Crypto Guides, Knowledge & Insights

Why did Bitcoin drop along with values of Ethereum, Cardano, XRP? Why is crypto crash?

After soaring to more than $52,000 in value just last week, Bitcoin prices have fallen to around $45,000 on Wednesday as El Salvador officially established the major coin as a form of legal tender.　　The almost 14% dip in Bitcoin price was mirrored by cryptocurrency prices across the board – with falling values of XRP Ripple, Ethereum and Cardano contributing to a $400billion wipeout in the crypto market.　　This follows a period of renewed confidence in the coin as it surged toward a much-anticipated return to a one trillion dollar cap and its $64,000 peak reached in April 2021How much is Bitcoin worth today？　　As of 8.45am, Bitcoins price today (8 September) was fluctuating around $45,362.73 or £32,963.05 according to CoinDesk.　　On Tuesday morning at just before 4am, the coin had been trading at $52,722.34 or roughly £45,327.24.　　The dramatic Bitcoin dip collided with El Salvador‘s controversial acceptance of the coin as a form of legal tender – with President Nayib Bukele’s appreciation for Bitcoin being met with some confusion and protest in the country.

2021-09-08Deep Dive

$4 Billion Bitcoin Futures Wiped Out from Market

The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.　　Bitcoins 15% drop has led to numerous consequences on the market. Both legacy and crypto markets faced a massive sell-off mostly due to technical oversaturation and the long squeeze. In addition to a reduction in open interest, more than $2.8 billion long orders have been liquidated on various cryptocurrency exchanges.Open Interest in futures markets plunges　　Open interest is a key indicator of current market saturation. After a rapid increase in volatility, most market participants have decided to close their positions on the market in order to prevent additional risks. In the latest bullrun, in which Bitcoin moved from $29,000 to $52,000, open interest was significantly lower than during the previous bullrun.　　Little open interest means there are fewer positions being opened on the market. The previous bullrun was followed by massive open interest in both the options and futures market, which generally means that price movement was highly

2021-09-08Deep Dive

Central Bank of Brazil Director States Government Will Know 'Everything You Have in Bitcoin'

Mauricio Moura, a current director of the Central Bank of Brazil, stated that anonymity wont be a choice when making cryptocurrency transactions in the country. The representative stated that, sooner or later, all users would have their transactions identified by the government. These comments came at an event promoted by the Institute of Professionals for the Prevention of Money Laundering and Terrorism Financing.Central Bank of Brazil: ‘Anonymity Won’t Be an Option　　　　Mauricio Moura, director of citizenship relations and supervision of conduct for the Central Bank of Brazil, stated that the coming regulation could ban anonymity in cryptocurrency transactions made in the country. Moura stated that the central bank is currently devising ways to achieve this objective jointly with the Brazilian Securities Commission. He declared:　　　　I cant say much. But the names of those involved in cryptocurrency operations will be known end-to-end. I can say that anonymity will not be an option.　　　　Currently, all exchanges and companies in Brazil must report their operations and the operations of their customers to the regulator. But some of these companies still aren‘t complying with this mandate. Moura didn’t detail how the bank would accomplish the planned objective.　　Crypto Regulation Coming　　Brazil is in the process of issuing a complete

2021-09-08Deep Dive

NBA Star Stephen Curry Asks Crypto Twitter For Advice On Starting, Here’s What Was Said

Point guard for the Golden State Warriors Stephen Curry reached out to his 15.5 million Twitter followers for advice on getting started with crypto.　　“Just getting started in the crypto game…yall got any advice？”　　So far, his tweet has gained over 67,000 likes, over 8,000 retweets, and an astonishing 16,000 comments. It‘s safe to say Curry won’t be reading all of the comments personally.　　Nonetheless, several notable crypto figures and famous celebs did reply. Heres a summary of the key points.　　Crypto Advice For Curry　　The top positioned reply comes from Bitcoin-bull Michael Saylor. Since his firm, MicroStrategy, first bought Bitcoin in August 2020, Saylor has become an evangelist for the leading cryptocurrency.　　Hes credited with promoting and educating all comers on the topic, including creating a free educational course to get to grips with Bitcoin.　　Like many times before, Saylor said Bitcoin is the crypto to invest in. He then points Curry to a link to his educational course.　　“Steph, I spent more than a thousand hours considering this question and chose bitcoin. So far, I have purchased more than $3 billion in BTC because I think its the future of digital property. I have posted tons of free #bitcoin education on http://hope.com (or DM me).”　　Input Output

