The developer of the Zksync Ethereum Layer 2 network, Matter Labs, abandoned its bid to trademark the term ‘ZK’ just days after asserting its right to do so. Matter Labs’ trademark bid withdrawal follows a furious community backlash that ultimately saw co-inventors of zero-knowledge proofs publicly chastise the developer. Community Backlash Ends Matter Labs’ ZK […]
Bitcoin News
Analyst Says “Only A Matter Of Time” Before Bitcoin Flies Past ATH
An analyst explained how Bitcoin’s availability for trading has quietly declined during the asset’s recent consolidation phase.
Bitcoin May Be In A Good Position To Set New All-Time Highs
In a new post on X, analyst Willy Woo discusses the recent trend in the Bitcoin inventory sitting on centralized exchange platforms.
The chart below shows how the spot and paper BTC reserves have changed over the past few years.
As the graph shows, the Bitcoin sitting in spot wallets has been declining over the last couple of months. The total amount of such BTC in the custody of central entities has now dropped to just 2.3 million.
It’s also apparent that the total sum of the spot and “paper” BTC (highlighted in purple) has declined at the same time. Paper BTC here refers to derivatives products related to cryptocurrency that don’t actually require investors to own the asset.
Thus, given that the combined sum of the exchange inventory has gone down for the cryptocurrency, it would appear that the decrease in the spot BTC isn’t because paper BTC has replaced it.
Generally, the supply of exchanges is considered part of the Bitcoin supply, which is “available” for trading. As such, due to how supply-demand dynamics work, less of this available supply may be a constructive sign for the cryptocurrency.
From the graph, it’s visible that this decline in the exchange inventory has come during a period where the price of the cryptocurrency has struggled after setting a new all-time high (ATH). As Woo notes,
While everyone was freaking out that Bitcoin price was not rising the last 2 months, available BTC was quietly being scooped up, and importantly without paper BTC printed in its place.
Thus, the fact that the available supply has gone down during such a period could be a bullish sign for the coin. “It’s only a matter of time before BTC squeezes past all-time highs,” says the analyst.
In another X post, Woo also discussed how capital inflows into Bitcoin have just started to pick up again after registering a steep drop earlier.
As the chart shows, network inflows spiked alongside the all-time high, but they observed a major slowdown in the consolidation that followed.
The inflows from spot exchange-traded funds (ETFs), highlighted in light green, also disappeared earlier, but they have now made a comeback alongside these fresh capital inflows.
BTC Price
Bitcoin had recovered as high as ,000 earlier but appears to have slipped off over the last few days as it has now returned below the ,000 level.
Goldman Sachs On Bitcoin Halving: ‘It doesn’t Matter If It’s A Buy The Rumor, Sell The News Event’
Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoin’s future value.
Bitcoin Halving To Play Lesser Role In BTC’s Outlook
In a note to clients, Goldman Sach’s analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run.
The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a “buy the rumor, sell the news event,” it would hold less significance for the cryptocurrency’s medium-term outlook.
They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoin’s price action and future outlook.
Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoin’s bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoin’s upward momentum.
Analysts Warn Of Macroeconomic Influence On New Halving Cycle
Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event.
“Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions,” Goldman Sachs analysts noted.
Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoin’s historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking.
Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoin’s market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures.
Bitcoin Halving Retrace Spooks Investors: What Is It And Why Does It Matter?
The Bitcoin price crash over the past day has taken crypto investors by surprise, leading to a full bleed day for the industry. However, while this may have come as a shock to many, some were able to call it out ahead of time. One of those is Rent Capital, which said the decline was in line with Bitcoin’s established halving trend.
An Expected Crash
The analysis posted by Rest Capital outlines the trends that Bitcoin has followed leading up to its halving months. In 2020, the halving fell on the month of May and in the month leading up to the rally, the Bitcoin price saw an approximately 20% decline.
Over the years, Bitcoin has followed similar patterns to usher in the anticipated halving and while there has been some deviation this time around, the digital asset looks to be maintain some trends. One of these trends is the price crash before the halving.
