A Thief Robbed a Jewelry Store to Compensate for the Losses he Suffered Due to the Drop in the Price of the Bitcoin

Jenson Nunez
-
0
A Thief Robbed a Jewelry Store to Compensate for the Losses he Suffered Due to the Drop in the Price of the Bitcoin

The suspect told police he needed money after suffering heavy losses due to the crash that occurred in the market. He snatched several gold necklaces from the jeweler with a total value of $50,000.

Law enforcement agencies in Bangkok in Thailand captured a 34-year-old man named Montry, who revealed he robbed a jewelry store under severe stress due to the recent market Crashdown. He said that he committed the crime due to the losses suffered due to the fall in the price of bitcoin, which registered a 67% decline last week from its all-time high in November 2021.

With the idea of ​​compensating for the losses caused by the crash in the bitcoin market, Montry stole gold necklaces that weighed at least 31 ounces and were worth almost 2 million baht, the monetary unit of Thailand.

The suspect got caught 11 hours after extracting the gold and got interrogated by authorities. He explained how he parked his motorcycle in front of the jewelry store, entered with a gun, and ran away with the stolen gold, later hiding in the vehicle before returning to his house.

Montry also told police that he was under extreme stress and in dire need of money after recently suffering vast losses on his bitcoin holdings. He has been accused of armed robbery, as highlighted by Thai media outlets.

The note does not show how many BTC the suspect had under his control, nor if he had sold his bitcoin holdings, thus losing any possibility of recovering from losses in case the digital assets begin to reach high levels.

Although Monthly’s case seems one of a kind, crimes linked to bitcoin and other crypto-assets are experiencing a considerable decline, at least that’s what a report led by CipherTrace highlights.

In its report, the entity expressed that illegal activities have decreased and are a tiny fraction of the digital asset environment. The firm explained that illicit activity, which made up 0.62% to 0.65% of total activities linked to crypto in 2020, has fallen to between 0.10 in 2021.

In any case, the bitcoin community usually focuses on not losing until they get rid of their holdings. This action happens because holding BTC for a long time generally results in profits, replacing abrupt losses that may take effect due to a fluctuation in the market.

A bitcoin enthusiast recommended the community not to do something stupid from which there is no turning back because they can always rebuild what they lose. He said the Bitcoin community would recover, and the drops in BTC prices are just buying opportunities to continue accumulating.

By: Jenson Nuñez

The Fed Could Rein in the Interest Rate Hikes Due to the Threat of Recession

Alexander Salazar
-
0
The Fed Could Rein in the Interest Rate Hikes Due to the Threat of Recession

Heinrich thinks the increase in public debt is one of the factors that would cause a recession. Economist Gael Sánchez considers it is necessary to return to the strategy the Fed implemented in 2020 to favor the Bitcoin  market.

The US Federal Reserve (Fed) has remained firm in its policy of increasing interest rates to restrict economic expansion and stimulate savings. The strategy includes the recent record increase of 75 basis points, the highest since 1994. It seeks to control inflation, which has achieved a record of 8.6% for May, the highest in 40 years.

However, the Fed might change its strategy if the following rate increases favor economic recession rather than reducing inflation. Economist Sven Heinrich, the founder of NorthmanTrader, recently stated on Twitter that the rise in interest rates goes against their downward trend.

Heinrich also said the growth in the US public debt, already exceeding USD 30 billion, is a significant factor for a recession.

A graph by the Fed shows that the highest rates, aiming to reach 3.8%, break their downward trend. Heinrich argues that another increase in interest rates will meet or exceed the capitulation trend of the Fed. Meanwhile, the ever-increasing public debt will cause a recession, and they will have to take action to lower rates.

Among the responses to Heinrich, some users draw attention to the contradictory messages from the Fed. They recall that Jerome Powell denied planning to increase interest rates by 75 points when announcing the 0.5% rate hike on May 5th. However, the US central bank finalized the rate increase of 75 basis points (0.75%) on June 15th.

