After the FTX Collapse, Changpeng Zhao Believes It Is Better to Regulate Cryptocurrencies than Fight them

Alexander Salazar
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After the FTX Collapse, Changpeng Zhao Believes It Is Better to Regulate Cryptocurrencies than Fight them

Zhao recommended regulating the crypto industry rather than fighting it, pointing out that cryptocurrency adoption is inevitable. The CEO of Binance expects countries without a currency of their own to add Bitcoin to their reserves.

Changpeng Zhao recently said that regulating cryptocurrencies is a better option as their adoption grows.

During a meeting in Greece, the Binance CEO recommended regulating the crypto industry instead of fighting it. He noted that most governments worldwide understand that the adoption of crypto assets is inevitable.

The Chinese-Canadian businessman has compared the FTX collapse to the financial crisis in 2008. Although he warned of potential cascading effects, he expects the crypto industry to recover.

Zhao considers it necessary to restore confidence in the crypto industry, for which he has allocated millions of US dollars.

Changpeng Zhao Recommends Not Fighting Cryptocurrencies but Regulating Them

Zhao recommended that world governments regulate the industry rather than fight it since adoption will happen anyway.

Following the crash of several platforms, cryptocurrency regulation has been a focus of attention. The recent collapse of FTX caused its clients to withdraw USD 6 billion in only three days.

According to Reuters, the collapse of the FTX cryptocurrency exchange has caused losses of billions of US dollars. Besides, the effects of that event have spread to other platforms like Liquid, BlockFi, Genesis, and Gemini over the last two weeks.

However, the CEO of Binance expressed that he expected the crypto industry to recover from that dramatic fall. He commented that the market looked healthier after the debacles of the last two months. In addition, he pointed out that what happened to FTX does not imply that the other businesses in the sector are bad.

Zhao Expects More Countries to Add Bitcoin to Their Reserves

In November 2021, El Salvador became the first nation to adopt Bitcoin (BTC) as legal tender alongside the US dollar.

Changpeng Zhao said that he expected countries without their own currency to start adding cryptocurrencies like Bitcoin to their reserves.

Finally, the businessman predicted that the situation would improve next year, as he believes the industry is healthier.

The Current Situation of Bitcoin in the Crypto Market

Bitcoin is trading at around USD 16,220 and has accumulated a 2.1% loss over the last 24 hours. While its daily trading volume is above USD 19.04 billion, its market capitalization is about USD 311.72 billion, according to CoinGecko.

After a rejection below the resistance level of USD 16,600, Bitcoin trades to the downside. Its price formed a descending triangle pattern for 4 hours, which usually drives sales.

The price of Bitcoin in the market is going from around USD 16,220 toward an immediate support level of USD 16,000. That indicates its next target is USD 15,650, extended by a double bottom support level.

Prominent technical indicators like the RSI and MACD are in a sell zone, suggesting significant pressure. The 50-day MA extends resistance at USD 16,450, indicating that the bearish trend might continue.

By Alexander Salazar

These Factors Might Influence the Price of Bitcoin and Altcoins this Week

Alexander Salazar
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These Factors Might Influence the Price of Bitcoin and Altcoins this Week

If economists fail to predict the economic development in the US, the devaluation of the dollar might favor cryptocurrencies. A weaker-than-expected GDP growth would weaken the US economy, generating greater volatility in financial markets.

Despite the significant drop in prices and the improved inflation situation last week, the crypto market did not immediately benefit. The announcement by cryptocurrency broker Genesis that it would undergo a restructuring caused further uncertainty among investors following the bankruptcy of FTX.

Although the price of Bitcoin reached a new yearly low, it could recover to around USD 16,500 by the end of the week. However, crypto market participants see the new speeches from Christine Lagarde, the ECB chair, and Jerome Powell, the Fed chair.

Central Bank Presidents Speak on Monetary Policies

Market players await information on monetary policy measures from Christine Lagarde and US central bankers Bullard and Williams. Investors will scrutinize their statements to understand upcoming ECB and Fed interest rate decisions better.

If the representatives of those central banks insist on their aggression, the crypto market might face a greater threat. The value of the US dollar might regain strength and cause Bitcoin to drop toward yearly lows.

US Consumer Confidence Might Boost Cryptocurrencies

Optimism about economic development in the US at 102.5 in October was well below expectations of 106.0. Based on a bearish reading, US consumers expect the domestic economy to continue struggling to recover.

