Hayden Adams, the founder of Uniswap, one of the world’s largest decentralized exchanges (DEXes), thinks the jury was right to find Sam Bankman-fried, also known as SBF, the disgraced founder of FTX, a now-defunct exchange, guilty on all seven charges brought forward by the prosecution.
SBF’s Guilty Verdict Is Correct: But Not Time To Celebrate
Taking to X on November 3, Adams, one of the influential figures in decentralized finance (DeFi), said though the jury might be correct in their decision, it might not be the right time to celebrate. The founder explained that the FTX bankruptcy not only led to users losing billions, but the industry took a massive reputational hit.
In Adams’ view, the few winners in this case are the lawyers involved and the various crypto opponents the founder didn’t mention.
The collapse of FTX in November 2022 marked a dark history in crypto. Happening at the tail-end of what was already a challenging year for leading assets like Bitcoin (BTC) and Ethereum (ETH), the fall of FTX caught the community mostly unawares.
Days before the then-popular exchange declared bankruptcy, Alameda Research and Caroline Ellison, one of the top executives associated with FTX, said they were willing to buy back FTT, the crypto token issued by FTX.
The United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) pressed charges against FTX and Sam Bankman-fried weeks after they declared bankruptcy. The DOJ charged Bankman-Fried with several charges, including conspiracy to commit wire fraud and money laundering.
The SEC said Bankman-Fried orchestrated a scheme to defraud investors and customers. Of note, the regulator said Bankman-Fried misled investors about the health of FTX and its trading wing, Alameda Research. The former FTX boss pleaded not guilty to all charges.
FTX Collapse Is A Lesson To Crypto
After four weeks in a trial that began in early October, Sam Bankman-Fried was found guilty of seven criminal counts. However, the official sentencing will be in March 2024. The former FTX founder could face a maximum possible sentence of 115 years in prison.
Following this verdict, Adams said, learning from the FTX collapse, the industry should focus on technology and the sphere’s values, mainly revolving around building decentralized systems that are open, auditable, yet secure. To stay safe, the Uniswap founder said crypto users should easily pick out “personality cult sociopaths,” which enabled Sam Bankman-Fried to thrive before being caught after FTX fell.
In recent developments, US authorities led by US Attorney Philip R. Sellinger successfully seized $54 million worth of Ethereum (ETH) from Christopher Castelluzzo, a convicted drug dealer operating in Lake Hopatcong, New Jersey.
Massive Crypto Bust
The US Attorney’s Office filed a civil forfeiture action to recover previously seized cryptocurrency that was determined to be the proceeds of an illegal narcotics distribution scheme operating in and around New Jersey.
US Attorney Philip R. Sellinger emphasized law enforcement’s “commitment” to seizing financial gains from criminal activity, regardless of the form they take. Sellinger further stated:
The civil action we are taking today seeks to recover millions of dollars of cryptocurrency, which the defendant allegedly obtained from drug sales. Whether it’s as simple as bags of cash or as sophisticated as cryptocurrency, we will take the steps necessary to seize financial gains defendants obtain from criminal activity.
According to the US Department of Justice’s (DOJ) press release on the case, the prosecution sheds light on using cryptocurrencies such as Bitcoin (BTC) and Ethereum by criminals on the darknet to evade detection.
In addition, James E. Dennehy, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Newark, stated that the FBI played a critical role in uncovering the illegal conduct and ill-gotten proceeds.
Drug Trafficker’s Ethereum Stash Seized
According to court documents and the investigations conducted, Christopher Castelluzzo and his associates conspired to sell narcotics between 2010 and 2015.
In 2013, they allegedly began trading drugs on darknet platforms in exchange for Bitcoin. Castelluzzo, using proceeds from narcotics sales, participated in Ethereum’s Initial Coin Offering (ICO) in July 2014, acquiring 30,000 Ethereum. Additionally, Castelluzzo received 30,000 ETH Classic in 2016.
Castelluzzo’s plan to move the funds to a tax haven in Ireland, Malta, or the Bahamas, or potentially keep them in USDT (Tether), was revealed in forfeiture documents.
However, a subsequent search warrant led to the raid of Brian Krewson’s residence, an associate of Castelluzzo. Police discovered the relevant crypto wallets under Krewson’s control, and after obtaining the necessary passwords, law enforcement executed the seizure of the Ethereum, valued at $31 million at the time.
Currently serving concurrent 20-year federal and state prison sentences for drug distribution convictions, Castelluzzo attempted to evade taxes and transfer the 30,000 Ethereum out of the United States while incarcerated.
However, Castelluzzo’s plans were intercepted when recorded prison telephone calls exposed his efforts to launder the cryptocurrency. As a result, the United States intervened and seized Castelluzzo’s cryptocurrency holdings linked to his drug trafficking crimes.
The current value of the 30,000 Ethereum stands at approximately $54 million, underscoring the significant impact of the seizure.
As of the time of writing, ETH is trading at $1,815, reflecting a 0.9% increase over the past 24 hours and a steady upward trend of over 2% in the past seven days, exhibiting strong bullish momentum in the market.
Featured image from Shutterstock, chart from TradingView.com
The US Federal Reserve (Fed) has taken legal action against Bitcoin Magazine, alleging that the publication’s parody merchandise infringes on its image and trademarks.
The dispute revolves around using the FedNow Service image and trademark in merchandise sold by Bitcoin Magazine, which aims to critique the surveillance capabilities of the FedNow system and its potential impact on civil liberties.
Bitcoin Magazine has responded with an open letter, asserting its First Amendment rights and refusing to comply with the cease-and-desist request.
Fed Accuses Bitcoin Magazine Of Unauthorized Infringement
According to Bitcoin Magazine, the US Federal Reserve has initiated legal proceedings in response to the publication’s parody merchandise.
The central bank claims that the merchandise, which uses the FedNow Service image and trademark, constitutes unauthorized infringement and misleading association with the Federal Reserve.
In an open letter penned to the Federal Reserve Financial Services’s Deputy General Counsel, Bitcoin Magazine’s editor-in-chief, Mark Goodwin, expressed gratitude for the inquiry while asserting the publication’s refusal to comply with the cease-and-desist request.
Goodwin highlighted concerns regarding the FedNow system’s potential infringement on civil liberties and emphasized the publication’s First Amendment rights to criticize and parody the system.
First Amendment Battle
Bitcoin Magazine firmly believes that its parody merchandise falls within protected speech under the First Amendment. It argues that the imagery used serves as social commentary, specifically critiquing the surveillance aspects associated with the FedNow system.
The publication maintains that its readership would not associate Bitcoin Magazine with the Federal Reserve and that no confusion or deception is intended. Goodwin further claimed:
We do not believe that anyone that is familiar with our editorial guidelines and general stance on the world would ever associate Bitcoin Magazine with the Federal Reserve. We agree with your assertion that “no such association or relationship exists.” We look forward to defending our First Amendment rights, and the opportunity to make clear to all Americans the difference between the open, free, and decentralized financial system that is Bitcoin, and the centralized FedNow system that threatens our nation’s founding values.
