Bitcoin Falls Below $35,000, But 86% of Supply Remains Intact: Temporary Setback?

Leonardo Perez
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Bitcoin Falls Below $35,000, But 86% of Supply Remains Intact: Temporary Setback?

Bitcoin managed to surpass $35,000 several times this week, making its market capitalization $679.499 billion.

A look at Bitcoin price action shows that consolidation has resumed below the $35,000 support level, but most holders are holding steady. Onchain data has revealed that the amount of immobile Bitcoin in a 3-month period has reached a record high of 88.5%.

The upside potential remains huge despite the ongoing consolidation, as the top cryptocurrency is still up 26% since the beginning of October.

BTC Price Falls Below $35,000 But Investor Sentiment Remains Bullish

Bitcoin managed to surpass $35,000 several times this week, boosting the profitability of millions of BTC wallets. The cryptocurrency has since fallen below $35,000, but long-term investors remain optimistic, according to on-chain analysis of Bitcoin’s movement.

One particular metric that speaks volumes about the current Bitcoin cycle is Glassnode HODL waves. HODL Waves change color depending on your age on wallets. Bitcoins start red immediately after being transferred to wallets and gradually turn purple as they remain stationary.

This metric, which tracks the age of Bitcoins in motion and in wallets, has shown that almost 90% of the total BTC supply has remained idle over the past three months.

A similar metric from IntoTheBlock has shown retail traders joining the bandwagon of long-term holders as investors begin to hold on to their assets amid the prospect of a BTC spot ETF approval from the SEC. IntoTheBlock’s holding metric puts the number of addresses holding Bitcoin for more than a year at an all-time high of 34 million addresses.

Investors Anticipate SEC Approval of Bitcoin Spot ETFs

Several factors have contributed to the rise in long-term confidence of Bitcoin investors, one of which is the start of spot ETF trading in the United States. The industry hopes that the SEC’s approval of spot Bitcoin ETFs will trigger the next Bitcoin price bull run. A senior executive at Valkyrie Investments is very confident that these ETF applications will be approved by the end of the month.

However, Singapore-based QCP Capital attributed Bitcoin’s recent rise to macro forces such as falling US bond yields, not enthusiasm around spot ETFs. Low bond yields force investors to look for higher-yielding investments like BTC.

Overall, Bitcoin appears to remain in a consolidation phase until buyers return or some catalyst fuels the next rally. The last time Bitcoin supply reached 88% for this metric was during a consolidation in late 2022, where the bears improved and Bitcoin fell below $20,000. Continued consolidation could see Bitcoin follow this pattern, breaking below its current range to reach $30,000.

The Fear and Greed Index has recorded “Extreme Greed” levels in Bitcoin, leading some to warn about the possibility of a price correction. Anthony Rousseau, Head of Brokerage Solutions at TradeStation, analyzed this situation and highlighted that the recent increase in the price of Bitcoin is due to a series of fundamental and market factors that have come together.

However, he also warned that there is always the possibility of a liquidity event in the market at the macro level, with negative implications for high-risk assets, including Bitcoin.

The brokerage expert suggests that, in the short term, there is a possibility of Bitcoin falling back to the range it was trading in at the beginning of the year, between $25,000 and $30,000. Given current market conditions and the hype surrounding the ETF in place, though, Rousseau believes the likelihood of a move below $30,000 is lower as prices continue to rise.

By Leonardo Pérez

AI Could Make Work Optional in the Future, according to Elon Musk, And Other News

Audy Castañeda
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AI Could Make Work Optional in the Future, according to Elon Musk, And Other News

Elon Musk has highlighted his concern that AI could end the human world of work in a few years.

Influential technology mogul Elon Musk shared his vision of a future in which Artificial Intelligence (AI) could surpass human intelligence, during an official UK government event.

Elon Musk, known for being the owner of companies such as Tesla, SpaceX and X (formerly known as Twitter), highlighted that AI could advance to the point where it is capable of performing any task, which could ultimately lead to a world where human labor is optional.

“We will have something that is, for the first time smarter than the smartest human,” Musk said at an event at Lancaster House, an official U.K. government residence.

In his own words, “It is difficult to predict the exact moment, but there will come a point when working will not be necessary.” Elon Musk has repeatedly expressed his concerns about the possible threats that AI could pose in the future.

OpenSea Announced Layoffs and Launch of OpenSea 2.0 to Adapt to Changes in the NFT Market

Popular non-fungible token (NFT) marketplace OpenSea made a major decision on November 3 by announcing layoffs in its workforce. Devin Finzer, the platform’s co-founder and CEO, shared the news through his X account, revealing that the company was in the process of launching “OpenSea 2.0” with a smaller team.

