Crypto Market in Recovery Mode After ‘Fake’ News Volatility Amidst Increased Regulatory Scrutiny

The mainstream media outlets decry crypto after jumping fast on the fake Walmart press release announcing support for Litecoin payments while CT started dissecting the news right from the moment it got published and declared it “fake.”

The crypto market had a rough Monday as rumors of crypto derivatives exchange FTX being hacked floated on Twitter which turned out to be fake.

FTX CEO and founder Sam Bankman-Fried then took to Twitter to clarify that,

“For those who don’t know, Bitcoin withdrawal processing involves combining together UTXOs from deposit addresses etc; a few days ago we consolidated some UTXOs into an address to make processing quicker.”

Before this, Litecoin (LTC) pump and dump news shook the market as crypto asset prices experienced a bout of volatility. Today, we are back on track, i.e., upwards with Bitcoin (BTC) trading above $46k, Ether (ETH) $3,300, and the total market nearly at $2.2 trillion.

However, the mainstream media outlets picked up on the fake Walmart press release announcing support for Litecoin payments pretty quickly.

This news sent the price of Litecoin up by more than 30%, only to tumble back on the ground after it became clear that the press release sent out by GlobeNewswire was fake. Walmart spokesman also confirmed the inauthenticity of the PR.

GlobeNewswire then issued a “notice to disregard” the original release and said that a fraudulent user account was used to issue the release. A spokesperson said,

“This has never happened before, and we have already put in place enhanced authentication steps to prevent this isolated incident from occurring in the future.”

“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter.”

Even the Litecoin Foundation tweeted out the fake news, which was then quickly deleted. In a statement, the Litecoin Foundation said one of their social media team members “was a little too eager” and shared the story and that they have taken steps to correct the future issues.

Charlie Lee, the creator of Litecoin and managing director of the Litecoin Foundation, also described the incident as an “unfortunate situation.”

The Crypto community started dissecting the news right from the moment it became public and already declared it “fake” with Neeraj Agrawal of CoinCenter noting how it was not in Walmart’s newsroom, the wire account for “Walmart Inc” didn’t post anything, and Walmart’s contact email in the PR was owned by a squatter. Not to mention, ​​the retail giant’s email domain used in the PR was registered just last month and didn’t link back to any official website.

In the aftermath, mainstream media is now talking about the industry needing regulatory oversight.

“It’s hard to know what’s legitimate in the anything-goes world of cryptocurrencies,” reads an opinion piece on Reuters.

Bloomberg also wrote that the incident “will only add to the perception that cryptocurrency is at best a play thing for investors and at worst a hotbed of corruption.”

Meanwhile, the article on Reuters talked about US regulators routinely cracking down on such scandals in the stock market and expects similar enforcement here.

“This happens with the regular stock market also. It happens a lot more with the regular stock market than with crypto,” said Litecoin creator Lee.

The Securities and Exchange Commission, meanwhile, has said it does not comment on such matters.

SEC Chair Gary Gensler has recently called crypto the “Wild West,” adding,

“This asset class is rife with fraud, scams, and abuse in certain applications. We can do better.”

Regulators around the world have already increased their scrutiny of the cryptocurrency industry and are working on trying to strike a balance in regulating the market to protect investors and punish the wrongdoers while ensuring that innovation continues to flourish.

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Author: AnTy

NAB Observing Crypto As An ‘Emerging Issue’ After Being Accused of Refusing to Do Business with the Industry

National Australia Bank Observing Crypto As An ‘Emerging Issue’ After Being Accused of Refusing to Do Business with the Industry

Local crypto exchanges told a parliamentary committee exploring how to regulate the sector that none of the ‘Big Four’ banks, which control nearly 80% of the Australian market, would do business with them.

National Australia Bank (NAB) and Westpac, two of the largest lenders in Australia, said on Thursday that they are not hindering competitors by refusing to do business with cryptocurrency providers. NAB CEO Ross McEwan said,

“It’s one of the emerging issues that we are looking at – what should our relationship be, if at all, with cryptocurrency.”

