News Updates July 15, 2022

15 Jul, 2022 05:37 pm

1. BTC Analysis: Here’s the Level BTC Need to Break to Escape from Danger Zone. Bitcoin’s price has been consolidating between the $20K and $23K over the last few weeks, following a massive crash from the $30K mark. So far, the price has been supported by the $17K-$20K range, which also contains the previous cycle’s ATH.

Last Updated Jul 15, 2022 @ 15:33
Bitcoin’s price has been consolidating between the $20K and $23K over the last few weeks, following a massive crash from the $30K mark. So far, the price has been supported by the $17K-$20K range, which also contains the previous cycle’s ATH.

Technical Analysis

The Daily Chart
Bitcoin’s price has been consolidating between the $20K and $23K over the last few weeks, following a massive crash from the $30K mark. The price seems to be receiving serious support at the $17K-$20K. This level is very significant, and in case of a breakdown, the price could rapidly drop towards the $15K mark and even lower.

However, considering the current price action and the third rejection from this area, a run to the $24K resistance level and the 50-day moving average seems more likely. A bullish breakout from these levels would initiate a rally towards the $30K supply zone – a key level to which the price’s reaction would determine the mid-term trend of the market.

Technical Analysis

The 4-Hour Chart
On the 4-hour timeframe, it is evident that the price is still bouncing inside a bearish flag after rebounding from the lower boundary of the pattern. Currently, the price is trending towards the $23-$24K area once again and could retest the higher trendline of the pattern. If the mentioned levels hold and reject the price once again, a bearish breakout from the flag and continuation of the downtrend would be expected.

The RSI indicator also hints at the relative dominance of the bulls, further boosting the probability of a move towards $23K. Overall, the formation of this bearish flag is pointing towards more downside in the short-term, unless it gets invalidated by the price breaking it to the upside.

2. Bitcoin Might Reach Price Bottom Once These Three Factors Align: Details

According to data from CoinMarketCap, Bitcoin has increased in value by 5.15% in the past 24 hours to trade at $20,776. Industry players cite an improving macroeconomic picture, certain trading pattern and more shakeout or "deleveraging" as the three factors that need to align to help Bitcoin and the cryptocurrency market reach the bottom. An improving macroeconomic outlook A brighter macroeconomic outlook, particularly indications that the economy and inflation are "coming under control," may aid in the bottoming out of the cryptocurrency market. "If we see signs of this, this month or even over the next few months, it would give more confidence to the market that a bottom is in across all risk assets, including equities and crypto," Vijay Ayyar of crypto exchange Luno told CNBC. According to James Butterfill, head of research at CoinShares, a "softer" Fed and a stronger U.S. dollar might assist the market in finding a bottom. He thinks this is likely to happen at the Jackson Hole meeting at the end of the summer.
Additional "shakeout" Most people in the cryptocurrency sector have differing views on whether the recent "shakeout" or "deleveraging" in the market has reached its conclusion. According to CK Zheng, co-founder of ZX Squared, the market may be able to reach a bottom when there are no more unexpected company failures.
Capitulation and accumulation trading patterns Certain trading patterns could signal a market bottom, such as a "capitulation candle," as witnessed in March 2020. Here, the price of Bitcoin might plummet much further and "wipe out the few remaining weak hands" before "going back up strongly."

3. Putin Signs Law Prohibiting Payments With Digital Assets in Russia.

President Putin Approves Legislation Banning Digital Asset Payments in Russian Federation
Russian President Vladimir Putin has signed a law imposing direct restrictions on the use of digital financial assets (DFAs) as a means of payment inside his country, the crypto page of the RBC business news portal reported. The ban applies to utilitarian digital rights (UDRs) as well.

Russia is yet to comprehensively regulate cryptocurrencies, but the law “On Digital Financial Assets,” which went into force in January 2021, introduced the two legal terms. Russian officials have in the past indicated that DFA encompasses cryptocurrencies while UDR applies to various tokens. This fall, Russian lawmakers will review a new bill “On Digital Currency” designed to fill the regulatory gaps.

The legislation approved now by Russia’s head of state was filed with the State Duma, the Russian parliament’s lower house, on June 7 by the Chairman of the Financial Market Committee Anatoly Aksakov, and adopted a month later. Until now, Russian law did not explicitly prohibit payments with digital assets, although “monetary surrogates” are banned and the status of the ruble as the only legal tender is enshrined.

