Analyzing How Bitcoin Miners Can Influence the BTC Price

Audy Castañeda
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Analyzing How Bitcoin Miners Can Influence the BTC Price

Market indicators revealed that the bulls were still ahead of the bears. However, the selling pressure on BTC was increasing, which could cause problems.

Bitcoin [BTC] miners are sending record amounts of BTC to exchanges. As exchange entry increases, the chances of BTC witnessing a price correction increase.

The latest from Glassnode’s tweet revealed that BTC miners increased selling pressure on the coin. According to the tweet, BTC miners #are currently recording extremely high Exchange interaction, sending an ATH of $128M to Exchanges, equivalent to 315% of their daily revenue.”

Historically, such episodes were followed by a price correction in the value of the king of cryptocurrencies. Therefore, is BTC expecting another price crash in the next few days?

As miners continued to sell their holdings, the BTC supply distribution turned bearish. According to Santiment’s chart, the supply of BTC on exchanges was getting closer to its supply off exchanges. If the former changes the latter, it would mean that the sell sentiment is dominant in the market, which may cause the BTC price to decline in the following days.

Bulls Continue to Lead

A look at the daily chart for BTC revealed that the bulls were ahead of the bears. This was evident on its exponential moving average (EMA) tape, as the 20-day EMA was well above the 55 day EMA. BTC’s MACD also complemented the EMA ribbons as it was bullish.

However, Bitcoin’s money flow index (MFI) was in an overbought position, which may cause investors to panic and encourage them to sell their holdings. On top of that, the Relative Strength Index (RSI) turned lower and headed south. This suggested that the possibility of BTC price plummeting cannot yet be ruled out.

Are the Miners to Blame?

Miners are entities that use great computing power to solve sophisticated encryptions and produce blocks on the Bitcoin Blockchain. Each block rewards miners with 6.25 BTC, who usually sell that amount to finance or expand their facilities.

On Tuesday, analytics firm CryptoQuant tweeted that more than 33,860 BTC have been sent to derivatives exchanges, though most had been recovered back to proprietary wallets.

Miners also reduced their reserves by 8,000 BTC, of which only a small part was sent to spot trading exchanges, the firm added.

“This could indicate that miners may be using their newly created coins as collateral in derivatives trading activities,” CryptoQuant analysts stated. “An example of this type of trading is known as ‘hedging,’ which uses bets in the opposite direction of market consensus.”

CryptoQuant data revealed that miners were still selling moderate amounts of BTC, which was evident in the BTC Miners Position Index (MPI). BTC’s Puell Multiple – a metric that looks at the supply side of the Bitcoin economy, such as Bitcoin miners, and their income –  noted that miner revenue was in a moderate range, compared to its one-year average.

However, miners are not the only culprits, and investors in general were also selling BTC at a profit, as suggested by the aSORP network.

Additionally, net deposits on exchanges were also high compared to the past seven days, further proving that the coin was under immense selling pressure.

In the last 24 hours, the price of BTC decreased marginally. Most recently, it was trading at $30,338.28, with a market capitalization of over $589 billion.

By Audy Castaneda

Crypto Sector Leaves North America and the Community Could Follow

Audy Castañeda
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Crypto Sector Leaves North America and the Community Could Follow

North America no longer looks like the best place for the good performance of companies in the crypto sector that are gradually leaving the region.

So far in 2023, companies in the crypto sector are not receiving good vibes in North America and many of them are looking towards other horizons. If the sector leaves the region, a large part of the enthusiasts could follow it to live in places with friendly regulations.

After millions of people learned about the advantages of working, getting paid and living through cryptocurrencies, they probably do not want to go back in time. The cryptos represent an alternative to the old centralized system and provided new opportunities, especially to the youngest.

Consequently, if regulators make life miserable for the industry and companies leave Canada and the US, then many of the enthusiasts will leave with them. Although it may seem like a small issue, it can really be a problem related to brain drain.

Firms in the Crypto Sector Leave the US and Canada

As a consequence of the regulators’ attacks, the crypto sector leaves the North American region towards more friendly administrations. A significant number of people could go after companies leaving the US and Canada.

In the United States, the Securities and Exchange Commission (SEC) does not give up and attacks everything it considers to be under its wing. From centralized exchanges to firms that develop metaverse platforms could leave, as a reaction against the pressure.

The community points to the extremism of regulators as a danger to US leadership in terms of innovation. Consequently, the SEC’s tactic would lead entrepreneurs in the sector to develop their projects in other countries where they are not threatened with legal consequences for developing innovation tools.

The truth of all this is that places with friendly regulations exist and they are not few. Which is to say that the US could quickly fall behind. The crypto sector is not limited to a group of centralized exchanges like Binance and co.