The legal dispute between the US Federal Reserve and Bitcoin Magazine over parody merchandise sold by the publication highlights the clash between intellectual property rights and freedom of speech.
Bitcoin Magazine asserts its First Amendment rights to criticize and parody the FedNow system, emphasizing the importance of open dialogue and the distinction between the publication and the Federal Reserve.
The outcome of this legal battle will have implications for the boundaries of protected speech and the ability to critique public institutions.
After a brief rally to the mid-$35,000 level, Bitcoin (BTC) has again pulled back, falling below this threshold and failing to establish a strong consolidation above it. Currently, the market’s leading cryptocurrency is trading at $34,700, down 0.5% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
HSBC Holdings Plc, one of the world’s leading bullion banks, has launched a blockchain-based platform to modernize the traditional and manual processes of the London gold market. The new platform tokenizes ownership of physical gold housed in HSBC’s London vault, offering a digital representation of gold bars for trading.
A Modern Twist to Gold Trading: HSBC Tokenizes Physical Gold
In an interview, Mark Williamson, the Global Head of FX and Commodities Partnerships and Propositions at HSBC, disclosed that their innovative system employs distributed ledger technology. This “cutting-edge” system uses digital tokens to represent gold bars, facilitating seamless trade through HSBC’s single-dealer platform.
However, HSBC is not the first to venture into using blockchain for simplifying gold investment. In 2016, crypto startup Paxos collaborated with Euroclear to create a blockchain-based settlement service for the London bullion market trades. Although their partnership dissolved a year later, Paxos continued to provide Pax Gold, a digital token backed by physical gold, currently holding a market value of $479 million, according to recent data.
HSBC stands out in this field due to its substantial footprint and impact on the bullion market. Being one of the biggest custodians of precious metals and one of the four clearing members in the London gold market, HSBC plays a crucial role in a sector that witnesses over $30 billion worth of gold transactions daily.
Bringing Blockchain to the Bullion: A Step Towards Modernization
Despite the London gold market’s vast size, with approximately 698,000 gold bars valued at $525 billion stored in the Greater London area, it remains heavily reliant on outdated manual record-keeping and operates entirely over the counter. HSBC’s blockchain platform aims to simplify and streamline this process, providing clients with an easier way to track their gold ownership down to the serial number of each bar.
HSBC’s tokenized system is designed to enhance accessibility and efficiency, with one token equivalent to 0.001 troy ounces, compared to the standard 400 troy ounces for a London gold bar. While the initial focus is on institutional investors, the platform has the potential for future adaptation to enable direct investment in physical gold by retail investors, subject to local regulatory approval.
This initiative is part of HSBC’s broader efforts to integrate blockchain technology across its operations, including HSBC Orion, an existing platform for issuing and storing digital bonds. As the financial industry witnesses an uptick in blockchain-based applications from major institutions like JPMorgan Chase & Co., Euroclear, and Goldman Sachs Group Inc., the market is poised to see whether these innovations will be embraced at scale and deliver the promised enhancements to the traditional financial infrastructure.
As Bitcoinist reported, HSBC’s integration of blockchain technology for gold trading taps into the burgeoning tokenized assets industry, which is predicted to reach a staggering $16 trillion by 2030. The industry’s rapid evolution and promise have positioned certain cryptocurrencies for potentially astronomical growth.
The XRP Ledger ecosystem is pioneering in the tokenized assets space, aiming to transform real-world assets, including real estate, into digital form. Ripple’s ongoing collaborations with global banks to explore practical applications for central bank digital currencies (CBDCs) further solidify XRP’s presence in this domain.
On another front, TrueFi and Pendle Finance are emerging as significant players, innovatively bridging traditional finance and the blockchain. TrueFi is changing the lending sector with its TRU token, offering crypto loans without collateral instead of relying on a user’s creditworthiness.
Pendle Finance, with a current $65 million market cap, is not only making strides in real-world assets but also inviting institutional investors to the blockchain, offering a suite of financial products. As the tokenized assets industry grows, these cryptocurrencies are well-positioned to reap the benefits.
As of this writing, Bitcoin trades at $34,500 with sideways movement on low timeframes.
In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website.
BTCO Joins IBTC On DTCC Website
The Invesco Galaxy Bitcoin ETF under the ticker ‘BTCO’ recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’ as uncertainty around a possible approval of these funds continues to heighten.
Source: DTCC website
Many had speculated an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has sort of cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC.
An ETF expert had also weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC.
Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it, however, shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later.
Valkyrie Joins The Spot Bitcoin ETF Amendment Train
In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus.
Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.
Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims.
Adam Back, the co-founder and CEO of Blockstream, has recently drawn attention to a notable correlation, which is that the prices of ASIC (Application-Specific Integrated Circuit) miners tend to align with Bitcoin prices.
This parallel trend has been confirmed historically, with the miners peaking in price during the 2021 Bitcoin bull run, just as BTC reached its peak of $69,000.
Back’s analysis shows that even as the market navigates through changing tides, the fate of mining equipment is an important piece of the puzzle for understanding the overall ecosystem.
The CEO of Blockstream also suggests that the price of ASIC miners is not just a reflection of manufacturing costs or technological advancements but also an indicator of market sentiment toward Bitcoin itself.
The Miners’ Market: A Reflection Of Bitcoin’s Value
According to Back in a video posted on X (formerly known as Twitter), during the prelude to the 2021 bull market, the price of ASIC miners was low, mirroring the anticipation and optimism of the Bitcoin community for a significant rally.
However, as Bitcoin’s value skyrocketed, so did the price for these mining machines, hitting a peak of $120/Terrahash (TH) alongside Bitcoin’s all-time high. Yet, with the subsequent decline in BTC value, the demand and price for ASIC miners plummeted, currently trading hands at under $15/TH—a stark contrast to their previous highs.
Despite a positive momentum for Bitcoin this year, ASIC miner prices have remained subdued. However, Back maintains an optimistic outlook for a potential resurgence in ASIC miner prices.
Historically there’s been a high correlation between ASIC miner and #Bitcoin prices. Learn how the new the Blockstream ASIC (BASIC) Note investment opportunity capitalizes on this thesis. Blockstream CEO Dr. @adam3us explains: pic.twitter.com/zHAqhLsGet
The CEO of Blockstream suggests that as Bitcoin enters deeper into a bull phase, the value of these essential mining components is likely to increase.
Back points to the upcoming Bitcoin Halving — an event that historically impacts Bitcoin’s price due to the reduced rate at which new Bitcoins are generated — as a possible catalyst for Bitcoin’s price surge and a parallel rise in ASIC miner values.
