US Dollar Hits One-Year High But Bitcoin No Longer Holds an Inverse Correlation with it

The crypto market is feeling some blues as the Bitcoin price gets back under $55,000.

The week started on a bullish note as Bitcoin went to nearly $58,000, recording a 32.5% uptrend in October. Late on Tuesday, the price dipped to $53,700 only to recover back above $56,600 in the next few hours.

“We believe the market is healthy, and these are, in fact, normal pullbacks that are to be expected,” said Philippe Bekhazi, CEO and co-founder of crypto trading platform XBTO.

“The market is seemingly pricing in the probability of an ETF approval this month. So profit-taking is natural.”

Bitcoin going red has the total market cap also sliding by 4% in the past 24-hours but still keeping well above $2.34 trillion.

Much like in the Q4 of 2020 when Bitcoin gradually made its way to 2017 all-time high of $20,000, after the lacking performance in the second half of Q2 and the Q3, the leading cryptocurrency is flirting with a run towards its ATH of nearly $65,000.

This, however, has been happening while the dollar is near its one-year high. The US dollar index dropped on Wednesday to 94.3 after making a new 2021 high at 94.56 just the day before, a level last seen in late September.

However, Bitcoin no longer holds an inverse correlation with the USD, according to Kaiko’s latest report.

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Historically, BTC has moved in the opposite direction to the US dollar, but this trend seems to have dissipated this year. Both the currencies have been experiencing an upward trajectory in contrast to traditional equities, which closed in September with their worst performance since the start of the pandemic.

“Bitcoin’s rising correlation with the DXY suggests that despite a growing risk-off environment, both fiat and crypto assets are treated similarly by investors,” wrote Kaiko.

The Bullish and the Bearish

Meanwhile, the crypto community has started to get bullish yet again, with many calling for new peaks for the trillion-dollar crypto asset in the historically bullish Q4.

While Vijay Ayyar, head of Asia Pacific with crypto exchange Luno sees a record high for Bitcoin at around $80k and $85k possible, others are seeing $100k getting breached this time.

Technically, Bitcoin’s run-up has activated an inverted head and shoulders chart pattern that can see the cryptocurrency climbing to $79k.

As we have reported for the past couple of days, the open interest for Bitcoin derivatives contracts has also been increasing rapidly, now sitting around $20 billion, the level last seen in mid-May. The funding rate has also started to increase, with the highest currently on Deribit at 0.0363%.

In the options market, open positions for the $80k strike call for December 2021 expiry now vastly surpass those for the $40k strike put, according to data from options exchange Deribit.

Not to mention, optimism that the first Bitcoin futures exchange-traded fund (ETF) may be approved by the SEC as soon as this month has traders and investors jumping back into Bitcoin.

That’s why this week’s decline is “not cause for concern,” according to James Butterfill, an investment strategist at CoinShares.

“It hasn’t broken trend and the fundamentals of increase chances of an SEC approval and increasing institutional adoption are likely to be supportive of price in the coming weeks.”

However, not everyone thinks the approval is coming. “The market is over-emphasizing (SEC Chairman) Gary Gensler’s public comments about support for the (CME) and futures,” said Jeff Dorman, CIO at digital asset management firm Arca.

“We believe the concerns the SEC has raised historically regarding market manipulation of bitcoin and unregulated exchanges have not been solved.”

Besides CME’s future basis rising fast, signaling a lot of buying, the Rothschild Investment Corp. disclosed an increase in their GBTC and ETHE holdings. It now owns 138,790 shares of GBTC and 303,554 ETHE, up from 141,405 GBTC and 13,817 ETHE shares, respectively.

However, the Crypto Fear and Greed Index is back to flashing “greed” at a reading of 70 when just last month it was 44 and in “fear” territory. Just yesterday, the index showed “extreme greed” in the market at a reading of 78, so market sentiments are fast-changing and led by price.

