Bitcoin Destroys $28k As USD Gets Annihilated; Hitting A New 2020 Low

Bitcoin is facing an imminent supply-side crisis with only 22% of BTC circulating supply available in the market for buying and selling.

As we said, much like last week, this one started on a slight red note as Bitcoin consolidated around $26,000 only to rush higher but much faster this time around.

Breaking into a new all-time high at above $28,500 on the back of $5.88 billion ‘real’ volume, Bitcoin couldn’t sustain the bullish momentum and soon dropped to $27,345. But we are back on the move. Trader SalsaTekila noted,

“BTC looks like it wants to send. No sellers showing up at the highs. I’m not short anymore, nor ‘hedged’, seems like price discovery is about to continue…”

Bitcoin is simply not taking a break, everyone is trying to time the markets, but at this point, it is anyone’s guess how high we will go in the short-term and if and when any meaningful pullbacks will make an appearance.

Meanwhile, Bitcoin proponent Max Keiser, who has been waiting for a $28,000 target to hit, has increased his short-term target to $35,000 now that $28k has been destroyed.

Keiser has “high conviction on &35k,” a target that is hashrate-adjusted. The hashrate of the world’s largest network is at 134.46 Th/s, keeping around the all-time high of 157.65 Th/s, as per Bitinfocharts.

In the light of this strong hashing power being used to generate BTC, the next difficulty is expected to be between 3% to 10% that would be coming on January 9. He said,

“This is the equilibrium price based on the price-lagging-hashrate spread that I flagged last year. Now that $28,000 has been confirmed, $35k target looks like a lock.”

However, for this continuation to $30k Bitcoin needs to sustain the $27,000-27,500 support which could even take us to $32,800 but “losing $27,000 and correction is imminent,” said trader Michaël van de Poppe.

Imminent Bitcoin Supply Crisis

A big bull signal for Bitcoin is the number of BTC actually available for buying and selling. Out of the 88.5% of the total supply already mined, that is ~18.6 million, 78% of the circulating supply is considered illiquid while only 4.2 million BTC (22%) is available in the market for buying and selling, as per Glassnode’s analysis.

In 2020 alone, more than 1 million BTC became illiquid. This illiquidity points to the emergence of a supply-side crisis and “a sustained rise of illiquid bitcoins is an indication of strong investor hodling sentiment and a potential bullish signal.”

Not to mention all the institutional herd that is gobbling up BTC. According to the chief global strategist of Morgan Stanley Investment Management, Bitcoin could replace the dollar as a global reserve currency.

The USD Index in the meantime is at multi-year lows, currently trading under 90. All the money printing has pushed USD to a new 2020 low that was last seen in April 2018.

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The greenback has lost 13% of its value since March when it initially jumped while all the other markets, stocks, precious metals, oil, and Bitcoin annihilated. But with the central banks around the world printing money like crazy, fiat is getting debased and every other asset class, especially Bitcoin is rallying hard.

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Author: AnTy

Foxconn Ransomware Attackers Demanded $35M Payment In BTC to Decrypt Files

  • Taiwanese electronic multinational company, Foxconn, is reportedly facing a ransomware attack.
  • The hackers are asking for 1,804 Bitcoin payment, approximately $35 million.

According to reports from BleepingComputer, Foxconn, one of the largest electronic companies in the world, was faced with a ransomware attack by a popular hacking group, DopperPaymer. The report confirms the hack was first noticed on November 29th when the hackers gave the company 3 days to make a ransom payment to an unknown wallet address.

While the report stated that Foxxconn was negotiating with the hackers, DoppelPaymer released many documents, including generic business documents and reports, on Monday. No private information on employees or financial reports was published on the ransomware data leak site.

The attack is said to have happened at Foxconn CTBG MX facility located in Ciudad Juárez, Mexico, which controls America’s regional business. The hackers have since encrypted the data and asked the company to pay 1,804.095 BTC, roughly $35 million at current market prices, to decrypt the company’s information.

Foxconn’s North America website has since been down with an error on the visitors’ page.

Source: Bleepingcomputer

The hackers sent out a note on the ransom to be paid, directly on Foxconn’s servers –notifying them of the attack and how to make payment to their wallets. The note reads,

“Your account has been hacked. Your files, backups and shadow copies are unavailable until you pay for decryption tool. […] If no contact is made within 3 business days after the infection first portion of data will be shared to the public.”

The hackers further attached a Tor browser address that the company should use to complete the $35 million ransom.