2021-09-08Deep Dive

Avanti Bank CEO Caitlin Long Bites Back Against The New York Times’ Crypto “Alarm” Article

Caitlin Long, founder and CEO of Avanti Bank, has responded to a recent article by the New York Times that portraits crypto as the new “shadow bank.”　　The article, titled “Cryptos Rapid Move Into Banking Elicits Alarm in Washington,” claims that digital assets and decentralized finance (DeFi) are “disrupting the banking industry” and are progressing so swiftly that regulators struggle to catch up. The article consistently attacks the crypto industry, highlighting risks included in the space in the form of price volatility and scams.　　However, Long asserts that the story “deserves a thoughtful reply,” adding that the issue is not straightforward. “Anti-crypto forces try to paint us all w[ith] a broad brush. Bad actors deserve to be called out, but the article ignores fact that regulatory-compliant firms exist,” she tweeted.　　The article primarily concentrates on BlockFi, a DeFi lending, and trading platform. As per the New York Times article, BlockFi desires “to be the JPMorgan Chase of cryptocurrency.” The bank, which is dealing in crypto assets, offers loans, credit cards, and interest-generating accounts.　　However, starting mid-July, numerous U.S. states demanded BlockFi to stop offering interest-generating accounts, accusing the firm of violating local securities laws. While banks also offer interest-generating accounts, official bodies claim that

2021-09-08Deep Dive

Bitcoin trader kicked out of 90 banks over cryptocurrency concerns

Michaela Juric has been trading virtual currency for seven years but her business, Bitcoin Babe, is now under threat due to financial institutions refusal to do business with her.　　The banks named and shamed by Ms Juric in a parliamentary hearing into Australias technology and financial sector include Commonwealth Bank, NAB and Suncorp.　　“As of yesterday, I have been debanked and banned from 91 banks and financial institutions,” she said.　　“Theres been instances where de-banking has caused me to be denied from being able to get utilities or phone and internet services, which I think is very concerning.”　　Debanking is when a bank chooses to no longer offer banking services to a customer.　　In some cases, Ms Jurics customers have received calls from their own banks warning her bitcoin services were a scam, or had also debanked them all together.　　Aus Merchant, a digital currency brokerage, has experienced four de-banking experiences in the past 12 months.　　Managing director Mitchell Travers said the situation is causing the company to move to offshore banking.　　“We are regulated by AUSTRAC, and offer all of our compliance documentation to support onboarding, and yet get a default negative response causing our business to seriously consider moving our traditional banking offshore,” he said in

2021-09-08Deep Dive

SEC Threatens to Sue Coinbase Over Yield Product

In a lengthy Twitter thread, Coinbase CEO Brian Armstrong revealed that the U.S. Securities and Exchange Commission had threatened to sue the exchange over a lending feature.　　Coinbase intended to launch a yield product, which was supposed to go live in a few weeks. Its users would be able to earn interest on selected digital assets. From the get-go, the offering would only include USD Coin (USDC).　　After reaching out to the SEC, the company learned that the product would be classified as an unregistered security. Armstrong claims that the regulator didnt explain how it made such a determination.　　Yet, the agency has already subpoenaed plenty of records from the company and demanded that its employees testify:　　“They refuse to tell us why they think its a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why.”　　A Wells notice　　Now, the securities watchdog claims that it will take Coinbase to court if the exchange proceeds with the launch of the yield feature in question.　　In a blog post, Paul Grewal, Coinbases chief legal officer, says that the