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Author: AnTy

JPMorgan Discloses Owning Coinbase (COIN) Shares Which Gets A New Target 61% Above Current Price

JPMorgan Discloses Owning Coinbase (COIN) Shares Which Gets A New Target 61% Above Current Price

Banking giant JPMorgan disclosed in a filing with the US Securities and Exchange Commission (SEC) that it owns 62,589 shares of Coinbase as of June 30.

As of writing, the shares of COIN are trading at $258.24, down from its all-time high of $429.54 hit briefly on its trading debut on Nasdaq in mid-April.

This week, John Todaro, vice president at Needham & Co., a cryptocurrency and blockchain research company, also started covering Coinbase, giving it a ‘Buy” rating with a target price of $420.

San Francisco-based Coinbase is a market-leading crypto exchange with “significant future opportunities beyond exchange service, which include staking, custody, yield-bearing products, and more,” Todaro wrote in a note.

According to the analyst, these services will further accelerate its position as a one-stop shop for crypto financial services while noting that concerns around their fees meanwhile are misplaced.

The research firm projects Coinbase, “the largest crypto exchange by trading volume,” to have a 467% increase in 2021 revenue but only a mere 9% in the next year.

“We view COIN as the leading, fiat-crypto on-ramp and expect the company’s exchange business to grow rapidly and sustainably as new investors adopt its crypto assets and services,” Todaro added.

Another Bank Joins In to Boost Crypto Adoption

In other news, another bank, Pennsylvania-based Customer Bank, which has $19.6 billion in assets, has joined the small list of FDIC-insured institutions in the US to offer crypto firms basic accounts.

The bank believes it is “well-positioned” to be the third banking option after Signature Bank and Silvergate Bank to offer a “strong offering” to the crypto asset space. Their main focus right now is to build a low-cost deposit franchise similar to these banks.

Moreover, about two dozen clients will begin testing the bank’s blockchain payments platform through Tassat next month before the service is offered for the rest of the crypto industry in October.

The Tassat Pay Network works much like JPMorgan’s JPM Coin, tokenizing the USD deposits and moving them between digital wallets on its platform.

“Customers continue to try to find ways to be involved, engaged, and interested in the cryptocurrency world,” said Sam Sidhu, Customers Bank’s vice chair and COO. “Some banks might offer rewards or custody services to consumers. We are focused on the businesses that may directly or indirectly service those customers.”

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Author: AnTy

Singapore’s DBS Bank Gets Approval from MAS to Offer Crypto Services to Asset Managers & Companies

Singapore’s DBS Bank Gets Approval from MAS to Offer Crypto Services to Asset Managers & Companies

Singapore’s DBS Bank is the latest to receive approval “in principle” from the Monetary Authority of Singapore (MAS) under the country’s Payment Services Act.

DBS Vickers, the bank’s brokerage arm, is the one that received the go-ahead from the country’s financial regulator to begin offering crypto services directly to companies and asset managers via its DBS Digital Exchange (DDex).

“We are pleased to have made steady progress on our digital asset ecosystem in the six months since we launched the DDEx last year,” said Eng-Kwok Seat Moey, group head of capital markets at DBS, who also reported of “keen interest” among corporations and asset managers for access to crypto.

Earlier this month, cryptocurrency exchange Independent Reserve received the first such approval.

In 2019, the Payment Services Act was passed requiring all digital payment token service providers to operate. Since it came into effect in January last year, hundreds of applicants have applied for the license.

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Author: AnTy

Cross-chain Poly Network Gets Hacked for Over $600M, Networks Act to Save the Lost Funds

Cross-chain Poly Network Gets Hacked for Over $600M, Exchanges & Stablecoin Issuers Act to Save the Lost Funds

In what appears to be the largest DeFi attack to date, cross-chain protocol Poly Network has been hacked for more than half a billion dollars.