As Rekt Capital’s analysis shows, Bitcoin is right in region of where this crash is expected to happen. The previous trends have seen the price fall between 20% and 38% in the month before the halving. So taking this into account, the BTC price could crash around 25% on average if it sticks to this trend.
The crypto analyst also revealed their target for if Bitcoin follows this trend. The crash is expected to push the BTC price below the ,000. However, if the average plays out, then the price could bottom out above ,000 before rebounding.
Why This Crash Is Important For Bitcoin
The crash is a confirmation that the Bitcoin price is following the established pre-halving trend and also confirms the incoming bull market. Going by the previous trends, the halving takes place after the crash, following which there is some upside the is seen with the cryptocurrency.
Then, in the months following the halving, there is massive accumulation that serves as a precursor to the bull market. In this case, this accumulation is expected to begin sometime in April 2024 and then continue on for a few months.
The crash, as Rekt Capital points out, also serves as the last opportunity for cryptocurrency investors to get into position at the lowest prices. This is because once the halving is complete and the bull market begins, low prices become a thing of the past.
At the time of writing, the BTC price is seeing minor recovery from its crash below ,000. It I trading at ,500, but with a 5.91% decline on the daily chart and a 12.19% decline on the weekly chart, according to CoinMarketCap.
Ethereum Price Follows Bitcoin Surge, Why $4K Is Just A Matter of Time
Ethereum price is pumping above the ,550 resistance. ETH is following Bitcoin and might soon rally toward the ,000 resistance zone.
- Ethereum is gaining pace above the ,550 resistance zone.
- The price is trading above ,650 and the 100-hourly Simple Moving Average.
- There is a connecting bullish trend line forming with support at ,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be setting up for a move toward the ,850 and ,000 levels.
Ethereum Price Starts Fresh Surge
Ethereum price extended its rally above the ,500 level, like Bitcoin. BTC surged and even spiked above the ,000 level. ETH is showing signs of strength and surging above the ,650 level.
There was a clear move above the ,700 level. A new multi-month high is formed at ,715 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the ,465 swing low to the ,715 high.
Ethereum is now trading above ,650 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at ,600 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the ,465 swing low to the ,715 high.
Immediate resistance on the upside is near the ,720 level. The first major resistance is near the ,780 level. The next major resistance is near ,850, above which the price might gain bullish momentum. The next stop for the bulls could be near the ,920 level.
Source: ETHUSD on TradingView.com
If there is a move above the ,920 resistance, Ether could even rally toward the ,000 resistance. Any more gains might call for a test of ,200.
Downside Correction In ETH?
If Ethereum fails to clear the ,720 resistance, it could start a downside correction. Initial support on the downside is near the ,650 level.
The first major support is near the ,600 zone and the trend line. The next key support could be the ,550 zone. A clear move below the ,550 support might send the price toward ,420. Any more losses might send the price toward the ,350 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,600
Major Resistance Level – ,720
Former SEC Official Warns of the End of Binance — ‘It’s Only a Matter of Time Before Entire Binance Plea Deal Collapses’
The U.S. Securities and Exchange Commission’s former head of internet enforcement has warned that the newly unsealed Department of Justice (DOJ) filing should “signal the end of Binance.” Additionally, he noted that the SEC has heightened its legal action against the crypto exchange. “To me, it’s only a matter of time before the entire Binance plea deal collapses, resulting in additional charges for Binance, additional charges for CZ, and new charges against anyone else,” he stressed.
‘It’s Only a Matter of Time Before the Entire Binance Plea Deal Collapses’
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark shared his predictions regarding crypto exchange Binance in a lengthy post on social media platform X Saturday. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years.
