After Dropping by 4.5% below Its Highs, Ether Recovers the USD 1,300 Level

Alexander Salazar
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<strong>After Dropping by 4.5% below Its Highs, Ether Recovers the USD 1,300 Level</strong>

After the collapse of FTX, the ETH tokens moving on the Ethereum network have caused investors further losses. The price must exceed USD 1,500 to break out of the downward trend, but there might be selling of significant short-term rebounds.

Ether (ETH), the cryptocurrency of the Ethereum network, has recently recovered as stocks rise and the US dollar falls.

Investors last bought ETH in the USD 1,250 area, a rise of 0.75% over the last 24 hours. Furthermore, its price has increased by around 2.5% from its weekly lows of about USD 1,220.

However, Ether has been trading above USD 1,300, around 4.5% below its early weekly highs. The bulls have tried to regain control after FTX collapsed about a month ago.

Before the above exchange went bankrupt, ETH traded between USD 1,500 and USD 1,600. After that catastrophic event, there have been continuous rebounds to USD 1,300 in the crypto market.

According to data from Santiment, ETH tokens moving on the Ethereum network have caused higher losses after the FTX collapsed. There might be an increase in the sale of the crypto asset by weak hands in the short term.

The Price of Ether Price Might Reach USD 1,300 Again

The ETH price seems to fall within the limits of a short-term bearish flag. However, it is testing the upper levels of that structure, possibly reaching USD 1,300 again.

As the weekend approaches, US stock markets recover while the US dollar weakens. Recent data on US inflation might be the catalyst that the Ethereum bulls need.

Ether recently found support at its 21-day MA and the 23.6% Fibonacci retracement level. That happened after the collapse of FTX, when it went from lows below USD 1,100 to pre-highs of around USD 1,600.

The Bearish Trend Remains Dominant in the Long Term

The long-term bearish outlook will not change significantly, even if ETH recovers or breaks above the USD 1,300 level. Its price has remained locked within an ongoing downward trend since the summer of 2020. Furthermore, it might eventually cap any short-term upside.

Ether would have to break above the USD 1,500 area, 20% above previous levels, to break out of the downward trend. Most long-term bears might continue to sell significant ETH rebounds in the short term.

The Ethereum Whales Continue to Accumulate Tokens in the Long-Term

Long-term price speculators may be bearish, but on-chain data shows that whales remain confident on the upside. According to Santiment, the Ethereum wallets owning between 100 and 1 million ETH added 561,000 tokens.

Ether is trading at around USD 1,280 and has accumulated a 4.3% gain over the last 24 hours. Although its daily trading volume is above USD 6.29 billion, its market capitalization is around USD 154.88 billion, according to CoinGecko.

Investigating Ether or any other cryptocurrency before buying it helps investors make more accurate decisions and avoid losing money. However, it is a matter of time before knowing where the market will take the price of the second-largest cryptocurrency.

By Alexander Salazar

Major Hedge Funds Affected by Declining Crypto Prices

Audy Castañeda
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<strong>Major Hedge Funds Affected by Declining Crypto Prices</strong>

This year, several crypto and traditional hedge funds were hit by declining cryptocurrency prices and rising interest rates.

Several major crypto hedge funds, and traditional hedge funds with crypto exposure, collapsed or barely escaped in 2022. The price declines have tested the risk tolerance of these firms and have begun to build pressure on leveraged betting.

Hedge funds pool investors’ money to earn significant returns, using advanced investment strategies. According to the Securities and Exchange Commission (SEC), a hedge fund does not need to follow specific rules designed to protect investors, nor does it need to file reports with the SEC.

The Risks of Leverage

Due to the risky nature of hedge funds’ investment strategies, the funds often only accept accredited investors. Part of those strategies includes leveraged investing, which involves borrowing money to increase the potential return on investment.

However, the lenders, like prime brokers, will often require an investor to provide a minimum amount to borrow, called margin.

The borrowers are responsible for ensuring that a particular relationship is maintained between the amount borrowed and their margin. If the borrowers fail to maintain that ratio, the lender liquidates its position and the borrower loses their margin investment.

