News Updates December 12, 2022
1. BTC price shakes off Binance 'FUD' as analysts eye Q1 2023 Bitcoin bottom
Bitcoin (BTC) stayed steady near $17,000 at the Dec. 12 Wall Street open as news involving Binance failed to spark BTC price downside.
Factors line up to scare Bitcoin trade
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD avoiding fresh volatility as United States markets opened.
Having traded sideways throughout the weekend, the pair offered few cues to analysts, who were waiting for U.S. macroeconomic data to shake up the status quo.
This, in the form of the November Consumer Price Index (CPI) print, would nonetheless be a pivotal moment for crypto assets, they agreed, with the potential for significant upside and downside hinging on the numbers, due Dec. 13.
Subsequent events involving the Federal Reserve would equally shape price performance, they said.
In the meantime, however, Bitcoin appeared to shrug off news that largest global exchange Binance was reportedly the target of a U.S. money laundering lawsuit.
Appearing in Reuters, a report stated that the Department of Justice (DoJ) was undecided over whether to bring charges against Binance and its CEO, Changpeng Zhao, after an investigation which it began in 2018.
This followed fresh concerns over the exchange’s proof of reserves, which various commentators nonetheless labeled “FUD” as it spread through the media.
“Bitcoin remains stable, altcoins losing value, $BTC dominance bouncing upwards and currently rallying,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of a summary on the day.
Van de Poppe noted that market participants were still “scared” due to upcoming macro data and legal events tied to the FTX scandal.
Crypto sentiment more broadly remained stronger than the worst case scenario, as per the Crypto Fear & Greed Index, which measured 27/100 on the day — still above its lowes “extreme fear” zone.
2. Risk-asset bottom could come after Fed pivot
On the topic of near-term market action, there were fresh bearish warnings for both crypto and risk assets.
Popular trader Moustache turned to U.S. stocks to remind followers that despite the Fed potentially pivoting on rate hikes, historically, this did not mark a turning point for performance.
“Don't forget that the stock market has crashed very hard every time in history AFTER the FED's Pivot,” he commented alongside a chart.
“Possible that the market will make a rally, because of the expectations of a pivot. After the official announcement: Sell the news.”
He added that the result could be a “final bottom for $BTC.”
Analyst Toni Ghinea was similarly wary, telling followers that the BTC/USD bottom would be between $11,000 and $14,000 and come in Q1 next year.
“Bottom is 11-14k. Capitulation is in Q1 2023,” he wrote, also including a bounce target of up to $30,000.
“Ignore the noise.”
3. Bitcoin Lightning Network to be used in fiat transfers between EU and Africa
CoinCorner and Bitnob teamed up to create cross-border transactions between the UK and Europe to Africa via the Bitcoin Lightning Network.
The ongoing crypto winter is not stopping the industry from pushing for global adoption and accessibility. A new partnership between CoinCorner and Bitnob opens a way for users across continents to perform cross-border transactions involving multiple fiat currencies.
Typically transfer of funds between Europe and Africa requires a third-party facilitator like Western Union, which rely on centralized entities. These transactions often have processing times of multiple parties prior to approval and are known for their expensive cuts. World Bank estimates that remittances to Sub-Saharan Africa went upwards of $40 billion yearly as of 2020 —with Nigeria receiving almost half of the sum alone.
Now, users can transfer funds via the Bitcoin
BTC tickers down $17,150
Lightning Network from the United Kingdom and Europe to select countries in Africa. The application, Send Globally, allows British pounds (GBP) or Euros (EUR) to be transferred to the local currencies of Nigeria (NGN), Kenya (KES) and Ghana (GHS).
Through the Lightning Network, the funds are automatically converted into BTC, then instantly converted to the local currency and deposited straight into the bank account or mobile money wallet of the receiver.
Danny Scott, the CEO of CoinCorner, said the remittance market is a big opportunity to highlight the utility of BTC.
“The borderless nature of Bitcoin has always made it a great tool for sending money around the world, but now with the Lightning Network, sending Bitcoin is instant and very low cost.”
In 2021, data from Statista placed Nigeria in the top 10 countries for remittance payments. Additionally, the World Bank reported tha in the last year Sub-Saharan Africa made up 14.1% of global remittances.
However, nearly 80% of African countries restrict the type of institutions that are able to offer local banks remittance-related services. Such exclusivity creates barriers to entry, therefore, access to finance for the people who need it most.
4. Abnormal token price movements on Binance not hack-related, confirms CZ
On Dec. 11, Binance issued a notice about abnormal price movements for some trading pairs. As a result, the exchange began an investigation to narrow down suspicious accounts responsible for the issue.
Crypto exchange Binance began investigating suspicious behavior on its platform after noticing abnormal price movements for certain trading pairs involving Sun Token (SUN), Ardor (ARDR), Osmosis (OSMO), FUNToken (FUN) and Golem (GLM) tokens. Nearly 40 minutes into the investigation, Binance CEO Changpeng “CZ” Zhao revealed that the price movements “appears to be just market behavior.”
On Dec. 11 at 3:10 am ET, Binance issued a notice about abnormal price movements for some trading pairs. The exchange began an investigation to narrow down suspicious accounts responsible for the issue. To investors’ relief, Binance’s investigation did not point to the possibility of compromised accounts or stolen API keys.
5. Terra co-founder Do Kwon hiding out in Serbia, authorities say
South Korean authorities have requested cooperation from the Serbian government in order to bring Kwon back to face charges in South Korea.
The global manhunt for Terraform Labs' controversial founder and CEO Do Kwon continues to rage on, with South Korean authorities now believing he's in Serbia after leaving Singapore in September.
According to a Dec. 11 report from Chosun Media, South Korean authorities followed a tip-off concerning Do Kwon's whereabouts suggesting he is now in Serbia and has been able to confirm it.
"Recently, we obtained intelligence that CEO Kwon was in Serbia, and it was found to be true," an official told the outlet.
The report also states that South Korea’s Ministry of Finance “is in the process of requesting cooperation from the Serbian government” as part of the investigation.
South Korean authorities have been on the hunt for Do Kwon since Terra's collapse, but haven't seemed to have had much luck pinpointing his location until now.
The 31-year-old was understood to have moved to Singapore toward the end of April, just before the Terra ecosystem’s shock collapse.
On Sept. 14, the Seoul Southern District Prosecutor's Office's Financial and Securities Criminal Unit issued an arrest warrant against Kwon for allegedly violating South Korean capital markets laws.
