Bitcoin Price Remains in the Bullish Zone for a Push to $18K, Here’s Why

Audy Castañeda
-
0
<strong>Bitcoin Price Remains in the Bullish Zone for a Push to $18K, Here’s Why</strong>

If the bitcoin price fails to break above the $17,000 resistance, a downward correction could begin. However, a famous cryptanalyst, Kelvin Svenson, argues that a technical indicator could end the bear market for Bitcoin.

Bitcoin price started a downward correction from the $17,000 resistance. BTC found support near $16,750 and could soon attempt a bullish breakout above $17,000.

This perception is shared by Bitcoin analysts, who are following BTC price trends as the 2022 bear market drags into early 2023. The crypto market is recovering slightly from the FTX fiasco that made most crypto assets crash.

A famous cryptanalyst, Kelvin Svenson, points out that a technical indicator could end the bear market for Bitcoin. This, according to him, suggests that the BTC bulls have started to gain momentum. Furthermore, he noted that the market’s two-year downtrend could end if there is a breakout of the RSI.

Bitcoin Price Remains Supported

Bitcoin price attempted a decent upward move above the $16,800 resistance level. BTC even shot up towards the $17,000 resistance zone, but there was no clear bullish breakout.

A high was formed near $16,987, and the price began a downward correction. There was a move below the $16,800 support zone. The price dipped below the 50% Fibonacci retracement level of the up move, from the $16,615 low to $16,987 high.

However, the bitcoin price found support near the $16,750 level. The 61.8% Fib retracement level of the up move, from the $16,615 low to $16,987 high, is acting as support.

There is also a crucial uptrend line forming with support near $16,750 on the hourly chart of the BTC/USD pair. The pair is stable above $16,750 and the 100 hourly simple moving average. To the upside, immediate resistance is near the $16,900 level.

The next major resistance is near the $17,000 area. A clear move and close above the $17,000 resistance could start a strong rally in the near term. In the indicated case, the price perhaps goes towards the $17,550 level. More gains could require a move towards the $18,000 level.

Svenson’s Prediction and Bitcoin Price Outlook

Svenson cited a weekly RSI breakout towards the end of the BTC bear market in 2018. Pointing to BTC’s diagonal resistance line, he added that the market turns bullish once the RSI breaks above the resistance level.

Given the momentum that the weekly RSI is approaching, the cryptanalyst says that BTC is heading towards a significant bull run.

Bitcoin is currently trading at $16,831, but Svenson predicts that BTC can rally to $21,000 if the RSI breaks its long-term resistance. Bitcoin’s current price indicates a potential 25% increase if it hits $21,000, as Svenson predicted.

As the new year unfolds, analysts other than Svenson have projected a new outlook for BTC in 2023. For example, according to Michael van de Poppe, BTC will experience a massive price increase in the coming months, with a rally between $30,000 and $35,000.

By Audy Castaneda

Crypto Regulation 2023: Here’s How the World’s Largest Regulator Plans to Do It

Audy Castañeda
-
0
<strong>Crypto Regulation 2023: Here’s How the World’s Largest Regulator Plans to Do It</strong>

The Financial Stability Board (FSB), one of the world’s most powerful financial watchdogs, said it will quickly establish and enact regulations on the cryptocurrency industry by early 2023.

The FTX collapse has highlighted the need for global cryptocurrency regulation to protect investors from companies that take advantage of a regulatory vacuum to engage in illicit activities.

While some jurisdictions have implemented regulations for digital assets, there is a need to establish standard global cryptographic standards.

As tweeted by Avinash Shekhar, head of an India/Singapore-based financial tech company, “FSB made recommendations for the regulation, supervision & oversight of crypto activities, markets & ‘Global Stablecoin’ arrangements. This seeks to promote the comprehensiveness and international consistency of regulatory and supervisory approach.”

Shekhar further added that “The FSB identified vulnerabilities related to the crypto-sector that may have financial stability implications. FSB prescribed the international stance on the way forward regarding regulation.”

According to the outgoing FSB Secretary General, Dietrich Domanski, one of the goals of the regulation is to change the perception that crypto regulation is “slow and does not focus on a single common goal.”

What Regulations Could the FSB Implement?

In the coming months, the regulator will set a timetable for regulators around the world to follow on the first set of recommendations. The FSB has been assessing the risks in the crypto industry for more than 5 years, and has a clear strategy on what its regulation should be like.

