.com

The MacD indicator clearly shows Bitcoin’s brief rally and descent into a complete bearish phase. The volatility is high, and a risky investment for investors since a further drop is still likely.

The SMA 50 and 200 also reflect the bearish trend of BTC and will likely continue their descent on the chart. It is not likely that bitcoin will go on a bullish spree.

Featured image from Pixabay, chart from TradingView.com

Posted on

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

The BIS (Bank of International Settlements) is a Switzerland-based bank belonging to 63 national central financial institutions that recently revealed a new survey based on Bitcoin.

Primarily, the BIS offers various banking services to several national central banks. Also, it creates a platform for regulatory policies and monetary discussions. The organization also delivers analysis based on the economy of the nations.

The member central financial institutions of the BIS elected about 18 directors to govern its operations. The central member financial institutions consist of the governors of the central banks in France, Belgium, the United States, Germany, the United Kingdom, and Italy. These are the permanent directors of the board.

They may also collectively appoint another director from one of the member central banks. Finally, the governors from the other member major financial institutions are to elect the 11 directors left of the entire board.

The BIS Study

Considering the ongoing movement of the crypto market, it’s no surprise that many investors are at a loss. Therefore, the BIS decided to look at the situations of crypto investors regarding the current state of the crypto market.

Its findings revealed that about one-third of BTC retail investors are currently at a loss. The study was based on the activities of retail investors on different exchange applications.

According to the survey, most exchange application downloads occurred when BTC was still above $20K. The study covered data from 2015 to 2022, spanning about 95 nations.

The survey showed that the retail investors bought an average of $100 worth of BTC monthly. From this data, about 81% of retail investors are currently at a loss.

This occurrence is raising concerns about venturing into crypto investments. The BIS believes the crypto ecosystem is one of the riskiest investments for anyone. Moreover, its implementation may not do the economy any good as it stands now.

Bitcoin Still Attracts Retail Investors

As opposed to the belief of the BIS, investors are still showing more interest in Bitcoin regardless of the current situation. The BIS, however, noted that digital currencies are pretty volatile. Therefore, should intending investors venture into it, they could also incur losses.

Moreover, these digital assets are still not recognized as global payment methods. This fact also indicates that cryptocurrencies have no governmental backing.

The Bank of International Settlements also cited that despite the fall of Bitcoin, investors still perform trading transactions with this token.

About 75% of the BTC price is lost within the space of a year, and that’s not all. Considering the crash of FTX and 3AC, the BIS noted that investors’ confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.

A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

Bitcoin price declines on the chart l BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com

Posted on

Huobi Backed Firm Fails To Withdraw Nearly $18 Million From FTX Exchange

Burning flames from the FTX collapse continue as damages spread throughout the crypto market and industry. FTX is left to themselves as other firms cannot assist due to the magnitude of debts incurred by the exchange. Binance initially intended to help but later acknowledged that the situation was beyond its power.

Meanwhile, the latest reports have revealed that the embattled crypto firm has filed for Chapter 11 Bankruptcy. The FTX crisis has plunged many crypto firms into debt and losses, including Huobi’s subsidiary, Hbit Limited.

Hbit Limited revealed in an official announcement that it failed to withdraw $18.1 million worth of assets deposited on FTX.

According to the announcement, $13.2 million out of the total value stuck on FTX belongs to Hbit’s clients. This is because the firm deposited the assets on FTX as per clients’ trading requests. The remaining $ 4.9 million belongs to Hbit Limited.

However, the firm announced that it would seek legal assistance and follow the necessary steps to recover the assets from the collapsed crypto exchange.

Impending Financial Crisis For Hbit

According to Hbit’s announcement, the issue may negatively impact its financial performance if not resolved accordingly. However, it revealed that the incident does not affect other business operations of Huobi Group since Hbit is a separate entity. Therefore, different lines of business of the group will continue their everyday operations.

Contagion fears from the FTX collapse have spread to other crypto exchanges as the majority are experiencing increased selling pressure. Crypto.Com is one of the crypto exchanges facing such challenges.