Local crypto exchanges Aus Merchant Pty Ltd and Bitcoin Babe Pty Ltd told a parliamentary committee exploring how to regulate the sector that none of the ‘Big Four’ banks would do business with them.

It makes sense that these banks don’t want to do business with the crypto industry as NAB and Westpac, along with Commonwealth Bank of Australia and New Zealand Banking Group, control nearly 80% of the Australian market, and by revolutionizing finance, crypto is working on putting them out of business for good.

Anti-Competitive Practice

At a regular parliamentary hearing, NAB CEO McEwan said the bank did not have a policy excluding crypto-related customers but did not service any of them either. He further said they would only service them if it was profitable and the bank could tolerate the risks. McEwan added,

“We have to look at where does cryptocurrency go, along with … the reserve bank and regulators. And what’s the risk inside the bank of dealing with cryptocurrency providers as well.”

Singapore-based payment firm Nium also said that Australia is the only country out of the 40 it operates in where it had been “de-banked.” “It’s time to cast an appropriate light on this anti-competitive practice,” said Nium APAC head of consumer Michael Minassian.

Meanwhile, the CEO of the country’s second-largest lender Westpac said at the same hearing that crypto’s anonymity made it “very hard” to meet their anti-money laundering and counter-terrorism financing requirements.

Largest Investment Bank Joins In

Many top institutions in Australia have not engaged with the crypto sector. Similarly, the stock exchange ASX Ltd. hasn’t allowed crypto-related listings either, which forced some firms overseas to seek public listings on the likes of Nasdaq.

Amidst this, blockchain firm Blockstream Mining partnered with Australian financial conglomerate Macquarie Group to develop bitcoin mining facilities using renewable energy. The partnership would initially include mining hardware hosting with the potential to scale in stages.

Macquarie is Australia’s largest investment bank and fund manager.

Earlier this year, the Canada-based firm partnered with Norwegian company Aker ASA and Jack Dorsey’s Square to build renewable-power bitcoin miners.

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Author: AnTy

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

This week, the US Securities and Exchange Commission (SEC) charged Steven K. Sprague, President of Rivetz Corp and CEO of Rivetz International SEZC, and both the companies with conducting an illegal, unregistered offering of securities through an initial coin offering (ICO).

It raised $18 million in Ether through this ICO that was not registered with the SEC and did not qualify for an exemption from registration from more than 7,200 investors.

According to the SEC’s complaint, the ICO was conducted during the last bull run, between July and September 2017, during which the defendants sold digital assets called “RvT tokens” to the general public, including US investors.

The complaint alleges that the CEO marketed the digital tokens as an investment opportunity by promoting the value of RvT to investors. The promotion included highlighting that RvT would be listed on cryptocurrency exchanges for trading, touting Sprague’s abilities and managerial skills, and claiming that the token would increase in value as a result of Rivetz’s efforts.

However, the RvT tokens could not be used to purchase any goods or services at the time they were sold, the complaint adds.

The SEC has now, after four years since the sales, charged the defendants with violating the securities registration provisions of Section 5 of the Securities Act of 1933. For this, the SEC praised the assistance of the Cayman Islands Monetary Authority.

The agency is seeking injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and a civil penalty.

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Author: AnTy

Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH

The flash crash on Tuesday saw Ether falling to $3,000 after hitting $4,030 just four days back. Momentarily wiping out all the progress made in the past month, Ether is currently above $3,400.

ETHBTC also went down to 0.0694 and is currently around 0.0737.

Before the crash, the amount of ETH open interest reached a new all-time high at $11.62 billion, growing by more than $3 billion in just 6 days of this month.

This rapid rise in ETH OI was likely aided by high amounts of leverage as the more the traders became bullish about ETH’s future, they began to take out leveraged long positions, anticipating that the price would continue to rise.