The users also discussed what happened between 1981 and 1982, when the Fed announced systematic increases to combat inflation. They said this caused the worst recession since the 1928 crash, only surpassed by the economic crisis in 2008.

The Fed May Change Course to Allow Monetary Expansion to Return

Other more radical positions state that the Fed will move from restrictive policies to monetary expansion. Economist Gael Sánchez considers that raising rates lead to a severe economic crisis with credit restrictions.

Sánchez believes it possible to solve this situation with a monetary expansion policy. He explained that credit spreads continue to push to the upside, risking the health of the financial economy.

He considers that the only way to stop this is by printing banknotes and buying financial assets. In other words, he thinks it is necessary to return to the strategy the Fed implemented in 2020. At that time, the COVID-19 pandemic brought much economic activity to a standstill.

The economist said that this scenario would be very favorable to the market of Bitcoin, according to Sánchez. He stressed that the cryptocurrency would go to the fifth moon of Saturn when the market found out what was coming.

Bitcoin is trading at around USD 20,097 and has accumulated a 6.1% loss over the last 24 hours. While its daily trading volume is above USD 23.38 billion, its market capitalization is about USD 383.69 billion, according to CoinGecko.

By Alexander Salazar

According to Vitalik Buterin, Bitcoin Price Models Give a False Sense of Certainty

Jenson Nunez
-
0
According to Vitalik Buterin, Bitcoin Price Models Give a False Sense of Certainty

According to Vitalik, it is not responsible to speak about prices as if they were a guarantee. The stock-to-flow model has already had significant fluctuations before.

Vitalik Buterin, the co-founder of Ethereum and one of the most famous personalities in the world of digital assets, directed a strong criticism of the predictive models of the price of bitcoin (BTC). In particular, he talked about the stock-to-flow structure, which predicted a solid increase for this year and which, to date, seems to be failing.

Through Twitter, Buterin explained that stock-to-flow does not look good regarding the fall in the price of bitcoin in recent weeks. This drop made the price of the cryptocurrency move away from the stages that, according to the predictive structure, should currently be around BTC.

Not only did he criticize the importance of this model, but he also described this metric as something harmful. These predictive models bring a false sense of certainty about the future and that it is an unsafe situation.

PlanB, an expert who has encouraged this predictive structure and has had a lot of support in the community, responded to Buterin’s opinions. On the same platform, PlanB explained that after a crash like this, some people seek scapegoats for broken projects or wrong investment decisions.

Ether (ETH), Ethereum’s native digital asset, also crumbled considerably, trading at just over $1,000 despite setting an all-time high reaching a peak above $4,000 a few months ago.

Historically, the market has followed the same direction traced by bitcoin. So the predictive model, even though it aims for an increase in BTC, would put the rest of the crypto market aside.

Although some criticize these accusations due to a rude market situation, Buterin has been critical of this valuation mode because it focuses on the declining pace of monetary issuance in Bitcoin.

Stock-to-Flow Model

Although many responded to Buterin, there are even analysts who agree with the criticism. Bob Loukas, who stood against PlanB, explained how the predictive model got presented as dangerous since it got launched as a guarantee before a vast audience with many newbies on their frontlines.

According to Vitalik Buterin, there is currently a deviation in the bitcoin price from the stock-to-flow model. This deviation is also the most prominent downward ever recorded, but it is not the first time since there was a much larger deviation in 2014 and another in 2011.

Stock-to-flow is not entirely in uncharted territory at present. But, like any other metric that serves to test the market, it is not infallible or guaranteed that history will repeat itself in the future.

This procedure can apply to any indicator, such as one that many experts highlight as key to the current market right now. The 200-week moving standard has historically represented good support, although right now BTC is below that level; even the mark of the tops of each cycle became solid guidance, although it got crushed this weekend with the momentary fall to $17,500.

By: Jenson Nuñez

The Behavior of the Bitcoin Whales as the Price of the Cryptocurrency Continues to Drop

Alexander Salazar
-
0
The Behavior of the Bitcoin Whales as the Price of the Cryptocurrency Continues to Drop

The Bitcoin whales transferred 17,853 BTC between exchanges and 15,029 BTC from those platforms to unknown wallets. Those long-term holders moved 17,853 BTC into the market but did not make any movements between peers.