OpenSea, which was launched in 2017 when NFTs were still an innovation, has operated under a business model similar to that of giants such as eBay and Etsy. Allowing transactions and payments in Ether, the Ethereum cryptocurrency. However, the company has had to face a number of challenges along the way.

In July 2022, OpenSea had to reduce its workforce by 20%, citing the impacts of the so-called “crypto winter.” At that time, the platform had a team of 230 people, according to reports in the specialized press.

FTX Collaborates with the FBI by Handing Over Customer and Transaction Data

Advisors to FTX, the currently bankrupt cryptocurrency platform, have provided transaction and customer account data to the Federal Bureau of Investigation (FBI), according to court documents to which Bloomberg had access.

This collaboration occurred in response to subpoenas issued by various FBI offices in recent months. FTX advisors provided detailed records of the operations of specific clients of the platform.

Information about these FBI requests was revealed through the billing records of Alvarez and Marsal, a consulting firm that serves as financial advisors to FTX. Over a period spanning several months, the firm’s personnel were responsible for extracting and providing transaction information, as well as client accounts to FBI offices in Portland, Philadelphia, Oakland, Minneapolis and Cleveland.

Jack Dorsey’s Fintech Block Boosts Stocks with Strong Quarterly Earnings

Block, the fintech company led by former Twitter CEO Jack Dorsey, saw its stock price rise more than 20%. This, after the market closed on Thursday, thanks to its earnings report that exceeded expectations in the third quarter.

The company posted net income of $5.62 billion, representing a growth of 24% compared to the same period last year (YoY). Additionally, Block reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $477 million, marking a 32% increase from the prior year. Block stated that it has not experienced any impermanent losses on its Bitcoin holdings since the previous quarter.

By Audy Castaneda

Bitcoin Update: Highlights of the Week

Leonardo Perez
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Bitcoin Update: Highlights of the Week

This is a summary of the leading cryptocurrency most crucial news.

Among the most relevant news of the leading cryptocurrency, the following stand out: according to Cathie Wood, Bitcoin is “digital gold”, MicroStrategy now owns 158,400 BTC, Berstein says that Bitcoin will reach $150,000 in 2025, Michael Saylor suggests a bright future for Bitcoin, and CoinShares reported record investments in cryptocurrencies, with Bitcoin leading the way.

Cathie Wood Reaffirms Her Confidence in Bitcoin as “Digital Gold”

ARK Invest CEO Cathie Wood believes Bitcoin is digital gold. In an interview on Bloomberg, he said he would choose BTC for long-term storage over precious or fiat metals.

According to a post on Bloomberg Crypto’s X, Cathie Wood says that “she would unambiguously wager on Bitcoin — rather than gold or cash — to safeguard against the possibility of deflation in the coming decade.”

The famous Wall Street tech guru has indicated that she expects a new era of falling prices, supported by new technologies that include Artificial Intelligence, electric vehicles, robotics, genetic sequencing and Blockchain.

Indeed, Cathie Wood is clear about her bet for the next ten years: Bitcoin, without a doubt. “is a protection against inflation and deflation because there is no counterparty risk and institutions hardly participate.”

MicroStrategy Increases Its Bitcoin Reserve to 158,400 BTC

MicroStrategy shows no signs of letting up on its crypto strategy with an additional purchase of 155 BTC. According to the company’s Q3 2023 earnings report, MicroStrategy now owns 158,400 BTC.

In this regard, MicroStrategy CEO Phong Le said that the company is “well positioned to capitalize on both the tailwinds of Bitcoin and the growth of our BI business.”

Saylor is convinced of Bitcoin’s role in the future economy and says the cryptocurrency surpasses gold as a reliable store of value. The most recent purchase coincides with the enthusiasm seen among investors over the possible arrival of a spot Bitcoin ETF in the US market.

Bernstein: Bitcoin Price Will Reach $150,000 in 2025

The price estimate by financial advisor Bernstein was based on the assumption that the US Securities and Exchange Commission (SEC) will begin approving spot Bitcoin exchange-traded funds (ETFs) in the first quarter of 2024.

Basically, the bullish estimate is roughly five times the current price of around $34,000 and more than double Bitcoin’s all-time high of over $69,000 set in November 2021.

According to Michael Saylor, Bitcoin Will Continue to Multiply Considerably

Amid a fluctuating market, Michael Saylor remains steadfast in his conviction and suggests a bright future for the cryptocurrency. Reaffirming his belief in the unparalleled potential of Bitcoin, foreseeing a tenfold increase in its value.

During his conversation on CNBC, Saylor conveyed that $12 billion annually in natural sales is expected to turn into $6 billion annually. Aligning with the growing demand for Bitcoin driven by spot Bitcoin ETFs. This approval would make it easier for institutional investors to access Bitcoin, which could significantly increase demand for the cryptocurrency.