Before the crash, ETH perpetual futures funding rates ticked up to their highest levels since May. The fact that a growing amount of long contracts were willing to pay the funding rate in order to remain open shows a sign of positive market sentiment for the cryptocurrency.

image1

With ETH seeing significantly more futures trading volume than spot trading volume, like most cryptos, it made the crypto asset susceptible to these types of crashes, as was also seen in May.

But while leverage flushes are painful in the short-term, they are typically healthy over the long-term as some of the riskier contracts are flushed out of the system and reset to healthier levels creating a more solid foundation for the next leg up.

Unlike the prices, underlying fundamentals remain unchanged. Ethereum added more than 6.2 million addresses holding 0.01-1 ETH since the start of 2021, showing that user adoption is growing at a rapid rate.

But one effect of this crash was high fees on the network, which, while negative for the users, is good for the network ever since EIP 1559 implementation earlier last month.

ETH gas prices spiked trading activity, and transfers picked up during the sell-off. NFT mania meanwhile continued with the launch of a new project called “the Sevens.”

These high fees translated into negative ETH issuance during many blocks of Tuesday. This was the second deflationary day for ETH after Sept. 2nd when $54 mln of ETH was burned. So far, overall, 240,135 ETH has been burned worth $816 million.

The average transaction fee had surged past $63, near the May 19 all-time high of $70.83, according to Blockchair. As of writing, it is $38.47, while the cheaper and faster alternative Solana currently costs 0.000005 SOL per transaction worth $0.00080 at the current SOL price of $155.21. SOL 10.92% Solana / USD SOLUSD $ 192.18
$20.9910.92%
Volume 13.21 b Change $20.99 Open $192.18 Circulating 292.84 m Market Cap 56.28 b
8 h FTX Intensifies its Marketing Efforts with A New Ambassador and Shareholder, NBA’s Stephen Curry 9 h Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH 1 d Bitcoin (BTC) Finally Records Inflows After 8 Weeks, Solana (SOL) Remains the Favorite Altcoin

Ethereum competitor Solana also showed its resilience during this flash crash, yet again. Tuesday, SOL made a new all-time high at $195.5, up from $1.52 on January 1st. The same day, the price fell more than 31% to $134.4, only to surge to a new ATH at $200 on Coinbase.

Meanwhile, British banking giant Standard Chartered in its first report on crypto on Tuesday, valued Ether in a $26,000-$35,000 range in the long term adding, for Ether to get there, Bitcoin needs to first trade at $175,000. BTC -1.51% Bitcoin / USD BTCUSD $ 46,137.85
-$696.68-1.51%
Volume 48.96 b Change -$696.68 Open $46,137.85 Circulating 18.81 m Market Cap 867.88 b
6 h UK Bank Standard Chartered Publishes Bullish Ethereum Prediction; ETH to $35k If BTC Hits $175k 6 h LATAM’s Crypto Adoption: Panama Introduces Bill to Regulate Crypto and Recognize BTC and ETH as Payment Methods 9 h Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH

While Ether’s price prediction shows it having “greater” reward potential than Bitcoin, it also has “higher” risk in terms of “relative complexity” and “uncertainty” around its development, the report added.

On the other hand, according to John Street Capital, a lot of parallels have been drawn between SOL on Tuesday when it hit new ATHs and when ETH crossed $100.

“ETH found PMF w/ ICOs & for those who “missed” BTC. SOL is finding PMF w/ DeFi NFT’s & for those that missed ETH or remain ideologically flexible,” it said while noting that SOL is a much smaller percentage of Bitcoin and of the total market cap than Ether was while having “greater utility” than the second-largest cryptocurrency had in Q2 of 2017.

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Author: AnTy

Drama Ridden Cover Protocol and Ruler Protocol Shuts Down After Dev Team Leaves Suddenly

Drama Ridden Cover Protocol and Ruler Protocol Shuts Down After Development Team Leaves Suddenly

Decentralized insurance provider Cover Protocol has announced its shut down after their development team left the project. Its sister firm, a smaller lending platform, Ruler, is also shutting down.

