Autor Cointelegraph By William Suberg

Binance sees record 138K BTC inflows as opinions differ on what Bitcoin price will do next

Binance sees record 138K BTC inflows as opinions differ on what Bitcoin price will do next

Uverejnil používateľ | nov 18, 2022 |

Bitcoin (BTC) inflows to largest exchange Binance just saw a giant spike reminiscent of the 2018 bear market capitulation.Data from on-chain analytics platform CryptoQuant shows that on Nov. 18, a giant tranche of almost 60,000 BTC entered Binance’s wallet.Exchange inflows highest since late 2018BTC price contagion fears thanks to FTX insolvencies and related panic selling are ongoing.Now, the latest on-chain figures from Binance could provide an additional catalyst for nervous markets — the exchange has seen its daily biggest inflow on record.With Nov. 18 not over, partial data from CryptoQuant puts current inflows at over 138,000 BTC for the day so far.Binance BTC inflows chart. Source: CryptoQuantTo put the deposit in perspective, even taking into account outflows — not just at Binance, but other major exchanges — the inflows are still the largest since Nov. 30, 2018. Two weeks later, BTC/USD bottomed at $3,100 after falling 40%.For Binance itself, meanwhile, the move means that its BTC reserves are now higher than before the FTX debacle began — 573,000 compared to 513,000 on Nov. 6.Binance BTC reserve chart. Source: CryptoQuantThe event has not gone unnoticed, and one commentator was quick to note that just over 59,000 had come from a “de-peg” of Binance’s Bitcoin BEP2 (BTCB) token.BTCB is a Bitcoin-backed token on Binance Chain with a publicly known reserve address. That wallet contained 68,200 BTC at the time of writing, having seen outflows of 127,351 BTC on the day.Unlike regular operations, however, the decrease in the BTCB market cap at the same time as the reserve decreased suggests that genuine selling is afoot, according to CryptoQuant CEO, Ki Young Ju.Ki explained the theory behind what he called “sellside pressure” in a Twitter thread:“Rationale: – If you’re CZ, why do you unpeg Bitcoins from BNB chain? Your goal is to support projects on BNB chain. – No announcements from Binance means it’s customer or investor’s money. So I think this activity was highly likely from customer(s) who are in urgent situation.”Bitcoin BEP2 (BTCB) reserve address transaction summary (screenshot). Source: BTC.comExchanges’ week of heatOpinions were nonetheless far from aligned on the issue, with others arguing that the giant inflows were simply internal reorganization, which would have no further repercussions.Related: Bitcoin price target now $13.5K as BTC trader says ‘exit all the markets’“Binance saw a large inflow of up to 127,351 bitcoins and a large outflow of nearly 50,000 bitcoins today. On-chain verification shows that these inflows and outflows are organized by internal wallets, which are transfers between cold wallets and wallets for proof of reserves,” cryptocurrency journalist Colin Wu stated in a widely-reproduced tweet.“I don’t really understand the Jump rumors,” Andrew T, a technician at analytics platform Nansen, tweeted about the general inflow tally to Binance. “There have been some massive outflows past seven days, but also inflows elsewhere. ‘they’re transferring to Binance to dump’ doesn’t seem right.”Bitcoin exchange BTC netflow chart. Source: CryptoQuantAs Cointelegraph reported, exchange users withdrew over $3 billion in the days following FTX going under, a trend which continues.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin price target now $13.5K as BTC trader says ‘exit all the markets’

Bitcoin price target now $13.5K as BTC trader says ‘exit all the markets’

Uverejnil používateľ | nov 17, 2022 |

Bitcoin (BTC) ranged around $16,500 on Nov. 17 as markets digested the latest events surrounding exchange FTX.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewFTX CEO tells of “complete failure of corporate controls”Data from Cointelegraph Markets Pro and TradingView showed BTC/USD seeing only mild volatility at the Wall Street open.The pair showed acclimatization to events around the FTX insolvency, the latest including revelations that Alameda Research had been immune from liquidation while trading on the platform.After the departure of Sam Bankman-Fried, new CEO John Ray III wasted no time in acknowledging the extent of the problems left in his wake.In a filing with the U.S. Bankruptcy Court for the District of Delaware, Ray describes the corporate control of FTX as a “complete failure.” He wrote:“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”As Cointelegraph reported, United States lawmakers intend to hold a dedicated hearing on FTX next month, while Bankman-Fried is reportedly subject to efforts to extradite him from the Bahamas.BTC price action has nonetheless managed to shake off related volatility, as evidenced in the modest reaction to news of contagion impacting the crypto lending arm of Genesis Trading on Nov. 16.Analyzing the current climate, however, popular commentators on Nov. 17 were far from optimistic.“Bulls really need to reclaim $17,600 for us to be able to shift nicely in a long position,” Crypto Tony tweeted, adding that “for now bears are in control.”Il Capo of Crypto, repeating a warning that altcoins could see further losses of up to 50%, was even franker in his message to followers.“I repeat… EXIT ALL THE MARKETS,” he stated on Nov. 16, suggesting that “most people are not ready for what is coming.”Bid liquidity offers $13,500 supportOn the topic of potential BTC/USD downside targets, fellow analyst Titan of Crypto flagged various high-liquidity zones on exchange order books.Related: FTX Bitcoin stash worth same as Mt. Gox 840K BTC before hackThe largest of these, comments said, lies at $13,500.“Although there’s liquidity to grab around $18.5k, $17.2k and $15.5k, the bigger one is lower at $13.5k,” they stated.Analytics resource Material Indicators, meanwhile, calculated the total bid liquidity between the spot price and $13,000 as $195 million on the Binance order book.BTC/USD order book data (Binance). Source: Material Indicators/TwitterThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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US crypto exchanges lead Bitcoin exodus: Over $1.5B in BTC withdrawn in one week