2021-09-08Deep Dive

BITCOIN BREAKS $50K RESISTANCE, LIKELY TO RISE ABOVE $60K

The price of Bitcoin broke the $50,000 resistance level over the weekend. The price picked a support at $47,000 after crashing from the $50K resistance level. That is Bitcoins highest price in over three months.　　The surge in the price of Bitcoin has also made the total market cap of Bitcoin near $1Trillion as it currently sits at $972B, according to data from Coinmarketcap.　　Further data also reveals that the total market cap of all cryptocurrencies has reached $2.4Trillion compared with a low of around $1.2Trillion in mid-July.　　Bitcoin is currently trading at $51740 as at publishing time and the next resistance level is at $57,000. Once the $57K resistance level gets taken out, the price of Bitcoin might make a new all-time high.　　Bloombergs senior commodity strategist, Mike McGlone has doubled down on call for six-figure Bitcoin (BTC), arguing that the first-born cryptocurrency is well on its way to becoming a global reserve asset that complements the United States dollar.　　“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro risk-off decline is a primary threat for the crypto bull market.”　　The latest edition of Bloombergs Crypto Outlook called $100,000 BTC and $5,000 Ether

2021-09-08Deep Dive

Grayscale CEO Says SEC Should Approve Bitcoin Futures ETF and Spot ETF Together, Here’s Why Facebook

The head of the largest crypto-holding hedge fund Grayscale, Michael Sonnenshein, has shared his view on the potential approval of Bitcoin ETFs by the SEC and explained why the regulator should really approve a spot Bitcoin ETF first, rather than a Bitcoin futures ETF.　　Meanwhile, SEC chairman Gary Gensler has recently expressed a preference for letting a Bitcoin futures ETF into the market first, rather than a spot BTC exchange-traded fund. The host, Joe Kernen, has called that “putting a horse before the cart.”　　The talk has also touched on the recent Bitcoin adoption by El Salvador.　　“Approving futures ETF before spot ETF would be short-sighted”　　Answering a question from Kernen, Sonnenshein stated that it would be short-sighted if the SEC allowed the release of a Bitcoin futures ETF before approving a Bitcoin spot ETF.　　The SEC is here to think of investors and protect them. Spot Bitcoin exchange-traded funds are more convenient to investors from the point of view of costs and certain protection, as Sonnenshein pointed out.　　As reported by U.Today, earlier this year Grayscale and several other companies, including VanEck asset managing company and Invesco, filed for a Bitcoin futures ETF to be approved.　　The Grayscale CEO reckons that the SEC chair has given

2021-09-08Deep Dive

Panama Plans to Legalize Bitcoin (BTC) and Ethereum (ETH)

Panama is reportedly working on a crypto regulation that might legalize Bitcoin ($BTC) and Ethereum ($ETH) as legal modes of payment. Panamanian Congressman Gabriel Silva took to Twitter to announce that they have introduced a Crypto Law in the parliament in hopes of making the country compatible with blockchain and crypto assets and bringing more transparency into governance. A translation of the congressmans tweet read,　　“Today we present the Crypto Law. We seek to make Panama a country compatible with the blockchain, crypto assets, and the internet. This has the potential to create thousands of jobs, attract investment and make the government transparent.”　　Silva also shared the draft bill along with the tweet which plans to make Bitcoin and Ethereum alternative modes of transaction in the country. The draft bill makes note of crypto advantages such as fast mode of payment and cheaper transaction cost. The acceptance of these crypto-assets would depend on the retailer as there is no mandatory acceptance. Some of the key highlights of the Crypto Bill includes,　　Give legal certainty to crypto-asset transactions in Panama　　Encourage the use of blockchain technology in the public sector　　Creation of licenses to promote ventures related to digital technology and “blockchain”　　Attract foreign companies　　Make the “blockchain”

2021-09-08Deep Dive

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