According to BleepComputer’s statement, DoppelPaymer also carried out a series of attacks on over 1200-1400 servers, encrypted the North American regional data (not the whole company), and also were able to obtain about 75 TB of data backups – destroying approximately 20-30 TB of the data.

At this time, Foxconn confirmed with BleepingConmputer that the attack did happen, but they are slowly able to bring their systems back online.

Over the past year, ransomware attacks have increased substantially; the hackers prefer crypto payments such as masked BTC and Monero, a privacy coin, to fiat options. In September, BEG reported the Argentinian immigration office’s ransomware attack whereby the hackers asked for $4 million in BTC. More recently, Enel Group faced a second ransomware attack with a 1234 BTC payment set by the hackers.

(Update: According to a Reuters report, Foxconn North American site’s connection is back up running. The electronics firm further confirmed that the ransomware attack did not heavily disturb the company’s operations.)

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Author: Lujan Odera

DARMA Capital Rolls Out Liquidstake Loans As An Answer To Ethereum 2.0 ‘Lockup’

The long-awaited launch of Ethereum 2.0, a proof-of-stake (POS) network, is facing a problem; the risk of locking up the holders’ ETH for several months or staying liquid and opening up various options.

In efforts to solve this issue, DARMA Capital rolled out Liquidstake on Wednesday, enabling ETH stakers to acquire USDC stablecoin loans easily. The loans will be issued against staked assets and will allow stakers to earn rewards within the new network.

DARMA, a US licensed investment fund, started by ex ConsenSYS executives James Slazas and Andrew Keys, announced that it would devote about $50 million in value of its own ETH holdings for the new Ethereum deposit contract. The firm explained that this would enable individual and institutional investors to contribute towards Ethereum 2.0 and, at the same time, remain liquid.

Andrew Keys, DARMA Capital co-founder, explained that the initiative comes with economic incentives for those who will take part in Ethereum’s upgrade. Staking will see participants earn 15% of their assets in the course of the many months it might take to finish the network’s upgrades. He explained:

“Participants will not be able to ‘unstake’ those assets. So we’ve created LiquidStake, wherein users can earn staking rewards and have their staked ETH be pledged as collateral to receive a USDC loan. This is very different from BlockFi and Celsius and other lenders because, in those cases, you can’t stake the Ether, and you can’t earn the reward.”

Ethereum 2.0 (phase zero) is forecast to be rolled out on December 1 and will involve around 16,384 validators. The validators are expected to commit at least 32 ETH ($14,768) to a deposit contract. The network seeks to enhance Ethereum’s transactions by migrating from proof-of-work (PoW) to proof-of-stake (PoS) blockchain. Currently, the project is 10% finished, with about 53,000 ETH now deposited.

Although the network might begin validating blocks after being launched, stakers will essentially be locking up their assets for an unforeseeable future. They will not be allowed to withdraw them or utilize them elsewhere.

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Author: Joseph Kibe

LINK Price Not Ready to Rebound, While Chainlink’s Proof of Reserve to Audit $1 Bln WBTC

Yesterday, the crypto market took a hit on the news of BitMEX facing criminal charges. Chainlink (LINK) was one of the top cryptos that reacted the most violently, losing 15.3% of its value.

At the time of writing, LINK has been trading at $8.95 while managing just about $270 million in ‘real’ volume in the past 24 hours.

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“Chainlink traders have been hurt more than most top 100 blockchain traders over the past 30 days, and our MVRV metric is indicating that a buy-low opportunity has arisen,” noted data provider Santiment.

“While the average BTC and ETH trader is break-even in this time, LINK trader returns are at -20% in this time span. The sentiment is low, FUD is rampant, and a rebound is more likely than not under these conditions,” it added.

Chainlink Traders Show Signs of FUD
Source: Santiment

Holders’ distribution chart also reveals that the Chainlink whales, the non-exchange addresses, have also been selling some of their stash. Earlier this month, they were busy accumulating LINK, and now the signs of distress have them unwinding their position.

Addresses holding 100k to 10 million LINK have declined by over 3.5% in a fortnight.

While LINK price might be cooling off since hitting its peak in mid-August after a smoking rally in 2020, Chainlink continues to expand its ecosystem.

In the latest news, BitGo has announced that it will be working with Chainlink for the auditability of Wrapped Bitcoin (WBTC) reserves to scale its reliability and support the growing demand that brings nearly $1 billion BTC ($966 million to be exact) on Ethereum.

“DeFi applications can now receive definitive onchain proof about the fully backed collateralization of WBTC. This novel onchain proof of reserve is possible because of the openness of the Bitcoin network, transparency provided by BitGo, and the highly secure decentralized oracle network that Chainlink powers,” reads the official announcement.