The FSB recommendations also detail areas where policymakers need “more clarity.” It is this lack of clarity that has led to the failures of major crypto platforms like Terraform and FTX, which the regulator plans to prevent in the future.

Contrary to the belief that regulators have been hostile to cryptocurrencies, Domanski says they have been “quite accommodating,” hence the need to urgently address these risks.

Finally, the FSB recommends that cryptocurrency service providers be held to the same standards as banks if they provide similar services.

Clarity in Governance and Transparency are Paramount

Domanski recalled the meteoric growth of Terraform Labs and FTX, which would not have collapsed if they had been run like banks because they would not have met “good governance criteria.”

This is why the FSB recommends clarity in governance and transparency arrangements, as well as measures to protect client funds.

It appears that cryptocurrency is a key priority at FSB meetings today, and the regulator could create a dedicated committee to shape future crypto regulations.

It should be remembered that in May 2022, Sheila Warren, CEO of the Crypto Council for Innovation, moderated a panel discussion titled “DeFi Future: Inside the Creation of a New Financial System.” Warren stated that the cryptocurrency sector is currently witnessing “regulatory madness,” noting that there is not a single jurisdiction that is not focused on cryptocurrency innovation right now, “This is the most important of our time. We are currently laying the groundwork for crypto to move forward,” she said.

                                                                                                            By Audy Castaneda

3AC Founder Summons by Judge to File Bankruptcy Documents

Audy Castañeda
-
0
<strong>3AC Founder Summons by Judge to File Bankruptcy Documents</strong>

Industry players call on 3AC founders to acknowledge the company’s failures instead of tweeting about other failed crypto projects.

The United States Bankruptcy Court for the Southern District of New York has subpoenaed Three Arrows Capital co-founder Kyle Davies to file documents allowing access to 3AC assets.

Lawyers representing 3AC’s liquidators tagged co-founder Kyle Davies in a tweet containing a redacted copy of the summons, ordering the duo to hand over all physical and digital company documents by January 26, 2023.

Davies Subpoenaed Due to Constant Tweets

In addition to the documents, Davies is also required to provide the liquidators with the contact details of Zhu and several other entities. The document also demanded details of 3AC’s bank accounts and Ethereum addresses.

Davies’s frequent tweets in part led US bankruptcy judge Martin Glenn to rule in favor of the liquidators’ request to use social media to serve Davies with the subpoena. However, the judge clarified that the liquidators could not subpoena Zhu since he is not a citizen or resident of the United States.

Zhu and Davies have been playing cat-and-mouse with liquidators, after 3AC filed for bankruptcy in July 2022, when leveraged bets on rising cryptocurrency prices botched following the collapse of Terra Luna.

The company filed for Chapter 15 bankruptcy to protect its US assets, when the liquidation process began in 3AC’s legal domicile, the British Virgin Islands.

Crypto Industry Calls on 3AC Founders to Take Accountability

Although difficult to pin down, both founders were active on Twitter prior to the subpoena. Nic Carter, from Castle Island Ventures, commented on the irony of the founders being quoted on Twitter following recent tirades about other engaged crypto leaders.

Carter tweeted that “the irony of the 3AC boys trying to tweet their way back into respectability and having the court OK service via twitter as a result is really quite exquisite.”

The 3AC founders were responsible for several tweetstorms in recent months, surrounding alleged fiscal mismanagement at Digital Currency Group and FTX.

Both Zhu and Davies criticized Digital Currency Group and its CEO over liquidity problems at lender Genesis Global Capital, after the latter halted withdrawals and loan origination amid a liquidity crisis in mid-November 2022.

Genesis, along with Grayscale Investments, belongs to DCG. The criticism is ironic, as Three Arrows borrowed $2.4 billion from Genesis Asia Pacific, contributing to its cash crunch.

Zhu also tweeted a lot about the collapse of FTX, as well as the fall of its former CEO, Sam Bankman-Fried.

Noticeably absent from the duo’s tweets were any feelings of remorse or regret regarding 3AC’s collapse. There is also no mention of how creditors and investors would be repaid.

Matt Walsh, general partner at Castle Island, called Davies in mid-December. 2022 for over-tweeting without taking responsibility for 3AC’s mistakes.