Bitcoin Path To Reclaim $35,000
Despite several predictions and analyses about Bitcoin, the top crypto has continued to move at its own pace. After retracing from the previously tapped $35,000, the asset has begun to thrive to reclaim that price zone.
Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com
Currently, the asset trades at $34,269, down by 1.1% in the past 24 hours. However, looking at its weekly performance, Bitcoin still appears to be in gains. Though it has dropped by 0.7% in the past 7 days, it is still up by 20% in the past two weeks.
Back mentioned that the Bitcoin Halving appears as a significant milestone that could precede a notable increase in Bitcoin’s price, typically starting around six months post-halving.
While the CEO of Blockstream hesitates to make a definitive prediction about the exact outcome this time, he remains optimistic about Bitcoin’s prospects, positing that the cryptocurrency could still grow further this year or next year.
Featured image from Unsplash, Chart from TradingView
Data shows the Bitcoin futures open interest has risen recently and has reached a territory that has led to volatility for the asset in the past.
Bitcoin Futures Market May Be Becoming Overheated
As explained by an analyst in a CryptoQuant Quicktake post, the BTC open interest has entered the overheat zone following the latest rally in the cryptocurrency’s price.
The “open interest” here refers to the total amount of Bitcoin futures contracts open on all derivative exchanges in the sector. The metric naturally accounts for both short and long positions.
When the value of this indicator rises, it means that the investors are opening up more positions on the futures market right now. Generally, whenever this happens, the overall leverage in the market also goes up, and with leverage, chaos can follow.
Thus, whenever the open interest is at a high enough value, the cryptocurrency price may become more likely to show a high amount of volatility/fluctuations.
On the other hand, decreasing values of the metric imply a closure of positions in the sector (whether by the users’ own volition or through liquidation), which can naturally result in lesser leverage. As such, the asset may become calm when the indicator is at low values.
Now, here is a chart that shows the trend in the Bitcoin open interest over the past year:
The value of the metric seems to have been going up in recent days | Source: CryptoQuant
As displayed in the above graph, the Bitcoin open interest has been heading up in the last few weeks, suggesting that investors have been opening more positions on the futures market.
In the chart, the quant has highlighted in yellow a territory where the open interest may be considered overheated. The indicator was in this zone in the lead-up to the FTX crash in November 2022, and it was also there between June and August.
In the first case, the market initially saw a short squeeze (that is, a mass amount of short liquidations) as the price saw some uplift, and then later, a long squeeze took place as the asset crashed, cooling down the open interest.
Bitcoin only saw a long squeeze in the second instance, as the cryptocurrency crashed in August. The indicator retraced to relatively low levels with this liquidation event.
From the graph, it’s apparent that the Bitcoin open interest has once again reached this yellow zone that proved to be a predictor for volatility in these last two occurrences.
In theory, the volatility due to the overheated futures market could take the asset in either direction. Still, given that only long squeezes could cool the market down the last two times the open interest ventured into this zone, BTC may once again see a similar outcome.
“Although I don’t expect anything to happen immediately, we need to keep an eye on it from now on,” notes the analyst. “Indeed, we should be cautious and not over-bet on our investments now that we have entered the overheating zone.”
BTC Price
Bitcoin has continued to move in an overall sideways trajectory during the past few weeks as the asset is still floating around the $34,400 level.
The Bitcoin MVRV ratio, an on-chain indicator, could suggest the asset may not have hit its top for the current rally just yet.
Bitcoin MVRV Ratio Says Market Isn’t Overheated Right Now
According to data from the market intelligence platform IntoTheBlock, past bull markets hit their peaks when the MVRV ratio crossed the 300% mark. The “Market Value to Realized Value (MVRV) ratio” refers to an indicator that keeps track of the ratio between the Bitcoin market cap and realized cap.
The “realized cap” here is a capitalization model for BTC that calculates the total value of the cryptocurrency by assuming that each coin in circulation is worth the same as the price at which it was last moved, rather than the current spot price.
As the price at which a coin was last moved on the blockchain was likely the price at which it changed hands, the realized cap can be interpreted as the total amount of capital that the investors as a whole have put into the asset.
The MVRV ratio compares the price of the coin (the market cap) with the realized cap, so it can tell us whether the investors are holding more or less than they put in.
Now, here is a chart that shows the trend in the Bitcoin MVRV ratio over the last few years:
Looks like the value of the metric has been going up in recent days | Source: IntoTheBlock on X
In the above graph, the Bitcoin MVRV ratio is shown as a percentage. At the 100% mark, the two capitalization models approach a equal value, suggesting that the market as a whole is just breaking-even.
Above this threshold, the investors are holding a net amount of profit, while below they are carrying loss. From the chart, it’s visible that the BTC MVRV ratio has remained above the break-even in recent months as the asset’s price has observed a rally.
At present, the metric is floating about the 150% level, suggesting that the market cap is 50% more than the realized cap. Historically, the larger the investors’ profits have gotten, the more likely they have become to take part in a selloff.
Because of this reason, tops have generally formed when the MVRV ratio has hit high levels. IntoTheBlock notes, however, that the bull markets in the past have usually only hit their peaks when the indicator has crossed the 300% mark.
Clearly, the indicator is still a significant distance away from this mark at the moment. This could be a potential sign that the Bitcoin rally hasn’t reached a state of overheat yet and thus, there might be more to come for the cryptocurrency’s price in terms of bullish momentum.
BTC Price
The Bitcoin rally has hit the pause button in the past week as the asset’s price has taken to sideways movement. Currently, the coin is trading around the $34,500 mark.
The value of BTC appears to have gone stale in the last few days | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com, IntoTheBlock.com
The Bitcoin mining difficulty has registered another positive adjustment today, which has led to the metric setting a new all-time high (ATH).
Bitcoin Mining Difficulty Has Seen Four Consecutive Positive Changes Now
The “mining difficulty” is a feature on the Bitcoin blockchain that controls how hard the miners would find it to hash blocks on the network right now. The metric is measured in terms of how many hashes the miners would need to generate before they can solve the block.
The reason this feature exists at all is that the network intends to keep its block production rate (that is, the rate at which miners go through new blocks) at a constant value.
When the miners increase their computing power (what’s called the “hashrate“), they become faster at solving blocks. To slow them back down to the standard rate, the blockchain simply increases its difficulty in the next scheduled adjustment.
The mining difficulty works in a completely automatic way, with the code that Satoshi wrote to guide the entire process. The feature serves as a measure for controlling the inflation of the cryptocurrency, as miners can’t just increase the hashrate to mint a higher number of tokens.
Now, here is a chart that shows the trend in the Bitcoin mining difficulty over the last three months:
The value of the metric seems to have been going up in recent days | Source: CoinWarz
As displayed in the above graph, the Bitcoin mining difficulty has observed some uplift in the network adjustment that happened during the last 24 hours. Following this surge of about 2%, the metric has hit a new ATH of 62.46 trillion.
Interestingly, this is the fourth straight positive difficulty adjustment that the blockchain has observed, which certainly isn’t something that happens all too often.
