While many are familiar with inflation, which indicates a decline in currency purchasing power alongside a general rise in the cost of goods and services in an economy, there is a common misconception that inflation is natural. In reality, it is largely driven by an increased money supply, manipulation of interest rates, and quantitative easing […]
Bitcoin News
Why Is The Crypto Market Down Today? Key Reasons Explained
The crypto market is in the red today, with a majority of the top-100 cryptocurrencies reflecting losses over the last 24 hours. Notably, only six altcoins, including two stablecoins, have managed to maintain a positive performance amidst a broader market sell-off.
Several complex and intertwined factors have contributed to the day’s negative market sentiment, affecting major cryptocurrencies. Over the last 24 hours, the price of Bitcoin has decreased by 4.2%, Ethereum has fallen by 5.0%, Solana has dropped by 8.7%, XRP has declined by 4.7%, and Dogecoin has decreased by 8.3%.
#1 Persistent Macroeconomic Uncertainty
A primary factor influencing today’s market movements is the evolving macroeconomic landscape, particularly concerning US interest rates and inflation expectations. At the beginning of the year, the market anticipated aggressive monetary easing by the Federal Reserve. However, the sentiment has shifted considerably based on recent data and Federal Reserve signals.
“Markets are pricing in fewer rate cuts for this year compared to the Fed’s dot plot projection of 3 rate cuts by year end. The implied fed funds rate for December has risen to 5.0%, indicating that the futures market is pricing in only 1 to 2 rate cuts,” Cetera Investment Management stated via X (formerly Twitter).
This week, all eyes are on the release of the Personal Consumption Expenditures (PCE) price index for March—the Fed’s favored inflation measure on Friday, April 26 at 8:30 am EDT. Until then, the market could be in a derisk mode.
The PCE is anticipated to present a varied view of inflation trends, which could strengthen the Federal Reserve’s inclination to delay any increases in interest rates. Analysts predict a slight increase in the overall PCE Price Index, rising to 2.6% year-over-year from 2.5% in February. Additionally, they expect a decrease in the index’s month-over-month change, dropping to 0.30% from 0.33%.
#2 Crypto Market In Shock Over Legal Action Against Samourai Wallet
The crypto market has also been rocked by yesterday’s legal developments involving the Samourai Wallet. The US Federal prosecutors’ decision to charge the founders Keonne Rodriguez and William Lonergan Hill with money laundering and operating an unlicensed money transmitting business has sent ripples through the crypto community. This action underscores the ongoing regulatory scrutiny within the crypto space.
The prosecution of Samourai Wallet’s founders not only raises questions about the future of cryptographic privacy but also significantly impacts market sentiment as it underscores the legal risks inherent in the crypto sector. The implications of this case extend beyond the immediate legal concerns, influencing broader market perceptions and investor confidence.
#3 Bitcoin And Crypto Are “Just Ranging”
Further insights into market dynamics come from prominent crypto analysts who have commented on the state of market liquidity and trader behavior. “The market has gifted us with a beautiful reset in trader positioning for Bitcoin. OI weighted funding turned negative for the first time since October 2023. That was before Bitcoin ran from 27k to 46k without any meaningful dip,” said Ted, a crypto analyst on X.
This reset refers to a reduction in the overheated futures market, which could allow the market to consolidate and potentially build a base for future upward movements.
Emperor, another crypto analyst, described the current market state through a series of tweets, highlighting the ongoing consolidation phase post-highs: “Too much panic still on the timeline but we’ve been ranging since the ATH, that’s all.”
He added, “The bear/bull line is an important resistance + Point of Control (PoC) of our range. Expecting VaL (Value Area Low) to hold on pullbacks and VaH (Value area High) to be the next target on longs if we reclaim level 1.”
Bitcoin Price Update
Too much panic still on the timeline but We've been ranging since the ATH, that's all
1. The bear/bull line is a important resistance + Point of Control (PoC) of our range. Expecting VaL (Value Area Low) to hold on pullbacks and VaH(Value area High ) to… pic.twitter.com/4UTExqQv0n
— Emperor
(@EmperorBTC) April 24, 2024
#4 Bitcoin ETFs Remain Muted
Yesterday’s ETF flows were negative again. Only Fidelity’s FBTC and Ark Invest’s ARKB had minimal inflows. GBTC sold more again at -0.4m and BlackRock had zero inflows for the first time ever since inception on January 11. Thus, BlackRock’s (IBIT) inflow streak ended at 70 days. Prior to this, IBIT entered into the top 10 all time after passing the ETFs like JETS, BND and VEA.
