News Updates November 29 & 30, 2022
1. Bitcoin Bearish Signal: NVT Golden Cross Enters Sell Zone. On-chain data shows the Bitcoin NVT golden cross has now entered into the “sell” zone, something that could be bearish for the price of the crypto.
Bitcoin NVT Golden Cross Surges, Now Has A Value Of 2.44
As pointed out by an analyst in a CryptoQuant post, this sell signal might lead to BTC’s price dropping in the next ten days.
The “Network Value to Transactions ratio” (NVT ratio) is an indicator that’s defined as the market cap divided by the transacted volume in a specific period.
One application of this ratio is through the NVT golden cross, which compares the short-term (10-day moving average) and the long-term (30-day moving average) trends in NVT to indicate tops and bottoms in the crypto’s price.
Historically, the metric’s value being higher than 2.2 has usually been a signal to sell, while it being less than -1.6 has been a bullish sign.
The indicator now has a value of 2.44, meaning it has exceeded the 2.20 level that has historically implied sell signals.
During late May, the metric saw a similar surge and rose to a peak value of 2.77. When the following month rolled around, BTC went through a huge crash from $30k to $20k.
Since the crypto is once again overpriced according to the NVT golden cross, it’s possible the coin may go through more drawdown in the coming days.
However, as the metric’s value is still lower than what it was at the high preceding the June crash, there might be potential for it to rise further, before the actual sell signal is in.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.8k, up 2% in the last seven days. Over the past month, the crypto has lost 19% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
2. SEC Could Use BlockFi as Object Lesson for Clear Crypto Regulation, Says Ex-SEC Official
Howard Fischer discusses why the SEC is more concerned with setting standards than getting the $30 million owed by the failed lender.
The U.S. Securities and Exchange Commission (SEC) may use the failure of lender BlockFi as an object lesson for why there should be clear oversight of the crypto sector.
And, by the way, BlockFi still owes $30 million of a $50 million fine.
According to Howard Fischer, a former SEC senior trial attorney who is now a partner at New York-based law firm Moses Singer LLP, the SEC won't be as aggressive about getting that money back as it would from others. He told CoinDesk TV’s “First Mover” on Wednesday the agency is more concerned with setting clear regulatory standards for the crypto sector.
3. Two Criminals Jailed for Stealing From Bitcoin Investors in Dubai.
The wrongdoers used a fake bitcoin deal to steal $50,000, phones, bank checks, and documents from two investors in Dubai.
Two robbers reportedly deceived an Asian investor and his friend with a fake bitcoin scheme and stole nearly $50,000, three phones, and documents from them.
The Criminal Court sent the wrongdoers to jail for three years and ordered their deportation once going out of prison.
Crime in Dubai
According to a recent coverage, the assault happened last July in the Mankhool area of Dubai. Back then, an undisclosed individual and his friend decided to invest in bitcoin and found a dubious promoter to help them.
After calling him, the broker came to one of the investor’s house and requested to see the cash value of the cryptocurrencies the victims wished to purchase. He then promised to return with another person who would sell them BTC within 15 minutes.
The buyers waited in the residence when minutes later, they heard a knock on the door, and two perpetrators entered the house. They assaulted the victims and stole the bag, which contained Dh183,000 (around $50,000), three mobile phones, bank checks, and documents. They even threatened to kill one of the investors.
Local law enforcement agents opened an investigation and detained the criminals. The Dubai Criminal Court sentenced them to serve three years in prison and fined them for the amount of the stolen money. The authorities also ordered the deportation of the lawbreakers once they get released from jail.
4. Telegram set to build crypto exchange in response to FTX collapse
Telegram founder Pavel Durov has announced plans by the messaging platform to unveil decentralized cryptocurrency products, including a crypto exchange and non-custodial wallets.
According to Durov, the new venture seeks to rectify the existing centralization of cryptocurrency entities, a factor he noted has let down millions of users with reference to the FTX exchange collapse, the CEO said in his official Telegram channel on November 30.
“Telegram’s next step is to build a set of decentralized tools, including non-custodial wallets and decentralized exchanges for millions of people to securely trade and store cryptocurrencies. This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users,” he said.
Durov further pointed out that the current blockchain ecosystem has deviated from its founding principle of promoting decentralization.
Giving people the power
The Telegram founder noted due to the concentration of power in a few hands; it’s no surprise that the FTX incident occurred.
“The solution is clear: blockchain-based projects should go back to their roots – decentralization. Cryptocurrency users should switch to trustless transactions and self-hosted wallets that don’t rely on any single third party,” he added.
Furthermore, Durov called on blockchain developers to build products that are easy to use for the masses. Notably, he called out the Ethereum (ETH), suggesting that the platform “remains outdated and expensive even after its recent tweaks.”
Indeed Ethereum has recorded increased network development with the Merge upgrade switching the platform to the energy-efficient proof-of-stake (PoS) network.
Telegram’s crypto inroads
It is worth noting that Telegram has recently made inroads into the crypto space with several products. For instance, users of the messaging platform can purchase and sell cryptocurrencies without leaving the application using The Open Network (TON).
At the same time, the collapse of FTX and the subsequent loss of customer funds has resulted in questions regarding the management of centralized exchanges.
As the probe into the collapse continues, the exchange founder Sam Bankman-Fried has denied allegations of wrongdoing. According to a Finbold report, Bankman-Fried claimed that the collapse emerged due to a ‘massive correlation of things during a free market moves.’
5. Crypto Researcher Warns Users on Twitter To Stay Away from KuCoin.
Crypto and Finance Researcher, FatMan, warned users to stay away from KuCoin on Twitter. KuCoin had unilaterally frozen client funds at the request of Terraform Labs, even though the funds did not belong to Terraform Labs.
FatMan@FatManTerra
"For ideological reasons, I would recommend staying away from KuCoin. Recently, KuCoin has unilaterally frozen client funds at the request of TFL. The accounts these funds were in did not belong to TFL. This sort of behaviour is simply not okay and deserves reprimand".
Claiming to have no information about KuCoin’s solvency, FatMan claimed that the issue he had tweeted affects only a few customers. Irrespectively, the crypto researcher is against exchanges acting out as “accessories to extortion” based on a private party’s decision.
Furthermore, FatMan explained that freezing customer funds should only be done for the reasons mandated by law. The crypto researcher further explained that after privately reviewing the evidence, KuCoin froze customers’ funds as an excuse to extort the account holders to send money to a specific third party.
Although, when a user asked for evidence, FatMan stated that the evidence could not be published. FatMan explained that the evidence was collected from other customers who didn’t want their names to be shared publicly.