BitGo has adopted Chainlink’s Proof of Reserve mechanism, which is live on testnet and soon to come on mainnet, will fully automate the auditing of BTC value custodied by BitGo.

Chainlink’s decentralized oracle will be used by WBTC Proof of reserve reference contract to check the balance of BTC custody wallets every ten minutes, and whenever a deviation is spotted, an on-chain update would be updated.

This will be beneficial for decentralized applications that use WBTC as collateral, provide Dapps additional options for protection against unexpected events, and increase the transparency in WBTC collateralization and user trust across the market.

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Author: AnTy

Derivatives Exchange BitMEX Hit with a Civil RICO Lawsuit From Bitcoin Manipulation Abatement

Crypto derivatives exchange BitMEX is facing yet another lawsuit.

Puerto Rican company BMA LLC formerly known as Bitcoin Manipulation Abatement is accusing the exchange of “deliberately designed, from the ground up” to facilitate “a myriad of illegal activities.”

This isn’t the first time that BMA is suing a crypto company, as just two weeks ago they filed a lawsuit against Ripple and its CEO Brad Garlingouse for an alleged violation of US securities law in XRP token sale.

Before that, in November, they targeted BitMEX competitor FTX alleging them of price manipulation only to dismiss the case voluntarily a month later.

Now, BMA and Pavel Pogodin who control this little-known firm filed a suit in the US District Court for the Northern District of California alleging BitMEX’s parent company HDR Global Trading reaped billions in illegal profits via wire fraud, unlicensed money transmission, money laundering, and violations of the Racketeer Influenced and Corrupt Organizations Act or RICO.

The plaintiff accused the company of illegally processing $3 billion each day, “which is the record volume for such unlawful activity in the entire history of the monetary regulation in the United States.”

This has been in violation of US federal law on the grounds that BitMEX failed to acquire a money transmitter license, alleges BMA.

Also, about 15% of the $138 billion trading volume recorded by BitMEX in 2019 belongs to the traders located in the US.

BMA also alleges the derivatives exchange manipulated the crypto markets by boosting the Bitcoin price artificially.

The lawsuit further notes the extremely high trading leverage, 100x offered by BitMEX and claims the exchange uses the server freezes and “system overload” to accept and reject trading orders during volatile markets to cause price fluctuations and trigger maximum liquidations.

Plaintiff also took shots at BitMEX co-founder and CEO Arthur Hayes, calling him “cryptocurrency’s P.T. Barnum” who is a “promoter for the ‘degenerate gamblers’ he solicits, and encourages speculative trading by (…) making bold predictions designed to elicit responses and move the market in a way that is profitable for BitMEX.”

HDR Global is aware of the complaint and will be defending itself against the “spurious claim.” An HDR spokesperson said,

“BMA has recently emerged as a serial filer of claims against companies operating in the cryptocurrency space, and is widely recognised for operating just like a patent troll.”

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Author: AnTy

Stellar (XLM) Price Analysis (May 10)

• XLMUSD is facing more pressure from the bears.
• The market is falling hard as Stellar slopes below $0.07 leading to a market selloff.

XLM/USD Medium-term Trend: Bullish

Key levels
• Resistance Levels: $0.083, $0.086, $0.089
• Support Levels: $0.03, $0.02 $0.001


The momentum on the medium-term outlook looks bullish but it is starting to turn bearish as can be seen from the daily chart now.

The formation of the bearish candle with a long wick at $0.071 at the support area as the daily session opens today, affirms the bears return to the market.

XLMUSD further drops to $0.06 with its wick touching the EMA-50 in the support area.

Price is initially down at $0.065 in the support area above the EMA-50 this implies sellers are more present in the market at the moment.

The stochastic signal which is pointing down at around level 56% also indicates the price of the crypto is in a downtrend and may continue to remain in the same direction in the nearby days in the medium-term.

Thus, sellers may put in their aggressive orders at key areas.

XLM/USD Short-term Trend: Bullish

The cryptocurrency is in a bullish trend in its short-term outlook. The bears make a progressive movement to the south at $0.071 in the support area with a touch at the two EMAs which are glued together during yesterday’s session.

The bearish long-tailed candle formation at $0.071 in the support area as the 4-hourly session begins is an indication of the bears’ brief return shortly after today’s opening.

XLMUSD further drops to $0.060 in the support area due to the pressure from the bears.

The bulls’ gradual in road to the market increase the price to $0.065 in the resistance area.
Price is initially down at $0.064 in the support with the formation of a pin bar candle, an indication of a trend reversal.