Yesterday's ETF flows by @FarsideUK.We are back to outflows and of course it's Barry.We had 0.6 million in outflows yesterday.$GBTC did 0.4 million of outflows.
Blackrock had 0. Which means that after 70 days for the first time they didn't have any inflows.
Price… pic.twitter.com/Akh1agezb6
— WhalePanda (@WhalePanda) April 25, 2024
Notably, the momentum for spot Bitcoin ETFs has waned significantly in the past two weeks. The last notable day of inflows was on March 26, when they surpassed 0 million—nearly a month ago. On the bright side, despite this slowdown, there have been no outflows from either BlackRock or Fidelity. Grayscale’s GBTC remains the primary negative factor driving outflows.
Furthermore, there seems to be a decrease in investment willingness among traditional sector investors; the total inflows through ETFs have been stagnant for more than 30 days, coinciding with a flat trend in Bitcoin prices.
At press time, BTC traded at ,034.
Why Is Bitcoin Price Up Today? Key Reasons Explained
Within the last 24 hours, the market witnessed a significant rally in the Bitcoin price, which soared by 10% from a daily low of ,805 to a peak of ,250. This remarkable price movement can be attributed to several key factors, including yesterday’s Federal Open Market Committee (FOMC) meeting, a notable change in the Coinbase Premium, and Bitcoin’s technical breakout from a downtrend channel.
#1 FOMC Meeting: Dovish Remarks By Jerome Powell Fuel Optimism
As reported yesterday, the macro environment came back into focus for Bitcoin and crypto following the hotter than expected Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data in the US. Investors seemed to have de-risked their positions prior to the FOMC event. However, investors got a favorable outcome.
The pivot point for Bitcoin’s rally can be traced back to the Federal Reserve’s latest FOMC meeting, where Chairman Jerome Powell delivered a speech that the market interpreted as dovish. The Fed’s stance, especially in light of recent inflation data, has reassured investors.
Crypto analyst Furkan Yildirim provided a summary of the FOMC’s key points: “The ‘Dot Plot’ projections show that the median official expects three quarter-percent cuts in 2024 […] The FOMC voted unanimously to leave the federal funds rate unchanged […] The median forecast for PCE inflation remains unchanged at 2.4% for 2024 […] Officials have also raised forecasts for where they see interest rates in the long term.”
The reaction to these announcements was immediately bullish in the traditional finance markets as well as Bitcoin and crypto. QCP Capital, a Singapore-based crypto asset trading firm, highlighted the dovish nature of the FOMC’s stance: “1. In Powell’s press conference speech, he was not concerned about the high inflation numbers in Jan and Feb. 2. In the dot plot, more members shifted their projection to 3 cuts in 2024 (9 members vs 6 in Dec).”
Analyst Ted (@tedtalksmacro) further emphasized the positive implications: “FOMC summary: – 3x rate cuts happening this year despite inflation remaining above 2% (Fed expects core PCE at 2.6%). Growth outlook upgraded. Send it.”
#2 Coinbase Premium Turns Green: A Sign Of Spot ETF Demand
The Coinbase Premium’s shift to positive territory can be identified as another critical factor influencing Bitcoin’s price movement. While yesterday’s ETF flows were negative again for the third day in a row, the Bitcoin Coinbase Premium was a glimmer of hope that spot Bitcoin ETFs will further fuel price.
CryptoQuant analyst Maartunn remarked: “Coinbase Premium is positive again. It’s around +. Beautiful.” The Coinbase Premium is crucial for BTC price in recent months as it reflects the demand from spot Bitcoin ETFs before the actual numbers are released one day later. Coinbase custodies eight of 11 spot Bitcoin ETFs or about 90% of the Bitcoin ETF assets as a result. Thus, Coinbase premium is crucial for a continued rally.
