- US media - "Bill to grant crypto firms access to Federal Reserve ... "by Eamonn Sheridan on July 3, 2022 at 9:30 pm
Washington Post with the report, in brief: a ... proposal to regulate the crypto industry .... introduced in June — would force the Federal Reserve to grant so-called master accounts to certain crypto firms seeking them from the central bank. The accounts give holders access to the Fed’s payment system, allowing them to settle transactions for clients without involving a separate bank. WaPo describe the proposal, part of a bill introduced to the US Congress, as "little-noticed". -- BTC update, a flat sort of weekend with a wee pop in the past hours: This article was written by Eamonn Sheridan at www.forexlive.com.
- This is a Crazy Crypto Trade Idea...by ForexLive on July 2, 2022 at 2:27 am
Some call it crazy, others call it a low-probability, high reward vs. risk trade The logic? This is an idea based on an opinion of a higher timeframe premise, going for that higher timeframe take profit target, and setting a lower timeframe stop loss. But both have got sound, technical reasons, not random ones Watch the video below for a trade idea for a leveraged trade idea on Ethereum (ETHUSD), based on that crazy logic. Trade Ethereum at your own risk. Investing revolves on risk and reward. Investors that hold hazardous assets and risk losing money should be rewarded more richly. More risk equals more possible profit for an investment Risk and return are tightly correlated for most investments and asset classes. Every investor must balance risk and reward. Typically, when going for a high return vs risk, like shown in the ETHUSD trade idea in the above video, based on that technical analysis shown, traders pay a "price" regarding the probablity of the trade to work out in their favor: The higher the reward, the lower the probability to win the trade. Still, some traders may want to aim for those big trades, accordng to their personality and strategy. The above shows an example. Follow ForexLive.com for bold, honest and interesting technical analysis and trade ideas that you're probably not going to get anywhere else. This article was written by ForexLive at www.forexlive.com.
- Crypto lener Voyager suspends withdrawalsby Adam Button on July 1, 2022 at 7:02 pm
The crypto lender was caught up in the 3AC collapse. 3AC had a loan of 15,250 BTC and $350 million USDC. Voyager says it's 'pursuing all available remedies for recovery' but 3AC is in bankruptcy so that's going to be a long wait. "This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Stephen Ehrlich, Chief Executive Officer of Voyager. "This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time." The company hired Moelis & Company and The Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors. Moelis specializes in M&A and restructurings. The market wasn't expecting much from Voyager. The stock isn't trading today because of a holiday in Canada but it's been a precipitous fall since before the 3AC collapse. The company entered into a definitive agreement with Alameda for a US$200 million cash and USDC revolver and a 15,000 BTC revolver on June 17. On June 14, it said:Voyager differentiates itself through a straightforward, low-risk approach to lending and asset management by working with a select group of reputable counterparties, which are all vetted through extensive due diligence by its Risk Committee.It's tough for crypto to find any kind of a bottom until we get all the bad news. Stuff like this makes crypto investors want to pull their funds. This article was written by Adam Button at www.forexlive.com.
- BlockFi sells itself to FTX in earnout-laden dealby Adam Button on July 1, 2022 at 6:11 pm
Dan Primack at Axios reports that the rumored BlockFi sale to FTX is done. It will be for $240 million at the high end (if earnouts are achieved). There's no word on the low end or the reported (and denied) $25m deal from yesterday. In any case, the company was raising money at $4 billion valuations and investors poured in more than $1 billion, so huge losses are coming. I'm sure employees were paid in stock as well, so morale will be a real challenge. The brand is obviously badly tarnished as well. Update: BlockFi CEO Zac Prince now offers details.Yesterday we signed definitive agreements, subject to shareholder approval, with FTX US for: 1. A $400M revolving credit facility which is subordinate to all client funds, and 2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers.This, together with other potential consideration, represents a total value of up to $680M. We have not drawn on this credit facility to date and have continued to operate all our products and services normally. In fact, we raised interest rates, effective today.So, what events led up to this deal with FTX US?Crypto market volatility, particularly market events related to Celsius and 3AC, had a negative impact on BlockFi. The Celsius news on June 12th started an uptick in client withdrawals from BlockFi’s platform despite us having no exposure to them.In the same week, 3AC news spread further fear in the market. While we were one of the first to fully accelerate our overcollateralized loan to 3AC, as well as liquidate and hedge all collateral, we did experience ~$80M in losses, which is a fraction of losses reported by others.This represents the full extent of the impact to BlockFi from 3AC. We have no further exposure and the limited losses we did experience will be absorbed by BlockFi with no impact to client funds.Our 3AC losses will be part of 3AC’s ongoing bankruptcy case(s) so more info will surely come out as those cases proceed. It's always 'volatility' and never 'terrible risk management'. How does an $80m loss on a company that's raised $1 billion lead to a firesale? This is certainly not the whole truth. This article was written by Adam Button at www.forexlive.com.