A hedge fund may borrow securities through a prime broker to maximize returns for investors while practicing proper risk management.

When a hedge fund is liquidated, it may be due to sharp declines in the value of assets recorded as margin for leveraged investments, or poor risk management.

The ongoing crypto winter has seen its fair share of declines in the value of digital assets, some of which have resulted in the bankruptcy of crypto-focused and hedge funds.

3AC Hedge Fund Fell First, Others Soon Followed

The first domino to fall was Singapore-based Three Arrows Capital, whose co-founder Kyle Davies made a series of leveraged bets on rising cryptocurrency prices based on the so-called supercycle thesis promoted by fellow founder Su Zhu.

The supercycle thesis posits that cryptocurrency prices will appreciate as adoption grows without the risk of a near-term bearish pivot.

Unfortunately for Zhu and Davies, the thesis did not hold up, with Bitcoin falling more than 50% in June 2022 from its all-time high of $69,000 on November 10, 2021.

The price crash came against the backdrop of the collapse of the TerraUSD stablecoin in May 2022. The crash shook confidence in the cryptocurrency industry and sent many investors fleeing for the hills.

A case of mismanagement of risk and falling cryptocurrency prices led to the downfall of Alameda Research LLC. This quasi-crypto hedge fund borrowed heavily, using a relatively illiquid FTT token as collateral.

Anthony Scaramucci’s investment management firm, SkyBridge Capital, suspended withdrawals from his Legion Strategies Fund on July 19, 2022, amid falling cryptocurrency prices.

This has been a difficult year for traditional hedge funds without cryptocurrency exposure, as macroeconomic conditions caused a pullback in leveraged betting to reduce risk exposure. Rising interest rates and geopolitical tensions have raised the cost of borrowing for hedge funds.

By Audy Castaneda

While Considering Bitcoin a Commodity, Cynthia Lummis Now Views Ether as a Security

Alexander Salazar
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<strong>While Considering Bitcoin a Commodity, Cynthia Lummis Now Views Ether as a Security</strong>

Cynthia Lummis viewed Ether as a commodity in June, but the Merge led her to believe it might meet the standards. Gary Gensler has reiterated that most crypto assets, except for Bitcoin, are securities but agrees that ETH now has security properties.

US Senator Cynthia Lummis, who is at the center of crypto regulation, changed her position about Ether (ETH). The representative for Wyoming recently said she now considers the second-largest cryptocurrency as a security instead of a commodity.

Ether is trading at around USD 1,234 and has accumulated a 0.4% gain over the last 24 hours. While its daily trading volume is above USD 4.45 billion, its market capitalization is about USD 148.70 billion, according to CoinGecko.

Lummis Believes Only Bitcoin Would Qualify as a Commodity

Lummis expressed her different position about Ether during a discussion on measures that could have prevented FTX from collapsing. She thinks the crypto regulatory bill she proposed in June could have done so by clarifying the classification of cryptocurrencies.

The senator commented that Bitcoin seems the only thing that would qualify as a commodity.

Her statement differs from her words in June when she said Ether would be a commodity alongside Bitcoin. However, the shift of Ethereum to a proof-of-stake consensus mechanism led her to believe it might now meet the standards.

Lummis explained that it is likely to be a security due to its inability to withdraw the stake.

The Howey test indicates that a security is an asset a centralized entity issues to raise money. Therefore, investors expect to benefit from the efforts of the entity.

Bitcoin has largely failed the Howey test, causing cryptocurrency advocates and regulators to have long debates. They do not know whether other digital assets are securities, commodities, or a new asset class.

Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has reiterated that most crypto assets, including stablecoins, are securities. Until now, the US government official has only specified that he views Bitcoin as a commodity.

However, he has also suggested that the Ethereum Merge might have given more security properties to Ether. During that process, the network provided a lockup period in exchange for an expectation of rewards.

Rostin Benham, the chairman of the Commodity Futures Trading Commission (CFTC), may have also adopted the position of Gensler.