US crypto exchanges lead Bitcoin exodus: Over $1.5B in BTC withdrawn in one week

Uverejnil používateľ | nov 17, 2022 |

Bitcoin (BTC) has flooded out of exchanges in the past week as users become wary of security and regulatory scrutiny.Data from on-chain monitoring resource Coinglass shows United States exchanges in particular seeing heavy BTC balance reductions.U.S. exchanges lead BTC exodusIn the wake of the FTX scandal, efforts to draw attention to the risk involved in custodial BTC storage stepped up on social media.Users appeared to heed the warning, withdrawing over $3 billion in cryptocurrency in the week immediately following the solvency debacle and ordering record numbers of hardware wallets.The aftermath of FTX is only just beginning, meanwhile, and as regulators plan investigative action and more attention to crypto as a whole, investors angst continues to grow.The data shows the trend is still in force when it comes to exchange withdrawals. In the past seven days, practically all major platforms have seen net withdrawals outpacing deposits.The biggest weekly reduction comes from Gemini, down almost 30,000 BTC, closely followed by Kraken, Binance and Coinbase.Unsurprisingly, U.S. exchanges have seen particularly heavy withdrawals, the jurisdiction due to play a key role in the FTX saga going forward.This week, lawmakers announced a dedicated hearing into what happened at the exchange, with its ex-CEO, Sam Bankman-Fried, reportedly due to be extradited to the U.S. from the Bahamas.“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” Maxine Waters, Chair of the U.S. House Financial Services Committee, which will host the hearing, said, quoted by mainstream media.The Coinglass figures meanwhile show that even those exchanges with no exposure to FTX have failed to stem the exodus.In total for the week, 134,000 BTC has left their books — the equivalent of around $2.2 billion at current prices, with around $1.5 billion coming from U.S. platforms.Bitcoin exchange balance chart. Source: Coinglass”Acute financial distress”As Cointelegraph reported, while exchange withdrawals have surged, the average BTC hodler remains significantly underwater — and thus less than inclined to sell.Related: Bitcoin price dips to $16.4K over Genesis woes as execs defend GBTCData from on-chain analytics firm Glassnode confirms this. The average long-term holder (LTH) — an entity holding coins for at least 155 days — is 33% in the red.This is almost unprecedented and matched only by the pit of the 2018 bear market, when the average tally hit 36%.Accompanying comments described LTHs as undergoing “acute financial distress.”Bitcoin LTH unrealized losses annotated chart. Source: Glassnode/ TwitterThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin price dips to $16.4K over Genesis woes as execs defend GBTC