“We are sorry to announce that PolyNetwork was attacked on BinanceChain, Ethereum and Polygon,” tweeted the team on Tuesday while sharing the hacker’s address where the assets have been transferred.

“We will take legal actions, and we urge the hackers to return the assets,” it added.

Crypto assets involved in the hack include USDC, WBTC, WETH, RenBTC, BUSD, ETHB, BNB, BTCB, DAI, UNI, SHIB, and FEI, as shared by the team.

The team further said that they are calling on the miners of affected blockchain and also cryptocurrency exchanges, including Binance, Coinbase, OKEx, and Huobi, along with stablecoin issuers Tether and Circle, to blacklist tokens coming from the addresses tied to the hacker.

Already many are responding with Paolo Ardoino, CTO at Tether, saying that they have frozen $33 million USDT as part of the Poly hack.

“Address got blacklisted right as attacker tried to deposit into Curve where it would unreachable. Just 9 blocks difference between transactions. $30 million saved,” commented Banteg, a core developer at DeFi projet Yearn Finance as he commended Ardoino for his fast reaction.

OKEx and Binance have also responded with affirmation that they are onto this, with Binance CEO Changpeng Zhao saying,

“While no one controls BSC (or ETH), we are coordinating with all our security partners to proactively help. There are no guarantees. We will do as much as we can. Stay SAFU.”

Poly Network is a protocol for swapping tokens across multiple blockchains as it aims to build “the next generation internet.”

Formed by an alliance between multiple platforms; Ontology, Switcheo, and Neo, currently, it offers interoperability between Bitcoin, Ethereum, BSC, Ontology, Neo, Elrond, Zilliqa, Switcheo, and Huobi ECO Chain.

As a result of the hack, trading pool O3, which makes use of Poly Network to trade tokens, was also affected and has suspended its cross-chain functionality while “the non-cross-chain function is available and can be used normally.”

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Author: AnTy

Yearn’s Builder-First Legal Activism DAO Gets Full Support as Crypto Regulation Heats Up

Yearn’s Builder-First Legal Activism DAO Gets Full Support as Crypto Regulation Heats Up

While the crypto community fights against the controversial bipartisan infrastructure bill that overreaches in its definition of the term “broker” in regards to crypto tax provision, popular decentralized finance project Yearn proposed funding a builder-first legal activism decentralized autonomous organization (DAO).

“LeXpunK_DAO will mix long-term strategic advocacy campaigns with rapid-response ‘guerilla lawfare’ raids,” that will respond to current events in real time, it said.

The proposal has received 100% support from its holders in the light of the ongoing regulatory scrutiny. The proposal reads,

​​”Growing mainstream awareness of DeFi is coinciding with institutional outrage over the “Wall St. Bets” phenomenon and political change in the United States to brew a perfect storm of aggressive legal threats against DeFi.”

The proposal further notes how mainstream media is calling DeFi a “shadow financial market, SEC Chair Gary Gensler warning about Defi platforms involving securities swaps, CFTC commissioner Dan Berkovitz finding it incompatible with the policies, and many DeFi bluechip projects receiving subpoenas.

A similar proposal has been made to Curve governance and now Yearn is taking the steps forward with both of the projects estimating to contribute $1 million each to get the ball rolling.

“The time is now. Let’s do cryptolaw the crypto way,” it said.

Amidst this, Uniswap creator Hayden Adaman took to Twitter to call out the detractors of the DeFi Education Fund which was proposed by the DEX. Last month, this caused a lot of drama when the community got upset about the lack of broad involvement as a few hefty voters skewed the decision, and the funds in UNI tokens that were to be allocated over the course of 4-5 years were instantly sold by the Fund.

“Is anyone still mad $20m (out of a $10b treasury)” that was sent to the fund which has the goals to challenge misguided regulatory, legal, and political threats, achieving regulatory clarity, advancing laws that support DeFi, and spurring other DeFi protocols’ governance bodies to contribute to the effort, said Adams.