The news sent the prices of the tokens of both the platforms crashing with COVER down more than 22% since the Cover team first announced it on Saturday, to trade at $215, while RULER is down over 90% during the same period to trade at $1.2.

The community manager DeFi Ted didn’t reveal why the development team left but said,

“The decision to do this did not come easy and is a final decision the remaining team made after reviewing the path forward after the core developers suddenly left the projects.”

The remaining team has decided to disperse the remaining treasury funds to token holders as a creditor payout, for which a snapshot will be taken at block number 13162680.

Going forward, the team will not be continuing with the RULER & COVER token or contracts, and the UI will be shut down.

The Cover protocol, however, has always been plagued with issues. Last December, it was the victim of a white hat attack. In March this year, DeFi blue-chip Yearn Finance canceled its plans to merge with Cover.

COVER Protocol was also a rebranding from yieldfarming.insure project (SAFE) about a year ago. The launch of the yieldfarming.insure project was a debacle in itself which later gained support from Yearn’s Andre Cronje and FTX CEO Sam Bankman-Fried as advisors, and even the relaunch wasn’t without any issues.

DeFi Ted now warned users to withdraw any funds from both protocols as soon as possible.

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Author: AnTy

Ether Price and Burn Unaffected as “High Severity” Bug Struck Ethereum Mainnet & Led to Chain Split

Ethereum had a chain split on Friday after a consensus bug hit the mainnet.

“The bug was very similar to the one that caused the chain split in November of last year,” wrote Kelvin Fichter.

This bug exploited the consensus bug that was fixed in Geth v1.10.8. Given that Geth clients account for 74.6% of all Ethereum nodes, it was a big deal.

“Ethereum has split into at least 2 versions, and only a third of Geth nodes are in the “correct” chain,” said Lucas Nuzzi, product manager at CoinMetrics. “Block difficulty has dropped 10% over the past few hours.”

Ethereum developer MH Swende then shared that the public announcement experiment about the attack and the subsequent requirement to update to v1.10.8 was successful, with most miners upgrading in time so that the canon chain became longer than the bad chain.

“But it was a really close shave,” said MH Swende.

The bug, which was a “high severity issue,” was found in an audit of Telos EVM, according to a press release. Ethereum core developers were informed, and a patch was released on August 24 to fix it.

“All Geth versions supporting the London hard fork are vulnerable (the bug is older than London), so all users should update,” a statement said when the fix was announced.

Ethereum core developer Tim Beiko meanwhile noted that three mining pools Flexpool, BTC.com, and Binance, were mining on the wrong geth version, which was asked to upgrade to the latest version.

A few minutes later, Binance Smart Chain (BSC) got exploited, since then, all BSC validators have upgraded to v1.1.2, and geth clients have been asked to upgrade to new hotfix to avoid DoS attack. “BSC is in a healthy status,” said the team early on Saturday.

Popular Ethereum wallet MetaMask said users connected to Infura have been unaffected by the Ethereum bug.

Infura, a blockchain development suite by ConsenSys, also clarified to its users that the security vulnerability that was exploited on the Ethereum mainnet affecting Geth versions <1.10.8 didn’t affect them.

“Infura is unaffected by this exploit. Our infrastructure was updated upon release of the hotfix on Aug 24,” it noted.

Following the attack on Ethereum, as people stopped using the network, for the time being, transactions on the network fell.

“Fork between latest geth and older geth on mainnet. Stay away from doing txs for a while till confirmed, unless you are sure you are submitting to latest geth,” advised Yearn Finance creator Andre Cronje following the incident.

However, the price of Ether was unaffected by the entire incident and is currently trading around $3,230, down about 25.7% from its all-time high in mid-May.