In fact, it is an entire industry ranging from business, trade, and a highly-trained workforce. Thus, if the crypto sector leaves North America, the entire industry would follow to continue what they already started.

Some Places of Interest to Go Along Cryptocurrency Companies

There are numerous places that are willing to welcome the crypto sector that is now leaving North America. The so-called epicenters or hubs of Blockchain and cryptocurrency technology compete to attract the largest part of the industry.

All types of labor are included in this wave of migrants. Places like Hong Kong, Dubai or the block of the European Union welcome dozens of companies coming from Canada and the US with open arms.

The latter becomes a great opportunity to migrate under favorable conditions. There are also possibilities for Latin Americans to capitalize on this stampede. Countries like El Salvador present themselves as strong supporters of many companies.

The Central American nation was the first in the world to make Bitcoin legal tender. Thus, if a good part of the crypto companies goes towards it, the employment opportunities are enlarged for a large number of specialized Spanish-speaking workers.

Due to its proximity, regulatory ease, low costs of geothermal energy, that is, green, and even because the dollar is its official currency (along with BTC), many mining companies could make the leap from the US to Central America. Thus, this is one of the goals of much of the crypto sector leaving North America.

By Audy Castaneda

BlockFi CEO Indicted for Customer Fraud, Incompetence and Mismanagement

Audy Castañeda
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BlockFi CEO Indicted for Customer Fraud, Incompetence and Mismanagement

BlockFi’s UCC accuses CEO Zac Prince of defrauding customers and committing undue excesses, delaying progress. Prince allegedly breached his fiduciary duty, allowing fraudulent transfers and liquidating client holdings. Creditors propose to reduce BlockFi’s exclusivity period, or convert its bankruptcy to Chapter 7.

BlockFi is a bankrupt cryptocurrency lender, and collateral victim of the historic FTX collapse last November.

BlockFi’s Unsecured Creditors Committee (UCC) has launched court proceedings accusing BlockFi CEO Zac Prince of defrauding customers and over-participating while delaying the way forward.

The UCC filed documents with the United States District Court of New Jersey today charging Prince and BlockFi with undue excess through their debtors’ exclusivity motion.

CEO Zac Prince and His Colleagues Indicted for Personal Enrichment

The exclusivity motion granted BlockFi management permission to lead the internal management of the bankruptcy due to their knowledge of the company.

The committee argues that BlockFi’s motion will not lead to a “principled or quick conclusion.” Instead, it appears to enrich BlockFi experts at the expense of creditors while the company earns no revenue.

“It is time for the Debtors’ unsecured creditors to finally know what BlockFi really was, who Zac Prince really is, how much he personally benefited from the company, and what he and some of his colleagues were doing (in juxtaposition to what they promised to customers) when no one was looking.”

BlockFi filed for bankruptcy on November 28, 2022, citing exposure to FTX. It lent crypto deposits, among other ventures, to lender Celsius Holdings. According to BlockFi’s bankruptcy filing, the company owes money to more than 100,000 creditors, with liabilities ranging from $1 billion to $10 billion.

When FTX filed for Chapter 11 bankruptcy on November 11, BlockFi followed suit seventeen days later, citing a $1 billion hole in its balance sheet as a result of exposure to the discredited exchange and its sister company, trading firm Alameda Research.

While launching bankruptcy proceedings, BlockFi also began suing former FTX CEO Sam Bankman-Fried for allegedly pledging Robinhood shares as collateral.

New UCC Waste Minimization Plan

Unless the court takes action, Prince and BlockFi will deplete funds owed to creditors, the UCC said.

Consequently, they have asked the court to appoint a Chapter 11 trustee because Prince allegedly breached his fiduciary duty by allowing $900 million in fraudulent transfers. In addition, BlockFi liquidated clients’ holdings against prior pledges, exposing them to undue tax risk.

The company also settled the case and violated federal law by requesting a restructuring plan too soon. It also lied about its actions and the existence of a Creditors Committee Plan.

In lieu of a Chapter 11 plan, the creditors propose that the court could reduce the exclusivity period of BlockFi’s motion. This is because the company has not advanced in the elaboration of a significant plan.

A third alternative would see the judge convert BlockFi’s bankruptcy to Chapter 7. While under Chapter 7 proceedings, the company must show that its current efforts will not erode the distributions it owes to the parties.

Zac Prince has yet to comment on the allegations.

By Audy Castaneda

Coinbase Files Motion to Dismiss SEC Case

Marina Meza
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Coinbase Files Motion to Dismiss SEC Case

In a significant development in the ongoing legal battle between Coinbase and the US Securities and Exchange Commission (SEC), the American cryptocurrency exchange has filed a motion to dismiss the SEC’s lawsuit.

