News updates June 14, 2022
1. Bitcoin Slips Below $21,000 Amid Rising Inflation Rates:
Bitcoin briefly fell below $21,000 on Tuesday morning for the first time since December 2020, as investors anticipated a rate hike from the Fed.
The price of Bitcoin (BTC) briefly slipped below $21,000 in the early hours of Tuesday morning, a 52-week low for the world’s largest cryptocurrency by market capitalization.
Bitcoin dropped to lows of $20,950, according to data from CoinMarketCap, before recovering to its current price of around $22,620, down over 6% on the day.
With a current market capitalization of $430 billion, Bitcoin is down over 66% from its all-time high of $68,789 recorded in November 2021.
Bitcoin leads liquidation in the cryptocurrency market with $531.62 million liquidated over the past 24 hours, according to data from Coinglass.
The Bitcoin fear and greed index hit 8 out of 100, its lowest level since May 2022, suggesting extreme anxiety in the market.
Earlier today, Ethereum (ETH), the second-largest cryptocurrency, dropped to $1,094.70, also recording a 52-week low. Ethereum is currently trading at $1,220, up 1.3% on the day.
2. At Least 2 Indicators Show That Bitcoin Reached Bottom: Details
According to data provided by the Director of Global Macro at Fidelity Jurrien Timmer on his Twitter account, Bitcoin has reached the bottom, as two technical and market indicators show.
The first tool used by Timmer is the descending channel in which Bitcoin was moving since reaching the all-time high in November. The first test of the lower border of the channel happened back in January, when Bitcoin hit $31,000.
As for now, Bitcoin hit the support at around $22,000, making a mid-term bounce possible from a technical standpoint. Unfortunately, the digital gold was not able to reach the upper border of the formation last time it got close to the lower range of the channel.
The second tool used by the analyst is the ABC waves count, which is essentially Elliott Wave Theory. The theory suggests that the market moves in certain wavelike patterns. Unfortunately, backtesting results show that the theory does not work on Bitcoin or other digital assets.
The analyst stated that it is "cold comfort" for bullish Bitcoin holders and stated that macroeconomics "couldn't be any worse" right now considering the hawkishness of the Fed, "surprisingly" high inflation data and a massive sell-off on financial markets.
June 13 became one of the worst days for crypto after the Terra-related market crash. Bitcoin has lost over 20% of its value in less than 24 hours and reached prices the market has not seen for over the year.
The altcoin market also took a fatal blow as Ethereum plunged to $950 at some point, following the massive volume of liquidations on the lending and borrowing market. Reportedly, the crypto market faced more than $2 billion in liquidations in the last 48 hours.
3. $1.25 Billion in Liquidations as Bitcoin Price Briefly Dips Below $21K;
Liquidations keep piling in as Bitcoin’s price dips below $21,000 briefly and ETH – below $1.1K.
The cryptocurrency market downturn continues with no signs of slowing down. Bitcoin dipped below $21K, leaving around $1.24 billion in total liquidations over the past 24 hours.
* The bloodbath in the cryptocurrency market continues, and it doesn’t seem to show any signs of slowing down.
* At the time of this writing, BTC is trading at around $21,900, down 15.6% on the day.
* This has left a whopping $1.24 billion in liquidations over the past 24 hours across the entire market, according to data from Coinglass.
* The bulk of it is coming from Bitcoin, clocking in at over $600 million. Ethereum is a close second with slightly below $480 million at the time of this writing.
* Ethereum also fell below $1.1K briefly but managed to recover to where it’s currently trading at slightly below $1.2k.
* The largest single liquidation order took place on BitMEX – it was an XBTUSD perpetual contract with a face value of over $4.4 million.
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4. Indian Regulators Think Regulating Crypto Is Extremely Difficult, Offer Alternative:
India’s regulatory agencies are pulling all the tricks from the playbook in an attempt to regulate cryptocurrencies, but it might not just be enough after imposing bans and introducing taxes.
The Securities and Exchange Board of India (SEBI) has voiced its concerns over the rise of the crypto industry in the country. The markets’ regulator made its stance known to a parliamentary standing committee on finance
According to SEBI, regulating cryptocurrencies would be difficult because of the decentralized nature of the industry, with nodes scattered in different parts of the world. SEBI told the House Committee that it proposes a separate crypto regulator for the fledgling cryptocurrency regulator as a way out of the regulatory quagmire.
According to a News18 report, the move to propose the creation of another regulator for India’s cryptocurrency scene is seen as a surprise for commentators because SEBI was touted as the government’s choice to handle the sector. SEBI was established by India’s government back in 1992 and was saddled with the responsibility of “protecting the interests of investors investing in securities”.
SEBI’s concerns mirrored that of the Reserve Bank of India (RBI) that cryptocurrencies posed significant risks to India’s economy, The RBI has stated in the past that crypto could “financially destabilize and dollarize the Indian economy.”
*SEBI suggests sharing the tasks with the apex bank*
In the event that the country’s parliament does not create a new regulator, SEBI submitted that the Reserve Bank of India should handle all crypto procedures that revolve around money-laundering and Know Your Customer processes. This double-pronged effort at regulating the industry might make controlling the ecosystem easier.