Experts forecast a value of 100.0 for this month, but if they fail again, the US dollar will lose strength. Of course, that situation might have a positive effect on the prices of Bitcoin and altcoins.

Meanwhile, Bitcoin is trading at around USD 16,224 and has accumulated a 1.8% loss over the last 24 hours. While its daily trading volume is above USD 19.55 billion, its market capitalization is about USD 311.81 billion, according to CoinGecko.

European Inflation, US GDP, and the Speech of Powell Might Affect Cryptocurrencies

This week begins with the anticipated publication of consumer prices in Europe. After the last 10.6%, experts expect a slight decline of 10.6 percentage points to 10.4%. If the inflation rate does not reach the adjusted expectations, the effect on the financial markets would be positive.

Regarding the US gross domestic product (GDP), economists forecast a further slight improvement to 2.7%. If that indicator could recover strongly enough, the Federal Reserve might raise key interest rates by another 75 basis points to 4.75%.

However, if the gross domestic product is weaker than expected, the devaluation of the US dollar might positively impact cryptocurrencies. The words of Jerome Powell on the US economic outlook might generate greater volatility in financial markets.

Independently on what experts say, investors should research cryptocurrencies to know their all-time highs, behavior, and possible future prices. That will allow them to make better investment decisions and minimize their loss of money. However, it is only a matter of time before seeing where the market will take the value of crypto assets.

By Alexander Salazar

BTC Fear and Greed Index Rise to 28/100 Despite Pressure from NASDAQ

Audy Castañeda
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<strong>BTC Fear and Greed Index Rise to 28/100 Despite Pressure from NASDAQ</strong>

On Sunday, Bitcoin (BTC) fell 0.15% to end another range-bound session at $16,435. However, the Fear & Greed Index rose from 26/100 to 28/100, consolidating Sunday’s move into the fear zone.

On Sunday, Bitcoin (BTC) fell 0.15%. Following a 0.36% loss on Saturday, BTC ended the day at $16,435. Notably, BTC avoided sub-$16,000 for the fifth day in a row, as it extended the losing streak to four sessions.

A bullish start to the day saw BTC rally to an early high of $16,603. Failing to reach the first major resistance level (R1) at $16,642, BTC fell to a late low of $16,410. However, moving away from the first major support level (S1) at $16,334, BTC found late support to end the day at $16,435.

With the US Thanksgiving holiday ending, there was no cryptocurrency news to provide guidance. Trading volumes remained low, with investors likely to take a wait-and-see approach on FTX and further contagion.

However, investor sentiment towards FTX contagion has improved in recent sessions, preventing a return below $16,000. Bets on a Fed pivot in December have also been supportive, while regulatory risk will continue to be a drag on cryptocurrencies.

Currently, there are no US economic indicators to influence, leaving the NASDAQ Composite Index in the hands of the Fed. FOMC member Williams will speak today. Support for a 50 basis point rate increase would provide support for NASDAQ and BTC.

However, the NASDAQ mini started the week in negative territory (-83 points), influenced by concerns about the new wave of COVID-19 cases in China.

Fear & Greed Index Rises Despite Another BTC Loss

Today, the BTC Fear & Greed Index increased from 26/100 to 28/100. Significantly, the index consolidated its return to the fear zone for the first time since the FTX collapse. The advantage came despite BTC moving within a range of $193 on Sunday.

BTC avoidance below $16,000 for the fifth session in a row was likely a contributing factor. The latest move in the Index aligns with market rumors of bottoming out, supported by the declining risk of contagion from FTX.

Avoiding sub-20/100 remains the key in the short term. Bulls will need to target FTX’s pre-crash high of 40/100 (Nov 6) to support a BTC run to $20,000.

Technical Indicators

BTC needs to move through the $16,483 pivot to target the first major resistance level (R1) at $16,555 and the Sunday high of $16,603. A return to $16,600 would signal a bullish session. However, BTC would need the NASDAQ and FTX-linked friendly news updates to support a trading session.

If BTC falls through the second major support level (S2) at $16,290, the third major support level (S3) at $16,097 should cap the downside.

However, negative FTX-related news or a sell-off driven by risk aversion would put less than $16,000 at stake.