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Author: AnTy

Infrastructure Bill Gets a Revision, But the Final Text Is Still ‘Bad’ and Now ‘Vague’ Too

Infrastructure Bill Gets a Revision, But the Final Text Is Still ‘Bad’ and Now ‘Vague’ Too

Ron Wyden (D-Oregon) also came in support of the crypto community by voicing his concerns about the bill, saying it “fails to understand how the technology works.”

The controversial infrastructure bill has been revised after conversations with Senate staff and digital asset tax experts regarding the information reporting requirements for digital assets.

The Chamber of Digital Commerce has been focused on ensuring that node operators, miners, and validators aren’t included in the scope of the provision. The bill has now changed the definition of a broker to include “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

Previously, the definition mentioned decentralized exchange and peer-to-peer marketplace.

“It’s better than where it started, but still not good enough to clearly exclude miners and similarly situated persons,” said Jerry Brito, executive director of CoinCenter, a non-profit focused on crypto policies.

While the Chamber of Digital Commerce said in its clarification that the final bill text is making its intent of excluding node operators, miners, and validators clear by implying a contractual relationship, this might not be so.

“The language went from “very bad” to “very vague & still very bad.” Not an improvement,” said Jake Chervinksy, General Counsel at Compound Finance.

Blockchain Association also voiced its concerns about the latest language still posing fundamental concerns. Suppose these network participants who don’t have any customer relationships are required to provide information on their customers. In that case, it will be “impossible” to comply with them and drive innovation and business overseas.

“The industry should know—and needs to know—how this provision applies, but it still remains unclear. We look forward to continuing this dialogue and sincerely thank Senate offices for their engagement and attention to this issue so far.”

Meanwhile, after Congressman Warren Davidson, a crypto supporter came against the bill, Ron Wyden (D-Oregon) also tweeted his support for the cryptocurrency community.

While taxes owed through cryptocurrency is a “real problem that deserves a real solution,” Wyden said this bipartisan bill is not even close to that solution, instead “an attempt to apply brick and mortar rules to the internet and fails to understand how the technology works.”

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Meanwhile, Nic Carter of Castle Island Ventures called out on the public-listed miners in the US, who haven’t been heard talking about the bill. “Where are they on this? For an existential threat like this, they should be absolutely flooding Washington with lobbying and money,” he said.

“We’ve made progress, but the language is still unacceptable. Next, we’ll advocate for an amendment on the Senate floor. If that fails, we’ll take our fight to the House,” said Chervinsky.

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Author: AnTy

It’s Possible the US Gets Crypto, the “Next Internet Sized Opportunity,” Wrong says Coinbase Co-Founder

It’s Possible the US Gets Crypto, the “Next Internet Sized Opportunity,” Wrong says Coinbase Co-Founder

Fred Ehrsam, the co-founder of Paradigm, says China is already taking a stand on crypto, and it could beat the US in crypto that too “on multiple fronts.”

“The US is at a very important crossroads with crypto today,” says Coinbase Co-founder Fred Ehrsam, who is also the co-founder of crypto investment firm Paradigm.

In an interview with Bloomberg, Ehrsam talked about the regulation of cryptocurrency as more and more regulators are getting vocal about regulating the crypto space.

“The US is blessed with the best currency and the world’s reserve currency today,” and it also tends to be the de facto financial regulator for a whole bunch of the world, he said, noting that most of the highly valuable companies in the world are American Internet technology companies.

“I do think that crypto is a nuanced issue and that it’s possible the US gets crypto wrong.”

While regulators’ job is to mitigate risk and keep investors safe, at the same time, “crypto is the next Internet sized opportunity for the United States.”

According to him, crypto has the “potential to create as many if not more jobs than the Internet,” the same as economic growth.

China Could Beat the US in Crypto

Cryptocurrencies can actually help with the privacy internet issues as seen with big tech companies in the past decade, according to Ehrsam.

