11 Sep: FTX Fiasco Part 2?!

By theinspired | Inspiration | 11 Sep 2023

"One cannot and must not try to erase the past merely because it does not fit the present."
–Golda Meir

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Happy Monday Folks! News last week covered the Spot Bitcoin ETF, BitGo adding custody in Korea, Grayscale pushing for GBTC conversion to ETF, FASB rule change, and LBRY fight with the SEC. Today, many are concerned that FTX could cause another market collapse. The price of Bitcoin is currently trading at $25,606.69. Let's dive into the news...

SUMMARY

Double top 'likely' confirmed — 5 things to know in Bitcoin this week (Cointelegraph):

Weekly close makes BTC price double top a reality
$20,000 futures gap next?
Liquidity increases at March levels
CPI leads “huge” pre-FOMC week
Back to March 2020

Analytics firm IntoTheBlock is warning that FTX could trigger cascading prices by liquidating their massive digital asset trove worth $3B. FTX holds $1.16B in SOL, $200M in Bahamas real estate, court filing says. Meanwhile, new data from crypto analytics firm Santiment reveals that digital assets are hinting at rallies despite market conditions being rife with uncertainty.

The Bitcoin (BTC) price has decreased under a descending resistance line since July. Since August, it has hovered above the $25,700 horizontal support area and While the price action is bearish, the RSI has generated bullish divergence. Moreover, it moved outside of its oversold territory, giving a bullish signal; even Pomp says Bitcoin bull run is coming. However, Bitcoin drops below $25K with Altcoins bracing for deeper crash from FTX Crypto sale.Peter Brandt rejects the notion that Bitcoin has spent the better part of a year in a bearish wedge pattern.

“A whopping 717,331 new BTC addresses” were created on Saturday, September 9, the most since December 14, 2017, when Bitcoin added over 800,000 fresh addresses in a day. Someone paid $500,000 in transaction fees to move just $200 of bitcoin. GBTC ‘discount’ hits smallest since 2021 despite BTC price at 3-month lows.

Lesson: What is the difference between Bitcoin and Ethereum?

The Ethereum (ETH) price has fallen since April. ETH is approaching a long-term ascending support line at $1,500, which has been in place for 450 days and while the price action is bearish, the daily RSI is giving a bullish signal. A similar signal catalyzed the upward movement that led to the yearly high. However, Ether 'least loved' asset as crypto funds see further $59 million in outflows. You no longer need 32 ETH to stake on Coinbase Cloud. XRP erases $1 billion from its market cap in a week and urgently needs more support after asset plunges to critical level. In addition, fintech behemoth Ripple has again sent several tens of millions of XRP to be sold on crypto exchange. Cardano prices have plummeted to their lowest 2023 levels, dropping below $0.25, sparking fears of further losses and inflation drops by 30% in last two years. Solana is gaining bearish momentum below $20 against the US Dollar. SOL price is struggling and could drop further toward $16.50 or even $15.00.

Mastercard ‘committed’ to making CBDCs as easy to use as money.

Coinbase exchange remains inactive in India, while other operations are still active. Ripple made Fortress customers hit by security incident whole as part of acquisition.

More than 75 possible bidders have been in contact with FTX over a potential reboot as the defunct exchange seeks to pivot from its implosion last year.

Congressman Tom Emmer says he’s backing plans to create an amendment that would restrict the amount of funds that the U.S. Securities and Exchange Commission (SEC) spends on regulating digital assets. India working on 5-point crypto legislation as ban is ruled out.

Crypto companies that fail to implement the core rules from October 8 could face an unlimited fine or up to two years imprisonment.

FTX estate sues LayerZero Labs to recover $86M transferred on eve of bankruptcy. Former Algorand CEO Steve Kokinos is set to head the successor of the bankrupt crypto lender Celsius. The new board of directors includes executives from WeWork, Credit Suisse and UBS, with two members from Celsius’ creditor committee.

A federal judge recently mandated the forfeiture of nearly $5.2 million in Bitcoin and a sports car from Ahmad Wagaafe Hared, a young hacker accused of stealing cryptocurrency from executives in Northern California.Thai authorities arrest five in 3,200-victim, $27M crypto scam.

James Howells, a Welsh Bitcoin investor and the man who inadvertently lost $557 million worth of BTC in a flash drive is seeking to file a lawsuit against Newport City Council (NCC) in the United Kingdom for refusing his requests to excavate the area he presumed he misplaced the hard drive.

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theinspired

I've been aware of Bitcoin since 2011 and my desire is that you will be better informed about the digital asset industry by reading my daily post.

Inspiration

I've been exposed to the world of crypto since 2011. Now I use my knowledge to curate the most relevant news articles, podcast, videos, blogs and social media information to help you be in the know in Crypto!