Despite the Crypto Market Crash, the Salvadoran Government Commits to Buying More Bitcoin

Alexander Salazar
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<strong>Despite the Crypto Market Crash, the Salvadoran Government Commits to Buying More Bitcoin</strong>

Although El Salvador has lost more than USD 63.6 million due to its BTC purchases, the recent announcement of Bukele represents an excellent opportunity. The openness to cryptocurrencies has boosted tourism and helped reduce the cost of cross-border remittances for Salvadoran citizens.

El Salvador became the first nation to adopt Bitcoin (BTC) as a legal tender in September 2021. After pausing amid a sharp crash in the crypto market, the Salvadoran government will continue to acquire BTC.

Nayib Bukele, the president of El Salvador, recently committed to acquiring 1 BTC daily. He made that startling announcement four months after the Central American nation bought its last Bitcoin.

It is relevant to remember that El Salvador began the continued purchase of Bitcoin when it adopted it as a legal tender. Since BTC was amid a bullish run in September 2021, it offered endless possibilities for the Central American country.

However, the purchases of BTC became a long shot when the crypto winter arrived in the second quarter of 2022.

The Salvadoran government has reported that it has acquired 2,381 BTC at an average price of USD 43,357. Thus, the Central American country has spent almost USD 103.2 million on its bet on the pioneering cryptocurrency.

The amount of Bitcoin that El Salvador owns is equivalent to USD 39.6 million, a loss of more than USD 63.6 million.

However, the recent announcement of Bukele, when BTC is at yearly lows, represents an excellent opportunity. The cryptocurrency could rebound in an upcoming bullish period, allowing El Salvador to offset its losses.

The Main World Rating Agencies Have El Salvador in their Sights

Nayib Bukele has focused on acquiring BTC and developing an economic infrastructure based on it. He planned to launch BTC-backed volcano bonds and create a Bitcoin City this year but has not done so yet.

Luis Membraño, a Salvadoran economist, commented that Bukele failed to create a different and innovative political economy against the advice of the IMF.

The leading rating agencies have reduced the credit line of El Salvador due to its ambitious plans. For example, Fitch Group expects the Central American nation to default on its debt in January 2023.

On the other hand, the looming recession and rising global inflation could further hurt the economy of El Salvador.

However, despite the losses due to Bitcoin purchases, the openness to cryptocurrencies has boosted tourism. Additionally, adopting BTC has helped reduce the cost of cross-border remittances for Salvadoran citizens.

Justin Sun, the founder of the Tron blockchain platform, told Bukele on Twitter that he would do the same. Others of his followers recommended keeping the BTC holdings of the nation in cold wallets despite criticism from the International Monetary Fund.

Meanwhile, Bitcoin is trading at around USD 16,726 and has accumulated a 1.0% gain over the last 24 hours. While its daily trading volume is above USD 23.02 billion, its market capitalization is about USD 321.32 billion, according to CoinGecko.

By Alexander Salazar

The New CEO of FTX Warns Sam Bankman-Fried Is No Longer Part of the Company

Alexander Salazar
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<strong>The New CEO of FTX Warns Sam Bankman-Fried Is No Longer Part of the Company</strong>

Since Bankman-Fried has stepped down as CEO, FTX believes that none of his subsequent views or actions represents the company. Although the price of FTT has dropped by almost 95%, it seems alive as it refuses to drop below USD 1.5.

John Ray, the new CEO of FTX, recently said the company seeks to repair the damage caused by its collapse. The restructuring director of FTX took over after Sam Bankman-Fried resigned from his position.

Ray pointed out that Bankman-Fried no longer has ties to FTX, FTX.US, or Alameda Research. In addition, he commented that his opinions were personal and did not represent those of the company.

There Are No Links between FTX and Sam Bankman-Fried Anymore

The company, which is undergoing bankruptcy proceedings, said it is not responsible for comments made by Bankman-Fried. They highlighted that he must face the consequences of the information or value judgments he posts on Twitter.

When Sam Bankman-Fried resigned on November 11th, he stepped down from his position at the FTX group of companies. Therefore, any subsequent opinion or action by Sam Bankman-Fried would not represent the company.