These technologies can be used to “continue to own our own data while still getting all the benefits of the Internet platforms we know and love,” he added.

Ehrsam further noted that China is already taking a stand on crypto, “for better or for worse.” On being asked if he has concerns that China is going to beat the US in crypto and if that’s kind of a big deal, Ehrsam said: “Candidly yes.. and it’s on multiple fronts…”

One front is government programs explicitly built using crypto, which is true both with their CBDC initiative, which is basically making a digital renminbi, and also true of local governments who are trying to use blockchain technology, he said.

Furthermore, most of the crypto mining is happening in China. But the recent crackdown on mining in the country is “actually a huge moment of opportunity today for miners in the United States or globally to step in and on the crypto side to make it more decentralized,” Ehrsam added.

It’s Still Very Early

During the same interview, Ehrsam advised new crypto adopters not to allocate more than what they are comfortable losing. “Perhaps it makes sense to allocate more but error on the conservative side when you’re allocating it first,” he said.

“It’s still very early and as the fundamentals improve over time conviction improves over time.”

He further advised focusing on technology in terms of where this is going and why it is important in the world. Also, “think about it on a fundamental basis,” because “if you have that belief, then it probably makes sense to own something in space. And if that belief grows, then you can always increase it.”

Lastly, Ehrsam said things are never as good as they seem, and things are never as bad as they seem, so think of a 10 to 20-year time horizon.

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Author: AnTy

Another BSC-based DeFi Protocol gets Exploited for Over $30 Million

Another Binance Smart Chain (BSC)-based DeFi Protocol Gets Exploited for Over $30 Million

Spartan protocol team ensures that they will rebuild with a focus on review, unlike Uranium Finance which, after the $50 million exploit, said the project won’t be reborn and is currently activating the distribution of 300k.

Over the weekend, yet another BSC-based DeFi protocol got exploited.

On Saturday, Spartan Protocol, a project that incentivizes deep liquidity pools for leveraged synthetic token generation, reported an attack that resulted in a loss of more than $30 million.

Its native token SPARTA took over a 40% drop as a result of the exploit but had since then recovered to $1.65, just about 25% down from its ATH of $2.25 from mid-February.

The next day, blockchain security company PeckShield Inc. released an analysis of the attack stating it was due to a flawed liquidity share calculation in the protocol, which was exploited to drain assets from the pool.

As for the technical part of the attack that involved a number of operations to prepare the vulnerable pool and then manipulate it to drain funds, the attacker first borrowed a flashloan from PancakeSwap with 10K WBNB, which was returned at the last step with 260 WBNB as the flashloan fee.

The vulnerability stems from the fact that the liquidity share calculation calcLiquidityShare() is querying the current balance, which can then be inflated for manipulation, noted PeckShield Inc.

Spartan Protocol team ensured that they would rebuild with a focus on reviews. It also mentions that their code that contained the flaw was already audited by CertiK.

While sharing this, it further said that “Sparta is innovative code, built from scratch, it is not a clone of anything,” amidst the growing criticism around the DeFi projects built on BSC copying other projects that are already running on Ethereum.

“Sparta does not copy a single line of SNX code, and the Sparta community feel the brand is sufficiently differentiated, un-owned, and unique to the BSC community,” it stated.

Earlier last week, another BSC-based DeFi project, Uranium Finance, was exploited for $50 million despite the project being audited by BSC Gemz, which didn’t pick up the critical vulnerability.

The exploit was possible due to an update of the codebase for v2, which changed the swap fees from 0.20% to 0.16%.

Unlike Spartan Protocol, Uranium Finance said they are not releasing v3, adding, “We will not be trying to make this project reborn again, doing so is not possible under these circumstances.”

Currently, they are activating the distribution of less than 300k from the bonus money pot while asking users to remove liquidity from pools.

