- FTX is suing Sam Bankman-Fried’s parents to recover millions of dollars, while bankrupt exchange Mt. Gox has extended the deadline for lending.
- Crypto exchange Bybit has decided to suspend its services in the UK due to the expectations of new crypto marketing regulations planned for next month by the UK’s Financial Conduct Authority (FCA).
- The recent crypto conferences held in Asia during September showcased momentum and optimism in the region’s digital asset industry.
Last week’s highlights and important developments for the upcoming week in Bitcoin’s on-chain metrics and significant events are covered in COINOTAG’s weekly calendar!
Recent Crypto Developments!
Five big headlines stood out in the crypto world last week. While FTX is suing Sam Bankman-Fried’s parents to recover millions of dollars, the bankrupt exchange Mt. Gox postponed its lending deadline. Additionally, while ByBit has suspended its operations in the UK, Web3 growth is accelerating in Asia and crypto interest from VCs appears to be still alive. Let’s take a closer look at each story!
FTX Sues Sam Bankman-Fried’s Parents
Crypto exchange FTX has filed a lawsuit against founder Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, accusing them of exploiting their influence within FTX to make millions of dollars. Court documents allege they used their positions to personally benefit the company’s creditors and creditors.
Despite FTX’s public image, it has been described internally as a “family business.” In 2022, the duo purchased a $16.4 million luxury estate in the Bahamas using funds from the company. The lawsuit also appears to touch on their involvement in significant political and charitable donations in order to increase their own status.
Bybit Suspends Operations in the UK
Crypto exchange Bybit has decided to suspend its services in the UK due to the expectations of new crypto marketing regulations planned for next month by the UK’s Financial Conduct Authority (FCA). This move will affect new UK users starting from October 1 and existing users from October 8. Bybit CEO Ben Zhou indicated the possibility of exiting the UK due to these regulations. The new rules aim to make crypto product marketing more transparent and accurate.
Bybit has set the deadline for UK customers to close their positions by January 8, 2024; after this date, any remaining positions will be automatically liquidated. The duration of this suspension is uncertain, but Bybit has stated that it will allow them to better align with future UK regulations.
Mt. Gox Extends Lending Deadline
Defunct Bitcoin exchange Mt. Gox has extended the payment deadline for rehabilitation creditors from October 31, 2023, to October 31, 2024. While there’s a general extension, it’s likely that payments will begin at the end of 2023 for creditors who have already submitted the necessary information.
The delay has caused a rise in the price of Bitcoin. However, trading firm QCP Capital maintains a bearish outlook on Bitcoin, with a price target of $22,000 for the cryptocurrency in October. The firm emphasized potential global risks and the possibility of a U.S. government shutdown that could further impact the crypto market in the fourth quarter.
Crypto Investments Remain Strong
Blockchain Capital, a San Francisco-based venture capital firm, successfully raised a total of $580 million for two new crypto investment funds. The company announced its sixth early-stage venture capital fund and its first opportunity fund, with significant contributions from payments giant Visa. Despite a decrease in venture capital investments in crypto ventures over the past year, Blockchain Capital has remained active and invested in various sectors.
Additionally, Proof of Play, a blockchain gaming startup led by FarmVille creator Amitt Mahajan, successfully raised $33 million in a seed round. Notable investors like a16z crypto, Anchorage Digital, and Naval Ravikant participated in this funding round. Proof of Play aims to develop engaging and accessible blockchain games and has already launched its first game, Pirate Nation, as a beta version. Mahajan highlighted the potential to take games beyond their time, drawing attention to the closure of FarmVille in 2020.
Integration of Asia and Web3
The recent crypto conferences held in Asia during September showcased momentum and optimism in the region’s digital asset industry. These conferences received higher participation and more positive sentiments about the future of digital assets compared to their American counterparts. Countries such as South Korea, Singapore, and Hong Kong are emerging as significant players in the crypto space. South Korea, in particular, has seen increased crypto interest among small investors, driven by cultural factors and difficulty accessing traditional assets.
Institutional interest is also on the rise, with some crypto-focused firms successfully raising over $100 million. While Westerners face challenges accessing the Korean market, many are eager to explore its potential. For instance, South Korea-based Upbit recorded higher monthly trading volumes than the U.S.-based Coinbase. Additionally, Hong Kong is becoming more crypto-friendly, influenced by China’s efforts to position itself as a hub for crypto innovation.