FTX seems to react to several Bankman-Fried posts on Twitter, in which he comments on their current situation. He has said that he is trying to benefit affected FTX users.

Bankman-Fried has even said that he is working with regulators to ensure the interests of clients and investors. However, he posted those comments following his resignation from the FTX cryptocurrency exchange.

Therefore, FTX believes that Bankman-Fried cannot obtain any capital, financing, or bailouts on behalf of FTX. They warn that he would be subject to adverse legal consequences if he did.

Although Bankman-Fried has not clarified how he seeks to make up for his mistake, he said he did not expect anything in return. He told The New York Times that he was improvising it as he felt the time had not come yet.

The Price of FTT Struggles to Hold Support at USD 1.5

Amid bankruptcy proceedings, the price of FTT has dropped by almost 95% this month. However, the native token of FTX seems to remain alive, refusing to dip below USD 1.5.

FTT is trading at around USD 1.68 and has accumulated a 2.5% loss over the last 24 hours. While its daily trading volume is above USD 34.15 million, its market capitalization is about USD 587.0 million, according to CoinGecko.

Binance, the exchange with the highest FTT trading volume, closed its trading pairs except those with BUSD, its native stablecoin.

US regulators called Sam Bankman Fried and Changpeng Zhao to a hearing to explain what caused the FTX crash.

The collapse of FTX has led many regulators to tighten their measures against the crypto industry. In several countries, the authorities have suspended the cryptocurrency exchange as they investigate the case.

Since FTX is undergoing bankruptcy, investors should be cautious when buying FTT. It is a matter of time before seeing where the market will take the token.

By Alexander Salazar

Web 3.0 Ready to Integrate into More Industries, According to Analysis

Audy Castañeda
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<strong>Web 3.0 Ready to Integrate into More Industries, According to Analysis</strong>

Deloitte points out that Web 3.0 is transforming consumers into members of communities.

Web 3.0 is the most up-to-date and advanced edition of the Internet today. In web 3.0, web pages and applications are much more intelligent, and can process information in a similar way to humans, thanks to technologies such as Big Data, or Machine Learning.

Web 3.0 presents the Internet in Blockchain technology, in which the storage of consumer data is done in a decentralized way. Thus, the use of such data by companies is more transparent; this supposedly protects the data from breaches.

Today, there are some applications of this type in their initial phase of development, but web 3.0 is not yet implemented at a general level.

Deloitte’s latest analysis suggests that Web 3.0 is mature enough to engage and empower more industries, which could spur further adoption of Blockchain technology. It offered examples of companies such as Dapper Labs, CryptoKitties, and NBA Top Shot, which are maturing Web 3.0.

In this regard, Ridhima Ahuja Kahn, vice president of business development at Dapper Labs and former partner at Andreessen Horowitz, explained the following:

“Web3 is going to impact every single sector and industry, it’s an opportunity for companies to jump in early and make sure they’re incorporating it into their broader strategy. Sports and NFTs are the tips of the iceberg. We want to get billions of people on Blockchain. You do that by clearly communicating benefits to consumers.”

Deloitte details that Blockchain-backed business offerings initially had a high entry bar. Users had to be knowledgeable experts on the subject; however, this is coming to an end, as the report identifies Dapper Labs as responsible for “making the Blockchain easy” through user-friendly interfaces and memorable experiences.

Brands massively adopt Web 3.0

Web 3.0 went from consolidated projects to alliances with large companies, such as FIFA, which revealed that it would include the Qatar 2022 World Cup in Web 3.0. The analysis details that Blockchain is transforming consumers into members of communities.

“We want a Web 3.0 wallet in every pocket.” Our goal is to bring Blockchain to new audiences and sectors so everyone can benefit from the network effects. The actions that developers and creators are taking right now will only worsen in the years to come.”

A study by Streamlabs and Stream Hatchet notes that Twitch had an 83% year-over-year increase in viewership when the pandemic hit, with more than 5 billion hours of content viewed, in the second quarter of 2020 alone.