- El Salvador's President says bought 80 bitcoin at $19,000 each (your taxes at work)by Eamonn Sheridan on July 1, 2022 at 1:51 am
El Salvador President Nayib Bukele doesn't need no stinkin' stop loss on the coins he bought MUCH, MUCH higher - its not his money! Doubling up to catch up. There's been a bit of crypto news and views about the place today: Deutsche Bank forecasts Bitcoin back as high as US$28K by the end of this year Reports that Japanese authorities are moving to allow trust banks to manage crypto Update: US government easily tracking your crytocurrency transactions (thanks Coinbase!) This article was written by Eamonn Sheridan at www.forexlive.com.
- Deutsche Bank forecasts Bitcoin back as high as US$28K by the end of this yearby Eamonn Sheridan on July 1, 2022 at 1:22 am
Analysts at DB say the crypto has been closely correlated with US equity indexes S&P500 & NASDAQ 100. DB looking for the indexes to recover (to levels seen in January) by year-end, taking BTC along DB liken crypto to diamonds and De Beers marketing efforts: “By marketing an idea rather than a product, they built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years. What’s true for diamonds, is true for many goods and services, including Bitcoins,” --- DB info via Bloomberg (gated) This article was written by Eamonn Sheridan at www.forexlive.com.
- Reports that Japanese authorities are moving to allow trust banks to manage cryptoby Eamonn Sheridan on July 1, 2022 at 12:04 am
Japan's Financial Services Agency (FSA) is reported to be loosening up regulations to allow trust banks to manage crypto. BTC has jumped: This article was written by Eamonn Sheridan at www.forexlive.com.
- Update: US government easily tracking your crytocurrency transactions (thanks Coinbase!)by Eamonn Sheridan on June 30, 2022 at 9:28 pm
ICYMI. Coinbase is selling to the U.S. Immigrations and Customs Enforcement a range of features that allows the agency's Homeland Security Investigations division to track and identify crypto users In August 2021, Coinbase sold a single analytics software license to ICE for $29,000 followed by a software purchase potentially worth $1.36 million the next month A new contract document obtained ... shows ICE now has access to a variety of forensic features provided through Coinbase Tracer, the company’s intelligence-gathering tool (formerly known as Coinbase Analytics). Coinbase Tracer allows clients, in both government and the private sector, to trace transactions through the blockchain Tracer (has the) ... ability to “investigate illicit activities including money laundering and terrorist financing” and “connect [cryptocurrency] addresses to real world entities.” Source (with a lot more) ---- This is why I insist on suitcases full of cash for my (cough) completely legal activities. Like this guy: Prince Charles reportedly accepted suitcase with $1.52 million in cash from controversial Qatari politician BTC update: This article was written by Eamonn Sheridan at www.forexlive.com.
- FTX closing in on deal buy BlockFi for $25 million. Was last valued at $4.8 billionby Adam Button on June 30, 2022 at 5:31 pm
CNBC citing three sources said FTX is closing in a deal for BlockFi. They warned the price could shift before tomorrow, when it's expected to close. BlockFi's last private valuation was $4.8 billion and had raised almost $1 billion in venture capital funding. The company received an emergency $250m line of credit from FTX. This basically wipes out all of BlockFi's investors but at least it will save the clients. Meanwhile, earlier today it was reported that FTX walked away from Celsius after finding a huge hole in its balance sheet. This article was written by Adam Button at www.forexlive.com.
- FTX walked away from deal with Celsius after finding $2 billion hole in its balance sheetby Adam Button on June 30, 2022 at 1:16 pm
Two people with knowledge of the situation cited by The Block say FTX was interested in a deal to take control of Celsius but walked away after examining the finances. One of the sources said Celsius "had a $2 billion hole in its balance sheet". Celsius claimed 1.7 million customers and around $12 billion in assets under management in May but has frozen withdrawals since June 12 and has been silent since June 19. The report said Celsius is fighting to avoid filing for bankruptcy. Bitcoin is trading down $1005 to $19,195 but unmoved by the latest report. This article was written by Adam Button at www.forexlive.com.
- The cryptocurrency market is stuck at past highsby FxPro FXPro on June 30, 2022 at 7:30 am
Bitcoin changed little over Wednesday and is trading slightly below $20K on Thursday morning, keeping the controversy at bay, which is now a defining moment for the cryptocurrency market. Ethereum lost 5.1% in 24 hours to $1090. Altcoins in the top 10 fell from 0.7% (Tron) to 8.5% (Solana). The exception was Dogecoin (+0.9%). The Cryptocurrency Fear and Greed Index was down 2 points to 11 by Thursday and remains in a state of “extreme fear”. Total crypto market capitalisation, according to CoinMarketCap, sagged 2% overnight to $891bn. Market capitalisation without Bitcoin falls back to 500bn, where it briefly fell from mid-month. The hypothesis that the crypto market is holding above the highs of the previous peak continues to pass an important test. This applies to Bitcoin with its protracted test of 20k and to altcoins, whose total capitalisation is now near past peaks, at the start of 2018. MicroStrategy has bought an additional 480 BTC at an average price of around $20,817, CEO Michael Saylor said. As of 28 June, MicroStrategy owns 129,699 BTCs purchased for $3.98bn at an average price of $30,664. Against the backdrop of the first cryptocurrency’s collapse, the company’s loss from bitcoin holdings exceeded $1bn. A court in the British Virgin Islands has liquidated hedge fund Three Arrows Capital (3AC), headquartered in Singapore. Founded in 2012, the hedge fund had raised tens of billions in investments in the crypto market but suffered losses of at least $400m in the last year when it liquidated its stock positions. Investment firm Cypherpunk Holdings sold all its assets in bitcoin and Ethereum amid a falling market. The total proceeds from the sale of the cryptocurrencies amounted to almost $5 million. The current crisis in the cryptocurrency industry will benefit the industry and weed out those who don’t belong in it, American rapper Snoop Dogg said. A survey by Alto found that nearly 40% of Americans aged 25 to 40 prefer to invest in cryptocurrencies rather than traditional financial instruments. In terms of appeal, digital assets have almost equalled equities. This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich. This article was written by FxPro FXPro at www.forexlive.com.
