‘Lower Wave’ for all Markets? Five Things to Know About Bitcoin this Week

Audy Castañeda
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‘Lower Wave’ for all Markets? Five Things to Know About Bitcoin this Week

Bitcoin (BTC) starts the week before Christmas with a moan, as a tight trading range gives BTC bulls little joy.

A weekly close just above $16,700 means that BTC/USD remains without major volatility amid a lack of overall market direction.

The reality is stark for the average hodler of Bitcoin, which is trading below where it was two years ago, and even five years ago. “FUD” is barely in short supply thanks to the fallout from FTX and concerns over Binance.

At the same time, there are signs that miners are rallying, while on-chain indicators indicate that the time is right for a classic macro price bottom.

BTC Spot Price: “Capitulation” or “Slow Grind”?

Closing the week at just under $16,750, Bitcoin escaped without further bout of volatility on December 18. Data from Cointelegraph Markets Pro and TradingView prove the point: since the FTX scandal broke in early November, Bitcoin has hardly seen any notable price movements.

Others believe that the worst is yet to come for the current cycle. Among them is popular Crypto trader and analyst Tony, who is among those targeting a potential low of around $10,000.

On a Twitter thread this weekend, Tony claimed that “Whether we capitulate or if we do it slowly remains to be seen.”

New US Data as Analysis Predicts a Fall in Risky Assets

After last week’s drama, it’s safe to say that next week will provide somewhat less pressure for Bitcoiners. as third-quarter US gross domestic product (GDP) growth is due, and is projected to turn positive after the second quarter saw a 0.9% retraction.

However, as market investor Ajay Bagga points out, too sharp a reversal in GDP would give the Federal Reserve the license to continue aggressive interest rate hikes to rein in inflation, something not welcome for assets. risk across the board, including crypto.

Binance CEO Calls Out “FUD” as Foul Play Claims Continue

Reuters, in a report that Binance publicly rejected, has meanwhile given way to a number of additional questions, including a blog post alleging suspicious activity between Binance and its US counterpart, Binance US.

Meanwhile, Zhao continues without giving time for any type of accusation, on December 17. reiterating his “FUD” perspective. Later, he retweeted the words of Ryan Selkis, founder of the Messari analysis platform, in which he stated that there was an element of “xenophobia” in the criticism of Binance.

Miners Turn Up the Competition

After its biggest decline in almost 18 months, the difficulty of the Bitcoin network will begin to increase again this week. According to BTC.com estimates, the next bi-weekly difficulty reset will see an increase of around 3.8%. This has implications for miners, who have seen considerable turmoil in the weeks since FTX sent BTC/USD tumbling as much as 25%.

Sentiment is forecast to fall to 2022 lows

Thanks to FTX and now Binance, there is a clear sense of doom hanging over social media, and price action in crypto assets still doesn’t paint a different picture. The Crypto Fear & Greed Index is performing remarkably better than expected and is still above its “extreme greed” low. At 29/100, one could even say that the index is somewhat disconnected from the mood. For Crypto Tony, however, it will be short-lived as the Index will return to this year’s lows of just 6/100 in 2023.

By Audy Castaneda

Will Bitcoin (BTC) Succeed in its Binance Storm Rally?

Audy Castañeda
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<strong>Will Bitcoin (BTC) Succeed in its Binance Storm Rally?</strong>

BTC has been on a roller coaster before, but it has always been noted for its resilience.

When Binance, the first CEX (centralized exchange), finds itself in troubled waters, there are reasons to wonder what happens to the world’s first cryptocurrency, Bitcoin (BTC). In fact, the market is hungover at the end of the year, after the announcement of massive withdrawals on Binance.

According to Nansen, the Blockchain analytics platform, $3 billion has been stolen from the trading whale. In addition, the impact of this information was immediate in the entire market, in particular in Bitcoin (BTC).

The year 2022 is definitely not a time for the crypto market. The FTX episode is not over yet, and we are already diving into the Binance one. The queen of cryptos also toasts. Therefore, you see its price plummet when it had started a nice rally at the beginning of the week.

The Tree that Hides the Nansen Forest

Earlier this week, a $3.66 billion worth of fiat currency left Binance. This data relates to Ethereum and ERC-20 token movements only.