The reason that the difficulty has been setting one ATH after the other recently is naturally because of the fact that the Bitcoin mining hashrate has been seeing some significant growth.
The below chart shows the trend in the 7-day average BTC mining hashrate over the past year:
Looks like BTC has been rising during the last few weeks | Source: Blockchain.com
From the graph, it’s visible that the 7-day average Bitcoin mining hashrate has been climbing and setting ATHs of its own recently. The fact that the network has been forced to up the difficulty four times in a row now just showcases how relentless the miners have been at expanding their facilities.
The collective revenue of the miners mainly depends on the price of the asset, as the block rewards are given out at a near-constant rate as mentioned before. Curiously, despite this fact, a lot of the latest growth in the hashrate came while the price had been struggling.
Thus, it’s possible that the miner expansion would only ramp up from here since the cryptocurrency has now climbed to considerably higher levels with its latest rally, and with that, the miners should be enjoying much higher revenues.
BTC Price
Bitcoin hasn’t moved much since the sharp rally from a few days ago, as its price is still floating about the $34,600 level.
In a week brimming with anticipation, the Bitcoin and crypto market is poised to witness a series of significant events that could steer the trajectory of digital assets. From pivotal price action in Bitcoin to crucial decisions by the US Federal Reserve (Fed), and from landmark trials to influential crypto conferences, the week is packed with developments that could have substantial implications for investors and the crypto industry alike.
So here’s a detailed look at the top four events that are expected to capture the market’s attention in the coming days.
#1 Bitcoin At $40,000 This Week?
Bitcoin’s recent performance has been nothing short of impressive. The leading cryptocurrency marked its highest weekly close since May 2022, with a 15% gain last week. The bullish sentiment is further fueled by the anticipation of a spot Bitcoin ETF. Currently, Bitcoin is in a consolidation phase, but renowned technical analyst, “Titan Of Crypto,” believes there’s more to come.
Bitcoin at $40,000 next week? BTC is trying to break out from both bullish pennant and the inside bar’s range. Tenkan starts pointing up. If the following conditions are matched: Kijun follows Tenkan, daily candle manages to close above the range and stay above $34.5k. [Then,] Bitcoin could teleport to $40k in a blink of an eye.
Bitcoin price prediction | Source: X @Washigorira
#2 Fed Rate Decision And FOMC
The Federal Open Market Committee (FOMC) is set to make its rate decision on Wednesday, November 1, 2023, at 2:00 pm, followed by a press conference with Fed chair Jerome Powell at 2:30 pm. The consensus among analysts is that the FOMC will maintain the target range for the federal funds rate at 5.25 to 5.5. The CME FEDWatch tool supports this, with 96.2% expecting no change.
CME FedWatch | Source: CME
Notably, market conditions have become far more fragile than they were a year ago. The Fed needs to navigate their battle against inflation carefully as it can’t afford a severe recession.
Bank of America commented on the upcoming meeting, stating, “We still do not expect a hike in November, as the Fed is clearly worried about the extent of financial tightening. But today’s robust spending and inflation data keep a December hike on the table.”
Goldman Sachs economists added, “Fed officials appear to have signaled that they will not be hiking at their November meeting next week… the story of the year so far has been that economic reacceleration has not prevented further labor market rebalancing and progress in the inflation fight.”
#3 Sam Bankman-Fried’s Trial Nears End
The high-profile trial of Sam Bankman-Fried, related to the collapse of the FTX exchange, is nearing its conclusion. As the trial resumes on Monday, October 30, 2023, Bankman-Fried will continue his direct examination by his defense lawyer, presenting an alternative narrative to the testimonies of former employees and witnesses against him.
Following this, the government will cross-examine him, potentially leading to a rebuttal case by the prosecution. This part of the trial is expected to consume most of the week, with the jury likely to make a decision by next week’s end.
#4 Solana Breakpoint Conference
Solana’s annual Breakpoint conference is set to kick off today in Amsterdam, the Netherlands. The event, which runs from October 30 to November 3, will feature Solana Labs CEO Anatoly Yakovenko, key project leaders from the Solana ecosystem, and speakers from Stripe and Visa.
Historically, Breakpoint has been a platform for significant announcements. Last year, Solana Labs unveiled a $100 million social media fund and a $150 million blockchain gaming fund. This year, there’s buzz around RNDR – Render Network’s team, which is expected to launch Render 2.0 soon. The entire conference will be livestreamed on X and Solana’s YouTube channel.
The divergence between Bitcoin’s price and the sentiment surrounding it might signify an oncoming bearish trend in the future. Negative feelings and comments about Bitcoin seem to be outweighing the positive ones, potentially leading to a shift in its trajectory.
This surge in negative sentiment contradicts the surges in Bitcoin’s price and trading activity witnessed in recent days. Despite its current value at $34,100, a downturn in overall sentiment regarding BTC has emerged.
Interestingly, the correlation between Bitcoin and gold has remarkably elevated positive sentiment around the leading cryptocurrency, as it is increasingly perceived as a hedge against economic uncertainty.
At the time of writing, Bitcoin was moving toward the key $35k level with a 0.7% increase in the last day, and a solid 11.4% in the last week, according to figures by Coingecko.
Bitcoin: Appeal Increasing As Form Of Investment
Although a recent drop in sentiment about BTC has been observed – at least during the timeframes when the crypto started bouncing back and forth between the $34K level – it was gaining popularity as an investment overall.
Bitcoin’s connection with gold had reached the highest level since the banking crisis broke out earlier this year, recent data have shown.
Since the start of this year’s banking crisis, data shows that the link between Bitcoin and gold has skyrocketed. This trend is notable because it shows a growing correlation between Bitcoin and gold.
BTC’s correlation to gold is the highest that it’s been since the banking crisis earlier this year pic.twitter.com/tF5juTJx1k
This suggests a possible shift in investor behavior toward safe-haven assets like precious metals and digital currencies in times of economic turmoil.
Amidst the present economic unpredictability, traders are aggressively looking for ways to protect their investment. Gold has always been the conventional safe haven investment choice during times of unrest.
As uncertainty looms large, traders and investors are diversifying their strategies beyond the conventional reliance on gold. This evolving mindset reflects a growing interest in alternative asset classes, including cryptocurrencies like Bitcoin, marking a shift away from the traditional perceptions of wealth protection.
More traders are now setting their sights on the alpha crypto as the next big thing in investment
BTCUSD nears the halfway mark to the key $35K territory. Chart: TradingView.com
The Role Of Miners And Stability Of Bitcoin
The scarcity of Bitcoin is increasingly becoming a focal point that experts believe could have a significant impact on its future price trends. As the creation of new Bitcoins slows due to the escalating mining difficulty, the overall supply of Bitcoin is affected.
The rising mining difficulty, a reflection of the increased computational effort required to mine new Bitcoins, not only affects the supply but also influences the stability of Bitcoin.