The founders’ indifference was also highlighted by British Virgin Islands liquidators Teneo, whose recent court filing revealed that despite their constant tweeting and recent appearances on Bloomberg and CNBC, neither the founders nor their legal counsel responded to settlement correspondence.

By Audy Castaneda

Israel Could Include Cryptocurrencies in Country’s Existing Laws

Audy Castañeda
-
0
<strong>Israel Could Include Cryptocurrencies in Country’s Existing Laws</strong>

The proposal is open for public comment until February 12 and could take effect after six months.

The Israel Securities Authority (ISA) could amend three of its existing currency laws to squeeze in cryptocurrencies.

The regulator’s proposals seek to grant investors maximum security when it comes to digital assets, recalling the recent collapse of FTX and the severe losses it caused to consumers.

Paying Attention to Cryptocurrencies

Israel’s financial watchdog has proposed that cryptocurrencies be included in the nation’s existing securities legislation. As such, the regulator will directly supervise bitcoin and altcoin trading. It will also place the asset class in the “financial instruments” category, where securities, trading, and joint investments are also found.

The potential amendment is intended to provide Israeli crypto participants with additional protection, as well as to underline the technological advancement of the sector.

“Cryptocurrency is a digital representation of value used for financial investment purposes and can be transferred and stored electronically through the use of distributed ledger or other technology,” the ISA stated.

The regulator believes that embracing the crypto industry could positively affect Israel’s economy because it could trigger the flow of diverse capital.

“Advanced technology in these assets can drive economic efficiency in many areas, reduce costs, save the need for intermediaries, and optimize the way information is transferred between entities,” the proposal reads.

The ISA added that cryptocurrencies have become a predominant niche in the Mediterranean nation, with more than 200,000 Israelis exposed to the market, and around 150 companies operating in the field.

Reminder about FTX and Celsius

The ISA believes that global regulators failed to impose relevant rules on the cryptocurrency industry last year, leading to the demise of many companies, such as FTX and Celsius Network. It also noted that the Founder of the latter is Alex Mashinsky, who is of Israeli origin.

Celsius suspended withdrawals, redemptions, and transfers between accounts in June last year, citing “extreme market conditions.” The company raised hopes that the move would stabilize its liquidity.

On the contrary, the problems for the former crypto giant continued and it had to cut 150 of its total workforce in July. It filed for Chapter 11 bankruptcy protection a week later, while CEO Mashinsky resigned from his position in September. The company came close to signing an acquisition deal with FTX, but the latter’s undoing wiped out those plans.

Celsius recently extended the deadline for customers to file their claims to January 10 (at least). Regarded as one of the leading firms in the crypto lending space, it had 1.7 million customers as of early last summer. Some of its creditors include bankrupt Alameda Research and Pharos USD Fund SP.

By Audy Castaneda

Ukrainian Pharmacy Chain Introduces Cryptocurrency Payments

Audy Castañeda
-
0
<strong>Ukrainian Pharmacy Chain Introduces Cryptocurrency Payments</strong>

Coin transactions will be processed through Binance Pay.

A major Ukrainian pharmacy chain has started accepting cryptocurrencies through Binance Pay. The new payment method will be available online, according to the company, which operates hundreds of pharmacies across the war-torn Eastern European nation.

Pharmacy Offers Ukrainians the Option to Pay with Cryptocurrencies Using Binance Pay

Customers of the Ukrainian pharmacy chain ANC can now buy medicines and other items using various cryptocurrencies. The new payment option is available from Tuesday, the company announced, stating that it has become the first pharmacy chain in Europe to offer it:

“From January 3 you will be able to enjoy instant payments for the purchase of pharmacy products. It will be possible to pay for orders with cryptocurrency in Anc.ua!”

Coin transactions will be processed through Binance Pay, the payment system developed by the world’s largest digital asset exchange by trading volume. It allows users and businesses around the world to spend, send, and receive more than 70 digital currencies such as Bitcoin.

How Does It Work?

To take advantage of the service, clients will need to download and install the Binance app, go to the ANC website, place an order, and cover the bill with Binance Pay. They can then receive the products or pick them up at any of the chain’s stores.

ANC operates a network of pharmacies under its brand and unites several other Ukrainian chains such as Blagodiya, Kopiyka, and Shar@. It has stores in more than 130 Ukrainian cities with more than 7 million customers per year. Crypto payments are initially available in the capital, Kyiv.