Coinbase Premium is positive again. It's around +. Beautiful
https://t.co/YJhYLdbipc pic.twitter.com/Hd3xXsg7Bq
— Maartunn (@JA_Maartun) March 20, 2024
GBTC had 6.6 million worth of outflows yesterday. Notably, Blackrock only had .3 million of inflows, Fidelity had .9 million. This was one of the weakest inflow days for the leading Bitcoin ETFs so far – a huge disappointment.
But renowned crypto analyst WhalePanda remarked: “We pumped after the FOMC and overall it was better than what boomers expected. Price is now dumping on the news of negative flows but I think they’ll be in for a nice surprise tomorrow.”
Yesterday's ETF flows were negative again for 3rd in a row.$GBTC had 6.6 million worth of outflows.Blackrock with only .3 million of inflows and Fidelity with .9 million.
I have a suspicion that the actual flows will only be visible in tomorrow's numbers.
We pumped… pic.twitter.com/WVTntqG1by
— WhalePanda (@WhalePanda) March 21, 2024
#3 BTC Price Breaks Out Of Downtrend Channel
On the technical front, Bitcoin’s breakout from a parallel downtrend channel has caught the attention of traders and analysts alike. Daan Crypto Trades highlighted the importance of this movement on X (formerly Twitter): “Bitcoin tested its 4H 200MA/EMA and has been holding nicely there and broke out. Still watching this channel which will dictate BTC’s next move.”
#Bitcoin Tested its 4H 200MA/EMA and has been holding nicely there and broke out.
Still watching this channel which will dictate $BTC's next move.
Bulls would want to see this consolidate above and not fall back into the channel. pic.twitter.com/94etUo6YAR
— Daan Crypto Trades (@DaanCrypto) March 20, 2024
The chart shared by Daan shows that BTC price has been consolidating in a parallel downtrend channel for more than a week. Yesterday’s surge catapulted the price above the channel. Currently a retest is taking place. If this is successful, the BTC price could rally further north.
At press time, BTC traded at ,397.
Spot Trading on Zenit World: Explained
In the ever-evolving world of cryptocurrency, having a reliable and accessible platform for trading is crucial. Zenit World steps into this arena, offering a user-friendly platform specifically designed for spot trading. But what exactly is spot trading, and how does Zenit World facilitate it?
This article breaks down Zenit World’s Spot Trading capabilities and explores why it’s a top choice among traders.
What is Spot Trading?
Spot trading, in essence, is the direct buying and selling of cryptocurrencies at the current market price. This means you exchange one asset for another, like instantly swapping Bitcoin (BTC) for Ethereum (ETH) at the prevailing rate on the platform. Therefore, it’s a straightforward approach, ideal for beginners and experienced traders alike.
What is Zenit World?
Zenit World is a cryptocurrency trading platform aiming to empower individuals in the crypto market. They strive to make advanced trading strategies and technologies accessible to everyone, fostering a community of passionate traders seeking success in the world of crypto.
Zenit World’s Spot Trading Platform
Zenit World boasts a platform built with accessibility and versatility in mind. Here’s what makes it stand out:
- Wide Range of Cryptocurrencies: Trade various leading cryptocurrencies across diverse sectors, including DeFi, metaverse tokens, Layer 2 solutions, and established coins.
- USDT Pairing: All cryptos are paired with Tether (USDT), a stablecoin pegged to the US dollar. This simplifies trading and avoids price fluctuations.
- 24/7 Accessibility: Trade anytime, anywhere, ensuring you never miss an opportunity.
- Secure and Reliable: Zenit World prioritizes security, employing robust measures to protect your assets and transactions.
Benefits of Spot Trading on Zenit World
- Simple and User-Friendly: The platform is designed for ease of use, making it suitable for both novice and experienced traders.
- Diverse Trading Options: Explore a wide range of cryptos across various sectors to match your trading goals.
- Standardized Experience: USDT pairing ensures consistency and clarity across transactions.
- Accessibility & Convenience: Trade anytime, anywhere, from any device.
Why Zenit World?
Zenit World goes beyond just offering spot trading. It strives to be a comprehensive platform that fosters a vibrant community of passionate crypto enthusiasts. Their commitment to accessibility and innovation shines through in several key features:
- Diverse Cryptocurrency Selection: Trade a wide array of leading cryptocurrencies across diverse sectors, including established coins, DeFi tokens, metaverse projects, Layer 2 solutions, and more.