Price is below the two EMAs this implies the bears are already dictating the market.

The stochastic oscillator signal points up at level 29 % in the oversold region suggests the price of the coin may likely change and in this case, an uptrend in the short-term perspective.

Therefore, buyers may wait for this action to occur and take their position as desired.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

TRON (TRX) Price Analysis (May 9)

• Tron is facing an increase in buying pressure and may continue in the same direction if it breaks $0.025.
• Overall market sentiment regarding the crypto remains bullish.

TRX/USD Medium-term Trend: Bullish

Key levels

• Resistance levels : $0.025, $0.030, $0.035
• Support levels: $0.007, $0.006, $0.005


Tron still trades in an uptrend in its medium-term perspective. The bulls’ pressure on the cryptocurrency yesterday at $0.016 at the resistance area further led to an increased price of the coin during yesterday’s session.

The bulls make a progressive movement to the north at $0.017 with a touch at the EMA-9 in the resistance area as the daily session opens today.

Price of TRXUSD is above the two EMAs and the stochastic oscillator signal pointing up at around level 82% suggests upward momentum in the cryptocurrency price in the medium-term, which indicates a buy signal.

LTC/USD Short-term Trend: Bullish

TRXUSD continues in an uptrend market in its short-term outlook. Just like usual the crypto’s price is going up as we can see from the 4-hourly chart.

Today’s 4-hour opening candle at $0.016 in the resistance area is bullish as the bulls remain dominant in the market.

TRXUSD is initially up at $0.017 above the two EMAs in the resistance area, an indication of more buyers present in the market.

Thus, the stochastic signal pointing down at level 79% in the overbought region suggests the momentum in price of the coin might encounter a trend reversal in the days ahead, in this case, a downtrend in the short-term.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Ethereum Price Analysis: ETH Could Extend Its Downtrend Below $190

Ethereum price started an upside correction from the $189.35 low vs the US Dollar. ETH to USD is facing many hurdles above $204.50 and it is likely to resume its downtrend in the near term.

Key Takeaways: ETH/USD

  • Ethereum price is trading in a bearish zone below the $204.50 and $207.75 levels against the US Dollar.
  • ETH/USD broke a key contracting triangle with support near $199.60 on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price is down more than 3% and it is likely to dive below the $7,750 level

Ethereum Price Analysis

In the past few day, there were mostly downsides in Ethereum price below the $215.00 and $204.50 levels. ETH to USD even broke the $200.00 support area and traded to a new monthly low at $189.35.

Ethereum Price
Ethereum Price

Looking at the 2-hours chart, Ethereum price settled well below the $204.50 pivot level and the 50 simple moving average (2-hours, purple). Recently, there was an upside correction above the $200.00 level.

The price made an attempt to surpass the 23.6% Fib retracement level of the downward move from $252.65 to $189.35, but it failed. It seems like the $204.50 and $205.00 levels are important barriers for the bulls.

As a result, Ethereum price broke a key contracting triangle with support near $199.60 on the same chart. The price is now trading well below the $204.50 level. An initial support is near the $194.50 level, below which there is a risk of more losses towards the $189.35 level.

Any further losses may perhaps lead the price towards the $188.50 and $182.50 levels in the near term. Conversely, the price must gain traction above $204.50 to start a decent recovery.

The next hurdles are near the $207.80 level and the 50 simple moving average (2-hours, purple). The main resistance above the 50 simple moving average (2-hours, purple) is near the 50% 50 simple moving average (2-hours, purple) at $221.00.

Overall, Ethereum price is trading in a bearish zone below $204.50 and $207.80. Therefore, there is a risk of more losses below $192.00 and $189.35 unless there is a clear break above $207.80.

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Author: Aayush J

Grayscale’s “Heaviest Quarterly” Inflows in Q3 during Bitcoin Slump Proof of Substantial Progress on Institutional Front

  • Institutional investors facing challenges but true crypto believers emerging
  • A digital asset strategy is either getting started or already underway
  • Grayscale Investment has a strange temporary monopoly on the U.S. crypto ETF market – Messari

In 2019, several institutions like Bakkt, Fidelity, and TD Ameritrade, started to invest in the crypto space. However, only a handful have made it and that has people wondering “when will the herd actually come?”

Vision Hill Group, an investment consulting and digital asset management firm says in its latest blog, the “reality” is institutional investors are still learning and trying to get comfortable, a process that will take time.

Despite there being educational progress through 2019, there have been three key questions asked by institutions, though blockchain technology is transformational, is it too early to be investing in this space? When is mainstream adoption going to occur? And when will bitcoin no longer be the entire story?