The recent surge in mining difficulty has made the process of creating new coins more challenging. Consequently, this factor could have a profound effect on the overall supply of Bitcoin in the market, potentially leading to increased scarcity.
Source: Blockchain.com
Stabilizing The Crypto Market
The relationship between miner profitability and selling pressure underscores a crucial aspect of Bitcoin’s stability. As miner revenues rise, the reduced willingness to sell holdings diminishes the overall market selling pressure, which is pivotal for the stability of Bitcoin.
As Bitcoin gains traction as a hedge against economic instability, the ongoing debate centers on its potential to surpass gold as the new go-to safe-haven asset. The comparison between Bitcoin and gold unfolds, signaling a shift towards Bitcoin’s prominence in the dynamic financial landscape.
Bitcoin’s surge past $35,000 on the 24th and 25th of October took the crypto world by surprise, as it indicated what might be the beginning of a new bullish sentiment. Trading volumes for the world’s largest cryptocurrency hit their highest levels since March, showing that interest in Bitcoin is booming once more.
The entire crypto market saw an inflow of funds during the week, leading to a surge in market cap. Data from CoinGecko shows that the entire market cap increased from $1.184 trillion on Sunday, October 22, to $1.312 trillion on Wednesday, October 25. Most of this inflow went into Bitcoin, which saw its share of the cryptocurrency market increase from 49.58% to 51.47 % during this same time period.
The recent boom in Bitcoin and cryptocurrency prices pushed Bitcoin daily trading volumes on crypto exchanges to their highest level since March. According to The Block’s data dashboard, the seven-day moving average for spot exchange volumes across multiple exchanges hit $24.12 billion on Thursday and $23.98 billion on Friday, respectively. In comparison, Bitcoin trading volume on exchanges was at $11.02 billion on the first day of the month.
Trading volumes are an important metric because higher volumes suggest greater interest and activity in a market. It means more people are actively buying and selling, leading to more liquidity and volatility.
Whale activity also increased during this time period, as indicated by on-chain trackers. Whale transaction tracker Whale Alerts has shown various BTC transactions amounting to millions of dollars to and from crypto exchanges.
Bitcoin has since formed a resistance level around $35,000 and is now trading in a range. At the time of writing, Bitcoin is trading at $34,150, still up by 14.47% in a 7-day timeframe. While price action seems to be moving sideways at the moment, there are still hopes of continued momentum from the bulls to push BTC past $35,000 in the new week.
Matt Hougan, CEO of crypto index fund manager Bitwise, has hinted at a further inflow of money into Bitcoin. Hougan makes this prediction on spot Bitcoin ETFs to project an inflow of around $50 billion within the first five years of its launch. Others like crypto financial services platform Matrixport have made more optimistic claims.
Data from analytics platform mempool.space has shown a sustained increase in activity on the BTC network. If bulls continue to maintain a strong push, we could see Bitcoin reach as high as $45,000 in the early days of November.
A Bitcoin adopter has outlined the various achievements of XRP, foreseeing a significant price increase for the cryptocurrency that could move it closer to the $10 milestone.
Bitcoin OG Says XRP $10 In Sight
In an X (formerly Twitter) post, Bitcoin OG, Lucky predicted that the value of XRP could significantly appreciate, pushing closer to the $10 mark. He stated that he had been observing the operations and state of affairs of the XRP ecosystem since July. He also expressed admiration for the XRP team, highlighting the strength and commitment the team has displayed during its lengthy legal battle with the United States Securities and Exchange Commission (SEC).
Been observing @Ripple‘s operations since the SEC win in July, I can’t help but applaud the team for staying focused in their commitment to the $XRP community.
Few projects recover from such a drawn-out legal battle that cost them $200 million, but we’ve seen the Ripple team… pic.twitter.com/3uVbFinpj9
Lucky commended the XRP team for its effort in staying strictly committed to the growth and health of its community. He mentioned many of the achievements made by XRP in recent months including multiple partnerships and the integration of XRP payments with renowned crypto exchanges like Bitstamp and Bitso.
He stated several ongoing expansion projects in the XRP ecosystem, including XRP utilities incorporated into the XRP ledger as well as the increased user base for the XRP Xumm wallet.
“With more developments and projects like the Xumm wallet steadily pouring into the XRP Ledger and gaining upwards of 600,000 users in 3 months, $XRP will grow massively,” Lucky said.
Total crypto market cap currently at $1.2 trillion. Chart: TradingView.com
Calling attention to all the recent developments in the XRP network, Lucky stated that XRP is on a path to explosive growth and he believes that the price of the cryptocurrency is already inching up to a $1 or $10 milestone.
“If I’m being honest, I’d say that the $XRP price isn’t as far from $1 or $10 as we think, looking at the current ecosystem developments,” Lucky stated.
Whales Move Over 55 Million XRP To Crypto Exchanges
Whale Alert, a prominent blockchain tracker and analytics system known for reporting large crypto transactions, has released new data showing deep-pocketed crypto investors moving millions of XRP tokens from unknown wallets into two major crypto exchanges.
Whale Alert disclosed two major XRP transactions on Friday to Bitstamp and Bitso. One transaction showed an XRP whale transferring 27,000,000 XRP tokens worth $14,879,092 to Bitstamp. Another transaction revealed 28,500,000 worth $15,704,941 moved to Bitso.
These large-scale transactions have caused mixed reactions within the XRP community as the price of XRP has shown tendencies to react according to the actions of prominent cryptocurrency whales.
Although the identity of the whales remains a mystery, the crypto community is closely monitoring the possible motivations behind these significant transactions and how they could impact the broader XRP market.
Bitcoin has once again reclaimed $34,000 even as the euphoria around the possibility of a Spot Bitcoin ETF being approved soon. Following this, there is the need to look at the predictions of certain analysts who have weighed on the future trajectory of the flagship cryptocurrency from its current price action.
Where Is Bitcoin Headed From $34,000?
In a post shared on his X (formerly Twitter) platform, the CEO and Founder of trading platform MN Trading, Michaël van de Poppe, stated that the crypto was fighting $34,700 as resistance and that if it were to break out from that level, the crypto token could rise to as high as $37,000 to $38,000.
He also seemed to suggest that $32,600 and $33,100 were key support levels to keep an eye on as he labeled them “areas of longing.” Another crypto analyst, CryptoTony, projects that Bitcoin could still spike up to $36,000 before “rejecting and letting the range begin.”
Still looking for that spike up to $36,000 before rejecting and letting the range begin. I will be long while we are above $30,000 personally, as we entered at $29,000
Bitcoin Halving has become an important metric in making price predictions as the event draws near. In line with this, crypto analyst CryptoConmentioned that the 2-Year-Old Cumulative Bands MVRV (Market Value to Realized Value) indicates that the pre-halving woes have occurred.