Ether also continued to be burned with more than 120,000 ETH, worth over $376 million burned since EIP 1559 implementation earlier this month.

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Author: AnTy

It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto

After falling under $44k this week, Bitcoin price went back towards $50k to mark the start of the weekend. Currently trading around $49k, the leading cryptocurrency is now just 24.6% away from its all-time high.

Ether (ETH) is also back to hovering at $3,300 while the total market cap is now at nearly $2.19 trillion, getting all that much closer to the mid-May peak just above $2.6 trillion.

This week, Avalanche is leading the market with its 7-days gains of 165% along with Arweave, Audius, Solana, and Terra, which are up 50% to 80% during the same period. AR -9.24% Arweave / USD ARUSD $ 28.24
-$2.61-9.24%
Volume 36.71 m Change -$2.61 Open $28.24 Circulating 33.39 m Market Cap 943.17 m
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
AUDIO -9.12% Audius / USD AUDIOUSD $ 2.87
-$0.26-9.12%
Volume 110.25 m Change -$0.26 Open $2.87 Circulating 400.24 m Market Cap 1.15 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
SOL -6.31% Solana / USD SOLUSD $ 73.76
-$4.65-6.31%
Volume 1.51 b Change -$4.65 Open $73.76 Circulating 286.58 m Market Cap 21.14 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 1 d BlockFi Signs NBA #1 Draft Pick Cade Cunningham As An Ambassador 1 d Solana Based DeFi Protocol, Luna Yield, Goes Dark as Customers Fear An Exit Scam: Report
LUNA -0.84% Luna Coin / USD LUNAUSD $ 0.01
$0.00-0.84%
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 14.19 K
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market

With Bitcoin (BTC) eyeing the psychological level of $50,000 and hoping for a strong break, central banks officials set to get together at Jackson Hole, Wyoming, where Fed Chair Jerome Powell will deliver the highly anticipated speech to lay out his plans to normalize monetary policy, can affect the market sentiments negatively.

Titled “Macroeconomic Policy in an Uneven Economy,” the speech will be streamed live next week on Friday, August 27.

With discussions around tapering already started, heavy volatility is expected next week, which could affect crypto markets as well.

On Friday, the US dollar index went above 93.7, a level last seen in early November, and is currently trading at 93.458.

Gold meanwhile is currently at $1,780 per ounce, up from an over four-month low at $1,687 on August 9th.

In the crypto market, meanwhile, “the largest wealth transfer in history … from nocoiners and boomers to crypto enthusiasts” is happening, noted trade and economist Alex Kruger.

According to SpartanBlack, a partner at crypto fund The Spartan Group, it’s the other 99%, “everyone else who is not in crypto” supporting the 1% of crypto, “and the funny thing is that they have no idea they are doing it.”

He goes on to explain how the thousands of new millionaires and many billionaires as well minted in crypto are going to cash out a portion of their newfound wealth to buy houses, cars, yachts, jewelry, club memberships, etc.

This, in turn, drives up asset prices that result in real-world inflation, but it is a slow and organic process, and as such, “you don’t see that inflation happening.”

“The people who are not in crypto also happen to be the ones who are less tech-savvy and tend to have a set view of how the world works. They made their mark in the old world order, and they think all of this is a massive bubble or ponzi that will crash spectacularly. That view keeps them away, and they keep subsidizing us year after year unknowingly until at some point it becomes clear that crypto is the new new thing, and it isn’t going away,” said Spartan Black.

Overall, it is a generational wealth transfer from the old to the young, from the clueless to the tech-savvy, from the risk-averse folks to the risk-takers, and from the establishment to the guys who dare to dream up a new world order, he added.

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Author: AnTy

Bitcoin and Gold Correlation Turns Negative, Approaching 3-Year Lows with Tapering Looming Ahead

Bitcoin is keeping above $45k after surging past $46,800 on Wednesday, still up more than 57% YTD. The digital asset hasn’t seen these levels since mid-May, which further gives strength to the 200-day moving average as a potential support level.

