News Updates October 01, 2022
1. Bitcoin Price Analysis: BTC Lost 3.1% Last Month. Bitcoin (BTC/USD) traded in a sideways manner early in the Asian session as the pair continued to orbit the 19492.25 level, representing the 78.6% retracement of the appreciating range from 17934.26 to 25214.57. Technical resistance recently emerged around the 20182.72 area during the pair’s ascent, representing a test of the 61.8% retracement of the narrower appreciating range from 18527 to 22800. Upside retracement levels in recent depreciating ranges include the 20476, 21024, 21703, and 21805 areas. Following recent selling pressure, BTC/USD bears are eyeing a greater risk of a test of the 17567.45 low reached in June. Following the recent sharp decline, the 20433 area has emerged as an area of consistent technical resistance and is technically related to selling pressure that commenced around the all-time high of 69000. Below current price activity, traders continue to anticipate large Stops below the 17803, 17701, 16966, and 16503 areas, significant technical levels related to historical upside pressure around the 3858 and 9819 areas. Additional significant technical areas on the downside include the 16990.14, 14500.15, and 10432.73 areas. Above recent price activity, upside retracement levels in the depreciating range from 31549.21 to 17567.45 include the 26208, 28249, and 28557 areas. Additional upside price objectives and areas of potential selling pressure include the 25552, 26323, 26411, 26901, 27126, 27455, 28426, and 29669 areas. Traders are observing that the 50-bar MA (4-hourly) is bearishly indicating below the 100-bar MA (4-hourly) and below the 200-bar MA (4-hourly). Also, the 50-bar MA (hourly) is bearishly indicating below the 100-bar MA (hourly) and below the 200-bar MA (hourly).
Price activity is nearest the 100-bar MA (4-hourly) at 19426.18 and the 50-bar MA (Hourly) at 19454.43.
Technical Support is expected around 16990.14/ 14500.15/ 10432.73 with Stops expected below.
Technical Resistance is expected around 25256.96/ 27455.20/ 32383.96 with Stops expected above.
On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.
On 60-minute chart, SlowK is Bullishly above SlowD while MACD is Bearishly below MACDAverage.
2. Federal Reserve governor says crypto activities ‘raise a number of significant issues’.
Federal Reserve governor Michelle W. Bowman has acknowledged that despite the growth of cryptocurrencies they are an area of concern, especially in relation to the banking sector.
According to Bowell, cryptocurrencies raise several issues and the regulatory outlook should be ready to accommodate the emerging technology, she said during a session with the Institute of International Finance (IIF) on September 30.
The governor, however, stressed that the fast-evolving technology around cryptocurrencies can make it challenging to implement some rules. For instance, Bowell noted that the challenges emerge if players in the financial sector lack experience with regulations to cater for crypto assets alongside the ambiguity of the laws.
“Another area where regulation and supervision continues to evolve is around banks engaging in crypto-asset activities. These activities raise a number of significant issues. When I think about the evolution of supervision and regulation of these activities, I ask myself whether the rules are clear in the current rapidly evolving environment and whether the rules as they evolve are serving a legitimate prudential purpose,” said Bowell.
3. SEC Charges Crypto Firms for Alleged Scam With 'Gold-Backed' Ethereum DIG Token
Now-defunct crypto firms have been accused of running an alleged pump-and-dump scam via the DIG token.
The U.S. Securities and Exchange Commission hasn’t forgotten about the 2017 ICO Craze.
The SEC filed charges on Friday against four men behind Bermudan company Arbitrade Ltd., Canadian firm Cryptobontix Inc., and U.A.E.-based Sion Trading for allegedly running a pump-and-dump cryptocurrency token scheme worth $36.8 million from 2017 until 2019.
The men behind the alleged scam claimed they had $10 billion worth of real gold bullion in a reserve which would back their Ethereum-based crypto token ironically named Dignity (DIG).
DIG’s makers claimed that each of the three billion total DIG tokens was backed by one dollar worth of gold and that DIG tokens could be redeemed for the gold.