Meanwhile, DappRadar highlights that Web 3.0-based games and Metaverse projects have raised $748 million since August 1, 2022. This marked an increase of 135%, compared to July, demonstrating the growing demand. of this sector in particular.

By Audy Castaneda

Terra (LUNA) Spent $2.8 Billion Reviving UST Instead of Reimbursing Investors

Audy Castañeda
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<strong>Terra (LUNA) Spent $2.8 Billion Reviving UST Instead of Reimbursing Investors</strong>

A third-party audit report released by JS Held on November 16 revealed that the Luna Foundation Guard spent $2.8 billion after the UST divestment to get out of the debacle.

According to a third-party audit report released by JS Held on November 16, the Luna Foundation Guard spent $2.8 billion, after the UST divestment, to get out of the debacle. In particular, it has become clear that the reserves were not used to pay the investors in the project.

Furthermore, the report states that “TFL went out of its way and spent $613 million of its own capital to defend the UST peg… To defend the UST price peg, LFG, TFL and Jump initially bought UST and LUNA.”

Audit Reveals No Misappropriation of Funds

In early May, the algorithmic stablecoin Terra USD (UST) de-pegged from the dollar due to an imbalance. The imbalance is related to the burning and minting mechanism of the ecosystem. The report also said that the tweets LFG posted during the accident are accurate about the company’s reserve balances.

In response, LFG appears satisfied that allegations of embezzlement, misuse of funds, and money laundering by insiders have not been substantiated.

Did the Reviewer “Hand-select” the Records?

Crypto influencer FatMan has welcomed the step of publishing the audit report but has questioned the missing trading records. He claims that the auditor has “handpicked data rather than providing the whole story”.

He further argued that, “TFL sends Jump BTC, and Jump sends TFL UST… That’s it. There are no trade records for this leg! There are several issues here, as Jump was heavily involved in the Terra ecosystem and could have simply cleaned up his own book. Despite claiming full transparency, this part is omitted.”

Furthermore, FatMan seems confused with dumping 440 million UST and 700 million+ LUNA in the process. He points out that, “The second thing that seemed strange to me was: TFL was selling UST at the same time that it was buying UST”

FatMan argues that, “If peg were fairly defended, there would be a flow of buy orders at predictable intervals. The fact that the transfers were unevenly staggered, and that TFL was *selling* UST at the same time, raises questions. And these are just known accounts.

After the audit was released, co-founder Do Kwon stated that, “For those of you whose minds I have not been able to change, I accept your judgment.” He also apologizes for not better communicating the risks of the project, and implies that it will take more than rage and blanket bans on similar protocols to figure out how to stop future failures of this nature.

By Audy Castaneda

Amid the Crypto Winter, the FTX Crash Causes Further Problems to Bitcoin Miners

Alexander Salazar
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<strong>Amid the Crypto Winter, the FTX Crash Causes Further Problems to Bitcoin Miners</strong>

Bitcoin miners have not been able to escape the impact of the FTX crash, as their profitability has decreased. That event has also prevented the price of BTC from breaking out of its crucial support region.

The collapse of FTX has harmed the crypto market, as users have lost confidence by not feeling protected.

While several investors lost billions of US dollars, miners had to leave their businesses. The profitability of miners fell considerably due to the collapse of the crypto market.

The current crypto winter might have a prolonged effect on the market, lasting from several months to one year.

The Profitability of BTC Mining Falls as the Crypto Winter Worsens

Bitcoin (BTC) miners seem to be in trouble as they have not been able to escape the impact of the FTX crash.

Since Bitcoin is trading at around USD 16,000, the potential and profitability of miners have declined.

The profit margins of Bitcoin have bottomed out as their holdings have declined. They reached a low of 1.826 million BTC, equivalent to USD 30.6 billion.

According to Glassnode, the change in miner net position dropped to 10,972 BTC, the lowest since January.

The analytics firm also noted that the long-term holder supply decreased by 61,500 BTC, a significant event.

A sudden drop in the BTC hash rate caused miners to liquidate their holdings at around 9.5%.

Meanwhile, CryptoQuant claimed that miners traded 1,300 BTC on the same day FTX crashed. According to the price chart, that event has led BTC miners to generate selling pressure.

