News Updates September 10, 2022
1. Bitcoin Rises Above $21K as Market Sees Around $300M in Liquidation.
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IN BRIEF
The positive performance of Bitcoin and other digital assets has wiped off nearly $300 million in liquidations.
The crypto market cap rose by over 1% in the last 24 hours to $1.09 trillion.
SEC chairman Gary Gensler revealed that he is in support of CFTC oversight of Bitcoin and Ethereum.
PromoTop Crypto Exchanges Without KYCRead Now
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The positive performance of Bitcoin and other major crypto assets in the last 24 hours has led to almost $300 million in liquidations.
According to Coinglass data, the liquidation affected
92,465 traders leading to $286.14 million in losses. Most of the liquidation happened on Bitcoin and Ethereum.
Traders in short positions liquidated
Bitcoin traders recorded $103.73 million in liquidations, while Ethereum liquidation in the last 24 hours is $71.66 million.
2. 3 reasons why Bitcoin traders should be bullish on BTC
Timing the market bottom is impossible, but several technical and on-chain indicators suggest that it’s time to start accumulating Bitcoin.
Bitcoin (BTC) has been in a rut, and BTC’s price is likely to stay in its current downtrend. But like I mentioned last week, when nobody is talking about Bitcoin, that’s usually the best time to be buying Bitcoin.
In the last week, the price took another tumble, dropping below $19,000 on Sept. 6 and currently, BTC bulls are struggling to flip $19,000–$20,000 back to support. Just this week, Federal Reserve Chairman Jerome Powell reiterated the Fed’s dedication to doing literally whatever it takes to combat inflation “until the job is done,” and market analysts have increased their interest rate hike predictions from 0.50 basis points to 0.75.
Bitcoin investor tool: 2-year MA multiplier
Bitcoin’s price is currently 72% down from its all-time high at $69,000. In the previous bear markets, BTC’s price saw a 55% correction (July 21), a 71% drop by March 2020 and an 84% correction in December 2018. While brutal to endure, the current 72% correction is not outside of the norm when compared to previous drawdowns from all-time highs.
The golden ratio multiplier
Another interesting moving average and Fibonacci sequence-based indicator that suggests Bitcoin’s price is undervalued is the golden ratio multiplier.
According to LookIntoBitcoin creator Philip Swift:
“The chart explores Bitcoin’s adoption curve and market cycles to understand how price may behave on medium to long term time frames. To do this, it uses multiples of the 350 day moving average (350DMA) of Bitcoin’s price to identify areas of potential resistance to price movements.”
Bitcoin’s MVRV Z-score
An on-chain indicator called the MVRV recently hit its lowest score since 2015. The metric is essentially a ratio of BTC’s market capitalization against its realized capitalization, or in simpler terms, the amount people paid for BTC compared to the asset’s value now.
According to Jarvis Labs analyst “JJ,” Bitcoin’s MVRV (market capitalization versus realized capitalization) indicator is printing a reading that is extremely low. The analyst elaborated.
3. Singapore Hits The Brakes On Crypto Ads At Formula 1 Grand Prix.
Crypto.com has paid millions of dollars to sponsor Formula 1 (F1). The business has collaborated with fly-by cryptocurrency companies to showcase their names all over Formula 1, a high-octane sport whose fan base has recently increased. Binance has partnered with Alpine, Bybit has partnered with Red Bull, and cryptocurrency tycoon Sam Bankman-Fried's FTX has a partnership with Mercedes. But it seems like Crypto.com has seized the lead. The business, which has its headquarters in Singapore, is a global partner of Formula 1, a sponsor of Aston Martin, and the new Miami Grand Prix's title sponsor.
Brakes on Crypto Ads At F1 Grand Prix
When F1 visits the homeland of Crypto.com, that spending binge won't matter as much. After being postponed for two years due to the pandemic, the Singapore Grand Prix will resume over the weekend of September 30. Even though Singapore has grown to be a popular location for blockchain and cryptocurrency businesses, the city's financial regulator has grown increasingly doubtful due to the wild price fluctuations and savage selloffs over the past year. It tightened restrictions on public advertising of cryptocurrency services in January.
No Crypto.com Ad in Singapore
The F1 Grand Prix will have an advertising prohibition that does not pertain to vehicles or driver attire. That implies that the track's traditional blue and white Crypto.com advertisements won't be seen in Singapore. The city's rationale for the distinction is that the teams' equipment got used worldwide, and logos on it is seen as advertising to F1 fans globally, while branding on the track targets locals and so breaches the rules.
4. Bank of Russia to Promote Digital Ruble in Foreign Trade as Finance Ministry Pushes for Crypto Option.
Days after the two institutions agreed on the need for cross-border crypto payments, the finance ministry and the central bank of Russia are once again highlighting their different priorities. While the treasury department aims for legalizing cryptocurrency payments in the coming months, the monetary authority says it will “actively promote” its digital currency for international settlements.