The SEC alleges that Troy R.J. Hogg, James L. Goldberg, Stephen L. Braverman, and “gold trader” Max W. Barber defrauded customers by lying about the existence of the gold and pretending to hire accounting firms to “audit” said gold.
4. Indian Crypto Exchange WazirX Lays Off 40% of Its Employees: Sources
The laid off workers were told they would be paid for 45 days.
Indian exchange WazirX has laid off several employees, the company said in a statement shared with CoinDesk on Saturday.
50 to as many as 70 employees or 40% of the exchange's workforce of 150, were laid off, three sources familiar with the matter told CoinDesk. The laid off workers were told on Friday they would be paid for 45 days, they would not be required to report for work henceforth and their accesses were withdrawn simultaneously.
"The crypto market has been in the grip of a bear market because of the current global economic slowdown," WazirX said in a statement on Saturday. "The Indian crypto industry has had its unique problems with respect to taxes, regulations and banking access. This has lead to a dramatic fall in volumes in all Indian crypto exchanges."
5. India Freezes More $WRX And $USDT Tied To Laundering Case.
India is leaving no stone unturned in a recent crackdown on the E-Nuggets crypto money laundering case, as its ED freezes an additional $58,000 worth of WRX and USDT. The move comes amidst the authorities’ probe into gaming platform E-Nuggets on money laundering allegations.
The ED alleges that Khan used E-Nuggets to defraud the public
The Enforcement Directorate (DE) of India disclosed the information through an official press release Friday. Per the announcement, the DE revealed that it had frozen funds in WRX and USDT tied to the E-Nuggets case. According to the DE, the funds amount to Rs 47.64 Lakhs ($58,565 against prevailing rates).
The press release notes that the agency’s move corresponds with the provisions of India’s Prevention of Money Laundering Act (PMLA). Additionally, the ED revealed that the decision ties to an ongoing investigation into founder of E-Nuggets Aamir Khan. The authorities discovered the assets in a WazirX wallet owned by Khan.
Recall that the ED of India uncovered an investigation into Khan two days ago. According to the directorate, Khan had been in the habit of using the E-Nuggets gambling platform for his laundering practices. Khan is alleged to have been involved in fraudulent acts that led to loss of funds for users of E-Nuggets.
After collecting the amount of money from the public, all of a sudden withdrawal from the said App was stopped on one pretext or the other. Thereafter, all data including profile information was wiped off from the said App servers.
6. 3 Big Crypto Predictions for October 2022
With another month of Bitcoin (BTC), Ether (ETH), and most altcoins in red or in a rangebound trajectory all eyes are hoping for greener price charts for top cryptos in the last quarter.
“Wake me up when September ends,” was the predominant sentiment for a majority of cryptocurrency HODLers over the last month. As macro conditions continued to dictate the short-term path for cryptocurrencies, bearish sentiment took over the larger market.
Throughout September, bearish opinions gained much more heat as seen in the red bars below representing how many mentions there are of sell, selling, sold, or bearish.
The total fees spent to use a blockchain presents the willingness to spend and demand to use it. Over the last quarter, Bitcoin fees generated just under $30 million from the network, declining from $42.9 million in Q2 2022.
On the other hand, Ethereum fees dropped even further, from $1.29 billion in Q2 to $264 million in Q3 charting a 79% fall quarter over quarter (q-o-q).
While there was a decrease in blockchain demand, prices held relatively well with Bitcoin in consolidation and Ether appreciating by 30% q-o-q.
Additionally, net flows indicated that while BTC saw a neutral sentiment, ETH saw a more bullish stance as compared to BTC. Bitcoin recorded modest inflows into centralized exchanges of under $50 million, higher than the $192 million net outflows from Q2.
For Ether, over $1 billion ETH left exchanges for the fourth straight quarter, while outflows in Q3 were $57 million lower than those from Q2.
3 things to remember in October
Bitcoin’s price has struggled to keep up with the psychological support barrier of $20,000 throughout September. Without a good pump from whales and retailers, a significant uptick in price seems like a distant dream.
Whale metrics from Santiment presented that there is neither whale accumulation nor major utility in BTC to be excited about at press time.