BTCUSD is currently trading at $34.142. Chart: TradingView.com
Bearing this in mind, CryptoCon seemed bullish on the crypto token as he stated that “Bitcoin has something special in store for us next.” The analyst had recently predicted that Bitcoin could hit $45,000 as early as November based on their analysis of historical data and past cycles.
Another crypto analyst, Crypto Rover, also mentioned using technical analysis that a bull flag was breaking out on the charts. This suggests that the rally already experienced might be nothing compared to what is on the way.
Several crypto analysts have, over time, noted the correlation between BTC and the stock market. Bitcoin is said to experience a decline whenever stocks are down and an upward trend whenever these stocks are on the rise. However, recent data suggests that this trend might be over (for now, at least).
In a post on the X platform, Bitcoin Magazine noted that Bitcoin has so far decoupled from the Nasdaq, S&P 500, and Dow Jones this month. Bitcoin is up by over 28% in October, while the Nasdaq and S&P500 have had a relatively quiet month with just over 3% gains this month.
Bitcoin is also hitting new highs (this year) in its dominance over the broader crypto market. Data from TradingView shows that the coin’s dominance currently stands at close to 54%. The flagship cryptocurrency has enjoyed an upward trend since the year began and hasn’t seen any significant competition from Ethereum despite talks about ‘The Flippening.’
The current stability of Bitcoin price around the pivotal $34,000 mark suggests the potential for a continued bullish trend, but analysts remain uncertain whether indicators strongly support an upward trajectory or if a regression to $27,000 is imminent.
Presently valued at $34,150, Bitcoin has shown lateral movement in the past day. With a notable 15% gain in the prior week, Bitcoin retains its position as a leading cryptocurrency based on market capitalization, showcasing its resilience amidst market fluctuations.
The current climb of Bitcoin, which has reached the significant milestone of $35,000, has elicited a positive and surprising reaction among the market as a whole. Despite its initial surge, the cryptocurrency underwent a modest correction and subsequently retreated to a value of $34,000.
Bitcoin Price: No Way But Up
The latest report from finder.com illuminates the insights and predictions provided by industry experts regarding the future trajectory of Bitcoin’s price. This comprehensive forecast delves into the potential developments and shifts anticipated in the value of this cryptocurrency, offering a detailed analysis based on expert opinions and market trends.
The report serves as a valuable resource, providing a glimpse into the prospective pathways and factors that might influence Bitcoin’s value in the coming period, offering a nuanced understanding of the digital currency’s potential directions.
According to the consensus of 31 experts in cryptocurrency and fintech assembled by Finder, the average prediction anticipates Bitcoin (BTC) to conclude this year at approximately $30,000 and then surge to $87,000 by the culmination of 2025.
BTCUSD trading at $34,097 on the weekend chart: TradingView.com
Futurist Joseph Raczynski presents a slightly lower estimate, suggesting Bitcoin price will finish 2023 at a value of $29,000 but forecasts an increase to $80,000 by the conclusion of 2025. Raczynski emphasizes the pivotal role of the US Securities and Exchange Commission Bitcoin ETF approval, indicating that the potential approval of a spot ETF could potentially lead to a doubling of Bitcoin’s value.
Mitesh Shah, the CEO of Omnia Markets, said that it is anticipated Bitcoin will reach a closing value of $35,000 before the end of the current year. Furthermore, Shah projects that the value of the top cryptocurrency will experience a significant increase, reaching $105,000 by the year 2025.
“The approval of any BTC ETF would open the floodgates for institutional investment, and the announcement of such approval would likely result in an immediate spike in Bitcoin price,” he said.
On Halvings, ETFs And Investor Confidence
Shah is representative of the subset comprising 20% of the questioned population who have the expectation that approval for ETFs will be granted within the present calendar year. He made an observation regarding the increasing agreement among experts that the SEC will ultimately grant approval for a Bitcoin ETF, with Blackrock’s proposal being considered the most probable contender.
According to Manraj Chandok, a trader at Wirex, it is his belief that there will be limited fluctuations in the price of Bitcoin until the occurrence of the halving event. The halving event refers to the reduction of the block subsidy reward, which denotes the quantity of Bitcoin granted to miners, by fifty percent. The anticipated timeframe for this event is April 2024.
Image: Shutterstock
For his part, Damian Chmiel, a senior analyst and editor at Finance Magnates, said it is anticipated that Bitcoin will experience a stabilization phase at a value of $30,000 within the current year. Furthermore, Chmiel predicts that the value of BTC can potentially reach $50,000 by the year 2025.
“Next year’s halving could be a game-changing event for Bitcoin. I still believe that the crypto will eventually reach new all-time highs and achieve a six-figure valuation,” he said.
The recent surge of Bitcoin’s value to $35,000 has engendered a sense of assurance among investors, leading them to exhibit a greater inclination towards venturing into more speculative prospects within the cryptocurrency market.
Meanwhile, Santiment has reported a notable rise in forthcoming and active positions for Bitcoin, accompanied by a significant gain of $922 million in open interest over the course of the previous week. This development signifies an increasing level of trust in the potential of Bitcoin.
Over the past week, Bitcoin price reached new multi-month highs largely due to the euphoria of the potential approval of a spot exchange-traded fund (ETF). While the recent momentum appears to have waned in the past few days, there are signs that the premier cryptocurrency may not be done just yet.
Crypto analytics platform IntoTheBlock has offered an insight into the present action and future trajectory of Bitcoin, highlighting major levels investors might want to keep an eye on.
This Could Happen If Bitcoin Price Closes Above $35,000
In a post on the X (formerly Twitter) platform, IntoTheBlock shared the next Bitcoin price levels to watch out for. The on-chain data tracker stated that investors can identify where the price of BTC may be heading based on the recent buying activity recorded on-chain.
Bitcoin Levels to Watch – Based on buying activity recorded on-chain, we can identify price levels where BTC may be heading next
🔼The recent high of $35,000 is the next resistance point for Bitcoin, where previously 664,000 holders bought 340k BTC 🔼If this level is surpassed,… pic.twitter.com/63oBOngxBQ
According to IntoTheBlock’s analysis, the recent multi-month high of $35,000 is the next major resistance level for Bitcoin. On Wednesday, October 25, Bitcoin touched – albeit failed to close above – the $35,000 mark for the first time since mid-2022
Furthermore, the on-chain analytics platform highlighted that more than 664,000 addresses bought about 340,000 BTC at the $35,000 level. If Bitcoin’s price manages to breach and stay above this mark, investors could see the market leader travel to around $39,000, where the next major resistance lies.
On the flip side, if the current momentum continues to cool off and there is further downward movement, the BTC price could go as low as the $30,000 mark. According to IntoTheBlock, there seems to be concentrated buying activity just above the psychological price level, with nearly 1.5 million addresses purchasing 553,000 BTC around this point.