Lummis Expresses Her Opinion on the Sam Bankman-Fried Case

The senator for Wyoming predicts that Sam Bankman-Fried, the former CEO of FTX, would hesitate to appear at a congressional hearing. He received an invitation from Maxine Waters, the chairwoman of the House Financial Services Committee, to discuss the collapse of his operations.

Lummis thinks there is a potential liability under civil and criminal statutes for what has happened to the bankrupt cryptocurrency exchange. She explained that the lack of a board of directors, 135 existing companies, and an unclear financial opening suggests fraud.

However, the senator believes Bankman-Fried should move the bankruptcy process forward rather than try to repair his public image before Congress.

By Alexander Salazar

Amid Fear, Uncertainty, and Doubt about the Ripple and the SEC Lawsuit, XRP Looks Bearish

Alexander Salazar
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Amid Fear, Uncertainty, and Doubt about the Ripple and the SEC Lawsuit, XRP Looks Bearish

The technology director of Ripple Labs said the news that the company was secretly controlling the XRP Ledger was a conspiracy theory. If the price of XRP exceeds the support at a slight upward trend line, it might confirm further bearish momentum.

The price of XRP continues falling slowly since fear, uncertainty, and doubt (FUD) grip the firm Ripple Labs. The collapse of FTX has affected the crypto market, of which that company is a part, worsening its situation.

The US Securities and Exchange Commission (SEC) started a lawsuit against Ripple in December 2020. They alleged that the firm had sold unregistered securities, making it one of the hardest-hit projects in the last few years.

Since then, the value of XRP has become increasingly weaker, despite seeing some light during the bullish run.

Recent news reported that Ripple Labs was allegedly controlling the XRP Ledger secretly, which harms the company further. Its technology director said it was a conspiracy theory fabricated through an artificial intelligence (AI) tool.

In addition, the firm recently filed the latest brief against the SEC, hoping these are the last days of this court case.

According to Ripple, the SEC has not confirmed whether the XRP token offering made between 2013 and 2020 was an investment contract sale. However, the case between the company and the US government agency has not reached a resolution.

The Weekly Technical Analysis of the Price of XRP

The weekly chart shows that the price of XRP is pessimistic, as the rebound in late September seemed only a respite before dropping further.

Although XRP is achieving support at a slight upward trend line, low purchase determination suggests it might lose it soon. Exceeding that line might confirm further bearish momentum, possibly looking for the USD 0.11 level.

Before buying, investors must know that the price must break above the resistance at USD 0.51. That scenario would be possible if the crypto market decided to make a broader rebound.

The Daily Analysis of the Price of XRP

The daily chart shows that the price of XRP is at a small uptrend line, which is currently at risk. If it lost the closest support at USD 0.37, it might confirm the start of further bearish momentum.

Before thinking about buying, investors must be aware that the value of XRP must overcome the resistance at USD 0.40.

Meanwhile, XRP is trading at around USD 0.3861 and has accumulated a 1.9% gain over the last 24 hours. While its daily trading volume is above USD 858.43 million, its market capitalization is about USD 19.42 billion, according to CoinGecko.

The above analysis indicates that the price of XRP will continue dropping in the following days. However, investors should continue researching the crypto asset to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing what will happen with Ripple and the value of XRP after the lawsuit ends.

By Alexander Salazar

The Spanish Accommodation app, Central de Reservas, Will Allow Payments with Bitcoin (BTC)

Audy Castañeda
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<strong>The Spanish Accommodation app, Central de Reservas, Will Allow Payments with Bitcoin (BTC)</strong>

Central de Reservas joins the trend of accepting Bitcoin as a means of payment. Ricardo Buil admits that there will be few who will pay with BTC “for the moment.”

The Spanish accommodation reservation platform, Central de Reservas, announced that it will allow clients or users to pay with Bitcoin (BTC), thanks to its recent integration with the crypto provider Criptan, which was recently recognized by the Bank of Spain.

The CEO of Central de Reservas, Ricardo Buil, pointed out the following:

“We are in a moment of constant changes in our environment. We wanted to be prepared so that it was a reality to be able to pay with cryptocurrencies on our website. Perhaps at the moment, there will be a few who use it, but the growth of its use and of many other new payment methods will be exponential in a short time”.