In fact, the amount of bitcoins withdrawn from Binance shows a 30-day positive balance. However, on closer inspection, 80,577 BTC (around $1.3 billion) have been withdrawn from Binance in the last seven days, according to Coinglass.

It is clear that Binance wins the gold medal in terms of net weekly Bitcoin withdrawals on a CEX. However, this downward movement is a broader phenomenon, already spanning several months.

The number of bitcoins present on exchanges is constantly declining. Thus, 1.9 million BTC are in circulation on exchanges, so it follows that 90% of bitcoins are therefore illiquid today.

When Will the Bitcoin Phoenix Bird Rise from Its Ashes?

The announcement of the slowdown in inflation in the US gave a boost to the price of Bitcoin (BTC), which even reached $17,785 on December 14. However, this comeback did not last long. News of the massive withdrawals on Binance sent the coin created by Satoshi Nakamoto into a downward spiral again.

However, what at first appears to be another blow to the cryptocurrency market may actually be the source of its recovery. In fact, long-term BTC holders are bringing a new dynamic to the availability of bitcoin (BTC). This reality is even more instructive, as the number of active BTC addresses declines.

To conclude, since its creation 14 years ago, bitcoin (BTC) continues to give way to the debate. Especially since the context of the bear market gives rise to all the speculation. Lo and behold though, the coin created by Satoshi Nakamoto is over a decade old with worldwide adoption. We are far from being a matter for a few scholars. The reality of this course of unwinding bitcoin (BTC) is that you have already been on a roller coaster. However, it has always been noted for its resilience.

By Audy Castaneda

Binance Seeks Independent Auditor, But the ‘Big Four’ Refuse

Audy Castañeda
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<strong>Binance Seeks Independent Auditor, But the ‘Big Four’ Refuse</strong>

Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers are reportedly turning down chances to audit Binance despite a long history with Coinbase.

According to the largest cryptocurrency exchange by volume, major auditing firms are “currently unwilling” to perform a proof-of-reserves audit for a private cryptocurrency company.

According to CNBC, the big four accounting firms have yet to take any steps to stop serving cryptocurrency clients. This includes Coinbase, Deloitte’s client.

Meanwhile, Armanino, another auditing firm, also announced that it would no longer accept cryptocurrency clients shortly after its client FTX went bankrupt.

Armanino was reportedly named in a class action lawsuit last month for failing to discover violations on FTX.US. The firm also audited crypto exchange Kraken.

Binance Contacting Auditors

A Binance spokesperson told Blockworks that “We have reached out to several large companies… and we are still looking for a company that will.”

According to the representative, the certification of the proof of reserves by an independent auditing firm attests that the stock’s assets are equal to or greater than its liabilities.

Binance also stated that it would continue its efforts to prove that its assets are available on the Blockchain, and that they are securely owned by the exchange using the Merkle Tree proof of reserves, to show that a custodian actually owns the assets it claims to hold on behalf of its clients.

Since the demise of its rival, Binance has attracted more scrutiny. It is said that last week, withdrawals of $6 billion were made as a way to test the solvency of the exchange, due to the continued FUD.

The spokesperson added that the company intends to provide more details in the coming months. However, what remains to be seen is which auditor will sign on to Binance as a client.

Auditors Educate Themselves about Crypto

Jeff Dorman, CIO at Arca, says auditors are also continually learning. Citing the saga of Arthur Anderson and Enron, Dorman opined that “auditors don’t like to take risks.”

He noted that “The auditors are still learning themselves. It’s one thing to prove you have assets in the wallet; it’s quite another LONG ordeal to prove you have access to all of them.”

Regarding Binance, the CIO suggested avoiding exposure by leaving a lot of assets there. He noted: “Speaking of audits, it is possible to believe that Binance is a good company and still trade there, but not be 100% certain.”

He also believes that it would be nearly impossible for Binance or any exchange to timely establish innocence in a “guilty unless proven innocent” atmosphere, especially when the absence of qualified auditors has been a major problem in the cryptocurrency sector lately.

Dorman reaffirms that a real exchange requires only the three fundamental phases of sending assets in, trading, and sending assets out, amid failing businesses.

By Audy Castaneda

Is Binance Exchange on the Verge of Collapse?

Audy Castañeda
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<strong>Is Binance Exchange on the Verge of Collapse?</strong>

The fallout from FTX’s massive failure continues to spread, and anxiety and fear have now reached FTX’s big rival, Binance Exchange.