After a memorable week dominated by the anticipation of a Bitcoin spot ETF, the Bitcoin price has been relatively quiet in the past few days. As of this writing, the premier cryptocurrency trades at $34,121, reflecting no significant price change in the past 24 hours.
In a separate report, IntoTheBlock has highlighted the rise of institutional interest in Bitcoin. According to data from the on-chain analytics platform, the number of BTC transactions over $100,000 surpassed 23,400 on Tuesday, October 24, marking a new high in 2023.
Number of Bitcoin Large Transactions | Source: IntoTheBlock/X
IntoTheBlock specifically pointed to the recent spot exchange-traded fund as the force behind the rising institutional interest in Bitcoin. The last time this metric witnessed a significant spike was in June 2023 when BlackRock filed for a BTC spot ETF.
Bitcoin price trades around $34,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
If Google Trends data is anything to go by, it could mean that Americans don’t care about Bitcoin (BTC) or the interest is ultra-low and falling despite the series of bullish events in the last few days.
Americans Are Not Interested In Bitcoin?
A spot check of Google Trends over the past years shows that not only are searches related to “buy Bitcoin” discouragingly falling but are at 2023 lows, with related average daily searches scoring less than 20. The only time “buy Bitcoin” searches spiked was in early September when it rose to a score of 70, an indicator that more people were curious, willing to explore, and even buy the world’s most valuable coin.
Sentiment is a crucial factor in crypto because it can influence prices. To illustrate, when sentiment improves, crypto investors are more likely to buy and hold on to their treasured coins in hopes of riding the emerging trend and raking in profits.
Conversely, when crypto assets begin falling, as in 2022 and the second half of 2023, holders will often flee to safety, selling their coins for stablecoins like USDT or cash. In some instances, however, without an option, investors will look to exit for an established coin like Bitcoin or Ethereum (ETH), pumping those respective assets.
As the market evolves, sentiment can be influenced by news events, regulatory developments, or influencer comments. Elon Musk, the owner of X, the social media platform, has been sued on allegations that the billionaire deliberately conducted a pump-and-dump scheme, manipulating Dogecoin (DOGE) prices and profiting at the expense of others.
SEC Likely To Approve The First Spot Bitcoin ETF In The US
Google Trends is one of the tools users can use to gauge crypto sentiment. However, looking at events in the United States, interest in BTC is yearly low. This is despite the community expecting the Securities and Exchange Commission (SEC) to approve the first spot Bitcoin Exchange-Traded Fund (ETF).
After several attempts in the past, analysts have been gradually increasing the odds of the strict regulator green-lighting the first Bitcoin ETF in Q4 2023 or early 2023. Still, it needs to be clarified whether the agency will authorize one or multiple products simultaneously. If the SEC disapproves a Bitcoin ETF, JPMorgan analysts led by Nikolaos Panigirtzoglou said the agency could face “legal troubles.”
In anticipation of the product and ahead of Bitcoin halving in 2024, the coin recently broke above July 2023 highs, registering a new 2023 high above $35,000. Though prices have been steadying, the uptrend remains, and traders expect more gains.
The price of Bitcoin stands firm around the critical area of $34,000, hinting at further bullish potential. However, market analysts wonder if enough clues point to the upside or if BTC will return to $20,000.
As of this writing, BTC trades at $34,150 with sideways movement in the last 24 hours. The cryptocurrency recorded a 15% profit the previous week and remains a top coin performer by market cap.
Bitcoin On-Chain Activity Rises Hinting At A Bull Run?
Data from the analytics platform mempool.space shows an increase in on-chain activity on the Bitcoin network. This spike occurred in February 2023, when BTC transactions rose above 50 Mega Virtual bytes (MvB).
According to the analytics platform, the above metric measures the size of transactions and blocks on the BTC network. The larger the transaction, the more space they required.
As seen in the chart below, each time there is a rise in the price of BTC, there is a surge of activity leading to the rally. This happened in 2017, and 2021, and it is happening this year, which suggests the ecosystem is blooming, onboarding more users, and preparing for a more significant rally like in the previous year.
BTC on-chain activity on the rise in 2023, increase precedes market rally? Source: mempool.space
In addition to the increase in activity, it is possible to see the decline in the metric during the bear market and conclude bull markets record high activity. In contrast, the bear market records much less user activity, and they are generally cheaper to transact.
However, unlike 2017 and 2021, this year, this ecosystem saw the implementation of non-fungible tokens (NFTs) and new applications boosting these metrics. Thus, it is harder to determine if the current rally can reach similar levels than in previous years as the BTC DeFi ecosystem attracts more users looking to leverage the network for utility rather than long-term investing.
BTC DeFi Makes A Difference In Key BTC Metric? A Chat With The Team Behind “Leather”
The surge in BTC on-chain activity could be attributed to the cyclical nature of the crypto market. When the price of BTC and others rise, or there is an expectation of further profits, more users on-board the network.
As a result, the number of transactions recorded increases. However, many believe that with the implementation of NFTs in the BTC ecosystem, transaction activity can no longer be attributed to a new bullish cycle.
If so, rising activity metrics could become useless when measuring the sustainability of a BTC rally. To answer this question, we spoke with Mark Hendrickson, a General Manager at Trust Machines, a company working on a Bitcoin DeFi wallet. This is what he told us:
What is “Leather,” and what is your goal in the Bitcoin ecosystem?
A: Leather is a web3 wallets built around Bitcoin based technologies and applications. And so you can think of Leather, simply put as MetaMask for Bitcoin in the sense that we want to provide a robust user experience for connecting to applications built with Bitcoin and Bitcoin layers in which users can do a lot of the same sort of things that they can concurrently only do on smart contracts enabled L1 chains, but to do them actually on Bitcoin.
So, Leather has the ability to connect the applications, identify yourself to those applications based on your Bitcoin addresses and your associated assets with those applications prompts for signed transactions that are essentially actions for those applications and to do so across layers. (…) We also want to facilitate the movement of liquidity between L1 and L2 (networks) and do so in a very seamless manner.
A lot of people, for many reasons, are unfamiliar with the Bitcoin DeFi ecosystem. Can you tell us more about it, and what is Leather’s role in it? Also, what do you say to users who want Bitcoin to remain unchanged, the way it has been since its inception in 2009?
A: Bitcoin based DeFi, I’d say is generally taking place these days or sort of emerging in two places. You have primitives for Bitcoin based divide on Bitcoin itself. That’s an L1 (Layer one), mostly driven by Ordinals and within Ordinals fungible token standards like BRC 20. And then you have also Bitcoin related taking place on Layer2 like Stacks that have smart contract functionality. (…) most of that’s taking place via Ordinals on the layers. It’s taking place mostly through the native smart contracting capabilities of those layers.