Though institutions are facing the challenge of structural complexity, time constraints, and agency challenge, true crypto believers in these large organizations are “emerging.” As such, it believes the process for forming a digital asset strategy is either getting started or already underway.

“We believe substantial progress has been made on the institutional investor front, even if the pace of funding has been relatively slower than many would like.”

DCG’s Grayscale Investments sits in a unique position

Interestingly, in Q3 2019, the Grayscale Bitcoin Trust experienced the “heaviest quarterly” inflows at $171.1 million in its six-year history. This has been while Bitcoin price lost about 23% of its value during the same period.

Across Grayscale’s platform, in Q3 dollar-denominated inflows hit the highest level ever, up 200% quarter-over-quarter from 2Q 2019.

Recently, Michael Sonnenshein, managing director at Grayscale Investments shared, “We’re seeing now a real institutionalization of the digital currency asset class, as well as a lot of infrastructure being built around digital assets like bitcoin.”

He also pointed out how regulators are weighing in on digital currencies and ensuring that the right investor protections are in place. Not to mention, legacy financial institutions like Fidelity are launching crypto-related products. All of these, he said, are the signals that are “super exciting for the investment community.”

Messari in its Crypto Thesis for 2020 also talked about how Digital Currency Groups’ Grayscale investments “sits in a unique regulatory position as an asset manager.”

It explains how its structure allows institutional investors to create new shares in the test and flip them after a year at a huge public market premium. Then, they recycle their gains post-tax at a higher cost basis.

“They essentially have a strange temporary monopoly on the U.S. crypto ETF market, where their “sidedoor ETFs” allow them to add AUM to the trust that essentially can never exit.”

Moreover, it notes that DCG is also “one of the best positioned U.S. crypto unicorns to access the public markets via an IPO.”

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

Privacy Coins Monero, Zcash, & Dash Slump as Existential Threat Looms

Privacy coins are facing a threat to their existence as the regulatory noose tightens.

Monero, Zcash, Dash, are some popular privacy-focused cryptocurrencies that obfuscate transactions, making it harder for exchanges and custodians to comply with the new international guidelines aimed toward preventing illicit financing.

Delisting Spree

Earlier this week, crypto exchange OKEx delisted five privacy coins viz. Monero (XMR), Dash (DASH), Zcash (ZEC), Horizen (ZEN), and super bitcoin (SBTC).

The exchange will remove support for these coins on October 10, while withdrawal services will end on Dec. 10.

The reason behind the same is a violation of the Financial Action Task Force (FATF’s) “travel rule.”

In June, the FATF issued the final guideline on cryptocurrencies that requires exchanges to collect and transfer customer information, including account number, location, beneficiary’s name, and account number, during transactions.

Because privacy-oriented coins do not allow collecting such information, the exchange ended the support for the coins.

Before OKEx, UK-based crypto exchange CEX.io delisted privacy coins Zcash and Dash on the account of “global regulatory and compliance developments.”

Coinbase UK also removed support for Zcash but that move was likely to do with its new banking partner ClearBank.

Most recently, another Korean exchange, Upbit announced that it will stop providing support for Monero, Dash, Zcash, Haven, PIVX, and Bittube, starting Sept. 20.

A Fundamental Right

However, the developer team behind these privacy coins say they can be in full compliance with FATF’s rules.

While Monero shows no history of transactions, it has a “view keys” feature. Meanwhile, Ryan Taylor, CEO of Dash Core Group said, “Dash is identical to Bitcoin and is 100% capable of meeting the requirements.”

In this privacy coin delisting spree, Binance has been adding support for them, the latest one at its lending business.

“Do you think privacy is a fundamental right?”

Changpeng Zhao, Binance founder said at that time.

Prices Take a Hit

According to Coincodex, delisting has been hurting the prices of these coins.

“It’s certainly seen as creating a huge hurdle to the existence of privacy coins,”

Jesse Spiro, the head of policy at crypto investigative firm Chainalysis Inc told Bloomberg this week.

In the past 3 months, Zcash went from $117 to $44, seeing a loss of over 62% while currently trading at $46.39.

During the same period, Dash prices tumbled from $190 to $79 but recently gained momentum and climbed above $90, still down more than 50%.

As for Monero, in June it was trading around $115 that started September below $70 and is currently trading around this level only.

Spiro anticipates more exchanges to drop privacy coins while Jeff Dorman, chief investment officer at Arca said,

“There is a good chance many will be delisted and liquidity will dry up.”

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Author: AnTy