The ex-SEC official outlined two key developments in the Binance settlement with the U.S. Department of Justice (DOJ). Firstly, he explained that there has been “a flurry of newly released Binance-related filings” made by DOJ, which “have shined glaring sunlight upon the extensive, robust and vigorous oversight that DOJ now enjoys over Binance.” Asserting that the “newly unsealed U.S. DOJ filings could signal the end of Binance,” Stark opined:
The exhaustive list of Binance’s new compliance commitments reads like a consulting firm’s wish list – and will cost tens, if not hundreds, of millions of dollars to implement and execute.
“The monitorships and oversight installed going forward at Binance would be like installing bodycams on every member of a global criminal drug cartel, and making the cartel bear the cost for a large, experienced and well-credentialed team of former and current government agents to monitor the footage 24-7,” the former SEC official detailed.
“My take is that, just like a drug cartel, a secretive and opaque financial firm like Binance cannot suddenly transform itself into a traditional, law-abiding, open, transparent, obedient, submissive and government-friendly financial firm. Surviving an SEC audit would be tough enough for the beleaguered Binance infrastructure but facing a DOJ/FinCEN audit — well, that seems all but impossible,” Stark continued, elaborating:
To me, it’s only a matter of time before the entire Binance plea deal collapses, resulting in additional charges for Binance, additional charges for CZ and new charges against anyone else (partner, customer, joint-venturer, collaborator etc.) nefariously intertwined with the Binance criminal enterprise.
“The stark reality is that neither Binance nor any other mega-crypto firm (or any financial firm in the world for that matter) has ever been party to a DOJ/FinCEN plea agreement commanding governmental oversight as vigorous, forceful and all-inclusive as the one Binance has agreed to undertake (and pay for),” he stressed.
The second development Stark outlined is that the SEC has filed a “supplemental pleading against Binance,” which he believes strengthened the regulator’s lawsuit against the crypto firm “exponentially.”
The former SEC internet enforcement chief described: “In their pending Binance-related enforcement action, the U.S. Securities and Exchange Commission (SEC) has begun to incorporate facts from the DOJ plea agreement into the SEC’s pending enforcement action against Binance and Changpeng Zhao (CZ).” He emphasized:
These settlements all exponentially strengthen the pending SECs case against Binance and CZ.
What do you think about the statements by former SEC internet enforcement chief John Reed Stark? Let us know in the comments section below.
Expert Market Analysts Agree A Spot Bitcoin ETF Is A Matter Of When, Not If
The crypto community has been kept at the edge of its seat as the SEC decided to postpone a decision on the 7 Spot Bitcoin ETFs filed over the last few months. During such a pensive time, market analysts have predicted the SEC authorizing a Spot Bitcoin ETF while the former SEC Chairman foresees a losing battle for the regulator.
JP Morgan Analysts Foresee ETFs Approval
The United States Securities and Exchange Commission (SEC) and Grayscale, an American digital currency investing and crypto asset management company have been embroiled in a legal battle since June 2022.
The SEC had previously rejected Grayscale’s request to convert its GBTC vehicle to an ETF. The digital currency investment company had responded to the rejection with a lawsuit, suing the SEC and filing a petition for a review by the United States Court of Appeal for the District of Columbia Circuit.
The legal proceedings have not been favorable with the SEC, and analysts led by Nikolaos Panigirtzoglou from JP Morgan, a New York-based universal bank have predicted the eventual acceptance of Bitcoin ETF applications by the SEC.
The prediction is also largely supported by Grayscale’s victory against the SEC in a recent court ruling that classified the SEC’s denial of Bitcoin ETF applications as unreasonable and without substance, mandating the SEC to reevaluate its decision to deny Grayscale’s Bitcoin ETF application.
While the SEC deliberates on its next move, the regulator has announced that it requires more time to decide on Bitcoin ETF propositions from several companies including WisdomTree and Blackrock. The regulator has also requested a postponement until mid-October.
The JPMorgan analysts believe that the SEC’s delay is a positive sign that Bitcoin ETFs will be approved soon. The analysts have also stated that the SEC would find it difficult to justify their rejection of Bitcoin ETF approval after accepting a previous proposal for future-based Bitcoin ETFs.