To the question of people who want Bitcoin to remain unchanged, I think that the folks who are working on Bitcoin-related functionality, I’d say Bitcoin web3 in general, which includes DeFi. We’re trying actually to do more with Bitcoin without having to change Bitcoin really at all. So actually our general approach is to try to extend what you can do with Bitcoin without having to change it fundamentally because we do, of course, want to respect all the work that’s gone into Bitcoin to date and we’d love the security profile of Bitcoin. And that has to do with taking a relatively conservative approach. And so if you look at Ordinals, for example, which is really an innovation based on taproot introduced fairly recently, there’s a lot of innovation going on as a result of taproot ordinals without having really changed anything else about Bitcoin. It is a design space that is actually quite respectful of Bitcoin as blockchain.
There is a theory that every bull run is preceded by an increase in on-chain activity, with fees following prices on their way to new highs. What do you think of network activity right now? Do you think much of it can now be attributed to Ordinals and other applications?
A: Going back to the start of the year, Ordinals has been a huge exception to the general rule of the crypto bear market because we’ve experienced essentially two bull runs inside of Ordinals itself, which I think have boosted Bitcoin’s position and definitely has boosted network activity on Bitcoin and fee rates have gone up as a result of it. And really shown that this idea of storing data on chain on Bitcoin beyond just simple transactions and applying those primitives to various web3 applications, whether it’s art or whether it’s new token standards, that can have a huge effect on just how Bitcoin is used and also valued. (…) it’s hard for me to really pinpoint any given reason why any given month the Bitcoin may have gone up in price because of other factors, but it, it’s pretty clear that it has an overall effect (on network activity). Ordinals has been a positive influence on the interest in Bitcoin.
ETFs, store of value, Gold 2.0, Halving, and now Bitcoin DeFi, what is the current narrative dominating the BTC market? And which narrative will gain more prominence in the long run?
A: I think the dominant narrative around Bitcoin is probably that in the wake of the last crash, really it’s a spillover from last year. I think there are a lot of weaker technologies, weaker platforms and assets that were shaken out and people ran away from and they’ve taken more safe harbor and Bitcoin come back to Bitcoin as really the one that’s stood the test of time. So that combined with the fact that people, since the start of the year with Ordinals in particular have opened up to that there are more frontiers to what you can do with Bitcoin. I think that combination has really driven sort of a renewed enthusiasm around Bitcoin. It’s a combination of, it’s been around the longest, it’s the most secure, plus it’s not a dinosaur that can’t evolve still. It actually has a lot of potential. It actually has both of those qualities that are very attractive, secure and conservative in one way, but it’s also more innovative and there’s more potential than people had realized before on the other hand.
In the meme coin realm, the last week has ignited fresh momentum, and the buzz revolves around Pepe Coin (PEPE), which has witnessed a remarkable surge over the weekend. This rally has set traders’ minds racing, as they contemplate whether PEPE’s ascent could evolve into a formidable challenge to the supremacy of Shiba Inu (SHIB) and Dogecoin (DOGE).
At the time of writing, PEPE was trading at $0.00000120, up 3.3% in the last 24 hours, and registered an impressive weekly increase of 90%, data from crypto market tracker Coingecko shows.
Just recently, Pepe had reached a market cap of $1.6 billion, sparking conversations about its potential to compete with the crypto market’s top meme coins. This rapid resurgence showcases its resilience and its enduring allure to traders and investors.
Pepecoin, drawing inspiration from the iconic Pepe the Frog meme, has carved a noteworthy niche in the meme coin arena. Its remarkable journey in early 2023, achieving a staggering $1.6 billion market cap and a rapid 100% weekly growth, hints at the potential for a price surge in Q4 2023.
As this developed, the frog-themed meme coin also made headlines when its reach extended to over 155,000 on-chain wallets, encompassing all tokens bridged to both Arbitrum and BSC, underlining its widespread adoption and engagement within the cryptocurrency community.
This impressive user base indicates a growing and vibrant ecosystem, poised to explore new horizons and opportunities in the digital asset space.
PEPE currently trading at $0.00000120 on the daily chart:TradingView.com
PEPE’s Robust Market Valuation
The sudden and robust gains in PEPE’s price have captured the attention of traders and investors, highlighting its potential as an attractive investment within the volatile cryptocurrency market.
Pepe (PEPE), a meme coin born during crypto winter, has witnessed an astonishing feat, doubling its price within a week to reach a $500 million market cap. This surge comes as traders anticipate the potential impact of a Bitcoin (BTC) spot ETF on the broader market.
As market charts showed a 1% gain in the global crypto market value, reaching $1.28 trillion as of October 26, the prices of cryptocurrencies saw a little boost. Positive momentum from the “Uptober” surge caused the cryptocurrency market to rise significantly in the last few sessions on a global scale.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Addresses related to FTX, the bankrupt crypto exchange, and Alameda Research, the trading wing associated with the exchange, have cumulatively transferred $13.35 million of assets to Binance, a crypto exchange via Wintermute Trading, over the last 24 hours.
According to Lookonchain, an on-chain tracker, FTX and Alameda Research last deposited COMP, the governance token of Compound, and RNDR, the native token of Render, on October 26, an indicator that the project is actively liquidating assets after finding approval in late September 2023.
FTX transfer tokens to Binance| Source: Lookonchain on X
COMP prices are relatively stable at spot rates, steadying at a key resistance level. The token is also up 20% from October 2023 lows and is within a bullish formation, moving inside the range established from June to July 2023. Even so, for the uptrend to take shape, traders expect more gains that would push the token above September 2023 highs at $50, a psychological level.
On the other hand, RNDR is extending gains, marching higher when writing. To illustrate, the token is up 60% from September lows, with bulls remaining resilient, looking at the formation in the daily chart. Bulls have been shaking off bear attempts as they target to reclaim May 2023 highs at around $2.9. This is a critical liquidation line that, if broken, could see RNDR register new 2023 highs.
FTX received court approval to sell tokens and repay creditors in September 2023. Judge John Dorsey of the U.S. Bankruptcy Court in the District of Delaware approved the motion, allowing FTX to sell up to $100 million of tokens weekly, including Bitcoin and Solana, to repay its creditors.
Then, the exchange said the proceeds from the sale would be used to repay its creditors in a “fair, orderly, and efficient manner.” As part of this, FTX will also liaise with creditors to develop a distribution plan.
FTX Is Bankrupt And SBF Is Under Trial In Manhattan
FTX went bankrupt in late 2022, triggering a series of liquidations that saw leading crypto assets slump to worrying levels, including Bitcoin and Ethereum. By Q4 2022, Bitcoin was changing hands at around $16,000, worsened by sentiments that saw crypto users rush to exchanges, withdrawing their coins, worrying that there would be a contagion.
The leg down, however, marked the last phase of the bear run since asset prices spectacularly recovered in Q1 2023 before closing H1 2023 with solid gains. The Sam Bankman-Fried (SBF) trial in a Manhattan court is ongoing while FTX managers search for ways to make creditors whole. SBF is blamed for mismanaging the crypto exchange and pilfering user funds into billions.
Image: Shutterstock