4. Terra Founder Do Kwon In More Trouble As Korean Prosecutors Unearth Another Shell Company Linked To Him.

Investigators and prosecutors in South Korea are inching closer to building a water-tight case against Terra’s Do Kwon in connection to the crash of the Terra ecosystem in which thousands of South Koreans lost money.

In a recent development that is bound to further fuel the resilience of investigators and courts, prosecutors have discovered a shell company that was used to siphon funds from Terra into accounts owned by Do Kwon. Until now, everyone thought TFL was the only company controlled by Do Kwon. TFL ceased operations in South Korea back in April 2022.

Shell Company Still In South Korea

A company named Flexi Corporation is still in South Korea and appears to have been used to launder money from Terra. Interestingly, the company only exists as a document, giving it all the hallmarks of a shell company. Even more interesting is the revelation that this supposed “document” received money earned by Terra from OTC sales of tokens. Flexi Corporation was used to convert tokens into cash. The company also operates accounts created in the names of suspicious corporations.

This discovery is made even as South Korean authorities are still investigating the Terra crash incident to determine whether there was any wrongdoing on the part of Do Kwon, his company TFL, and associates. With such discoveries, it’s hard to imagine Do Kwon getting off the hook.

5. US Rule Makers Are Finally Preparing Rules for Digital Assets.

As the crypto winter is slowly dragging away, US lawmakers are getting ready to draft crypto rules.

The Financial Accounting Standards Board’s proposed regulations would cover all of the cryptocurrency’s erratic swings.

Most importantly, corporate financial statements would start to include crypto price increases rather than only declines, as they do now, provided the market recovers.

For the cryptocurrency sector, accountants, and investors who grumble about the existing approach, which only allows corporations that hold cryptocurrencies like Bitcoin or Ether to record value declines, the new rules would head in a different direction.

The FASB has not yet decided on its course of action, but the board has discussed evaluating cryptocurrencies at fair value or the price an asset would sell for in a well-functioning market.

Fair value measurement would accurately reflect the market worth of cryptocurrencies, according to supporters who urged FASB to act in hundreds of emails filed to the organization last year.

6. Three Arrows Liquidators Ask Singapore Court to Recognize Company's BVI Bankruptcy: Straits Times

Three Arrows’ liquidators are working to get Singapore courts to recognize the British Virgin Islands liquidation order against it, in order to preserve the company's Singapore assets.

The liquidation process of Three Arrows Capital is going to move to Singapore next, if lawyers representing the British Virgin Islands (BVI)-based liquidators are successful, the Straits Times reported Friday.

* The Times reported that BVI-based Teneo has hired Singapore-based WongPartnership LLP to petition the High Court for provisional relief that would allow Teneo to administer Three Arrows’ assets in the city-state and subpoena co-founders Su Zhu and Kyle Davies.

* If Teneo’s lawyers are successful, Teneo would be able to secure Three Arrows’ assets in Singapore for the hedge fund’s creditors, lawyers who spoke to The Times said.

* One route that lawyers could take is to examine what fault the founders had in the fall of Three Arrows.

* Should the liquidators be able to prove that the collapse of Three Arrows was due to the mismanagement or misconduct of its co-founders, there might be a pathway to pursue seizing their assets for the benefit of creditors, lawyers said.

* Zhu is in the process of selling a house worth close to S$50 million ($35 million), CoinDesk reported, and has a number of properties under both his and his wife’s name

* Three Arrows’ OTC trading desk, TPS Capital, is said to be cash-rich and will likely be included in the lawyers’ application.

* It is not known when the court will make its decision.

The case is far from a sure thing, lawyers that spoke to CoinDesk have said, and Three Arrows will have a number of defenses available to them.

7. French Deputy Says France Is Pro-Business And Should Welcome Crypto Innovation

Pierre Person, ex-deputy in the French National Assembly over the last 5 years, states that people are interested in cryptos and that “politics can no longer miss out”.

Even as bitcoin and the rest of the cryptocurrency market are at lows not seen since 2018, Person believes that they are now more mainstream, and he hopes that people will be more open-minded towards them.

*France Should Not Miss Out*

In an interview for Euronews Next during the International Financial Forum in Paris, the ex-deputy and ally of President Macron, was optimistic for the future of crypto in his country. He stated:

In his tenure in parliament, Person was responsible for tabling several crypto amendments, and among them was a flat tax rate of 30% on digital assets. Another was for French companies to be able to pay their employees in crypto.

8. Study: Over 30,000 crypto crimes reported in the UK in last 5 years.

Due to the fact that more and more people want to get in on the cryptocurrency wave, criminal activity and fraud involving cryptocurrencies have continued to expand at an exponential rate in recent years.