- Standardized Trading Experience: All cryptocurrencies are paired with Tether (USDT), a stablecoin pegged to the US dollar. This eliminates volatility and simplifies the process, providing consistency across transactions.
- 24/7 Global Access: Trade anytime, anywhere, from any device. Never miss an opportunity, regardless of your location or time zone.
- Third-party Custodianship: Your crypto assets are shielded by advanced MPC wallet technology in partnership with a premier custodian.
Learn more about Zenit World and get access to exclusive content, including its latest White Paper.
Follow Zenit World on social media to stay up-to-date on the latest news and trends in the industry.
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Disclaimer:
The content provided on this article, web page, or blog is intended for informational purposes only and should not be interpreted as investment advice or recommendations. Engaging in cryptocurrency purchasing or trading inherently involves risks, such as market fluctuations, potential market manipulation, and cybersecurity threats. Before making any decisions, users are advised to perform comprehensive research to ascertain the credibility and authenticity of individual cryptocurrencies and their underlying platforms.
Navigating the Wormhole Airdrop: Defi’s Next Big Token Drop Explained
Wormhole, a platform fostering blockchain interoperability within decentralized finance (defi), has unveiled plans for an airdrop of its proprietary token, W. The initiative is part of the protocol’s broader aim toward progressive decentralization, rewarding dedicated users and developers within the Wormhole ecosystem. Wormhole to Airdrop W Token to Advance Defi Interoperability Wormhole, a facilitator of […]
Bitcoin News
TradeWire Explained: AI-Based Analytical Tools for Smart Trading
The fintech world is abuzz about the launch of TradeWire, an innovative analytics platform utilizing cutting-edge artificial intelligence to provide traders with game-changing insights and capabilities.
TradeWire aims to revolutionize the playing field by democratizing access to robust technology that was previously only available to well-funded institutional firms. For the first time, ordinary investors can now leverage the immense power of machine learning and AI once reserved for quantitative hedge funds.
TradeWire: An Advanced AI-Driven Smart Trading Platform
TradeWire offers traders an end-to-end solution for implementing data-driven investing strategies. The full suite of TradeWire tools include:
- Deep analysis of financial reports to detect signals and opportunities
- Customizable economic calendar tracking market-moving events
- Intelligent screeners combining fundamentals, technicals, valuations
- Dynamic infographics visualizing market data and trends
- Powerful analytics uncovering insights from big data
- Curated news and alerts on market-moving developments
- Custom scripts automating indicators, strategies, and algorithms
At the core of TradeWire is an advanced analytics engine powered by sophisticated neural networks continuously processing massive financial data sets. This engine analyzes everything from fundamentals, earnings reports, news developments, and more across all asset classes in real-time. Analytics are automated through TradeWire’s partner RevenueBot, enabling a direct connection with exchanges for real-time data.
But actionable insights are only one critical piece of the puzzle. TradeWire also provides users an extensive suite of integrated trading tools to execute on the intelligence uncovered by its AI models seamlessly.
The platform features intuitive screeners with customizable filters, interactive visualizations for engaging with complex market data, a personalized economic calendar that tracks upcoming catalysts, customizable trading scripts to automate strategies, and much more.
The Genesis of a Bold Vision
TradeWire was founded by successful former traders and fintech engineers who recognized the immense potential of democratizing access to game-changing technology. For too long, advanced AI and machine learning capabilities have been locked away in the proprietary black boxes of quantitative hedge funds and investment banks, out of reach for ordinary investors.
TradeWire is the brainchild of its founders’ bold vision to utilize AI not just to benefit wealthy institutions, but to empower all market participants. The platform’s breakthrough innovation makes it possible for any trader, regardless of experience or resources, to leverage the same leading-edge algorithms and analytics previously only enjoyed by large firms.
The company views this democratization of technology access as essential to leveling the trading playing field that has historically disadvantaged individual investors versus Wall Street. TradeWire believes all traders should be able to utilize AI to enhance their market intelligence.
Built For Traders, By Traders
The TradeWire team includes veteran traders and data scientists who built the platform from the ground up based on their own extensive domain expertise. As a result, the product experience is highly intuitive, reflecting a deep understanding of customers’ needs.