Bank of Russia Seeks to Impose Digital Ruble for International Settlements
The Central Bank of Russia (CBR) will “actively promote” the employment of the digital ruble in cross-border payments, its Governor Elvira Nabiullina stated in a documentary aired by the Russia-24 TV channel. The film was devoted to the 220th anniversary of the Ministry of Finance of the Russian Federation.
The department recently announced it had reached an agreement with the monetary authority on the need to legalize international crypto payments in the face of Western sanctions. In the current conditions, “it is impossible to do without cross-border settlements in cryptocurrency,” the two regulators concluded, according to the ministry.
These payments should be legalized soon, Deputy Finance Minister Alexey Moiseev told Russian media. Anatoly Aksakov, head of the Financial Market Committee at the State Duma, the lower house of Russian parliament, also joined calls to allow crypto payments in foreign trade.
5. YouTuber with 13 million subscribers hacked by crypto scammers; Here’s how much they stole.
Popular YouTuber Scuba Jake has confirmed the hacking of his channel with over 13 million subscribers and 1.75 billion views since the channel’s creation in 2011. The September 9 incident saw crypto scammers take over the channel and attempt to defraud unsuspecting followers in a fake giveaway involving Bitcoin (BTC) and Ethereum (ETH).
An analysis by Finbold indicates that the scammers made away with 1.01 BTC, equivalent to about $21,000 in the fake crypto giveaway. The analysis was based on QR codes shared by scammers for users to scan before sending the cryptocurrencies.
According to Blockchain.com, the Bitcoin wallet shared has recorded four transactions since its creation. The wallet received a total of 1.0107 BTC, the same amount that was also cashed out.
It is worth noting that the lost amount could be higher since the scammers might have changed the wallets during the live stream. Elsewhere, the Ethereum wallet analysis indicates no transaction has been made.
The scam mirrored other fraudulent incidents on YouTube where scammers use an old interview involving a renowned individual in crypto circles, re-post it as a livestream, and promote the fake giveaway in the information section. It is argued that scammers opt for the live option because it offers more credibility.
How scammer defrauded Scuba Jake followers
Under the hack, the scammer changed the Scuba Jake’s channel to ‘MicroStargey US,’ impersonating the crypto-friendly United States business intelligence firm MicroStrategy.
Notably, the scammers hosted at least two live streams of an old video involving outgoing MicroStrategy’s CEO and Bitcoin crusader Michael Saylor. In this case, the scammers lured unsuspecting followers into sending cryptocurrency, thinking they would receive a prize from Saylor or higher returns.
6. 3 major mistakes to avoid when trading cryptocurrency futures markets
Crypto traders love to “ape” and make “degen” investments using high leverage in futures markets, but most traders fall victim to these three key mistakes.
Many traders frequently express some relatively large misconceptions about trading cryptocurrency futures, especially on derivatives exchanges outside the realm of traditional finance. The most common mistakes involve futures markets’ price decoupling, fees and the impact of liquidations on the derivatives instrument.
Let’s explore three simple mistakes and misconceptions that traders should avoid when trading crypto futures.
Derivatives contracts differ from spot trading in pricing and trading
Currently, the aggregate futures open interest in the crypto market surpasses $25 billion and retail traders and experienced fund managers use these instruments to leverage their crypto positons.
Futures contracts and other derivatives are often used to reduce risk or increase exposure and are not really meant to be used for degenerate gambling, despite this common interpretation.
Some differences in pricing and trading are usually missed in crypto derivatives contracts. For this reason, traders should at least consider these differences when venturing into futures markets. Even well-versed derivatives investors from traditional assets are prone to making mistakes, so it’s important to understand the existing peculiarities before using leverage.
Most crypto trading services do not use U.S. dollars, even if they
display USD quotes. This is a big untold secret and one of the pitfalls that derivatives traders face that causes additional risks and distortions when trading and analyzing futures markets.
The pressing issue is the lack of transparency, so clients don’t really know if the contracts are priced in stablecoin. However, this should not be a major concern, considering there is always the intermediary risk when using centralized exchanges.
7. Best Crypto to Buy Trending Now - 10 Sept: LTC, XRP, LUNC, RVN, POLY, TAMA, HNT, SAND, GST, MIR.
Here are some of the best crypto to buy trending today – 10 September
Trending coins today catching the interest a- and buying power – of crypto investors include The Sandbox (SAND) Mirror Protocol (MIR), Green Satoshi Token (GST), Polymath (POLY), Helium (HNT) Terra Classic (LUNC) and Ravencoin (RVN).
Also joining the list are crypto stalwarts Litecoin (LTC) - once known as crypto silver when it was the No.2 coin to bitcoins, and Ripple’s XRP token.