BTC has been strong despite the less-than-huge inflation data coming in this week. In July, the Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.5%, on par with the consensus prediction by economists.

Even the core index, which excludes food and energy prices, jumped 4.3% for the 12 months through July compared to 4.5% for the same period through June. Analyst Mati Greenspan wrote in his daily newsletter Quantum Economics,

“The thing is… bitcoin isn’t really a hedge against inflation. Its price doesn’t react to inflation data like the rest of the market does, at least not in real time. However… I can see how people might not want to hold dollars in a bank account right now.”

Much like digital gold, precious metal, the traditional safe haven, also rose over 4% in the last three days to reach almost $1,756 per ounce. However, gold’s gains came after its flash crash to $1,687, from $1,832 on August 4th.

Gold is currently down 7.51% YTD and is in a loss this month and quarter by 3.37% and 0.52%, while bitcoin is up 8.90% and 29%, respectively, per Skew.

Interestingly, with this move, the one-year correlation between gold and bitcoin has fallen into the negative territory and is reaching the lows last seen in 2019.

On the macro front, tapering could affect both the assets and discussion has already started around this. On Wednesday, Dallas Federal Reserve President Robert Kaplan said the central bank should begin paring its purchases in October. Kaplan said,

“It would be my view that if the economy unfolds between now and our September meeting … if it unfolds the way I expect, I would be in favor of announcing a plan at the September meeting and beginning tapering in October.”

Fed Chair Jerome Powell has not yet given a forecast for when they will pull back the economic stimulus, which involves $120 billion worth of monthly purchases of Treasury bonds and mortgage-backed securities to keep banks and other lenders flushed with cash.

According to Kaplan, with economic activity and employment now healthier, he is conformable to “take the foot off the accelerator soon.” He said the tapering process should take about eight months, and the eventual move to raise interest rates to be separate from it.

Meanwhile, Richmond Fed President Thomas Barkin said it might take a few months for the job market to recover enough to reduce the support. “We are closing in … I don’t know exactly when that will be,” said Barkin, who’s not ready to commit to a timetable yet but think, “we will get there in the next few months.”

Just this week, Atlanta Fed President Raphael Bostic said he is eyeing Q4 for the start of tapering. He has already penciled in late 2022 for the start of rate hikes. Factoring in the more progress still needed in the labor market puts the start of trimming purchases between October and December and even earlier.

For Boston Fed President Eric Rosengren as well, tapering standards for employment could potentially be met by September, and he is in “favor of going relatively fast.”

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Author: AnTy

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks is already stepping down from his position just three months after taking up the role.

Brooks announced his resignation on Friday in a tweet saying, “Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!”

His resignation came amidst a series of compliance setbacks and regulatory scrutiny from all over the globe tied to the cryptocurrency exchange Binance. Binance CEO Changpeng Zhao said in a statement,

“I remain confident in Binance.US’s business and its commitment to serve its customers and innovate. As one of the largest cryptocurrency exchanges in the United States, Binance.US is poised to continue to grow and empower the future of finance. This transition will not impact Binance.US customers in any way as the company will continue to deliver best-in-class products and services.”

In a separate tweet, CZ wished Brooks the “very best in his future endeavors,” saying his work at its US-based entity has been “invaluable.”

Brooks was the acting Comptroller of the Currency during the Trump administration from May 2020 to January 2021, where he led efforts to provide regulatory clarity for stablecoin and digital asset custody. Brooks joined Binance.US in May, and before joining the regulator, he was the Chief Legal Officer at the competing exchange Coinbase.

“This reminds me of so many other stories of foreigners taking executive-level positions at Chinese companies. Just as an empirical fact, it frequently ends in disaster,” said Matthew Graham, CEO at VC Sino Global Capital, last month regarding the disappearance of Catherine Coley from the social media after Brooks replaced her as the CEO of Binance.US.