In the most recent bump on the road, global accounting firm Mazars suddenly stopped validating Binance’s “proof of reserves,” a document meant to prove that the firm has enough cash on hand to support client funds.

According to Binance, Mazars, which was recognized for cutting ties with former President Donald Trump relatively early this year, halted its work for all cryptocurrency businesses on Friday. This article is about the Binance exchange and whether it is about to crash. Let’s take a look at it in more detail.

Binance Exchange and its Proof of Reserves Report

Clients drained billions of dollars from the Binance exchange last week, which is just one reason why the company is under investigation in the immediate aftermath of the FTX implosion.

Concerned investors are watching for warning signs following the demise of FTX, the $32 billion crypto dynasty established by Sam Bankman-Fried. Some are concerned that breaches will start to appear on Binance.

Binance has had a rough few weeks. With outsized withdrawals, a possible future money laundering court case, and questions about the exchange’s proof of reserves, the exchange has seen a shit load in the last month or so. Fresh concerns have been raised about a $2.1 billion FTX refund, which CEO Changpeng Zhao (CZ) wisely declined.

Mazars, the auditing firm that collaborates with major cryptocurrency exchange Binance, stated on Friday that it has stopped all investigations for cryptocurrency industry players. Earlier this month, the audit team conducted a so-called reserve test inspection on Binance’s bitcoin assets, revealing that its reserves in just one day at the end of November were overcollateralized.

Why is There a Potential Crash of Binance?

Here are the three things you need to know about Binance’s progress and why the cryptocurrency market is worried about Binance’s potential crash.

First, the US Department of Justice is investigating Binance’s adherence to securities fraud legislation. According to Reuters, investigators are evaluating whether to initiate criminal proceedings against the company’s founder, Changpeng Zhao, and other top executives. These would include conspiracy to evade taxes, illegal money transmission, and criminal penalty violations. According to Reuters, Binance leaked more than $10 billion in accounting fraud in 2022 and tried to avoid regulatory bodies, which the cryptocurrency giant rejected.

Second, Binance has seen a huge increase in withdrawals of late as fears over its deposits and a Justice Department investigation flourished. Meanwhile, the arrest of FTX founding member Bankman-Fried further deteriorated confidence in the virtual currency.

Third, Changpeng Zhao, CEO of Binance, has accelerated his efforts to calm client fears about Binance’s bank reserves. He has tried to fight against everything he calls “FUD”: the spread of unreasonable fear, uncertainty, and confusion.

In short, while the cryptocurrency business has been fairly quiet in terms of attacks and bugs in recent months, events such as the increase in user withdrawals, the effects of the FTX implosion, as well as the arrest of SBF, imply that trust in centralized exchanges has begun to suffer.

By Audy Castaneda

Dai (DAI) and Uniswap (UNI) Remain Level, while Orbeon (ORBN) Protocol Steadily Rises

Audy Castañeda
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0
<strong>Dai (DAI) and Uniswap (UNI) Remain Level, while Orbeon (ORBN) Protocol Steadily Rises</strong>

Three tokens that can generate a solid ROI are Dai (DAI), Uniswap (UNI) and Orbeon Protocol (ORBN).

The global bear market for cryptocurrencies has continued, so it is important for investors to look for projects with real-world profits or use cases. Three tokens that can earn you a solid ROI are Dai (DAI), Uniswap (UNI), and Orbeon Protocol (ORBN).

While the first two suffered a minor price loss in the last 48 hours due to the widespread bear market, Orbeon Protocol has been able to beat the market to offer investors an ROI of over 655% during pre-sale. Read on to find out what the Orbeon Protocol team is doing to stay on top of your game.

Dai (DAI) Struggles to Recover amid a Bear Market

Amid the global bear market, the Dai Team (DAI) is changing the narratives by partnering with industry stakeholders and social influencers. Experts believe that the token’s constant loss is linked to the poor performance of Bitcoin (BTC). The Dai (DAI) token has been down in the past 48 hours to close around $1.00, prompting token holders to start rounding up a viable alternative like the Orbeon Protocol.

When Will Uniswap (UNI) Escape the Consolidation Phase?