CRO, the native token of Crypto.com, is down by 45% after suffering a massive sell-off since the FTX fiasco. It started with rumors that the crypto exchange might be a victim of the ongoing liquidity crunch. But the CEO of Crypto.Com, Kris Marszalek, dismissed the rumors, claiming they recovered $990 million from FTX.

Marszalek assured users that Crypto.Com maintains a strong balance sheet. He added that his firm’s exposure to the newly collapsed exchange is at most $10 million.

Update On The FTX Crisis

According to the FTX bankruptcy filing, the exchange valued its assets between $10 and $50 billion. It also listed over 130 affiliate companies around the world. Many affiliated companies joined in the bankruptcy filing in Delaware on Friday.

The FTX crisis brought a sudden turn of events for Sam Bankman-Fried, who helped some crypto firms out of their financial trouble earlier this year. Meanwhile, on Saturday, FTX confirmed that there was an unauthorized access to its accounts a few hours after the bankruptcy filing.

The news stirred reactions about whether the exchange got hacked or an insider stole the funds. While the amount of money involved remains to be determined, analytics firm Elliptic estimated that $477 million is missing from the exchange. Meanwhile, FTT has lost 97.19% of its valuation since the crisis and is now trading at $1.804.

Huobi Backed Firm Fails To Withdraw Nearly $18 Million From FTX Exchange

FTT continues to drop l FTTUSDT on Tradingview.com
Featured image from Pixabay, chart from TradingView.com

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Bitcoin Investors Become Wary Of Crypto Exchanges Following FTX Crises

The sudden collapse of the FTX exchange has sent shock waves throughout the Bitcoin crypto world. The Bankman-Fried-led crypto empire hailed as an industry leader has filed for bankruptcy, creating widespread panic in crypto circles.

This collapse was aided by Ian Allison’s article showing that around $5.8 billion from the $14.6 billion assets of Almeda Research were tied to FTX’s exchange token FTT.

Bitcoin Wallets Record Increase

BTC wallet holders from the small players up to whales increased their BTC holdings. The smaller wallets with less than one BTC added around 33,700 BTC this week. It saw the monthly increase get to 51,400 BTC.

This figure represents the second-largest BTC inflow in history. This is because Crypto markets have become a bit more settled recently.

The crypto market’s total capitalization also increased, with figures up to $880 billion.

The crypto market has featured massive uncertainty. Recently, crypto investors have had low trust in crypto investing due to failed projects. However, the gains recorded in BTC signaled a massive relief to investors in recent days.

Bitcoin Holders Become Cautious

According to Glassnode reports, major crypto exchanges record a massive decline in their total BTC balance. A shortage of 73,000 BTC; was recorded by exchanges in one week.

Ethereum also recorded a similar decline on exchanges, with a massive 1.1 million ETH in the past week. Big players like Binance and Kraken have offered Proof-of-reserves. However, investors are now cautious since the FTX crisis.

Stablecoins, on the other hand, is now recording massive gains. The total held across exchanges reached an all-time high of $41 billion in the past week. Tether (USDT) and Circle (USDC) supplies and reserves; recorded a decline. Binance USD (BUSD) recorded gains.

Most stablecoins have been liquidated to increase dollar liquidity, using smart contracts at a monthly rate of $4.63 billion.

A Recap On FTX Crash

Investors had been wary of the relationship between FTX and Almeda Research since they were both founded by Bankman-Fried. It is alleged that FTX lent up to $10 billion to Almeda.

These funds were used without the knowledge of investors. This signaled one of the largest misappropriation of funds in history.

This shocking revelation was the last straw that led to a sudden exodus of investors from FTX – the world’s second-largest exchange. Changpeng Zhao, founder of Binance, after this revelation, decided to withdraw his entire FTT holdings leading to widespread market chaos.