The company is driven by the philosophy that transformative technology should benefit all market participants equally, not just the wealthy few. TradeWire’s core vision is tearing down the barriers that have given larger firms an unfair competitive edge for so long by making AI accessible for all.
The Future of Intelligent Trading
Currently in open beta testing, TradeWire is collecting extensive user feedback to optimize the platform before full public launch. Early testers have offered glowing reviews, confirming TradeWire’s immense potential to disrupt traditional trading.
With pricing starting at just monthly, the platform offers unmatched value considering the sophistication of its AI capabilities. TradeWire is poised to rapidly gain mainstream adoption upon its full release.
TradeWire is the future of leveraging invaluable AI insights to gain an edge in financial markets. The possibilities it unlocks for traders are endless.
Bitcoin ETFs Explained: A Closer Look at BTC Exchange-Traded Products
Exchange-traded funds, or ETFs, that track the price of bitcoin have become a popular means for mainstream investors to gain exposure to the cryptocurrency market without directly owning bitcoin. Though the U.S. Securities and Exchange Commission has not approved a spot bitcoin ETF in the U.S., futures-based and international bitcoin ETFs are offering investors new participation methods.
The Basics: Defining a Bitcoin ETF
An ETF is an investment fund traded on stock exchanges, similar to stocks. A bitcoin ETF doesn’t directly trade bitcoin; rather, it tracks bitcoin futures contracts or holds private keys associated with the cryptocurrency. This setup grants regular investors and institutions access to bitcoin exposure without dealing with cryptocurrency exchanges or wallets.
There are two main types of bitcoin ETFs: futures-based and spot bitcoin ETFs. Futures-based bitcoin ETFs, such as the Proshares “Bitcoin Strategy ETF,” which debuted in 2021, don’t directly invest in bitcoin. Instead, they track bitcoin futures contracts traded on platforms like the Chicago Mercantile Exchange (CME). A spot bitcoin ETF directly holds actual bitcoin assets on behalf of its investors. Unlike futures-based funds, it provides direct exposure to the crypto asset’s real-time price movements.
Currently, spot bitcoin ETFs are unavailable in the U.S. but some expect that to change in the near future. Investors, however, can tap into Canada’s “Purpose Bitcoin ETF” – a fund with physical backing. Moreover, there’s Europe’s “XBT Provider Bitcoin Exchange Traded Note,” listed on their local stock exchanges. Yet, in the U.S., these spot bitcoin ETFs encounter significant legal obstacles and still await SEC endorsement.
Bitcoin Exposure — The Appeal and Challenges of Exchange-Traded Products
Until a spot bitcoin ETF receives U.S. approval, close alternatives include the Grayscale Bitcoin Trust (GBTC) and products from XBT Provider. The Grayscale Bitcoin Trust is a trust holding bitcoin, with shares traded over-the-counter (OTC). As of September 2023, it managed assets worth more than .53 billion. XBT Provider offers notes like Bitcoin Tracker One, with more than .43 billion in assets. Though not strictly ETFs, these products resemble aspects of a spot bitcoin ETF.
The allure of bitcoin ETFs is evident: They provide uncomplicated bitcoin exposure as a security without the intricate storage and security requirements of the actual cryptocurrency. As bitcoin becomes more mainstream, some believe a U.S. spot bitcoin ETF might attract a significant surge of institutional investment in digital currencies.
Conversely, a bitcoin ETF might allow for leveraging fictional bitcoin supplies to control futures positions. If prices climb rapidly, a fictitious supply of paper bitcoin could be used to control them. Nontransparent fractional reserve practices might emerge, skewing prices as seen in traditional markets. But with BTC’s transparent blockchain, future ETFs might need to prove 100% reserves.
What do you think about bitcoin ETFs? Share your thoughts and opinions about this subject in the comments section below.
Binance’s Work Culture Explained
Game rooms, unlimited food buffets, massage chairs and all those gimmicks were so 2010’s.
Sure, it has been fun for a while, but soon enough, we started seeing more and more reports and news articles about how these incentives don’t accomplish their goal. No matter how many fancy perks there are, unless there’s a strong mission and an enticing model of work in an organization, flashy offices lose their appeal really fast.