The key-tier BTC whales who hold between 100 and 10,000 BTC are continuing to dump. Over the past year, these key addresses have dropped 3.5% of the supply to addresses that have much less impact on future price movement. In September alone, another 0.4% of BTC’s supply was dumped. In October a key trend to watch out for is would-be whale accumulation.
The amount of unique BTC moving from address to address remains scarce, which has led the NVT signal to present a bearish signal for a second straight month. An uptick in the same could prove to be a bullish indicator.
A look at BTC funding rates presented another worrying trend where traders are longing gradually more and more when the price doesn’t dump. After the longs get high enough, another dump takes place, traders attempt to short temporarily, and they then give up and begin to long again.
7. Crypto’s Popularity Among American Millennials on the Decline.
30% of the surveyed American millennials said they feel comfortable when distributing some of their wealth in digital assets.
An analysis carried out by the financial services company – Bankrate – determined that US millennials are not as enthusiastic about cryptocurrencies as they were last year.
Around 30% said they feel comfortable investing in digital assets compared to 50% in 2021.
The Latest Change in Trends
Younger generations, including millennials and Generation Z, are among the most active demographic groups in the cryptocurrency space. A recent survey, though, revealed that the former had lost some of their passion for the sector.
James Royal – Principal Reporter at Bankrate (the company which conducted the study) – reminded that around 50% of US millennials felt comfortable investing in digital assets last year, while this figure has now shrunk to 30%.
In his view, most of the interest in 2021 was generated because of the all-time high prices of Bitcoin, Ether, and other assets. Many youngsters thought they could “make a lot of money quickly,” and that is why they entered the ecosystem, Royals explained.
Bankrate’s employee went further, arguing that cryptocurrency investments rely on “the greater fool theory,” where one can earn profits only by selling their holdings to someone who is willing to pay a higher price than the initial. As a result, “legendary investors such as Warren Buffett” are critics of the asset class, Royals claimed.
He advised Americans to focus on the stock market, especially the S&P 500 Index, if they want to preserve their wealth during times of financial crisis:
“Buying an S&P 500 index fund regularly and then holding on through thick and thin has built the fortunes of many American millionaires.”
And while the trends in the USA seem to have changed in the past several months, residents of other countries (where the economy is in a state of knockdown) have displayed significant interest in cryptocurrencies.
8. Web3 is the solution to Uber’s problem with hackers
Centralized databases on Web2 are a honeypot for hackers. Decentralizing data on Web3 eliminates a major vulnerability for companies like Uber.
Uber is a staple of the gig economy, for better or worse, and a disruptor that once sent shockwaves throughout the mobility space. Now, however, Uber is being taken for a ride. The company is handling a reportedly far-reaching cybersecurity breach. According to the ride-hailing giant, the attacker has not been able to access sensitive user data, or at least, there is no evidence to suggest otherwise. Whether or not sensitive user data was exposed, this case points to a persistent issue with today’s apps. Can we continue to sacrifice our data — and thereby our privacy and security — for convenience?
9. California fraud cases highlight the need for a regulatory crackdown on crypto
Recent cases involving crypto fraud serve as a timely reminder to do your own due diligence until regulators take more action. If something sounds too good to be true, it probably is.
The California Department of Financial Protection and Innovation (DFPI) announced last month that it had issued desist and refrain orders to 11 entities for violating California securities laws. Some of the highlights included allegations that they offered unqualified securities as well as material misrepresentations and omissions to investors.
These violations should remind us that while crypto is a unique and exciting industry for the public at large, it is still an area that is rife with the potential for bad players and fraud. To date, government crypto regulation has been minimal at best, with a distinct lack of action. Whether you are a full-time professional investor or just a casual fan who wants to be involved, you need to be absolutely sure of what you are getting into before getting involved in any crypto opportunity.
California has toyed with setting up a crypto-specific business registration process for those looking to do business in the state. The proposed framework was vetoed by Governor Gavin Newsom as the resources required to establish and enforce such a framework would be prohibitive for the state. While this type of compliance infrastructure has not been employed yet, it points to concerns that regulatory authorities have related to the crypto industry.