“Don’t be surprised if/when the Brian Brooks era ends in similar fashion,” Graham had said at the time.

Amidst this, the latest round of speculation in the market around Binance has been that it is “planning the ultimate rug pull” based on the fact that someone other than CZ is the beneficial owner of Binance, as narrated by a former Binance user who lost his funds on the platform during the May 19 crash when about $10 billion worth liquidation happened during which Binance went down.

But it seems more to do with how things work in China than the nefarious plan in action as claimed by Binance victim Francis Kim, whose Twitter bio says he’s here to expose the truth about the exchange.

Kim’s tweet about Binance “fundamentally misunderstands how business is done in China, where it’s quite common to have assets under other people’s names,” Graham said of the tweet.

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Author: AnTy

Macro Suggests Crypto Cycle Top Might Not be In, Risk-on Could Become a Key Narrative Once Again

After going to nearly $40,000, Bitcoin is down at $38k yet again today. Meanwhile, Ether, currently above $2,600, went as high as $2,770 late on Wednesday ahead of its much anticipated London upgrade that will activate EIP 1559.

The total crypto market cap is also back near $1.7 trillion, up from a $1.29 trillion low a fortnight back.

As crypto asset prices make a strong recovery, the fear of a prolonged 3-year bear market, like after the 2017 bull market, following the new all-time highs in April and May, has been subsidizing. Some traders and investors expect to see a repeat of the first half of 2021.

“Hard to see the cycle top while the Fed remains dovish,” said trader and economist Alex Kruger.

“The Fed remains dovish even as it starts to discuss tapering as it’s concerned with jobs, while it sees inflation as transitory. Jobs are taking longer to recover as remote work has increased productivity. NFP data is key.”

As we have reported, Federal Reserve Chair Jerome Powell has assured the market at every turn that there is still a way to go before fiscal support is removed as employment targets are not met yet. He will tell in advance when the tapering would officially begin.

Divided Views

Fed Vice Chair Richard Clarida, a key architect of the US central bank’s new policy strategy, also said this week that an interest rate hike was likely in 2023, while he could “certainly” see an announcement on a taper “later this year.”

“Commencing policy normalization in 2023 would, under these conditions, be entirely consistent with our new flexible average inflation targeting framework,” he said in a webcast discussion hosted by the Peterson Institute for International Economics.

Fed officials, however, seem divided over when to start tapering, with St. Louis Fed President James Bullard calling for a quicker reduction of the bond-buying. Bullard said earlier on Wednesday,

“So you’d be sitting here next summer, with inflation well above target and jobs on the way back to pre-pandemic levels. That sounds to me like that’s something we should be prepared for.”

While Dallas Fed President Robert Kaplan is also endorsing tapering to start “soon,” his views differ from Bullard in the sense that he wants to pare the pace of purchases gradually.

Market at Glance

Amidst the tapering talks, the dollar has gained strength as it trades above 92.2 while spot gold is around 1,811.62 per ounce.

S&P 500 meanwhile fell from its record high of 4,429 hit on July 29 to 4,402 after data signaled a slowdown in job growth last month. The benchmark index has been on the rise ever since the March sell-off when it fell to 2,200.

Robinhood Markets (HOOD) is actually leading after having a slow start of its debut when it opened at $33, but on Wednesday, it went as high as $85 and is currently trading at $70.39.

The actual yield on 10-year Treasuries fell to a record low as corners over the outlook for economic growth mounts. The exact rate which removes the expected impact of inflation over the next decade is at minus 1.13%

Meanwhile, the cryptocurrency market is also enjoying recovering after experiencing a sharp pullback, 50% to as high as 95%, despite the ongoing regulatory scrutiny. Kruger said,

“Family offices and HNI (high net worth individuals) still coming in. Real yields just hit a new historical low (negative) that pushes speculators out the risk curve. Could become a key narrative once again.”

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Author: AnTy