Binance has never put much stock in superior office comfort as a means of attracting and retaining top talent. Don’t get them wrong – their offices offer some of these perks as well, but they’re never the main reason employees want to stay with the organization. That’s why Binance’s mission, and enabling employee growth, are the biggest motivators for their workforce. Binance takes a different approach when it comes to their working model – they always talk about how they need the right people with the right cultural fit and how most people might not fit in.
Instead of offering over-the-top incentives, the idea is that Binance’s employees must have intrinsic motivation to rally behind the organization’s mission. If someone doesn’t feel strongly about the goal of bringing the freedom of money to billions across the world, then that person will most likely not thrive in Binance. Having an office movie theater will do little to fix this.
So, the question is: what is Binance’s model of work?
There are a few attributes that the organization looks at closely when they think about their fully remote organization of thousands of employees across the globe. These ideas help Binance to stay efficient and keep their mission top of mind.
Intrinsic Motivation & Alignment With Our Mission
When recruiting for new roles at Binance, candidates who share the mission and passion are prioritized. As the world’s largest crypto exchange whose reason to be is increasing global financial freedom, Binance has the potential to impact billions of lives. The employees at Binance are deeply committed to this mission from day one.
With almost 1.4 billion unbanked people around the world, our work at Binance has never been more important. From offering transparency and traceability of funds’ movement to enabling smoother and more efficient cross-border transfers, Binance is at the heart of bringing about the freedom of money globally. Every single employee in Binance must be focused on bringing this mission to life. Candidates who grasp the significance of Binance’s work are more likely to excel. While financial benefits matter, they’ve observed that those who align with the organization’s vision from the outset tend to perform best and stay the longest. At Binance, they don’t offer extravagant perks or flashy benefits, as they seek talent that genuinely fits our organization’s core mission and fast-paced environment. Intrinsic motivation is essential for thriving in such a dynamic setting.
Remote Work: Employee Perspective
The pandemic forced most companies into a remote working environment. Now that things are going back to normal, many companies are encouraging their employees to return to the office. Binance, however, has always been a fully remote organization, encouraging employees to utilize the benefits this brings. The organization calls for their employees to work from home in a way that ensures workplace comfort, brings opportunities to find time for family and friends, and enables employees to choose their own hours*. This has been a standard for Binance since the beginning and one that employees enjoy. It allows them flexibility, enables them to save time and money on commuting, and allows them to plan their days in a way that works best for them.
Remote Work: Binance’s Perspective
Remote work is the preferred choice for the employees for sure, but there’s a lot in it for Binance as well. Remote work eliminates wasted time from commuting, leading to less fatigue and increased productivity. As a results-driven organization laser-focused on our users, Binance treasures any opportunity to save employees’ productive time and track outcomes as closely as possible. In addition to giving their people more time and flexibility, the remote working environment also enables Binance to better identify which teams are performing well and which need support.
Autonomy & Flexibility
Binance is a global 24/7 organization with thousands of employees around the world, and the best way to help employees thrive in this environment is offering them as much flexibility as possible. Most employees can choose their own hours*, which means that teams across different time zones can connect when they need to. Their staff can take breaks in the middle of the day to recharge, pick up their kids from school or take some time to help out their parents. Treating their staff like responsible grown-ups who are intrinsically motivated and know how to manage their time ends up benefiting Binance significantly.
*Majority of employees can choose their own hours, except for those who work in specific shifts
PowerPoint Is Banned – Efficiency Is King
At Binance, efficiency and output are the top priorities. That’s why employees don’t waste time on things like fancy presentations. Meetings are kept short (15 to 30 mins max), and staff are encouraged to keep documents in bullet points. These policies enable us to save time and cut through the jargon-heavy communications and wasteful meetings that we see in most corporate environments. Substance over style is the norm. There’s no option to hide behind excessive corporate speak or flashy presentations, and the only option is to actually deliver superior performance.
Growing & Upskilling Is Mandatory
At Binance, if you’re not growing, you’re falling behind. In such a fast-paced organization that serves an industry where the norms, policies, and technologies change every hour, keeping sharp and expanding one’s skill set is a must. That’s why Binance always encourages their employees to learn new things and incorporate them into their work.
These are just a few of the ways that Binance maintains its signature focus on its users while ensuring the organization grows and retains the best talent in the world. High performers and those aligned with our vision end up sticking with Binance for the long haul. As mentioned earlier, there’s one common factor when looking at the best talent and successful employees – and that is alignment with Binance’s mission. This intrinsic motivation enables the organization to keep building products that its users will find valuable and helps to create a better world by advancing the freedom of money.