The situation places the SEC in a precarious predicament and consequently, JP Morgan analysts have concluded that the SEC is likely to be compelled to approve the pending Bitcoin ETF applications from Grayscale and various asset management companies.
Former SEC Chairman Says “Spot Bitcoin ETF Is Inevitable”
A prominent X (formerly Twitter) influencer, Collin Brown released a post on Monday, 4th September revealing that the former Chairman of the US SEC, Jay Clayton sees an undisputed win for Grayscale in the Bitcoin ETF case.
Brown stated that Clayton foresaw the “inevitable” acceptance of Bitcoin ETF proposals by the SEC and the post highlighted the time the SEC may conclude their decision on Bitcoin ETF applications, ultimately ending the legal feud between the SEC and Grayscale.
“Former SEC Chairman Jay Clayton predicts the approval of a spot Bitcoin ETF is inevitable! The SEC might make the announcement in mid-October, or it could take a bit longer, but progress is on the horizon for crypto enthusiasts,” the post read.
However, the X account was later suspended following the announcement.
In contrast, an ex-SEC Attorney, John Reed Stark declared in an X post that the chances of the SEC approving Bitcoin ETFs are implausible and crypto enthusiasts should not expect any other outcome.
While the crypto community is cheering and hoping for Grayscale’s complete victory over the SEC, investors are preparing for a possible Bitcoin price surge that may follow the SEC’s approval of Bitcoin ETFs.
Ripple’s Chief Legal Officer Breaks Down Ruling in SEC Lawsuit — Says ‘As a Matter of Law, XRP Is Not a Security’
Ripple Labs’ chief legal officer has broken down Thursday’s ruling on the U.S. Securities and Exchange Commission (SEC) v. Ripple case. Emphasizing that the landmark ruling is “a huge win” for the crypto firm, he stressed that “as a matter of law – XRP is not a security.” In addition, he noted that crypto sales on exchanges are also not securities.
Ripple Lawyer on SEC v Ripple Case Ruling
Ripple Labs’ chief legal officer, Stuart Alderoty, explained the ruling in the U.S. Securities and Exchange Commission (SEC) v. Ripple case in a series of tweets on Thursday. The lawyer wrote:
A huge win today — as a matter of law — XRP is not a security. Also a matter of law — sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions — to developers, to charities, to employees are not securities.
“The only thing the court found constitutes an investment contract is past direct XRP sales to institutional clients. There will be further court proceedings only on these institutional sales per the court’s order,” Alderoty added. The Ripple chief legal officer stressed:
The judge’s decision affirms so much of what this industry is fighting for, and shows that the SEC does not have unbounded jurisdiction over crypto … Maybe we can now start a rational conversation about crypto regulation in this country.
In a statement to Fox Business regarding the ruling, the SEC wrote: “We are pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances. The court agreed with the SEC that the Howey test governs the securities analysis of crypto transactions and rejected Ripple’s made-up test as to what constitutes an investment contract, instead emphasizing that Howey and subsequent cases have held that a variety of tangible and intangible assets can serve as the subject of an investment contract. Further, the court rejected Ripple’s fair notice argument, noting that the Howey test is clear and that claiming ignorance is not a defense to violating the securities laws. We’ll continue to review the decision.”
Many people slammed the statement by the SEC regarding the ruling. Paradigm’s chief legal officer, Katie Biber, tweeted: “SEC statement on Ripple has vibes of young campaign hack spinning on bad facts, vs powerful government agency expected to tell the truth. Do better.”
Alderoty concurred with Biber, tweeting in response: “Could not agree more with Katie Biber. Pathetic ‘statement’ coming from the SEC today. Take the loss. You earned it.”
Congressman Tom Emmer (R-MN), who has been a vocal advocate for clear crypto regulations, tweeted Thursday following the ruling:
The Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of. Now, let’s make it law.