Bitcoin Investors Become Wary Of Crypto Exchanges Following The FTX Crises

Bitcoin likely to cross the $17k mark l BTCUSDT on Tradingview.com

FTX crypto exchange handled $6 billion worth of withdrawals in just 72 hours. The downslide continued amid fears that FTX had transferred funds under the radar to Almeda as a loan to cushion losses.

Rival exchange Binance founder Changpeng Zhao had earlier declared interest in acquiring FTX. However, the deal is now off. The suspension was based on irregularities in the company’s financial standings.

FTX officially suspended all crypto withdrawals. Federal financial authorities like the security exchange commission (SEC) have launched a full investigation into the matter.

Featured image from Medium, chart from TradingView.com

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Crypto Market Loses $200 Billion As Bitcoin Plunges

Some days back, the crypto market was celebrating a significant rally in the price of major cryptocurrencies. Bitcoin hit a remarkable recovery surpassing the $20K level to $21,500.

However, the story quickly changed as the FTT crash dragged the other tokens down. Due to the ongoing FTX crisis in the crypto space, many assets have recorded new all-time lows.

Latest reports show that BTC has hit a two-year low, plummeting to $15,500 and leaving the market with a $200 billion loss. It all began with a clash of interest between Binance and FTX, which drove the former’s decision to liquidate its FTT holdings irregularities. Not long after the feud, FTX liquidated its ETH holdings amid rumors of insolvency issues.

Bitcoin Plummets To A Two-Year Low

The cascade effect landed on Bitcoin. Within hours after the celebration, the multi-week high above $21,500, Bitcoin crash-landed to $17,000. As the crisis continued, Bitcoin recorded another decline on Bitstamp yesterday. Finally, bitcoin slumped to $15,500, an all-time low since November 2020.

Crypto Market Loses $200 Billion As Bitcoin Plunges

Bitcoin price recover l BTCUSDT on Tradingview.com

Although BTC has recovered over $1000 since the last slump, its valuation – 6.81% down – is still below the psychological level. Nevertheless, it maintains a market cap above $317 billion and 38.4% dominance.

Bitcoin is not the only receiver of the hard blow in the market recently; other cryptocurrencies got even more. For example, Ethereum dropped from $1,600 to nearly $1,100 but recovered slightly above $1,300.

Binance Coin (BNB) also went down the drain, dropping by 8.87% after a short rally to $400 with news of the FTX acquisition. BNB further pushed down with reports that Binance would no longer move forward with the FTX acquisition.

Solana, which went down to $9 yesterday, now trades at $14 with a 17% decline. Given the news of the upcoming event to Unlock SOL tokens, Solana may meet more volatility today. The total crypto market has lost about $200 billion since the FTX/Binance feud began.

FTX Token Tumbles Further As Binance Withdrew Plans of Acquisition

Meanwhile, FTT’s situation is terrible. The token has incurred an additional 42% loss in value and now trades at $2.76. Given the circumstances surrounding FTX’s situation, including the alleged investigations against the firm, Binance has pulled out of its plans to acquire the exchange.

In the announcement, Binance noted that it hoped to assist FTX in providing liquidity to settle its customers. However, it cannot overlook the fact that FTX misused customers’ funds. Binance condemned FTX’s bad business practices, saying that such actors must be removed from the market.

The crypto exchange also said a regulatory framework and decentralization transition would strengthen the crypto industry.

Binance’s comments are in line with Coinbase CEO Brian Armstrong’s opinions, which he aired on Tuesday. Armstrong believes that a clear regulatory framework and adoption of decentralized exchanges will prevent problems such as the FTX crisis.

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Grayscale Bitcoin Trust Tumbles By 41% Amid The FTX Calamity

The recent crisis in the world’s third-largest crypto exchange, FTX, is creating more devastating conditions in the Bitcoin and crypto market. Over the past few days, the FTX token (FTT) has lost more than 70% of its value.

The events seem to have unlocked the bears into the market. As a result, the cumulative market cap has drastically decreased, indicating an overall negative performance.