In the last 24 hours, the Uniswap (UNI) price is down 0.34%. According to Coinmarketcap, the Uniswap (UNI) price is currently -2.75% from its all-time 7-day high of $6.42, and 6.13% from its all-time 7-day low of $5.88. Analysts believe that in the coming weeks, Uniswap (UNI) will be able to escape the consolidation phase.

Uniswap (UNI) is a crypto exchange that uses a decentralized network protocol. The company owns the Uniswap protocol, an initiative that helps facilitate automated transactions between tokens on the Ethereum blockchain. At press time, Uniswap (UNI) is trading at $6.00 USD with a 24-hour trading volume of $63,174,750 USD. Despite the general mistrust around exchange tokens, Uniswap is poised to see continued success.

Orbeon Protocol (ORBN) Prices Jump 655% During Stage 3 of Pre-Sale

Orbeon Protocol is a new entry into the crypto and venture capital industries. It is a startup platform and crowdfunding platform where retail investors have the opportunity to fractionally invest in early-stage companies with as little as $1.

As a crowdfunding platform, startups can raise funds to boost your ideas and expand your marketing campaigns. This is possible through the use of fractional equity-backed NFTs, available from as low as $1. These NFTs work like a stake in a startup that is raising funds on the Orbeon Protocol, and allow retail investors access to the equity industry of risk with minimal capital.

During the pre-sale, the project’s native utility token, ORBN, experienced high demand, due to the various benefits it provides to holders. In addition to being a transactional token, ORBN also provides governance rights for the project, facilitates participation, and even offers access to exclusive investor groups.

ORBN has already seen a significant increase in the pre-sale price, going from $0.004 to $0.030 by a factor of 655%. This colossal price increase is expected to go further, as analysts predict ORBN will increase by a total of 6000% over the course of the pre-sale.

By Audy Castaneda

Bitcoin Drops to $10,000 – As Good as Safe?

Audy Castañeda
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0
<strong>Bitcoin Drops to $10,000 – As Good as Safe?</strong>

There is evidence that a Bitcoin drop to $10,000 could be seen.

In the past few days, the price of Bitcoin first saw an increase, and then quickly experienced a stronger decline. But in the near future, the risk of a new low in 2022 is extremely high. There is even evidence that a Bitcoin drop to $10,000 could be seen. What are the signs of such an event?

The price of Bitcoin has experienced huge losses in 2022. In November 2021, Bitcoin was still at an all-time high of over $68,000. In recent months, Bitcoin has subsequently lost around 75 percent of its value, experiencing a prolonged fall in 2022.

Since the beginning of 2022, the loss is around 65 percent. The most losses were evident in the first half of 2022, when the Bitcoin price fell below $18,000 in mid-June, being the lowest point for the Bitcoin price in 2022 for a long time. It was only with the FTX crash in early November that Bitcoin was able to drop lower, and saw a dip below the $20,000 mark.

Why did Bitcoin Crash in 2022?

There was a combination of reasons that Bitcoin crashed in 2022:

Natural bear market correction: Bitcoin moves in typical cycles, which are determined by the halving. In 2021 we saw the peak of the bull market; in 2022, the start of the bear market. In the last phase, heavy casualties are now considered normal.

General economic situation: 2022 saw an inflationary crisis triggered by easy money policies. With the necessary interest rate hikes by the US Federal Reserve, riskier investments like cryptocurrencies are becoming less profitable.

Loss of Confidence: The FTX bankruptcy, in particular, once again reduced confidence in the crypto market, causing Bitcoin to fall further.

Why Bitcoin Could See a $10,000 Drop

Bitcoin’s drop to US$10,000 has been discussed as a bearish scenario for weeks and months. At the moment there are many factors that could make this possible:

First, due to the FTX block, trust in crypto exchanges and other crypto projects is low.

Second, Binance has come under fire after failing to audit its financial situation.

Third, key interest rates were raised again.

Fourth, Bitcoin price was only able to break the $17,000 resistance for a short time, but it quickly pulled back. This could trigger a Bitcoin crash.

This projection is supported by Mark Mobius, co-founder of Mobius Capital Partners, who recently said that bitcoin is “not very far” from $10,000 now that it has broken through the $18,000 and $17,000 technical support levels.”

Therefore, the danger of a fall towards $10,000 is particularly high in the coming weeks. But in the medium term, the change in trend should already come in 2023.

By Audy Castaneda

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