CoinShares Reports Record Investments in Cryptocurrencies, With Bitcoin Leading the Way

A recent report from CoinShares indicates that cryptocurrency investment products saw a notable increase in inflows last week, reaching their highest point since July 2022. Indeed, it was highlighted that Bitcoin accounted for $296.3 million of the total $326 million in digital asset inflows.

On October 30, CoinShares posted on X that  such numbers “are due to what we believe was rising optimism from investors that the US SEC is poised to approve a spot-based Bitcoin ETF in the US.”

By Leonardo Pérez

FTX’s Sam Bankman-Fried Faces Up to 115 Years in Prison, Isn’t He?

Audy Castañeda
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FTX’s Sam Bankman-Fried Faces Up to 115 Years in Prison, Isn’t He?

FTX’s Sam Bankman-Fried has been found guilty by the court and could face up to 115 years in prison. According to reports, the decision was made after more than 4 hours of deliberation. However, for Renato Mariotti, a former US Department of Justice prosecutor, it will be difficult to see SBF sentenced to more than 25 years.

The founder of the collapsed FTX empire, Sam Bankman-Fried, has been found guilty of all charges after hours of deliberation by the jury. Importantly, SBF faced two counts of wire fraud and five counts of conspiracy ranging from commodity fraud to money laundering.

Several reports confirmed that the jury was prohibited from discussing the case even among themselves. Interestingly, they came to the same conclusion when it came time for the discussion. This means that the accused faces up to 115 years in prison.

According to reports, SBF tried on several occasions to prove his innocence to the jury. He maintained that the collapse of his company was a result of his ignorance. However, none of them could counter the evidence presented against them. The court document shows that the FTX founder accessed, misrepresented, and spent approximately $10 billion of client funds.

Additionally, three people who were once close and trusted colleagues of the defendant testified against him under a cooperation agreement with the government. These people have pleaded guilty.

FTX, the company founded in 2019 by the defendant, was once a big brand with a valuation of $32 billion. In 2022, it enlisted some celebrities, including Tom Brady and Larry David, to endorse the company, for which a class action lawsuit has already been filed in this regard. In November 2022, the company collapsed and this was the beginning of this legal confrontation.

More about SBF and the FTX Issue

SBF once gave a lecture to Congress on the importance of keeping customers’ money safe and transparent. He was also seen donating money to institutions but was later found to have embezzled a huge sum which disrupted the functioning of the company.

In his testimony before Congress, SBF was asked why the company did not implement its best practices at its facility. SBF had previously claimed that his biggest mistake was not hiring a risk manager. However, this is said to be a choice, not a coincidence.

Prosecutor Danielle Sassoon commented, “That’s not a defense. That was a strategy. If you delete messages, update documents and embezzle money from clients, of course you’re not hiring a risk officer.”

According to US Attorney Damian Williams, the outcome of this case should serve as a warning to “criminals” who believe themselves too powerful to be prosecuted.

“(This is) a warning to all scammers who think they are untouchable, that their crimes are too complex for us to detect, that they are too powerful to prosecute, or that they are smart enough to get away with it if they get caught. Those people should think twice and quit.”

But Which 100 Years? SBF Will Be Given Less Than 25

On the other hand, Sam Bankman-Fried could see his freedom again when he is in his early 50s, according to Renato Mariotti, a former prosecutor for the US Department of Justice. There are other specialists who believe that the punishment will be very similar, such as Kevin J. O’Brien.

Overall, therefore, the outcome will be very different from what was thought would happen to SBF, whose sentencing will come next March.

By Audy Castaneda

Bitcoin: BOOM +110% Since the Beginning of the Year!

Leonardo Perez
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Bitcoin: BOOM +110% Since the Beginning of the Year!

“Bitcoin had a bumpy road throughout 2022: the cryptocurrency started last year at $46,700 and today is trading at 64% of that value,” economist Damián di Pace had said in early 2023.

Bitcoin is close to $36,000 but is now slowing down after October closed at +28.50%. The price has been stuck below resistance for a week, at a cyclical level a window of weakness is approaching. The first support is at $33,000.

The situation of Bitcoin (BTC) is analyzed from a 1H chart, where it is evident that the price reached the resistance in the area of ​​$35,750 – $36,000. In the chart, the sideways phase was created under resistance, before making a small increase to $36,000 and then starting to pull back.

Bitcoin Stops at $36,000 Resistance

Currently, BTC is trading at $34,750. and is seeing a correction after hitting the yearly high of $35,975. In these first days of November the price falls after an October that closed at +28.50%. It is interesting to note that in this phase there was a lateral absence of news related to the Spot BTC ETF, the market drivers that moved the price in the previous two weeks.