What do you think about the explanation by Ripple’s chief legal officer, Stuart Alderoty, regarding the court ruling on the SEC v. Ripple lawsuit? Let us know in the comments section below.
NFT Marketplace Blur Launches Native Token, BLUR Price Drops 85% in a Matter of Hours
The Blur non-fungible token (NFT) marketplace launched its native token this week, and users who were awarded token allotments received “care packages.” Blur tokens began trading at noon on Feb. 14, reaching a high of .02 per token. However, the coin has since dropped more than 85% against the U.S. dollar.
BLUR Token Launch Records an 85% Drop on Its First Day of Trading
On Tuesday, Feb. 14, 2023, which is Valentine’s Day, the NFT marketplace Blur announced the launch of its token and airdrop. Blur gave away “care packages” to users who conducted trades on a competing NFT market, listed NFTs on the Blur marketplace, and those who participated in Blur market bidding, according to the allotment cycles.
“It’s time for BLUR,” the market tweeted the day prior. “Care Packages can be opened on Feb 14 at 12PM EST, 1AM HKG, 6PM CET. Make sure the launch announcement comes from our official Blur.io account tomorrow and double check all URLs before claiming.”
BLUR has started trading, with Kucoin being the most active exchange on Tuesday, and the most active trading pair being BLUR/USDT. As of 2:05 p.m. (ET), BLUR had a market capitalization of approximately 6 million, with a global trade volume of about million. At 2:10 p.m., BLUR dropped to .458 per coin, and statistics indicate that there are 360,000,000 BLUR tokens in circulation.
As of 2:10 p.m. (ET) on Tuesday, there were 8,798 unique addresses holding BLUR tokens, with approximately 18,900 transfers having taken place. The Blur marketplace has emerged as a top NFT market in recent months, competing with Opensea, the largest NFT market.
However, Looksrare, another competing NFT market, also garnered attention with an airdrop of its market’s token called LOOKS, but volumes have subsided since then. By 2:33 p.m. on Tuesday, BLUR rebounded and hit the .602 per unit range.
What are your thoughts on the recent BLUR token launch? Share your views on this subject in the comments section below.
Terra Reacts To Case Against Do Kwon, Claims Matter Is Highly Politicized
The collapse of the algorithmic stablecoin Terra and its native token LUNA remained a shocking event in the crypto space. The outcome was the loss of billions of dollars for many individual and institutional investors. It also threw the entire crypto industry into a historic crisis. Lots of changes have taken place following the fall of the stablecoin.
Subsequently, some investigations and legal cases have been against the founder of Terraform Labs, Do Kwon. Firstly, the South Korean Prosecutors leveled some allegations against the Terra Chief.
Also, the International Criminal Police Organization (Interpol) issued a Red Notice against him. The Interpol request is for law enforcement’s immediate arrest of Do Kwon globally.
There was a massive loss of over billion of investors’ funds through the fall of Terra and its ecosystem in the first half of the year. The South Korean Prosecutors requested the assistance of Interpol for the arrest of Kwon.
The prosecutors accused the Terra chief of hiding to avoid their investigations. According to a source, Kwon was seen in Singapore, though the city police noted that he later left.
Terra Says Case Against Kwon Is Highly Hyped Up
Following the alert from Interpol, there was a slight fall in the prices of Terra Classic (LUNC) and the newly launched Terra LUNA. Some rumors have been that Kwon went into hiding since the collapse of Terra and its ecosystem.
LUNA Price grows l LUNAUSDT on Tradingview.com
Terraform Labs has finally reacted to the case against Do Kwon. The firm stated that the case is highly politicized while speaking to Bloomberg. The spokesperson mentioned that the South Korean Prosecutors’ steps depicted unfairness in all aspects.
According to the spokesperson, the prosecutors failed to adhere to the basic rights available under Korean Law. Also, he noted that the prosecutors’ allegations against Kwon of breach of capital market laws indicated reasonable bias.
Featured Image Pixabay, Charts From Tradingview.com
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