SEBI’s suggestion is akin to the regulatory attempts in the U.S. with the Securities and Exchange Commission (SEC) and The Commodities Futures Trading Commission (CFTC) exercising a measure of control over the ecosystem. The new bill by Cynthia Lummis and Kirsten Gillibrand offering a comprehensive framework underscores the sharing of roles between two regulators.
Last month, SEBI in a valiant attempt to flex its powers banned celebrities and influencers in the space from promoting unregulated cryptocurrencies while fears of a blanket cryptocurrency ban filled the space. India’s cryptocurrency taxes have earned the reputation of being among some of the strictest in the world with up to 30% of earnings being taxed. A report from Chainalysis ranked India as the country with the second-highest number of crypto users with millions of citizens remaining undeterred by the regulatory hurdles imposed by agencies.
5. US SEC Investigates Crypto Exchanges As Markets Crash:
The U.S. Securities and Exchange Commission has sent letters to several crypto exchanges asking for details on insider trading safeguards. The SEC seeks to protect investors after the crypto market crash on Monday led to more than $1 billion in liquidations, with Bitcoin (BTC) and Ethereum (ETH) diving more than 15% and 17%, respectively.
*SEC Questions Lack of Insider Trading Protections at Crypto Exchanges*
Fox Business journalist Eleanor Terrett announced in a tweet on June 14 that the SEC has sent letters to seek information on the lack of insider trading protections at crypto exchanges. The tweet reads:
As many insider trading cases surfaced in the crypto market, the SEC might be looking for further regulations to protect investors. Previously, the SEC had asked crypto exchanges to register and report financial information. The SEC Chain Gary Gensler had also attacked crypto exchanges for trading against customers. Moreover, amending the definition of an “exchange” for purposes of the Securities Exchange Act.
According to Naeem Aslam, chief market analyst at Avatrade, financial lawmakers had always added restrictions on the withdrawal of fiat currency during a serious panic in the market. He thinks the same logic could help regain confidence among crypto traders.
*Crypto Market Under Pressure Amid Selloffs*
The crypto market cap has fallen below 1 trillion as a result of the market crash seen yesterday. The Bitcoin (BTC) and Ethereum (ETH) prices continue to drag lower on Tuesday, with BTC falling to $20,950 and ETH to $1094, the lowest value in the last 24 hours.
The SEC should be looking to safeguard investors by forcing crypto exchanges to improve investor protection and prevent insider trading.
6. Why is Binance banned in the US?
Binance.US is a partner of Binance, the world’s largest cryptocurrency exchange by trading volume and which was founded in China. The original platform ceased to accept US customers in 2019 and announced it would instead work with a U.S.-based version of its platform.
The SEC has turned its attention to Binance.US, previously referred to as a US partner. According to the Wall Street Journal, the Securities and Exchange Commission is currently looking into the connections between Binance.US and two firms owned by founder Changpeng Zhao.
Although the original Binance is no longer available to US investors, Binance.US now offers cryptocurrencies for purchase. Binance.US’ main appeal is its low fees compared to other exchanges. It also features an easy-to-use buy/sell option for newcomers, and more expert traders can use its in-depth “basic” and “advanced” trading platforms.
How can US residents get access to Binance?
Cryptocurrency investors and traders have been unable to access the world’s most prominent exchange, Binance.com, which has led to a drop in prices on other businesses. The platform is the biggest cryptocurrency exchange, with over 500 different coins available and billion market transactions daily.
When they stopped accepting US investors, anyone attempting to visit the Chinese-owned firm via an American IP address would encounter digital roadblocks. Due to geo-restrictions and US rules, domestic residents and foreign tourists using their accounts cannot connect to the site.
However, using a VPN to access from the United States is relatively simple—all you need is a virtual private network. Not only will you be able to circumvent this geo-blocking, but you’ll also have much more protection for your sensitive financial data and online activity, thanks to the enhanced security VPNs provide.
7. South Korean Exchange Upbit Warns Users About Tron Fluctuation After USDD De-Peg.
A lot of lessons were learned following the de-peg of TerraUSD (UST), the algorithmic stablecoin of the Terra ecosystem, which wreaked havoc on the entire cryptocurrency market as the value of the entire crypto market plummeted massively.
Following the incident, cryptocurrency players have been looking for possible scenarios to prevent a recurrence of the Terra saga.
According to a blog post published by a top South Korean cryptocurrency exchange Upbit, investors of the trading platform were warned to exercise caution and be observant after Tron algorithmic stablecoin, USDD, lost its peg to the dollar.
“Currently, there is a concern that the pegging of USDD is not going well. As a result, the possibility of price fluctuations of WAVES and TRON (TRX) associated with each of the above stablecoins may increase, so please be careful about investing in WAVES and TRON (TRX),” Upbit said in a statement today.
8. USDD Collateralized Ratio May Have Been Miscalculated, Well below 200%+
USDD de-pegged from the US Dollar, a $700 million injection was insufficient.
Justin Sun announced that the funding rate of selling TRX on Binance is negative 500% APR.
Another algorithmic stablecoin lost its peg. This time it is USDD. Launched by TRON only a month ago, USDD lost its peg as heavy selling across the top cryptocurrencies has persisted.
Justin Sunday, the Founder of the TRON Foundation announced that 700 million USDC will be injected to defend the peg. Additionally, $2 billion were to be deployed and the 'funding rate of shorting #TRX on Binance is negative 500% APR.'