By Audy Castaneda

Is It a Good Time to Withdraw Our Savings from Cryptocurrency Investments?

Audy Castañeda
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<strong>Is It a Good Time to Withdraw Our Savings from Cryptocurrency Investments?</strong>

In November 2021, Bitcoin was trading at around $67,000, while today it stands at $16,000, which translates into a 70% drop in one year.

2022 has been a difficult year for the world of cryptocurrencies. This financial asset, as of today, marks historic lows. The bankruptcy declaration of FTX -one of the largest bitcoin (BTC) exchanges in the market-, on November 11, has caused the rest to fall like dominoes.

The question now is, is it the end of this type of token and, consequently, of all cryptocurrencies? To answer this question, Joan Ripoll, director of the degree in Economics and Management at the Universitat Abat Oliba CEU, offers his viewpoints.

Ripoll says, regarding cryptocurrencies, that “they are not going to disappear. What this type of crisis or disturbance does is move the tree, shake the market and make some of those financial assets end up disappearing, but their main value -whether whatever, Bitcoin, Ethereum, or any other- it is the technology behind them,” adding that this was the reason why they will not disappear.

“Probably, its operating dynamics -contrary to what the creators of this type of financial products intended- will end up being regulated by the national authorities to safeguard the interests of financial investors,” he explained.

Is It Advisable to Withdraw the Invested Money?

Given the great general fall of cryptocurrencies, where Bitcoin stands out with 70% from last year to this, investors in these financial assets are concerned about what may happen with the money they have invested.

To this great dilemma of whether it is advisable to withdraw it as soon as possible or not, Joan Ripoll says the following:

“It depends on whether you need that money to meet your daily payments or not. The most prudent thing is to wait, because even if the prices fall, as long as I do not sell those cryptocurrencies, those possible losses do not materialize.”

Cryptocurrency Domino Fall

Both analysts and investors fear that, after the bankruptcy of FTX, Genesis will be the next domino to fall, that is, that there will be a contagion and that the rest will follow. “It is a possibility, surely remote in the current context, but it accentuates mistrust,” says Joan Ripoll.

“Since there is no regulation of any type, anyone can venture to create a financial company that operates on the basis of these assets that are not regulated. The apparent attraction that the lack of regulation is, in a context of uncertainty like the current one, has become its main weakness because this deregulation increases mistrust. The fact that there is no type of guarantee fund, which can operate in the market … It generates uncertainty, and can end up causing a domino effect affecting other institutions. It is unlikely, but it can happen”, asserted the expert.

By Audy Castaneda

Large Luxury Brands Double in NFT Despite Current Bear Market

Audy Castañeda
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<strong>Large Luxury Brands Double in NFT Despite Current Bear Market</strong>

Major luxury brands view NFTs as critical aspects of their business ventures.

Luxury brands like Gucci and Tiffany & Co. have continued to embrace NFTs despite the ongoing crypto winter. But as price floors continue to fall, how long will it be until they throw in the towel?

The Christmas season is almost here. That Mariah Carey song is already playing on repeat and people are out shopping for gifts. Decorations are starting to grace malls and stores. This also means that 2023 is right around the corner.

It seems that every year, the adoption of digital goods and services has increased in various industries.

Luxury brands have certainly benefited from this transition. The world’s leading brands are incorporating technologies to recreate brand images and reinvent the consumer experience. The fashion industry, in particular, is undergoing a historic transformation thanks to emerging technologies such as Blockchain and non-fungible tokens (NFTs).

In this article, we seek to explore the digital fashion trend incorporated by luxury brands, thanks to the omnipresence of NFT collectibles.

One question that comes up time and time again is, will this trend of buying products in the digital world really outperform the physical world model?

NFT and Luxury Fashion: The Combo

Many brands have developed digital strategies in the wake of the COVID-19 pandemic. With immense potential and what seems like limitless possibilities for the future of fashion, NFTs have caught the eye of luxury fashion moguls.

NFTs have changed the way brands and their respective customers interact with each other. Furthermore, the non-expendable aspect even allowed brands to innovate their revenue models, using royalties and second-hand markets.

Another aspect of this ‘conscious’ coupling also helped brands cut costs. Platforms like Twitter and Discord have become new marketing channels, engaging communities at low cost; They have also created new ways for customers to communicate and interact with each other.