In recent years, Ukraine has established itself as a regional leader in cryptocurrency adoption. Since Russia launched its invasion in late February, the country’s government and volunteer organizations have relied on cryptocurrency donations to fund humanitarian and defense initiatives, also supported by industry.

Binance Pay has been employed by other Ukrainian companies to enable crypto payments. In September this year, a supermarket chain with more than 100 stores in Ukraine, known as Varus, integrated the payment system to offer its customers in Kyiv, Dnipro, Zaporizhzhia, and other cities the option to spend coins on groceries.

In August, Ukrainian tech stores Tehnoezh and Stylus introduced crypto payments via Whitepay, a similar payment platform developed by Whitebit, a European cryptocurrency exchange with Ukrainian roots.

In early February 2022 — or weeks before Russian forces invaded Ukraine — Binance Ukraine CEO Kirill Khomyakov told Cointelegraph that launching a Binance Card in Ukraine was one of Binance’s top priorities for 2022.

According to Khomyakov, crypto payments through services like Binance Card do not conflict with Ukrainian laws because there is no ban on cryptocurrency derivative transactions in Ukraine. At the same time, local laws do not allow direct payments in cryptocurrencies like Bitcoin, being the pharmacy chain ANC the first to change this.

By Audy Castaneda

US Regulators and Federal Reserve Jointly Issue Cryptocurrency Warnings

Audy Castañeda
-
0
<strong>US Regulators and Federal Reserve Jointly Issue Cryptocurrency Warnings</strong>

Regulatory agencies include the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (OCC).

The crypto space received more regulatory attention until the end of 2022. The collapse of one of the world’s largest digital asset exchanges brought massive losses to the industry. This event prompted various watchdogs to express concerns and issue warnings about cryptocurrency compromise.

Some US federal regulators have recently commented on the risks of crypto activities. Regulatory agencies include the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (OCC).

According to the report on Tuesday, January 3, 2023, some officials from the three regulatory agencies warned lenders about exposure to digital assets. They cited that risk escalation should not extend to the banking system.

“Agencies have significant security and robustness concerns with business models that concentrate on crypto-asset-related activities or have concentrated exposures to the crypto-asset sector,” the regulators detailed.

Regulators Cited Risks Associated with Crypto Compromise

The warning from watchdogs comes after the crash of the digital asset exchange FTX in 2022. Millions of customers lost their funds on the distressed platform, estimated at more than $8 billion.

They explained that the events of the past year showed “significant volatility and exposure of vulnerabilities in the crypto asset sector.” The regulators cited many risks, including fraud and scams, legal uncertainties, inaccurate or misleading representations by crypto companies, significant volatility in crypto markets, execution risks, and contagion risks.

“Based on the agencies’ current understanding and experience to date, the agencies believe that issuing or holding primary cryptographic assets that are issued, stored, or transferred on an open, public, and/or decentralized network or similar system is highly likely. is inconsistent with safe and sound banking practices,” the statement continues.

As regulators of the banking system, watchdogs pledged their undivided regulatory diligence. This means increased caution and stricter rules for banking organizations when it comes to digital exposure.

FTX Bankruptcy Created More Doubts

Before its implosion, FTX was ranked among the top crypto exchanges worldwide. It had millions of users and investors from different sectors.

Due to its bankruptcy, several individuals and companies exposed to the platform suffered huge losses. This generated concerns and reactions both inside and outside of the digital space. As a result, US regulators have tightened their regulatory rules on digital activities.

As revealed in the bankruptcy filing, some small banks exposed to the exchange include Signature Bank and Silvergate. However, the two banks reported holding only a minimal portion of total deposits on the distressed exchange.

According to US regulators, the financial system in general received less impact from the collapse of the FTX exchange. But the effect is still devastating for some people and companies that invested in the platform.

The Federal Reserve, the FDIC, and the OCC noted that they “will continue to closely monitor crypto asset-related exposures of banking organizations,” concluding as follows:

“Banking organizations must ensure proper risk management, including board oversight, policies, procedures, risk assessments, controls, security gates and barriers, as well as monitoring, to effectively identify and manage risks.”

By Audy Castaneda

1...583584585...1,654Page 584 of 1,654