Also, several other crypto assets have been in the south. For example, Bitcoin has experienced more downward pull this week. The price of BTC has dipped by almost 21% in just five days. The primary crypto asset, Bitcoin, now trades at $17,745, showing in increase

Grayscale Bitcoin Trust Tumbles By 41% Amid The FTX Calamity

Bitcoin price surges above $17,000 l BTCUSDT on Tradingview.com

The impact of the bearish crypto market is gradually spreading. The largest global institutional Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), has been caught in the web of the crisis.

Grayscale Bitcoin Trust Caught In The Web Of FTX Crumble

A report revealed that GBTC ended the day at a record discount of 41%. Its price was $8.76 per share. The BTC trust has been plummeting for almost a year since November 12, 2021, after hitting its high of $51.47 per share.

GBTC has a structure issue since it is an investment trust fund. Hence, it lacks the free creation of its shares or a suitable redemption program. Such a lapse offers significant price discrepancies against the fund’s underlying BTC holdings.

Subsequently, Grayscale has been attempting to convert GBTC to an exchange-traded fund (ETF). This will enable the market maker to create and redeem shares and permanently reduce the premium and discount of its shares.

Having filed its application in October 2021, Grayscale now awaits the decision of the Security Exchange Commission (SEC). However, the SEC officially denied the firm’s allocation in converting GBTC to a spot Bitcoin ETF on June 29.

The denial didn’t go down well with Grayscale, as the company took the matter to court. It filed the opening legal brief on October 11, challenging the decision of the SEC.

Root Of FTX Crypto Exchange Crisis

The recent crisis and collapse of the FTX crypto exchange are traced back to November 2. Then, Alameda Research, owned by Sam Bankman-Fried (SBF), suffered a balance sheet leakage. This revealed that the firm holds a large amount of FTX Token (FTT), the native token of the FTX crypto exchange.

The fact that a prominent trading firm holds a massive amount of a token raised concern in the crypto community. Hence, there were multiple questions regarding the relationship between FTX and Alameda.

The entire saga created doubts in most users of FTX leading to panic withdrawals of funds from the platform and its crumble. On November 7, there was over $451 million worth of stablecoin outflows on FTX, as per data from Nansen.

Featured image from Pixabay, chart from TradingView.com

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Crypto Giant Coinbase Not Interested In Buying FTX U.S, COIN Stock Plunges

The crypto market became red with massive losses on Tuesday. Some analysts speculated that the selling pressure on Bitcoin and Ethereum from FTX’s attempt to raise liquidity against impending insolvency caused this cascade of losses.

Some analytics data revealed that FTX liquidated its ETH holdings, which placed selling pressure on Ethereum and extended a sell-off to Bitcoin. However, despite FTX’s actions in the market to withstand the tanking of its token FTT, the asset didn’t recover.

As of November 7, FTT was down by 19% and has dropped further by 73.04%. News of the FTT collapse spread through the entire crypto market like wildfire with accompanying losses. As a result, the crypto market lost nearly $100 billion, slumping by 10% in the last 24 hours, including a 10% drop in the NASDAQ:COIN stock by the end of Tuesday.

The massive loss and sell-offs in the crypto market presented an opportunity for some crypto investors to stuff their wallets with assets. Cathie Woods’ Ark Invest seized an opportunity during COIN stock falls on Tuesday to purchase 420,000 COIN shares worth $21 million. COIN stock is currently trading at an 80% discount.

Status Of Binance Deal With FTX

FTX’s ordeal started with the announcement by Binance to liquidate its FTT holdings. But this applies to FTX businesses outside the United States. Speaking on Bloomberg Television, Coinbase CEO Brian Armstrong commented on Binance’s decision. Armstrong said he would not make the same move as Binance did. According to the Coinbase chief, that move will distance him from chances to acquire FTX U.S.

Meanwhile, Binance has some connection with FTX since its deal with the exchange has not ended. Both firms need to do some settlements. The Coinbase CEO further stated that if the FTX/Binance deal falls through, FTX customers will incur losses, which is not good.