Coinbase argues that digital assets listed on its platform do not fall under the jurisdiction of the SEC, and disputes the regulator’s assertion that several cryptocurrencies offered on its platforms are unregistered securities.

The SEC had filed a lawsuit against Coinbase in early June, alleging that a dozen cryptocurrencies offered on the exchange’s wallet or trading platforms were unregistered securities.

Coinbase’s 177-page response, filed Thursday, June 29, counters this claim by stating that these cryptocurrencies do not qualify as investment contracts, and therefore, should not be classified as securities.

Coinbase Denies SEC Jurisdiction

Coinbase claims that cryptocurrencies traded on its secondary market platform are not part of a deal in which a promoter sells a contract-linked asset. The company thus points to the Howey Supreme Court case in support of its position.

According to Coinbase, the issuers of these tokens have no obligations to investors, which underscores the argument that transactions made on Coinbase’s secondary market are not securities. The value derived from these transactions lies in the assets themselves and not in the underlying companies that generated them, according to the filing:

“None of the assets that the SEC has now identified are in fact securities, and for that and other reasons, the secondary transactions in those assets are also not securities. […] none of these meet Howey’s definition of an “investment contract”.

Upon arguing the opposite, the SEC has proposed a novel construction of the operating term which is devoid of […] legal context the supreme court and the commission itself agreed long ago they should disclose the meaning of the term.”

Coinbase also notes that during his tenure, SEC Chairman Gary Gensler changed his position on the regulator’s powers over cryptocurrencies: furthermore, he notes repeated calls for Coinbase regulation.

The motion also points out that the Congress has begun to explore the issue of crypto regulation. The motion to dismiss claims that even if the SEC were correct in asserting its regulatory authority over such assets and services, the case should be dismissed due to violations of Coinbase’s due process rights and an alleged abuse of process.

The exchange argues that the company willingly complied with the rules of various overlapping regulators, sought guidance from the SEC, and followed limited formal guidance from the SEC, senior SEC staff, and the courts regarding the application of securities laws to the cryptocurrency industry.

Showdown in Seven Weeks?

In a separate document filed with the high court judge, Coinbase contends that its due process rights were violated when the SEC brought the action. The company claims that the SEC’s action violates the “top questions” doctrine:

“Even if the proposed construction were plausible, the main issues doctrine would advise against its adoption by this court, and would favor deference to the legislative prerogative of Congress to address itself major policy decisions affecting substantial segments of the industry.”

Coinbase is asking the judge for permission to file a sentencing motion and is proposing a seven-week timeline for its motion, the SEC’s opposition, and its own response to the opposition. Paul Grewal, Coinbase’s chief legal officer (CLO), emphasized that the claims made in the lawsuit go beyond existing law and must be dismissed. Currently, COIN’s share price managed to break above the 200-day EMA, trading at $70.75.

By Marina Meza

Debtors of the collapsed FTX Exchange, have managed to recover $7,000 million dollars

Audy Castañeda
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<strong>Debtors of the collapsed FTX Exchange, have managed to recover $7,000 million dollars</strong>

According to the second interim report from FTX Debtors, tracking down the embezzled funds from the collapsed exchange is a “huge challenge.”

According to the second report by “FTX Debtors”, published on June 26, $7 billion in embezzled assets have been recovered to date. The broad mix of funds, however, complicates efforts to search for additional assets, current FTX CEO John Ray said in the report.

Previously, FTX Debtors, indicated that the exchange owed clients approximately $8.7 billion when it filed for bankruptcy last year. It is important to note that the bulk of those assets, more than $6.4 billion, were in fiat and stablecoins that were embezzled, according to the report.

FTX Debtors Report Details

The report noted that former FTX leadership “did not misuse client deposits by accident.” In addition, it was also indicated that the former leadership of FTX, “concealed their actions” with the assistance of a senior lawyer for the company.

“Despite the extensive work done by experts in forensic accounting, tracing, and asset recovery on the Blockchain, it is extremely difficult to trace the substantial assets of debtors to any particular funding source, or to differentiate between FTX operating funds and deposits made. for their customers.” The report stated.

The extent of the FTX chaos was laid out in a diagram of FTX clients’ money flows out of the main deposit accounts “identified to date.”

According to FTX Debtors, those assets were made possible to misrepresent through “numerous fake companies.” The report also highlighted that the embezzled funds were used for political donations, charitable donations, and company acquisitions such as luxury real estate.