It is helpful to monitor the activity of the Bitcoin whales during the weekend to know where they will head next. Over the last three days, they have moved more than 46,000 BTC through less than 20 transactions. Below are the details within the context of the current situation in the crypto market.

The Bitcoin whales have moved 46,098 BTC, the predominant trend being the transfer between exchanges. However, that tendency barely exceeds accumulation by just over 6%.

The Activity of the Whales as the Cryptocurrency Continues to Drop

The accounts of the whales can be the wallets of leading exchanges that only move their funds with no sale intention in mind.

It is necessary to contextualize that activity to better dig into the status of the whales and the market as a whole. However, this is just a micro approach to one of the many factors that can influence the performance of BTC.

Analysis of the Activity of the Bitcoin Whales during the Weekend

The predominant trend was the transfer between exchanges, as the Bitcoin whales moved 17,853 BTC, representing 38.72% of the total analyzed.

The second-highest trend was accumulation, as 15,029 BTC went from exchanges to unknown wallets, equivalent to 32.60% of the total analyzed.

The introduction of liquidity into the market was the third-highest trend, as the whales moved 17,853 BTC, representing 28.67% of the total analyzed. Finally, those long-term holders did not make any movements between unknown wallets.

The Performance and Pulse of the Bitcoin Market

BTC is trading at around USD 20,614 and has accumulated a 0.7% gain over the last 24 hours. While its daily trading volume is above USD 25.19 billion, its market capitalization is about USD 392.56 billion, according to CoinGecko. So far this year, the price has had a variation of -55.60%.

During the weekend, the value of the pioneering cryptocurrency dropped to USD 17,000. Even though it bounced by over 16% to USD 20,000, it does not mean a resumption of the upward trend. However, some investors have been willingly waiting to buy BTC cheaply to make a profit in the long term.

In this context, it is possible to see that there is no marked trend in the activity of the Bitcoin whales. However, their behavior during the weekend indicates that the introduction of liquidity into the market was not massive. Depending on various factors, there might be a slowdown in selling and some accumulation.

It is recommendable to monitor the behavior of the market, external factors, and the movements of the Bitcoin whales. That would allow having an overall perspective of the situation of the price of the cryptocurrency. Researching before investing in any asset is always a good idea to reduce the possibility of losing money.

By Alexander Salazar

South Korea Prohibits Terra Core Team Members from Leaving the Asian Country

Jenson Nunez
-
0
South Korea Prohibits Terra Core Team Members from Leaving the Asian Country

South Korean authorities Prohibited one of the leading designers from leaving the Asian country.

The consequences of the Crashdown of the Terra spread like fire, and they are burning not only investors and the crypto environment in general but also the creators.

Terraform Labs, the entity leading the project, got investigated by the officials of that country. Do Kwon, the creator of Terra, received accusations of money laundering; and many other members got questioned.

On the other hand, the South Korean investigation of the entity is taking deeper paths, and authorities recently filed an order preventing one designer in Terra from leaving the country.

Retained Designer

The Securities and Financial Crimes Joint Investigation Team of the Seoul Southern District Public Prosecutor’s Office applied an exit prohibition on one of the core members of Terra as part of its investigation.

According to a South Korean media report, this designer previously told that he spoke with Do Kwon, the CEO of Terraform Labs, which allegedly explained that he had earned enough money to purchase an island. This team member also revealed to reporters that Kwon secretly sold the digital asset to institutions to collect vast amounts of money.

As part of the investigation, prosecutors got interested in whether the funds gathered in this way got implemented to increase the price. The report also highlighted that the activities of the prosecution show the possibility of releasing a forced investigation that would add seizure orders and the subpoena of relevant officials.

After such events, there is a possibility that the prosecution will soon launch a forced investigation, which includes a search and seizure and the summoning of members of Terra. The authorities are also studying whether Kwon and other core members can get charged with illegal activities such as fraud.