How FTX Ordeal May Affect Crypto Regulation: Coinbase CEO

It appears that FTX’s losses have become gains for Coinbase. According to Armstrong, Coinbase’s customer activities have increased since the news of the FTX issue. He explained that customers who patronize less regulated overseas exchanges are at risk of losses.

The CEO noted that not buying FTX would be okay for Coinbase, but he refused to give more details about his reason for saying so. He added that FTX’s financial crisis might not affect how regulators see the crypto industry. However, the issue would change the regulator’s perception of Sam Bankman-Fried, the FTX CEO.

Recall Bankman-Fried has kept an active presence in the Washington Congress in attempts to lobby for the crypto industry regulation.

Meanwhile, FTX is currently trading at $4.65, with a live market cap of$619,086,494 and a trading volume of $3,262,989,678.

Coinbase Says Not Interested In Buying FTX U.S, COIN Stock Plunges

FTT Tokens tanks on the chart l FTTUSDT on Tradingview.com
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Crypto Exchange Binance Raises Its SAFU Fund To $1B Amid Price Swings

Recently, the crypto market has gotten into a tight tunnel as prices keep decreasing. Most crypto assets are moving to the south with little or no break. The bears are becoming too intense, and tension keeps increasing in the market.

The fluctuations have triggered the leading crypto exchange Binance, to pursue sustainability. This new action came after the exchange announced its intent to acquire the FTX to ease its liquidity issues.

The CEO of Binance, Changpeng Zhao (CZ), has actively noted the events in the Binance-FTX drama. Also, he took to Twitter to disclose some points regarding the drama.

In a tweet today, CZ revealed that his firm made more funding on its insurance backing. According to the post, Binance increased its Security Asset Fund for Users (SAFU) to $1 billion equivalent.

CZ reported that the move ensures the network’s safety against the market’s recent price fluctuation. In addition, the aim is to protect users by ensuring continuing operations regardless of market trends.

Details Of Binance’s SAFU

Further, the Binance CEO mentioned the detail of the two reserve accounts and their links. One of the accounts holds Binance Coin (BNB) token and the Binance stablecoin (BUSD) worth about $700 million. The second account comprises Bitcoin (BTC) tokens worth about $300 million.

Reacting to the Twitter post, some people from the crypto community made their positions known to the CEO. Some applauded his initiative and unique leadership vision for the network’s security.

One of the users mentioned that all crypto companies should emulate Binance to have a Security Asset Fund for Users (SAFU). However, some still question the fund’s reserve cap adequacy for users.

Crypto Exchange Binance Raises Its SAFU Fund To $1B Amid Price Swings

Crypto market suffers major decline | Source: Crypto Total Market Cap on TradingView.com

In 2018, the Binance SAFU kicked off with a fund dedicated to backing up user holdings in critical situations. Further, the firm allocated 10% of the trading fee to the fund. Gradually, the fund kept growing and hit $1 billion for the first time in February this year.

CZ Maintains Transparency In The Crypto Firm

The CEO of Binance has maintained a transparent position in handling almost all the firm’s events. CZ stated that the company would deploy a system of Proof-of-Reserve using Merkle Trees.

The aim is to achieve full transparency with the community. In addition, Merkle Trees enable the encoding of blockchain data through a more secure and efficient method.

Hence, reactions on the sufficiency of Binance’s SAFU are emerging after CZ tweeted on the use of Proof-of-Reserve the previous day. The CEO mentioned that the mechanism would provide detailed information on liquidity for the network.

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Crypto Market Tanks As Binance And FTX Battle Continues

Recently, the crypto space has been facing an unexpected display between two prominent crypto exchanges, Binance and FTX. The CEO of Binance, Changpeng Zhao (CZ), announced that the exchange would liquidate all FTT tokens in its holdings. Naturally, this news created a negative impact on FTX and its token.