Bitcoin price dips to $16.4K over Genesis woes as execs defend GBTC

Uverejnil používateľ | nov 16, 2022 |

Bitcoin (BTC) fell to intraday lows after the Nov. 16 Wall Street open as the FTX scandal appeared to claim another victim.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewGenesis Trading liquidity “exceeded”Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading around $16,400 at the time of writing.Downside had entered again for the pair amid news that Genesis Global Capital, the crypto lending arm of Genesis Trading, had paused withdrawals over liquidity problems.In a series of tweets on the day, Digital Currency Group (DCG), the parent company that counts Genesis Trading among its subsidiaries, directly attributed the decision to the FTX debacle.“Today Genesis Global Capital, Genesis Trading’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations,” part of the thread stated.“This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.”DCG added that its other operations were unaffected, these including Grayscale and its Grayscale Bitcoin Trust (GBTC), the industry’s largest institutional investment vehicle.“The impact lies with the lending business at Genesis and does not affect Genesis’s trading or custody businesses,” the thread concluded. “Importantly, this temporary action has no impact on the business operations of DCG and our other wholly owned subsidiaries.”GBTC traded at a near-record discount to the Bitcoin spot price on the day, having broken below -40% in November, data from on-chain monitoring resource Coinglass confirmed. Industry commentators were concerned about potential contagion spreading to the largest BTC holder.“The assets underlying $GBTC and all Grayscale products remain safe and secure, held in segregated wallets in deep cold storage by our custodian Coinbase,” Grayscale stated on the day.GBTC premium vs. asset holdings vs. BTC/USD chart. Source: CoinglassThe limited scope of the issues at Genesis thus allowed Bitcoin to avoid significant fresh losses. As Cointelegraph reported, multiple other industry businesses had already signaled that FTX exposure was placing them under financial strain.Genesis itself meanwhile said that its problems had begun thanks to the Terra and LUNA debacle and associated insolvency of trading firm Three Arrows Capital (3AC).“The default of 3AC negatively impacted the liquidity and duration profiles of our lending entity Genesis Global Capital. Since then, we have been de-risking the book and shoring up our liquidity profile and the quality of our collateral,” part of its own Twitter thread read.“However, FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.”Old coins awaken after FTX “black eye”Analyzing the ongoing impact on Bitcoin itself, on-chain analytics firm Glassnode avoided a sense of panic.Related: Bitcoin miners send less BTC to exchanges since 2020 halving despite FTXIn the latest edition of its weekly newsletter, “The Week On-Chain,” it described the FTX event as a “real black eye” to the crypto industry.Among the indicators under assessment for the week was the average age of Bitcoin moved on-chain.At 90 days, this was 3x older than during September and October, but notably not a significant historical anomaly.“The uptick in older coins being spent is noteworthy, and is in line with peaks seen during previous capitulation sell-off events, and even the 2021 bull market profit taking,” it wrote. “A sustained up-trend or elevated level of Dormancy may indicate a more widespread panic has taken root amongst the HODLer cohort.”Bitcoin weekly sum of revived supply annotated chart (screenshot). Source: GlassnodeAs Cointelegraph reported, the overall feeling in analytics circles remains one of “wait and see,” with the potential for a worsening of price action in the short term firmly on the radar.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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FTX Bitcoin stash worth same as Mt. Gox 840K BTC before hack

FTX Bitcoin stash worth same as Mt. Gox 840K BTC before hack

Uverejnil používateľ | nov 16, 2022 |

If FTX is sparking new Bitcoin (BTC) bear market lows, BTC price action has further to fall to match Mt. Gox.Data from on-chain analytics firm Glassnode confirms that the “Mt. Gox bear market” almost a decade ago still beats the 2022 lows.FTX vs. Mt. Gox: Same, same but differentWith the fallout from the FTX bankruptcy scandal still unfolding, questions remain over how many major crypto entities will be affected and how big industry losses will be.BTC/USD fell over 25% last week as the ramifications became known and has failed to recover much lost ground.At the same time, multiple comparisons to Mt. Gox have emerged: alleged mismanagement, poor security and insider trading activity have all been cited as examples.The raw data, however, reveals some interesting additional numbers to bear in mind.Mt. Gox imploded as a result of a giant 840,000 BTC hack in February 2014. Just months before, Bitcoin had seen a fresh all-time high of around $1,100, with Mt. Gox handling around 70% of all trading activity.In the months that followed, Bitcoin lost up to 85% of its value versus that high, bottoming out in January 2015 — almost a year after the hack.This cycle became the first Bitcoin bear market witnessed on a wide scale by hodlers, and it took until December 2017 for another all-time high to emerge.Fast forward to 2022, and at its recent two-year lows, BTC/USD was down 77% in just under a year against its latest all-time highs of $69,000.With the timeframes similar between FTX and Mt. Gox, the question facing analysts is whether BTC price action will add another 10% to its drawdown versus its prior peak — or worse.As Cointelegraph reported, calls for a return to $10,000 were already in place even before the FTX episode. The black swan bankruptcy, others warned, has, meanwhile, set the crypto industry back several years.BTC/USD % drawdown from all-time highs chart. Source: GlassnodeWhat’s in a $400 million wipeout?Comparing FTX to a similar black swan event from almost ten years ago may seem out of place. However, the numbers involved are eerily similar in some respects. Related: Bitcoin will shrug off FTX ‘black swan’ just like Mt. Gox — analysisMt. Gox lost 840,000 BTC, worth at the time around $460 million. Before going down, FTX had a Bitcoin balance of 20,000, according to data from on-chain analytics platform CryptoQuant — also worth just over $400 million.As a fraction of market cap, however, this year’s losses pale in comparison to the 2014 drawdown. Bitcoin’s market cap at the start of March 2014 was $6.9 billion compared to $320 billion today. The overall crypto market cap today is $834 billion, data from CoinMarketCap confirms.FTX Bitcoin balance chart. Source: CryptoQuantThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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