From a statistical point of view, October ended in green for the fifth consecutive year. An even longer series of positive performance occurred only in November, from 2012 to 2017. However, the last two years BTC closed November in negative.

Bitcoin Long Term Overview

To analyze the situation in more depth, it is necessary to expand the time frame starting with a weekly chart overview that goes from the all-time highs of $68,985 in November 2021, passing through the relative lows of $15,487 in November 2022.

The bearish phase that began after the historical highs was evident, culminating in the relative lows of a year ago, from where the current rebound began. If we focus on the last week, we clearly notice how BTC has reached the first resistance – target at $36,000.

The $36,000 level is obtained using Fibonacci retracements and corresponds to the 38.2% all-time high-low vector at $15,487, from the all-time high to the November ’22 lows. This level confirms the strength of the current trend but at the same time could also cause a slowdown in price growth.

The main resistance was located at $42,200, which corresponds to 50% Fibonacci, its breakout would mark the entry of bitcoin into a new bull market scenario.

In addition to the resistance levels, the updated supports after the new yearly high of $36,975 should be examined. The changes compared to last week are limited and now the first support level is at $28,150 while the main support passes in the $25,750 area. The event of a breakout of the latter could undermine the entire bullish stretch currently in force, opening a possible corrective scenario.

The Scenario in the Daily Chart

The daily chart highlights the news related to ETFs that boosted the price in recent weeks. The bullish objective is the break of $36,000, but a selling window is approaching, which coincides with contact with the resistance.

As for short-term supports, Bitcoin has a first level in the area at $33,000. Only with a loss from this level would we likely have a bearish acceleration with reaching around $31,800. The $31,800 and $30,500 levels are derived with the help of Fibonacci retracements, applied to the movement from the September lows to $24,910 to the yearly high.

By Leonardo Pérez

Uniswap Founder Believes SBF Guilty Verdict is the Right Outcome, Why Not Celebrate It?

Audy Castañeda
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Uniswap Founder Believes SBF Guilty Verdict is the Right Outcome, Why Not Celebrate It?

Uniswap is a protocol created in 2018 to create liquidity and exchange ERC-20 tokens on Ethereum. It is one of the first two decentralized exchanges worldwide.

Hayden Adams, founder of Uniswap, one of the world’s largest decentralized exchanges (DEX), thinks the jury was right in finding Sam Bankman-fried, aka SBF, the disgraced founder of FTX, a now-defunct exchange, guilty of the seven charges presented by the prosecution.

SBF’s Guilty Verdict is Correct, but It’s Not Time to Celebrate

Uniswap’s founder explained that FTX’s bankruptcy not only caused users to lose billions, but the industry suffered a huge blow to its reputation. In Adams’ view, the few winners in this case are the lawyers involved and the various cryptocurrency opponents that the founder did not mention.

The collapse of FTX in November 2022 marked a dark history in cryptocurrencies. At the end of what was already a challenging year for leading assets like Bitcoin (BTC) and Ethereum (ETH), the FTX crash took the community almost by surprise.

Days before the then-popular exchange filed for bankruptcy, Alameda Research and Caroline Ellison, a top executive 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) filed charges against FTX and Sam Bankman weeks after they filed for bankruptcy. The Justice Department 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 for Cryptocurrencies

After a four-week trial that began in early October, Sam Bankman-Fried was found guilty of seven criminal charges. 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 the technology and values ​​of the sphere, primarily around building decentralized systems that are open, auditable but secure.

To stay safe, the Uniswap founder said cryptocurrency users should easily pick out “cult of personality sociopaths,” which allowed Sam Bankman-Fried to prosper before being caught after the FTX crash.

The FTX crash, a sudden collapse of one of the major peers in the cryptocurrency market, underscored the volatility and risks inherent in the world of cryptocurrencies. This disaster had a significant impact, but brought valuable lessons to the market. From the critical importance of strong liquidity management to increased awareness of regulatory issues, these lessons are shaping the future of cryptocurrency exchanges.

Following the FTX collapse, it is vital that exchanges prioritize continually evaluating and correcting potential weaknesses and bottlenecks. The FTX incident highlighted that stress testing is not just a good practice, but a necessity. Without proper stress testing, exchanges may not fully understand how their systems will respond in the event of duress. These unforeseen vulnerabilities can cause problems during market turbulence, including downtime, order execution failures, and massive losses for traders.

In the wake of the FTX crash, exchanges should prioritize regularly and rigorously evaluating their systems to identify and address any potential weaknesses or bottlenecks.

By Audy Castaneda

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