Crypto News: A Weekly Review

In the early part of the week, Bitcoin woke up and is now comfortably resting above its prior $16,000 support. The biggest cryptocurrency by market capitalization was recently trading at over $16,200, up 2.5% as crypto markets started to follow stocks again. Stocks climbed on renewed hopes that the aggressive monetary policy of the U.S. central bank was controlling inflation and that it would soon be able to draw back from its recent cycle of 75 basis point interest rate rises.


As everyone waits for the next cryptocurrency domino to fall, Bitcoin is once again trading over the $16,000 mark, but it is still in danger. Crypto speculators have already priced in Genesis’ collapse. Many will be affected by FTX contagion, but a new spark is required for sellers to retake control.


On Monday, BTC fell to a two-year low due to fears over the stability of Genesis Global, a crypto trading and lending company that is apparently in talks to obtain additional funds after it halted allowing customer withdrawals the other week. Despite Tuesday’s rise in the price of bitcoin, investors were still concerned as Genesis became the latest casualty of the impacts of Sam Bankman-FTX Fried’s exchange’s collapse.


The price of Ether was recently up over 2%, trading at around $1,120. Other major cryptos were mostly up, with LINK up over 7%. The Nasdaq, S&P 500, and Dow Jones Industrial Average (DJIA) all gained more than a percentage point. 


Polygon Poised For A Major Advance Next Year If MATIC Stays On This Course


Polygon (MATIC) is closely following in the footsteps of its older relative ETH. Many in the cryptocurrency industry see 2023 as the final chapter following a period of uncertainty. Analysts show that MATIC follows the ETH price closely with a rejection by the 50-day MA. MATIC is trading at $$0.843512, down 10.3% in the last seven days, data by Coingecko show. MATIC has a restricted trading range of $0.7846, which is coupled with a restricted exchange rate. It would continue to face agony until later this year and maybe until the first quarter of 2023.


Bitcoin At $1M By 2030: Why Cathie Wood Remains Confident In Bold Bet


Ark Invest CEO Cathie Wood is doubling down on her prediction that Bitcoin will reach $1M per coin by 2030. The company has made investments in Grayscale’s heavily discounted Bitcoin fund. Wood says the recent fallout from FTX and other top crypto firms only helps to “battle test” the “infrastructure and the thesis” of the first-ever cryptocurrency. Ark Invest CEO Beth Wood says institutions may hesitate before entering Bitcoin, but she would be “more comfortable” investing in BTC. Bitcoin is down 79% from its peak but has bounced back several times from worse drawdowns. Bitcoin has grown by nearly 60,000% in the last eight years, so anything is possible — despite being improbable.


Binance Coin Loses $270 Support As Bears Eye $200; Will Bears Push Harder?


The price of Binance Coin (BNB) has not met expectations, with the price showing so much price action in recent weeks, rallying to a high of $390. The collapse of the FTX effect affects small crypto projects like Genesis as the market continues to look weak with each passing day. The price of BNB has escalated to a region of $250 as the price bounced off this region to reclaim $260. The price needs to hold strong above this region for the price to rally to a high of $280. If the price breaks below $250, we could see more sell-off, as this has been an area of interest to hold off bears.


What Exchange Absorbed FTX’s Trading Volume?


The FTX’s collapse is taking its toll on the crypto market. No digital assets escaped the bloodbath recorded by the sector in the previous week. The nascent sector is still suffering the consequences of recent events. Many crypto companies filed for bankruptcy or are in the process of raising emergency liquidity. The Open Interest for crypto exchange platforms has plummeted by over 43% in the past week.


Binance was the main beneficiary of the FTX collapse, gaining 9.6% in market share. DeFi failed to capture any meaningful volume in the fallout continuing to hover around 3%.


FTX Contagion Creates Fear Among Whales And Old Hands


The fate of Genesis Trading, DCG and Grayscale is hovering over the Bitcoin market like a sword of Damocles. Whales, institutions and trading firms are taking a larger share of exchange deposits. This is a trend that has been seen in other late stages of a bear market, such as that of 2018-19. Over 130,600 BTC were spent on November 17 alone. Since the collapse of FTX, a total of 254,000 BTC older than 6 months have been spent.


This represents about 1.3% of the circulating supply. On a 30-day basis, this is the highest since the bull market in January 2021.


FTX Hacker Mobilizes Ethereum Again, Lock And Loaded For The Dump?


The hacker stole over 200,000 ETH from the trading venue. The second cryptocurrency by market cap is priced at $1,120 with a 5% and 9% loss in short and higher timeframes. This “dumping,” selling an asset in the market, is creating panic in the crypto market. FTX issued an alert to all crypto exchanges over suspicious activity. The hacker is swapping ETH for a synthesized form of Bitcoin called renBTC.


The decentralized cross-chain exchange, RenBridge, issues this token. Users believe the bad actor can swap this renBTC for regular Bitcoin (BTC).


Major Reveals From The FTX Bankruptcy Filing, What’s The Takeaway?


FTX filed for bankruptcy last week, but shocking revelations are now creeping out following its bankruptcy filing. An examination of the FTX’s 30-page filing report indicates that the crypto exchange has inappropriate governance structures. There were no apparent records of the working period and responsibility for its contractors and employees. FTX has been using software to mask the inappropriate use of customers’ funds. The firm’s staff uses online chats to submit expense requests and managers approve such using personalized emojis. FTX has no accurate record of its bank accounts and signatories without a centralised cash control system.


Crypto Exchanges Record Massive Outflow Of Bitcoin, What Does This Indicate?


Crypto Exchanges have been critical businesses supporting the blockchain and crypto protocols. Users and investors have withdrawn all Bitcoins that flowed into exchanges since 2018. The FTX collapse has spread its contagion across the crypto space, pulling most crypto exchanges down. This action has never been recorded in previous bear markets Bitcoin has survived. On-chain data shows that a large number of the outgoing stablecoins have been moving into self-custody wallets.


Stablecoins market cap rose to $134.07 billion, with the inflow of coins at the same time BTC peaked. Many are wondering if crypto is still alive or dead.

This Crypto Venture Capital Loses Almost $1B On FTX, When Will This FTX Fiasco End?


The collapse of the FTX crypto exchange is one of the biggest shocks to hit the industry. The impact of the fall is spreading to different crypto assets and several investors on the exchange. One such recipient of the negative effect is Multicoin Capital, which has disclosed its exposure to FTX. Multicoin Capital plans to write down its assets on the distressed FTX to zero. The crypto venture giant didn’t state the amount it’s writing off regarding the FTX crisis.


But some crypto market experts think the value would be more than $850 million. Multicoin will resume trading with other exchanges once the situation in the market becomes calm.

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