FTX Embezzled Funds Through Fake Crypto Companies

Furthermore, the report stated that FTX created a new entity called “North Dimension Inc.”, which was falsely described as a crypto company with 2,000 counterparties and an average monthly trading volume of $10 million.

However, it was actually a shell company that the exchange used to receive customer deposits and withdrawals for the Bahamas-based exchange.

According to the report, when a company lawyer discovered and raised concerns that North Dimension accounts were being used to fund withdrawals from the exchange, the company fired the lawyer, who was recently hired by the company, “without justification.” the crypto company

Such embezzlement was the main focus of the statements made by the former CEO of the collapsed FTX exchange, Sam Bankman-Fried, before the US Congress. In addition, the involvement of the unidentified lawyer who detected the embezzlement through the North Dimension accounts was also repeatedly mentioned.

“FTX senior executives Sam Bankman-Fried, Gary Wang, Nishad Singh and Caroline Ellison of Alameda Research informally calculated the amount of FTX.com’s unreported fiat currency debt to its clients, which was the result of the extensive mixing and misuse of customer deposits,” claims the report.

“Their estimates ranged from $8.9 to $10 billion, which is slightly higher than what was estimated by exchange debtors,” the report added.

Finally, FTX Debtors said that it will continue to report on the analyzes and findings as the work progresses, to “manage to recover” as much value as possible for creditors.

By Audy Castaneda

Jack Dorsey Questions Tim Cook About Apple’s Policies Against Bitcoin

Marina Meza
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<strong>Jack Dorsey Questions Tim Cook About Apple’s Policies Against Bitcoin</strong>

Damus, a decentralized social network backed by Jack Dorsey, could be removed from the Apple App Store for allowing Bitcoin payments. This ‌and‌ ‌more‌ ‌ ‌news‌ in‌ ‌this‌ ‌practical‌ ‌summary‌ ‌daily, so that‌ ‌‌the most recent events occurring within the crypto world are available.

Jack Dorsey and Tim Cook on Bitcoin

Twitter co-founder Jack Dorsey has questioned Apple CEO Tim Cook for failing to embrace Bitcoin at the company. Via Twitter, Dorsey asked Cook “Why doesn’t Apple Pay support Bitcoin?”

The question was followed by a post by Dorsey-backed decentralized social network Damus about integrating peer-to-peer payments with Bitcoin into the Apple App Store.

On June 27, Damus tweeted that “Their suggested fix is to use apple pay. Sure, I’ll use apple pay when it supports censorship-resistant, peer-to-peer payments to anyone in the world. Maybe start with peer-to-peer first?”

A few weeks ago, Damus received a notification from Apple stating that she would be removed from the App Store for violating their terms of service.

Apple pointed out the use of “zaps”, a mechanism with which Damus implements payments with Bitcoin and Lightning Network, and that users of the social network use to pay for digital content, as a violation of its terms of service.

Although Apple does not allow Bitcoin, its CEO revealed himself as an investor in this cryptocurrency in 2021. In August of last year, Cook said during an interview with The New York Times that it was interesting to buy bitcoins. In 2021 he indicated that he was attracted to new technologies.

The SEC and Spot Bitcoin ETFs

Will the US Securities Regulator Approve a Bitcoin ETF in the Spot Market? According to Hugo Botto, creator of the Healthy Pockets channel, August could be a historic month for Bitcoin and the cryptocurrency industry in general.

In August, the United States Securities and Exchange Commission, the SEC, will respond to requests for spot Bitcoin ETFs from ARK Invest and 21 Shares.

The SEC will approve or reject Bitcoin ETF applications submitted by these investment firms on August 13, it reported.

Earlier this month, managed fund giant BlackRock filed a registration request to create a Bitcoin spot ETF in the United States.

Reuters reported that Fidelity Investments, which manages more than $4 trillion in client assets, will also file an official application with the SEC to create a Bitcoin exchange-traded fund that tracks the price of the cryptocurrency directly on the market.

Investors Bet on the Web3 Gaming Sector

Web3 games attracted nearly $500 million in investment in May. A report published by DappRadar notes that the Web3 gaming sector is gaining more and more attention from investors. This is demonstrated by the monthly figures for the capital that this sector has attracted.

Last May, Web3 games totaled $476 million in investments, the platform reported. This is 13% more than the investments registered in the month of April, which were $421 million dollars. With respect to the first two months of the year, January and February, investments in the Web3 games sector have increased by 305% and 321%, respectively.

According to the report, interest in Web3 games is concentrated mainly in Asia, a region that is gaining more and more prominence in the crypto/blockchain industry. Governments such as Japan, South Korea, Singapore, the United Arab Emirates, China, and the Hong Kong administrative region are driving the development of Web3.

By Marina Meza

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