News Updates October 05, 2022
1. Bitcoin Blows The Highest Daily Candle Since Last 24 Days.
After wading through a declining path for weeks, the crypto market and Bitcoin have suddenly entered another phase. The past few days have proved to be favorable for prices in the market. Almost all crypto assets are making impressive northward movements.
For the primary cryptocurrency, its moves to reclaim value are commendable. Bitcoin has reached the $20,000 region as it made more gains. In addition, the token finally closed a daily candle across the critical level. Also, the altcoins are making significant progress with positive movements during the trading hours of the last few days.
Bitcoin Closes Daily Candle Above $20K
The $20K is one of the critical levels for Bitcoin. Over the past few weeks, BTC went down below this mark due to the solid bearish pull in the crypto market. But the leading crypto asset is gradually bringing back its value this week.
Bitcoin has finally closed a daily candle higher than $20,000 for the first time since September 17. This new feat strengthens the token positively, hovering between $18,000 and $24,000 for some months. Furthermore, this new position is the highest daily close for BTC in almost 24 days.
This recent price movement has stirred lots of participants in the crypto space. Many are watching to see the sustainability of BTC on this level. BTC is trading at around $20,247, indicating an increase of 0.44% over the past 24 hours. Its market cap has grown to $385.8 billion. Also, BTC’s dominance over the altcoins sits at about 40.19%, with a rise of 0.23% within the past day.
2. Bitcoin headed into recovery, rising above $20,000 as Whales begin reaccumulation.
The crypto market has been in a suspended state for the last couple of months, and that effect does not seem to have gone away.
Micro fluctuations do take place every now and then. However, on the macro time frame, crypto assets need a major boost. Interestingly in the case of Bitcoin, a change in a particular pattern could be the signal of a trend reversal.
Bitcoin whales are back
Since the end of August, Tether whales had been consistently accumulating as Bitcoin whales’ supply kept declining. This could be due to the persistent market conditions, but these whales’ behavior has been notably changing over the last couple of days.
3. Bitcoin Defi Protocol Sovryn Gets Hacked for Over $1 Million
Author: Andrew Throuvalas.
An exploiter ran off with over 44 RBTC using a price manipulation technique in one of the protocol’s lending pools.
Sovryn – a Bitcoin-based decentralized finance protocol – was drained of over $1 million in funds on Tuesday using a price manipulation exploit.
The attack allowed the culprit to drain over $1 million worth of crypto from the protocol, including 44.93 RBTC and 211,045 USDT.
Sovryn’s First Hack
According to Sovryn’s blog post on the topic, the attacks specifically targeted the legacy Sovryn Borrow/Lend protocol. It impacted the RBTC and USDT lending pools.
RBTC and USDT are crypto assets price pegged to Bitcoin and US dollars respectively. In this case, they circulate on Rootstock (RSK), a Bitcoin sidechain meant to expand Bitcoin’s smart contract, dapp, and scaling capabilities. Sovryn is a Defi protocol built on RSK.
Some of the funds were apparently withdrawn using Sovryn’s AMM swap function, meaning the attacker ended up with several different tokens. The effort to recover funds is still ongoing.
4. Latest Market Crash Proved to be Narrative Breaker and Reality Check For Bitcoin: Report
Last Updated Oct 5, 2022 @ 15:48
With several narratives at stake, data suggests that Bitcoin is yet to mature.
Owing to the historic inflation, Q3 has been painful for Bitcoin. The largest cryptocurrency by market cap appears to have largely lost its inflation hedge and store-of-value narratives in the market. According to Messari’s new report, the demand for block space fell, resulting in a decline in Bitcoin’s transaction count and fees by roughly 3% and 23%, respectively. The average daily value settled also plunged 44% QoQ.
While Bitcoin’s hashrate reached a new milestone of 258 exahashes per second (EH/s), the steep increase in energy prices and falling bitcoin prices pushed miners to an increasingly difficult position.
Breaking Narratives
Bitcoin has not been immune to macroeconomic factors, and narratives like inflation hedge and store of value are at stake. According to the crypto market intelligence company’s latest edition of ‘State of Bitcoin,’ the crypto-asset made new cycle lows even as the CPI inflation in the US hit multi-decade highs rather than acting as a hedge with its fixed supply and hardened monetary policy.
Bitcoin price action has been swayed similarly to that of a high-beta US tech equity instead of serving as a “store of value.” Potential hints of an uptrend were also damaged as the Federal Reserve resorted to a more conservative regime with lower liquidity and higher rates. Amidst a risk-off macro environment, Bitcoin was down by over 70% since hitting a peak a year ago.
Since the liquidity-driven bull market came to a conclusion in late 2021, data suggested that Bitcoin returns have also been increasingly correlated with the US tech stocks. In the third quarter, the average correlation between the crypto-asset and NASDAQ 100 was 0.6 as inflation and rate hikes claimed the turf.
5. Bitcoin mining stock report: Wednesday, October 5.
Most bitcoin mining companies tracked by The Block trended downward on Wednesday.
The cryptocurrency was trading at slightly more than $20,100 by market close, according to data from TradingView.
Greenidge Generation's stock was down by 7.80%, followed by Core Scientific (-7.65%), Northern Data (-6.46%) and Cipher Mining (-6.43%).
Core Scientific announced earlier in the day that it mined 9% less BTC in September while expanding hash rate by 2.4%.
6. US CFTC as Crypto’s Regulatory Savior? Crypto Firms Might Not Like What They Get
The Securities and Exchange Commission is treated as a villain in crypto, but the view of the Commodity Futures Trading Commission as a government ally may not survive the honeymoon, insiders suggest.
Just because Rostin Behnam is the rare government official who can casually drop a comment that suggests a future explosion in bitcoin price, doesn’t mean he’s a crypto bro.
The chairman of the Commodity Futures Trading Commission (CFTC) is widely seen in crypto circles as a relatively friendly face in government, and Behnam often says things that seem to reinforce that view.
Speaking to students at New York University last week, Behnam said he was “cautious to be a cheerleader” for crypto, but described the industry’s explosive growth as “exciting” and “fascinating.”
“I think there’s a few folks who wish this technology might go away, think it might go away, think it might go offshore, but I think there’s a number of reasons from a U.S. perspective that it’s important we engage [with the industry],” Behnam said.
“We need to ask the hard questions about whether or not this is the future of finance and the future of our economy which it very well may be.”
7. Former SEC Attorney: 'It's Much Easier If You Launch Your Network In a Compliant Way’
The problem, according to Teresa Guillén, is launching without first receiving legal guidance or advice.
As blockchain companies continue to grapple with evolving regulations and an uncertain future, many must decide whether to wait for permission or just launch and potentially beg for forgiveness—if forgiveness is even on the table.
"It's much easier if you launch your network in a compliant way," Teresa Goody Guillén, an attorney at Baker Hostetler and former SEC litigator, tells Decrypt at Messari Mainnet.
One way to do this, Guillén says, is by being fully functional and decentralized at launch, making the project less likely to be considered a security—a crucial test of compliance.
Guillén explains that most problems start when a developer does not receive guidance or advice before launching their network, only to find out later that regulators consider what they launched to be a regulated security.
"It's much easier to launch [the network] right the first time," Guillén said, adding that launching as a non-security is much easier than trying to claim a token that has been deemed a security is suddenly not. "It's very difficult to go back and remediate that," she says.