Entry List

Data collected in December 2021 for the Vogue Business Index showed that 17 percent of brands in the Index were already working with NFTs. This number increased in 2022 as more luxury brands jumped on the NFT bandwagon, and began to experiment with this new medium.

Gucci, the iconic fashion powerhouse, has been around since 1921. Known for its high-end, luxurious designs and quality craftsmanship, and now for its NFTs.

In collaboration with the brand’s luxury creative director Alessandro Michele and digital artisan Wagmi-san, the 10KTF Gucci Grail collection came to life in Q1 2022.

In May this year, Dolce & Gabbana and Polygon-based Metaverse fashion company UNXD partnered with Chainlink for the reveal of the DGFamily Glass Box.

Moncler recently integrated Arianee’s NFT and web-based custodial wallet solution into its ecosystem to offer a seamless experience to its most engaged consumers.

The list goes on and on. However, as 2022 is drawing to a close, we are witnessing a significant drop in cryptocurrency prices. This, in turn, has had a huge impact on NFT sales.

By Audy Castaneda

Robert Kiyosaki Considers Bitcoin Not Responsible for the FTX Collapse but Sam Bankman-Fried

Alexander Salazar
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<strong>Robert Kiyosaki Considers Bitcoin Not Responsible for the FTX Collapse but Sam Bankman-Fried</strong>

Kiyosaki highlighted he remains bullish on Bitcoin, saying Bankman-Fried caused the collapse of FTX with his mismanagement. Elon Musk and Michael Saylor agree that the former CEO of the bankrupt cryptocurrency exchange committed stock fraud.

Despite the collapse of FTX, Robert Kiyosaki, the author of the book Rich Dad Poor Dad, remains bullish on Bitcoin (BTC). He recently highlighted that cryptocurrency is not to blame for the actions of Sam Bankman-Fried, the former CEO of the exchange.

The renowned American businessman discussed the collapse of FTX and Bitcoin with financial educator Mark Moss. After the latter outlined the problems of the cryptocurrency exchange, Kiyosaki highlighted he remained bullish on Bitcoin.

According to Kiyosaki, no one can blame Bitcoin for the collapse of FTX but Bankman-Fried for its mismanagement. The investor said he does not hold any silver or gold ETFs, although he owns much of those precious metals.

According to the famous author, FTX is one of the biggest scams in history, describing it as a Ponzi scheme. In that sense, he commented that their financing depended on the funds they received from unsuspecting investors.

Despite the cryptocurrency selloffs following the FTX collapse, Kiyosaki reiterated he was still in favor of Bitcoin. Unlike many people his age, he said he was not against the pioneering cryptocurrency as he considers it solid.

Robert Kiyosaki has warned that the stock, bond, and real estate markets are collapsing, urging investors to buy cryptocurrencies now. He recently stated that he invests in Bitcoin and is happy when its price reaches a new bottom.

Musk and Saylor Criticize WSJ for Praising Sam Bankman-Fried

Although the cryptocurrency market is slowly recovering from the collapse of FTX, some believe the situation remains complex. For example, Elon Musk thinks that Sam Bankman-Fried played a significant role in the downfall of that cryptocurrency exchange.

The CEO of Twitter criticized a Wall Street Journal article titled “Sam Bankman-Fried’s Plans to Save the World Went Down in Flames.” The news agency highlighted the philanthropic goals of the former CEO of FTX, which Musk called a foot massage for a criminal.

Elon Musk believes that such a well-known news agency should not provide positive coverage of Sam Bankman-Fried. He previously argued that the latter could have prevented the collapse of FTX if he had managed it better.

Michael Saylor, the former CEO of MicroStrategy, also reacted to the above Wall Street Journal article, agreeing with Elon Musk. According to the renowned Bitcoin advocate, the former CEO of FTX caused a stock market crash through stock fraud.

Elon Musk and Michael Saylor are just two examples of those who point fingers at the latest actions of the former FTX CEO. Many other figures in the cryptocurrency market are demanding legal action against Sam Bankman-Fried for misusing the funds from his clients.

Meanwhile, Bitcoin is trading at around USD 16,583 and has accumulated a 0.1% loss over the last 24 hours. While its daily trading volume is above USD 17.32 billion, its market capitalization is about USD 318.70 billion, according to CoinGecko.

By Alexander Salazar

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