- What You Need to Know About Proof of Work in Cryptocurrenciesby ForexLive on June 30, 2022 at 7:24 am
Proof of work is a software algorithm cryptocurrencies use to confirm and record new transactions included in the blockchain. This method helps secure cryptos such as Bitcoin, Dogecoin, Litecoin, and many more. Such a mechanism is essential in the crypto world, as it serves as the central governing authority that verifies the accuracy of new data coming in the decentralized networks used by cryptocurrencies and decentralized finance (DeFi) applications. Proof of Work Explained Proof of work is a consensus algorithm in a blockchain network that chooses which miners are up to the task of confirming transactions and adding new blocks to the chain. That is profitable work as the miners receive new cryptocurrencies if they verify new data correctly. Cryptocurrencies are decentralized digital assets and do not have chief administrators or facilitators to confirm the accuracy of new transactions and data coming into the blockchain. Instead, they sought assistance from miners to confirm incoming transactions and include them as new blocks. With proof of work, anonymous people and entities can establish trust with one another in the crypto’s decentralized space. Proof of work puts miners into some sort of competition where you need to be first in making sense of the complex mathematical problem, which are alphanumeric codes called hashes, to keep others from manipulating or exploiting the system. Miners who succeeded in solving the problems only earn new cryptocurrencies once other miners in the network have validated the integrity of the data being added to the blockchain. Importance of Proof of Work Prevent Double-Spending You may struggle with spending the same bill on two different purchases, but anyone who created a copy of a computer file through the copy and paste method may consider how he could spend the same digital cash more than once. Proof of work is designed to prevent that type of situation, known as double-spending, in cryptocurrencies. In the past, double-spending made the development of a well-functioning crypto impossible. Cryptocurrency is purely data; therefore, it requires proof of work to keep users from spending the same digital token on different products or services before the transaction is recorded. About 64% of the overall market cap of the crypto world employs proof of world for authentication purposes. Some of the most well-known cryptocurrencies that use this mechanism include Bitcoin, Dogecoin, Bitcoin Cash, Litecoin, and Monero. Have Transparency and Supervision Another reason why proof of work is vital because cryptocurrencies don’t have banks or financial institutions to trust to move money around accurately. That’s where proof of work and miners come into play. In crypto transactions, those two are responsible for ensuring transparency and accuracy. For blockchains using proof of work, miners act as gatekeepers and moderators that make the system work properly and efficiently. Miners work to solve arbitrary math puzzles to earn new cryptocurrencies, and these puzzles require considerable effort and computational power to figure out. Miners are determined to verify transactions correctly, considering the significant amount of computer equipment and energy costs they had invested in this venture. This article was written by ForexLive at www.forexlive.com.
- Two BTC ETF applications denied by the US SEC on the same dayby Eamonn Sheridan on June 30, 2022 at 12:24 am
Grayscale Investments’ application to convert its $13.5 billion Grayscale Bitcoin Trust (GBTC) into a spot-based bitcoin ETF was denied by the SEC on Wednesday SEC stated in its filing that the application failed to answer the SEC's questions about preventing market manipulation, as well as other concerns. The decision joins the SEC’s rejection on Wednesday of Bitwise’s application for approval of a spot bitcoin ETF. Info comes via this link, more there if you are interested. Bitcoin: This article was written by Eamonn Sheridan at www.forexlive.com.
- North Korean hackers Lazarus Group believed behind $100mn heist on blockchain Harmonyby Eamonn Sheridan on June 29, 2022 at 10:29 pm
Info via Bloomberg (gated) Suspected North Korean hackers known as the Lazarus Group are believed to be behind the recent $100 million heist on California blockchain Harmony, a firm that tracks stolen cryptocurrency said Wednesday. Harmony confirmed that its Horizon Bridge, a seamless layer which allows cryptocurrency to move across different blockchains, had been hacked last week. Crypto update, BTC/USD: This article was written by Eamonn Sheridan at www.forexlive.com.
- CNBC reports that crypto exchange Coinflex probably won’t resume withdrawals on Thursdayby Eamonn Sheridan on June 29, 2022 at 8:54 pm
A Thursday resumption was the plan. CNBC says No. Earlier: "EU Moves Closer to Strict Anti-Money Laundering Rules on Crypto" This article was written by Eamonn Sheridan at www.forexlive.com.