Since 2016, there have been 34,305 reports of criminal activity using cryptocurrency in the UK alone, representing an annual growth rate of an average of 100%, according to an in-depth investigation on crypto crime conducted by Crypto Head and shared with Finbold on July 14.

The study looked at crime data of cryptocurrency-related complaints obtained via Freedom of Information Act requests to see if the situation is becoming worse or better throughout the United States of America, the United Kingdom, and Australia.

The number of complaints of crypto crimes rose again in 2021, reaching a grand total of 9,458. The year-on-year growth from 2020 to 2021 is going to be a lot lower than the increase that occurred from 2019 to 2020, despite the fact that this gain of 1,243% since 2016 seems to be shockingly high.

9. UK crime victims lose over £200 million in one year.

Over the course of only one year, victims of crypto crime in the UK lost enormous quantities of money, adding up to more than £204 million ($241 million).

Nearly 12% of the 9,458 victims in 2021 were between the ages of 18 and 25, making this age range the one that was targeted the most.

The biggest number of reports came in during the month of April, yet the most money was lost during the month of November. With approximately £23 million in losses claimed across 793 complaints, this amounts to an average loss of £28,998 per report.

With 59.8% of crypto crime victims in the UK being male in 2021, the majority of victims of crypto crime in the UK are men.

In contrast to the United Kingdom, crypto-related offenses in Australia have actually decreased by 12% over the course of the previous year.

10. Crypto Trading Volumes Sink Amid Floundering Market.

Prominent platforms affected by the drop in trading volumes include major cryptocurrency exchanges such Binance, OKX and FTX. Coinbase has reportedly lost so much trading volume it is no longer the largest cryptocurrency exchange in the United States.

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IN BRIEF
Cryptocurrency trading volumes have plummeted across different markets.
Prominent platforms affected include Binance, OKX and FTX.
Trading volumes in spot and derivatives have fallen more than 15% to roughly $4.2 trillion since May.
PromoDeposit and make your first trade for up to $3,000 in rewards Get Started Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Cryptocurrency trading volumes have plummeted across different markets platform amid a dismal first half of the year for the industry.

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Prominent platforms affected by the drop in trading volumes include major cryptocurrency exchanges such Binance, OKX and FTX. Coinbase has reportedly lost so much trading volume it is no longer the largest cryptocurrency exchange in the United States.

As cryptocurrency markets have been struggling, it is no surprise that this has been reflected in traders’ enthusiasm. This however marks a contrast from the past two years, when retail investors clambered into

Sponsored

Sponsored
As cryptocurrency markets have been struggling, it is no surprise that this has been reflected in traders’ enthusiasm. This however marks a contrast from the past two years, when retail investors clambered into crypto and other risky assets amidst a flurry of free time and stimulus cash.

“For moms and pops, when you see something sell off that much, they probably aren’t as interested,” said Chris Gaffney, president of world markets at TIAA Bank. “They hate buying something that’s in a free fall, or even something that has fallen

IN BRIEF
Cryptocurrency trading volumes have plummeted across different markets.
Prominent platforms affected include Binance, OKX and FTX.
Trading volumes in spot and derivatives have fallen more than 15% to roughly $4.2 trillion since May.
PromoDeposit and make your first trade for up to $3,000 in rewards Get Started Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Cryptocurrency trading volumes have plummeted across different markets platform amid a dismal first half of the year for the industry.

Sponsored

Volumes decline
Across exchanges, trading volumes in spot and

Sponsored

Volumes decline
Across exchanges, trading volumes in spot and derivatives have fallen more than 15% to roughly $4.2 trillion since May, according to data compiled by CryptoCompare. This marks the lowest level since Jan of last year.

Meanwhile, the month of June alone saw spot volumes drop nearly 28% to $1.41 trillion. Over the course of the month, derivatives trading volumes dipped by 7%,

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Meanwhile, the month of June alone saw spot volumes drop nearly 28% to $1.41 trillion. Over the course of the month, derivatives trading volumes dipped by 7%, the lowest since July 2021. The latter figure is especially significant in the crypto markets, as derivatives make up more than half the market.

Data from CryptoCompare also show that with volume of $29 billion, Bitcoin futures contracts

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Data from CryptoCompare also show that with volume of $29 billion, Bitcoin futures contracts
reached their lowest volume traded last month since July 2021 at the Chicago Mercantile Exchange (CME). Futures contracts for Ethereum also dropped by over 20%, which, according to CryptoCompare, indicated a “fall in speculative activity.”

News Updates July 15, 2022

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