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Was The SEC In Bed With Ethereum? ETH Gate Explained
Conspiracy theory or one of the biggest scandals in crypto? The term “ETH Gate” has been on the lips of every XRP supporter in recent months and, increasingly, the broader cryptocurrency community. At the heart of this issue is the US Securities and Exchange Commission’s (SEC) decision to classify Ethereum (ETH) as a non-security, contrasting sharply with its ongoing legal action against Ripple and the XRP token.
What is ETH Gate
“ETH Gate” refers to a theory alleging that the Ethereum Foundation and ConsenSys have fostered close relationships with key individuals within the US Securities and Exchange Commission (SEC) and other entities like JP Morgan, thereby ensuring a favorable regulatory environment for Ethereum.
One cornerstone of this theory are the Hinman emails which were released earlier this year. In these emails, Hinman, who made the landmark speech in 2018 declaring that Ethereum was not a security, interacted with Ethereum’s co-founder, Vitalik Buterin right before the speech. Hinman reportedly consulted Buterin to “understand the operational dynamics of Ethereum.”
Remarkably, Bill Hinman rejoined the law firm Simpson Thacher in 2020 after leaving the SEC. The significance? Simpson Thacher is associated with the Ethereum Enterprise Alliance. Therefore, the XRP army believes that Hinman’s decision to deliver a speech giving Ethereum a regulatory “free pass” may not have been impartial.
Speculations By XRP Army
John E Deaton, an outspoken figure in the XRP community and a keen observer of the SEC’s dealings, has painstakingly put forth allegations suggesting a deeper web of interlinked relationships that hint at possible conflicts of interest. (There are so many that it is not even possible to highlight them all in one article.) His assertions have become pivotal in the “ETH Gate” theory, and here we’ll delve deeper into these connections.
1. Joseph Lubin’s Strategic Moves: Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, is at the core of Deaton’s claims. According to Deaton, within just two months of Jay Clayton’s appointment as the SEC Chairman, Lubin made a potentially strategic hire, bringing on board Patrick Berarducci from the law firm Sullivan & Cromwell. This move is seen by Deaton and many in the XRP community as more than coincidental.
Deaton has drawn attention to this connection in the past, positing that it might have provided Ethereum an inside track or at least a more favorable disposition from the SEC. Sullivan & Cromwell is also notable because Jay Clayton himself was a partner there before his stint as the SEC Chairman.
2. The Hinman-Lubin Email Exchange: Deaton frequently refers to the now-infamous email exchange between Bill Hinman and Joseph Lubin. For Deaton, this correspondence underscores a problematic level of proximity between a regulatory figure and a significant player in the crypto sphere.
The fact that Hinman reportedly emailed Lubin directly is seen by Deaton as a potential sign of collaboration or at least a peculiar level of familiarity. More so, given Hinman’s subsequent public remarks about Ethereum being a non-security, despite warnings against such pronouncements from the SEC’s Office of General Counsel.
3. Jay Clayton and One River Digital Asset Management: After his tenure at the SEC, Jay Clayton joined One River Digital Asset Management. Deaton emphasizes this move as a point of contention. One River is known for its large holdings of Bitcoin and Ethereum. Deaton hints at a potential conflict of interest, questioning if Clayton’s decisions during his time at the SEC may have been influenced by future career prospects or associations that favored Ethereum.
4. Simpson Thacher, Ethereum Enterprise Alliance, and Hinman: One of the most significant points of contention brought forth by Deaton involves Bill Hinman’s associations with the law firm Simpson Thacher. This firm played a role in the Ethereum Enterprise Alliance.
Deaton suggests that Hinman’s connection to Simpson Thacher and, by extension, the Ethereum Enterprise Alliance, could have influenced his decision to publicly declare Ethereum a non-security.
Similarly, an XRP community member known as Mr. Huber has been extremely vocal and is raising compelling questions: “ETH Gate is a conspiracy theory that the SEC tried to create a monopoly for Ethereum?” He goes on to argue that this is a concerted attempt by powerful Wall Street banks like JPMorgan to “control the global crypto market by bribing the SEC to gain a monopoly for Ethereum.”