The Miner Position Index (MPI) has also reached a low, suggesting significant momentum in BTC outflows by miners.

The Price of Bitcoin Might Recover in the Long Term

The collapse of FTX has not allowed the crypto market to form green candlesticks. The price of BTC has remained trapped close to its crucial support region without showing signs of a possible reversal.

The value of BTC previously had monthly support at USD 18,000 but dropped to the bottom line on breaking below that level.

However, BTC struggled to break its immediate resistance level of USD 17,000 when Binance introduced a reserve fund. After facing rejection at that level, it could not hold its price for long.

The price of Bitcoin is in a recovery phase at USD 16,000 as it forms a support level. The cryptocurrency is trading at around USD 16,500, above its 100-hour SMA.

There would be a slightly bullish hope for investors if Bitcoin broke above its immediate resistance level of USD 18,000. BTC could thus trade near its 100-day EMA at the USD 20,500 trend line.

The RSI-14 remains in an oversold region of the 36 level, suggesting a further bearish trend.

The price of BTC might drop below its lower limit of USD 15,500, a crucial support level for bearish momentum. If that happened, it might reach a lower range between USD 13,000 and USD14,000 in the short term.

By Alexander Salazar

The Price of Bitcoin Might Rise Significantly after Holding below USD 17,000

Alexander Salazar
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<strong>The Price of Bitcoin Might Rise Significantly after Holding below USD 17,000</strong>

Following the resistance zone near USD 17,265, the price of Bitcoin might test the USD 18,000 zone. Edward Snowden recently said the considerable decline in the price of Bitcoin offers many opportunities for investors.

The price of Bitcoin (BTC) is struggling to break above the USD 16,000 support zone. If it clears the USD 17,000 and USD 17,200 resistance levels, it might rise significantly in the short term.

Bitcoin Consolidates above the USD 1,600 Support Zone

The value of Bitcoin has remained stable above the USD 16,000 support zone. It formed a base and slowly rose above the USD 16,350 resistance zone.

Bitcoin moved above the 23.6% Fibonacci retracement level, going down from the USD 18,155 high to the USD 15,833 low. The bulls could minimize the losses, helping the price move above USD 16,400.

The cryptocurrency is trading above USD 16,500 and the 100-hour SMA, like Ether (ETH). While immediate resistance is close to USD 16,900, the hourly chart shows a bearish trend line with resistance near USD 16,900.

The trend line is close to the 50% Fibonacci retracement level of the drop from the USD 18,155 high to the USD 15,833 low. Since the most relevant resistance is near USD 17,000, the price might start rising significantly.

The next most relevant resistance is near USD 17,265 before Bitcoin tests the USD 18,000 zone. It might make further gains if the price rises toward the USD 18,500 resistance zone.

The Price Might Drop Further If It Remains below USD 17,000

The price of Bitcoin might start dropping further if it fails to begin a rally wave above USD 17,000. Its immediate support on the downside is near USD 16,650 and the 100-hour SMA.

Since the following relevant support is near the USD 16,350 zone, a move below it might push the price lower. In that regard, the value of Bitcoin may decline toward the USD 16,000 support zone.

The hourly MACD loses pace in the bullish zone, but the hourly RSI is above 50. While the most significant support levels are USD 16,350, the most relevant resistance level is USD 17,500.

Meanwhile, Edward Snowden Believes Bitcoin Offers an Opportunity

According to Edward Snowden, the considerable decline in the price of Bitcoin may represent many opportunities for investors. He recently said on Twitter that he feels like returning to the charge after a long time.

However, he explains that he is not giving investment advice as he has no financial education. His followers advised him not to store his cryptocurrencies on a centralized platform if he decided to buy the dip.

The FTX disaster might affect other exchanges like crypto.com and gate.io, between which there might have been an accidental transfer of USD 400 million.

Bitcoin is trading at around USD 16,747 and has accumulated a 0.2% loss over the last 24 hours. While its daily trading volume is above USD 26.96 billion, its market capitalization is about USD 321.70 billion, according to CoinGecko.

By Alexander Salazar

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