Crypto News: A Weekly Review

Following news that U.S. authorities were considering filing criminal charges against the exchange, Binance experienced a flood of withdrawals. Silvergate, a bank that supports cryptocurrencies, saw a two-year low in share price. Even if it wouldn’t have demanded it, the digital asset industry faced a remarkable 24 hours.  However, crypto markets were primarily interested in November’s promising inflation data.


Sam Bankman-Fried, the former CEO of FTX and a rising star in the cryptocurrency industry, was arrested in the Bahamas, refused bail, and viciously abused by the person who took his place during a congressional hearing.


Bitcoin was recently trading at $17,765, up 3.2% in the last 24 hours, as investors welcomed the latest consumer price index (CPI) data, which showed prices rising 7.1%, lower than the 7.3%. Earlier this year, the CPI increased by more than 9%.


Ether was just trading at $1,319, up 3.4% from the same time on Monday. AVAX, the token of base layer network Avalanche, and LINK, the token of software platform Chainlink, recently increased by 5.8% and 3.2%, respectively. The majority of other significant cryptocurrencies were also solidly green.


The tech-heavy Nasdaq and S&P 500 rose by 1% and 0.7%, respectively, as U.S. market indices quietly welcomed the favourable CPI statistics. Additional proof that the U.S. central bank’s monetary hawkishness over the previous six months has been effective came from the Bureau of Labor Statistics on Tuesday, which also showed core inflation, which includes more volatile food and fuel prices, gaining 6% vs estimates of 6.2%.


Just a few months ago, U.S. Treasury rates were above 4%; on Tuesday, they dropped below 3.5%. In contrast to its recent influx of four consecutive 75 bps hikes, the Fed is expected to raise interest rates by 50 basis points (bps) on Wednesday.

Binance Sees Largest Bitcoin Withdrawal In Its History, BTC Rally Set To Benefit?


Binance has seen a massive withdrawal of 40,000 BTC in the last 24 hours. The company might face a bank run as crypto investors’ confidence declines. Positive economic data from the U.S. is positively impacting the market. Bitcoin is back above its previous yearly lows. Crypto exchange Binance has seen $2.1 billion in outflows in the last 24 hours.


In early November, the crypto exchange saw a significant outflow as FTX went belly up. Overall, the exchange has enough funds to cover ten times its withdrawals, but the market sentiment is negative.


Crypto Exchange Binance Refutes Allegations Of Money Laundering


Crypto sector has been a subject of divided opinions since the inception of Bitcoin and its meteoric rise. Ripple Labs case between Ripple Labs and the Security and Exchange Commission has led to fears for a possibly bleak future for crypto. Binance, the world’s largest crypto exchange by trading volume, is facing a possible money laundering investigation. 


Changpeng Zhao – Binance CEO, has dismissed the reports as FUD. According to Zhao, the article by Reuters on money laundering is a waste of time. The CEO also labelled the story as fiction and stated that everyone makes mistakes, but the Reuters story was imbalanced.


SEC Charges SBF Of Allegedly Conducting Fraud Schemes


FTX, one of the leading crypto exchange platforms, filed for bankruptcy in November 2022. Sam Bankman-Fried, the founder and ex-CEO of FTX, was arrested in the Bahamas on Monday at his apartment. This arrest comes on the heels of criminal charges against him.  However, due to his arrest on Monday, the new CEO of FTX – John J. Ray III, will reveal his findings to the House. What’s Next For FTX Token Holders?


Maple Finance Debt Indicates Crypto Lending Risks With No Collateral


Maple Finance’s native token, MPL, has plummeted to an all-time low as it lost 50% of its value. The platform has witnessed a cumulative $36 million of defaulted loans and $18 million distressed in the past fortnight. Also, most of the vast borrowers have revealed losses due to their investments in the collapsed FTX exchange. Maple faces a severe crisis with its crypto credit formalities. According to Token Terminal data, the protocol had a drop of $82 million in its outstanding loans.


Its popularity spiked among market makers that seek liquidity for borrowing and crypto trading companies. However, its range of depositors comes from institutional and average retail investors.


Cardano Community Expects ADA To Jump 50% By End Of Year, Is This Possible?


The Cardano community on Coinmarketcap has shown a bullish outlook for the future. The estimates for January 2023 put the ADA price at $0.5, a 65% increase from current levels. For the next six months, expectations remain in the green that ADA will continue to trade higher. 


Cardano (ADA) is down 6.82% in the last 7 days and 2.88% in the last 24 hours. It remains the 9th largest cryptocurrency with a market cap of $10.4 billion. The digital asset continues to stall around $0.306 ahead of the trading day which could mean some strength if the trading volume picks up.


Yearn Finance: What The Final Quarter Of 2022 Has In Store For YFI Price


Yearn Finance (YFI) is an ERC20 governance token built on the Ethereum blockchain. At press time, the altcoin is changing hands at $7,087, going up by 5.7% during the past week. YFI’s RSI settled below the 50-neutral zone at 48.97 suggesting that selling pressure increased and buyers veered away from the asset.


 The number of unique addresses that traded Yearn Finance decreased sharply, going down by 41%. At the time of this writing, there were only 248 wallets monitored to have participated in YFI transactions. The digital asset is expected to decline significantly within the next five days and will eventually change hands at $6,094 by December 15.


Upcoming FOMC Meeting Is The Most Important Ever For Bitcoin


The release of the Consumer Price Index (CPI) on December 13, Tuesday at 08:30 AM ET, will once again be “the most important CPI ever”. On December 14, Wednesday at 2:00 PM ET, the Federal Open Market Committee (FOMC) meeting will take place. Remarkably, FED members will release their updated forecasts for inflation and interest rates at the meeting.

 If the new data matches CPI expectations, it would be the fifth consecutive monthly decline after peaking at 9.1% YoY in June. Next week’s reading could be even the lowest since January. If the CPI falls below expectations, markets could front-run the Fed’s decision and trigger an end-of-year rally.



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