Latest News On ETH Gate
Yesterday, John E Deaton indicated that new, potentially damning, information about ETH Gate might soon be disclosed. “I’ve always said that one day we will get the full truth. Today is one day closer,” Deaton tweeted in response to Steven Nerayoff’s lawyer, Michael Scotto, who indicated that Nerayoff is prepared to make his facts known “at a time and manner that serves the interests of justice and the people.”
Steven Nerayoff, an early adviser to Ethereum, had extortion charges against him dismissed in May this year. Deaton speculates that Nerayoff could be a significant source of insider information, possibly related to Ethereum’s regulatory free pass. “I have the map,” was Nerayoff unequivocal response to Deaton’s speculative tweets about the matter, as Bitcoinist reported today.
The “ETH Gate” controversy calls into question the impartiality of the SEC in its treatment of different cryptocurrencies. Although allegations remain unproven, the gathered evidence paints a picture of inconsistent regulatory approaches and potential conflicts of interest.
Whether these allegations hold any water remains to be seen, but they have certainly fueled a sense of urgency and scrutiny around the SEC’s policies. If the hints dropped by Steven Nerayoff and John E Deaton materialize into something substantive, ETH Gate could become a pivotal chapter in the annals of cryptocurrency regulation.
At press time, ETH traded at ,635.
Bitcoin Flash Crash Explained, And How To Prepare For The Unpredictable
Overnight on Saturday, in the late hours of the night, Bitcoin price flash crashed by over 10% and ,400 in just ten minutes.
But what caused such a massive crash in the cryptocurrency, and how can investors and traders prepare for such an unpredictable event?
3/10 The moment BTC hit ,000 was right afer midnight on a Saturday night in New York and around 6:30 AM Sunday in Europe. That means that most of Europe and N-America was not trading, only the Asian traders were in the market. Therefore liquidity was relatively low.
— Marc van der Chijs – new account (@marcvanderchijs) August 2, 2020
What Caused This Weekend’s Midnight Flash Crash In Bitcoin Price?
Right after the clock struck midnight in New York City, Bitcoin spiked to a high of ,098. At that moment, a cascading collapse in price began.
The initial selloff pushed the cryptocurrency below ,000 where it paused momentarily, then the floor fell completely out from below.
Ten minutes later, BTCUSD had lost over 11% value and dropped another ,400 to ,600. In less than an hour total, the asset had fallen by over 12.5% and ,500.
But what exactly happened that caused this?
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The move was likely caused by a large, strategic actor who sought to take advantage of the lowest liquidity moment of the market. At that time of the night, entrepreneur Marc van der Chijs says North American and European traders would have been sleeping.
In addition, the large whale taking profit during such a low liquidity timeframe, caused a cascading effect of overleveraged derivatives traders forced to cover their positions or through stops being triggered.
The same happened during Black Thursday, albeit far more severe and was driven by different circumstances and not just one whale’s profit-taking.
It also happened in reverse in 2019, as Bitcoin broke up from ,000 to kick off a rally to ,000. A single, strategic actor placed several buy orders across exchanges at low liquidity moments overnight on the weekend, to have a more pronounced impact.
BTCUSD Saturday Night Flash Crash | Source: TradingView
How To Prepare For The Unpredictable in The Crypto Market
Flash crashes are rare but do still happen in the crypto market. Black Thursday was especially notable. Assets everywhere experienced a liquidity crisis, but none as bad Chainlink’s flash crash to nearly zero.
In those situation’s it is almost impossible to prepare aside from having reasonable stop losses set and to never take positions with sizes too large where losses become too risky.
It situation’s like Saturday’s crash, van der Chijs says “do not sell” or panic – this is somewhat normal behavior for Bitcoin on the weekend during a “bull market.”
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He advises investors to “HODL” on for the ride, or perhaps try your hand at trading the wild price swings for profit. He claims its “a chance to make quick money,” but admits it isn’t a game he plays himself.
Whatever you do decide to do, there’s no way to completely prevent loss in the event of a flash crash, but a properly placed stop-loss can keep risk to a minimum. Whether you are a trader or simply an investor, the stop loss is a tool everyone should become familiar with and utilize as a precaution against flash crashes.