As long as this Terra designer remains in the country, prosecutors could use the opportunity to launch further investigations into Terra, and this may include searches and even property seizures. At the moment, the prosecution is involving Terra officials in the case.

An Internal Crashdown

Meanwhile, new research highlighted that the Terra crash may have been an inside job, as the wallet detected as an attacker for creating a transaction that boosted the decline was actually under maintenance of Terraform Labs. On top of that, Terraform Labs received accusations of laundering at least $4.8 million through a South Korean shell entity.

The South Korean administration said that more than 200,000 South Korean citizens lost money when Luna and UST crashed. After launching investigations into the Terra crash, authorities are now directing the magnifying glass to people tied to the Terra developer team.

Do Kwon is Hiding in Singapore?

A relevant factor that may have informed this decision is that Do Kwon is currently in Singapore. This situation may have presented various legal obstacles for authorities to figure out what occurred when Terra fell.

A few weeks ago, the South Korean parliament summoned Do Kwon to explain what happened to Terra. It is unclear if this call got listened to as Do Kwon is not in the country. Kwon and his company, Terraform Labs, got accused of tax evasion in South Korea and must give a sum registered at US$80 million.

By: Jenson Nuñez

The Central Bank of Jamaica Defends Its CBDC and Warns about the Alleged Risks of Bitcoin

Alexander Salazar
-
0
The Central Bank of Jamaica Defends Its CBDC and Warns about the Alleged Risks of Bitcoin

The Jamaican financial institution believes that Bitcoin is not a currency for making transactions or payments. The country wants to privilege the use of its CBDC, as they see it as a more stable asset.

In several countries, the central banks and governments usually alert citizens about the alleged risks of investing in cryptocurrencies like Bitcoin (BTC). The Central Bank of Jamaica is among those making those warnings as part of a plan to discourage their use by launching its digital currency.

The governor of the Jamaican financial institution, Richard Byles, recently warned citizens about the unpredictable nature of cryptocurrencies. According to local media, Byles said they take the time to warn people that the value of those securities can go up and down.

Although the official clarified they do not ban their use, he said they do not consider it a currency for transactions or payments. On the contrary, he sees a central bank digital currency (CBDC) as a more helpful and risk-free asset.

He made that statement following the enactment of a law establishing the Jamaican digital currency as legal tender. Before that, the Bank of Jamaica (BOJ) had carried out the pilot tests between May and December 2021.

Regarding their CBDC, he stated that they support it without the help of any private investors. He considers it stable, arguing that the value of Jamaica Digital Exchange (Jam-Dex) will remain over time. He asserted that it would not go up and down in the market like (decentralized) cryptocurrencies.

Those warnings about Bitcoin and other cryptocurrencies come amid a sharp drop in that market in various regions. However, it is relevant to remember that this problem also affects the economy in general worldwide.

African Central Banks Also Pay Attention to Bitcoin

Markets in the red like the current one have raised alerts among governments worldwide. That has led the African continent to insist on preventing the use of Bitcoin and cryptocurrencies. They have discussed that subject within the Regional Consultative Group (RCG) of the Financial Stability Board (FSB) for Sub-Saharan Africa.

The Central Bank of West African States (BCEAO) and the Bank of Central African States (BEAC) form that organization. They talked about financial stability, regulatory and supervisory implications of crypto assets, and financial risks.

During the activity, they mentioned a study by the FSB to evaluate the supervision and regulation of stablecoins and (decentralized) cryptocurrencies. They also discussed the challenges those assets pose for regulators and policymakers regarding that industry.

They did not mention that the Central African Republic, a country part of that regional group, adopted Bitcoin as legal tender. However, recent events like that may be motivating those organizations to discuss the issue of cryptocurrencies.

Bitcoin is trading at around USD 21,404 and has accumulated a 2.9% gain over the last 24 hours. While its daily trading volume is above USD 27.41 billion, its market capitalization is about USD 409.36 billion, according to CoinGecko.

By Alexander Salazar

1...755756757...1,654Page 756 of 1,654