Further, the entire crypto market has been thrown into the red as most crypto assets are losing value. The crash in the price of FTT is also influenced by a massive depreciating trend on several other tokens.

FTX Token (FTT) Falls Among Worse Performers

The announcement of Binance CEO CZ has dramatically declined FTX and its token, FTT. Nobody understands the reasons behind CZ’s decision regarding FTT. But some speculate a possible vital issue between the executive and the SBF-owned exchange.

FTT has plummeted by a double-digit percentage following Binance’s announcement. As of yesterday, Monday, November 7, FTT dropped to around $22. At the time of the writing, the token is trading below $17.31, indicating a drop of 23.33% over the past 24 hours. Also, its market cap is currently over $2.30 billion.

The situation has been getting worse for FTX. The exchange suffered a devastating decline in its ETH reserve. Hence, users were having difficulties completing some transactions on the platform.

On his part, the CEO of FTX exchange, Sam Bankman-Fried (SBF), has been putting some effort into remedying the situation. He has involved the firm’s subsidiaries, SBF-owned companies, and other exchanges for assistance through funds transfers to FTX.

Also, the CEO assured customers that FTX’s performance was acceptable. But today’s price drop exceeded 20% of the token’s value from the previous day.

Broader Crypto Market Losses Massively

The broader crypto market has taken the trend from FTT. As a result, the cumulative market cap had dipped from its coveted position above $1 trillion after losing over $70 billion in a single day. At the press time, the value sits at $978.74 billion, showing a decline of 4.76% over the past 24 hours.

Ethereum is now below $1,500 as it dropped over in its value. Also, Polkadot, Cardano, Tron, OKB, and MATIC plummeted by 5%. The list of losers includes Dogecoin, Solana, Ripple, Avalanche, Shiba Inu, and others.

Bitcoin Price stalls Below $20,000

Bitcoin has maintained an impressive performance over the last week. The token rose to the $20,000 level and eventually hit $21,500 during the weekend. Also, BTC displayed outstanding sustainability above $20k despite the increase in interest rates by the US Fed.

But the story has suddenly turned in the early trading hours of today. BTC lost about $1,000 from its value through the bears’ activities.

At the time of writing, Bitcoin is trading at $18,250, showing a drop of about 9.37% over the past 24 hours. Its market cap is at $378.01 billion, and its dominance over the altcoins sits at 38.60%.

Crypto Market Tanks As Binance And FTX Battle Continues

Bitcoin falls below $19,000 l BTCUSDT on Tradingview.com
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What Is The Possibility Of Cardano Touching $0.50 Mark? Let’s Explore

The crypto market has halted its brief bullish rally, with prices generally dropping; for example, Cardano (ADA) has lost 9% in the last 24 hours. Currently, Cardano is trading at $0.366.

What Is The Possibility Of Cardano Touching $0.50 Mark? Let's Explore

Cardano price falls on the chart l ADAUSDT On Tradingview.com

In recent weeks there has been an upsurge in most cryptocurrency prices due to the recent rally of bitcoin. However, experts believe the crypto winter is still on but nearing its closing phases.

The general slump in the big crypto players like bitcoin has hindered ADA’s full potential. Nevertheless, the Proof-of-Stake mechanism remains a standout feature of Cardano.

Cardano’s wide range of applications for smart contracts and DApps will likely see more platforms adopting the token.

Developmental Plans unveiled

However, Cardano’s developmental plans were intensive on November 2, 2022. Input Output HK (IOHK) released vital information on the Daedalus mainnet 5.1.1 release. This information created positive reactions from the crypto community,

Daedalus is a cryptocurrency wallet that only supports ADA tokens and is highly secured. In addition, the wallet enables users to stake their tokens and earn rewards. The launch of this wallet has been widely anticipated in the crypto community as it offers users an extra layer of security.

However, this development had no significant impact on the pricing. Similar reactions were noted with the Cardano Vasil upgrade, as it did not significantly impact the token’s price.

Will Cardano Reach The $0.50 Mark?