The Trend Explained

The accommodation portal explained that it is a corporate bet as a preamble to the digital payments that “will be in the future” and pointed out that Bitcoin will be part of the “new era of money in tourism” and that for this reason, they required getting on the train and accept payment with cryptocurrencies.

Jorge Soriano, CEO of Criptan, explained:

“Offering the adoption of the crypto ecosystem to companies in an easy and simple way is part of our added value. Cryptocurrencies represent a new way of managing money, and we want to allow any company to have the appropriate mechanisms to offer their customers this alternative”.

Spain as One of the First, but Not the Only One

Spain is one of the countries with the highest crypto adoption in the world, including hosting services, but it is not the first or the only one. It is worth remembering that in Italy, three young entrepreneurs created Takyon, an innovative startup whose goal is to make a radical change in the way customers think about travel.

According to Antonio Picozzi, CEO and co-founder of Takyon, travel services, and therefore hotels, need a new paradigm that simplifies the same functions that have been carried out for years. Antonio sees in the NFT, a promising future in this area of ​​accommodation.

For example, it is possible to have a reservation in the form of an NFT, which will allow users to exchange trips, as well as “create unique experiences and memories.” according to Picozzi.

In other words, the rate category, offered by Takyon, makes it possible that when a guest reserves an accommodation with a resalable rate, the Takyon company generates a non-fungible token (NFT) representing the ownership of said reservation on the Blockchain.

By Audy Castaneda

FTX’s SBF is a Master Manipulator, Says Changpeng Zhao

Audy Castañeda
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<strong>FTX’s SBF is a Master Manipulator, Says Changpeng Zhao</strong>

In a lengthy Twitter post on Tuesday, Binance CEO Changpeng Zhao called out the founder of failed crypto exchange FTX. Zhao criticized Sam Bankman-Fried in a tweet describing him as “one of the greatest fraudsters in history.”

CZ’s mail was originally aimed at addressing the false statements that the crypto billionaire claimed to have come across as of late. The first thing Zhao talked about was the idea that he wanted to be the savior of cryptocurrency. This narrative may have gained weight due to Binance’s recent efforts to help platforms struggling with liquidity issues following the FTX crash.

According to the post, CZ does not believe that the crypto industry is in dire straits. He explained that Binance is working to support problematic projects for the good of the broader crypto space:

“Crypto is fine. It is the beauty of decentralization. We’re just part of it.”

Zhao Says FTX Caused Its Downfall

Notably, Binance tried to buy FTX at the beginning of collapse of SBF’s empire in hopes of saving the exchange. However, Zhao backed out of the deal, stating that FTX was beyond saving. The Binance founder also touched on the idea that the FTX crash was due to third-party influence, by tweeting, “A list of wrong narratives I have seen recently.”

In fact, some members of the crypto community believe that Zhao’s tweet before the spiral caused FTX to crash. As such, he clarified that one tweet couldn’t have brought down a healthy platform. He also cited a source noting that a tweet from Caroline Ellison, Alameda’s executive director of research, shared 16 minutes after its post could have led to the crash.

“FTX committed suicide, (and its users) because they stole billions of dollars of user funds. Period,” CZ said.

Binance Does Not Pay Much Attention to Rivals

CZ also stated that there were never any good intentions behind Bankman-Fried’s lies. In his thread, he pointed out an example of the aforementioned lies. According to CZ, Bankman-Fried has tried to frame him along with other key crypto players as enemies. SBF’s supposed goal was to present itself as the hero.

Zhao described the 30-year-old as a master manipulator in the face of media and key opinion leaders. Going back to one of his original clarifications, CZ closed the thread explaining Binance’s perspective on things. The exchange reportedly does not police competitors. CZ believes it is a waste of resources when the crypto industry had only reached a small percentage of the world’s population.

“We want multiple exchanges, multiple Blockchains, multiple wallets, etc. to coexist in the ecosystem. So let’s keep building.”

By Audy Castaneda

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