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Author: AnTy

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

Jake Chervinsky is urging caution, to take this “seriously,” saying the “CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Leading spot cryptocurrency exchange Binance is being investigated by the Commodity Futures Trading Commission (CFTC) over concerns that it allowed Americas to trade on the platform that violated US rules.

The CFTC is investigating if the exchange permitted US residents to trade derivatives, reported Bloomberg on Friday. While the exchange says it doesn’t have a corporate headquarters, the report notes that it has a Singapore office.

Binance isn’t registered with the agency. However, unlike BitMEX, Binance hasn’t been accused of misconduct, and the investigation may not lead to enforcement action, the report added.

Interestingly, the news came on when the market saw a deep sell-off that took Bitcoin to $3,800 a year back. As of writing, BTC is trading around $57,400 while BNB, the native token of Binance exchanges at $272, down about 20% from its $340 peak hit on Feb. 19.

Amidst this, Binance Chief Executive Officer Changpeng Zhao made several tweets referencing the regulatory action as “FUD.”

However, Jake Chervinksy, General Counsel at Compound Finance, urges the crypto community to take things “seriously.” He said,

“Even without individual criminal charges, civil enforcement actions can have serious consequences. CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Just this week, Binance named a former U.S. politician Max Baucus as a policy and government-relations adviser. The 79-year-old Democrat has served as Senator from Montana for over three decades, including the Senate Finance Committee for seven years.

Baucus will provide guidance and policy advice and further liaise with U.S. officials on best practices and policies affecting the industry, said Binance in a statement. And today, Binance is facing scrutiny from the regulators. However, what’s important is that it has a San Francisco-based exchange Binance.US that was established in 2019.

In the past 24 hours, its US entity recorded $655 million in volume, nowhere near the $32.7 billion managed by Binance. In the Bitcoin futures market, Binance leads with $31.44 billion volume and $3.67 billion in bitcoin open interest, as per Skew.

The exchange also follows withdrawal limits, analyzes deposits for signs of illicit transactions, and implements know-your-customer (KYC) restrictions on its users.

“Binance is committed to working closely with governments around the world,” maintains “CZ.”

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Author: AnTy

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

SKALE (SKL) reacted the most to the Coinbase Pro listing. The three crypto-assets will begin trading on March 11 and are not yet available in New York State and on Coinbase.com or its mobile apps.

Coinbase, the leading US cryptocurrency exchange, has listed popular DeFi token SUSHI along with MATIC and SKL.

SUSHI is the governance token of Sushiswap, the second-largest decentralized exchange (DEX), managing about $500 million in daily trading volume. The DeFi token is trading at $18.50, up 450% YTD.

MATIC powers the Polygon Network that aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains. Trading at $0.321, the token has been having a spectacular 2021 with 1,720% gains this year so far.

The company disclosed that its investment arm, Coinbase Ventures invested in the project Matic in 2019 and owns MATIC tokens.

Unlike the other two tokens, SKALE reacted to the listing the most with a 93% increase in value, currently trading around $0.55. It is an Ethereum-compatible decentralized network designed to scale Web3 applications.

All three crypto-assets are listed against USD, BTC, EUR, and GBP, with SUSHI having an additional pairing with ETH as well.

Now, US users will be able to get access to these DeFi tokens, which, as Coinbase revealed in its SEC filing, are 43 million. Also, institutions will be joining in as they now account for 64% of Coinbase’s volume by customer segment as of Q4 2020.

These cryptos will be available in all of the exchange’s supported jurisdictions except for New York State. For now, they are not yet available on Coinbase.com or through its mobile apps either.

While the transfers on Coinbase Pro accounts are now opened, trading will begin on March 11.

These listings are just one of the many DeFi tokens that the exchange has been exploring for listing. Several major DeFi tokens, including AAVE, Bancor (BNT), Synthetic (SNX), YFI, Uniswap (UNI), Maker (MKR), are already on Coinbase.

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Author: AnTy