Despite the recent brief rally in the cryptocurrency market, it will be difficult for Cardano to reach the $50 mark. The project reached its all-time high of $3.10 0n September 7, 2021, and is yet to surpass the price level.

From the Donchain channel, the candles are seen in the upper channel signaling a potential price rise in the short term. The 0.5 level is more realistic for ADA to attain.

The MacD also observed above its signal line shows bullish sentiments. It must be noted, however, that the two lines are almost in contact. This indicates that the bull run might likely be short-lived with no significant price corrections.

Cardano will likely surpass the critical resistance level of $ 0.58. If such an event occurs, it will likely trigger a bullish run for the cryptocurrency token.

However, if Cardano falls below the critical support level of $0.33, the coin might likely go into freefall as market forces act on the price. Although ADA has shown positive price movement in recent weeks, the $50 level is some way off for the token, with critical Support and resistance levels still untested.

Cardano might likely fluctuate from the price movement between the $0.4 and 0.5 price level this month. While ADA may not get up to the $50 mark, it is still a cryptocurrency worth investing in for the future.

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Ethereum Reserves Of FTX Collapse In The Midst Of Liquidity problems

FTX seems to fall deeper into its despair pit without any anchor. The crypto exchange is facing several issues threatening the stability of the firm. First, there appears to be an ongoing war between FTX and the Binance crypto exchange. This is presumed to involve their respective CEOs, Sam Bankman-Fried (SBF) and Changpeng Zhao (CZ).

Binance announced its plans to liquidate FTT token holdings, which it has carried out. There’s still no explanation for Binance’s sudden lack of interest in the FTT tokens. However, some opine that Binance may consider holding FTT tokens as a liability on its record.

Following Binance’s liquidation of FTT tokens, things are becoming more complicated for FTX. The latter now suffers delays in processing Bitcoin and stablecoins transfers for its clients. The natural outcome of events is reducing users’ confidence in FTX.

FTX is currently witnessing the collapse of its Ethereum (ETH) reserves. According to data provider, CryptoQuant, the exchange has lost almost 300k ETH over the past two days.

Ethereum Reserves Of FTX Collapse In The Midst Of Liquidity problems

Ethereum price trends above $1,500 l ETHUSDT on Tradingview.com

At the moment, the Ethereum reserve of FTX is about 108,246.43. This stands as one of the vast drops recorded since November 2020.

FTX Makes Moves To Fix ETH Reserves

Reports on the situation revealed that FTX is making some moves to build up its ETH reserve. The firm is using its subsidiaries and other crypto exchanges. For example, Nansen data disclosed that Alameda, owned by SBF, has transferred 26,600 ETHs to FTX within the past day.

This transfer left Alameda with a balance of 9,325 ETH. Also, Alameda has sent vast amounts of stablecoins to FTX hot wallet using other crypto exchanges.

As per data from PeckShieldAlert, FTX has removed liquidity of 1,985 ETH from Gearbox Protocol. Also, Blockfolio, another SBF company, transferred about 13,555 ETH to FTX.

Ethereum Reserves Of FTX Collapse In The Midst Of Liquidity problems

FTX Ethereum Reserves l Source: CryptoQuant

Currently, the crypto exchange’s node throughput is limited, making it challenging to process Bitcoin withdrawals. Also, users of the FTX platform now complain that transaction delays for 5 to 10 hours before executions.

Additionally, the creation and redemptions of stablecoins from the exchange have slowed. But the exchange blames banks for the slowdown in stablecoins creations and redemptions. It mentioned that wire transfers would clear on Monday once banks have opened.

FTT Tokens Dips By 10%

The CEO of Binance crypto exchange, CZ, announced the firm’s plan to liquidate its FTT holdings. CZ mentioned that the action would commence in the next coming months. This announcement negatively impacted FTT as the token dipped by 10% over the past 24 hours. The coin even hit a low of $22.32.

However, FTT has started showing signs of recovering due to little volatility in the crypto market. At the press time, FTT is trading at $22.33.

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