Other Developments
Apart from the highlighted headlines, these news items made waves in the crypto market:
- September 18: Citigroup launched token services for its corporate clients, allowing them to convert their funds into digital tokens.
- September 18: A New York regulator delisted DOGE and XRP from its “green list” due to non-compliance with criteria.
- September 19: IOST partnered with HashKey DX to support the development of Web3 services for businesses in Japan.
- September 19: The founder of Alchemy Pay (ACH) launched a $60 million VC fund.
- September 19: Galxe (GAL) introduced Galxe 2.0.
- September 19: Grayscale applied for an Ethereum Futures ETF.
- September 20: The South Korean National Tax Service announced that South Koreans hold a total of $99 billion worth of crypto assets abroad.
- September 21: Alchemy Pay (ACH) obtained a money transfer license in the United States.
- September 21: The SEC accepted applications from ARK Invest and VanEck to review their spot Ethereum ETF documents.
- September 23: The aelf project conducted a burn of 393,226,908 ELF tokens.
Bitcoin Price and Trading Volume
Bitcoin’s price began the week at $26,527 on September 18. Showing low volatility throughout the week, BTC managed to rise to $27,483. The lowest point during the week was $26,377.
The highest trading volume for Bitcoin this week was recorded on September 19, with $16.4 billion. The second-highest volume day after September 19 was on September 21, with a total volume of $13.4 billion. The lowest volume, $5.7 billion, was recorded on September 18.
Bitcoin’s market capitalization exceeded $530 billion on September 20 but has since declined due to price decreases. The current market capitalization of Bitcoin is $517 billion.
Bitcoin’s On-Chain Data
Bitcoin’s reserves on all exchanges continued to decline throughout the week. On September 18, Bitcoin’s exchange reserves were 2,039,780 BTC. On September 20, exchange reserves amounted to 2,036,222 BTC. The ongoing decrease in exchange reserves reflects investors’ commitment to HODL.
Although Bitcoin reserves saw a slight increase after September 20, Bitcoin’s supply on exchanges remained low throughout the week. As observed in the chart, exchange reserves were high at the end of August and the beginning of September.
A metric that examines the BTC miners’ transfers to exchanges shows that miners sent over 1,300 BTC to exchanges on September 21. Miners sending BTC to exchanges implies they are planning to sell. Despite low transfers of BTC by miners throughout the week, they made small sales. The 1,300+ BTC transfer by miners on September 21 coincided with a more than 2% drop in Bitcoin’s price to $26,377.
Bitcoin and U.S. Markets
The correlation between Bitcoin and U.S. markets has continued to decrease and is nearly at its lowest levels in the past two months. An increase in positive or negative correlation indicates whether the asset or index follows the movements of another asset or index.
The correlation between Bitcoin and U.S. markets was high from August 18 to September 12. Additionally, the correlation between Bitcoin and the U.S. Dollar Index (DXY) turned positive for the first time since August 1. Currently, BTC and DXY have a positive correlation of 0.06. This month, the correlation with DXY reached as low as -0.81, signifying a negative correlation.
Furthermore, Bitcoin’s volatility remained higher than that of U.S. markets and Ethereum throughout the week. Bitcoin’s volatility percentage remained above 21% throughout the week, while Ethereum’s volatility stayed above 19%.
Platinum and silver, which showed a negative correlation with Bitcoin from August 25 to September 15, have now shifted into a positive correlation zone. Currently, gold, platinum, and silver all exhibit a positive correlation with Bitcoin.
What to Expect Next Week?
Next week, there aren’t any critical developments that can be considered crucial for Bitcoin and cryptocurrencies. However, there are developments to watch that could bring volatility to Bitcoin. There are no significant market-moving events on Monday and Tuesday.
On Wednesday, September 27, SEC Chairman Gary Gensler will testify before the House of Representatives. On Wednesday, September 28, the U.S. will release its second-quarter growth data, with expectations for growth at 2.2%. Following that, Fed Chairman Jerome Powell will speak after market closures. The most volatile development of the week could be Fed Chairman Jerome Powell’s speech.
Important Developments of the Next Week! 🔥#US #SEC #FED #Bitcoin #BTC $BTC pic.twitter.com/9uXBXBAWmm
— COINOTAG NEWS (@coinotagen) September 24, 2023
In the crypto market, the coins to watch in token lockups are OP, DYDX, EDU, and AXL. Token lockups signify the moment when a specified amount becomes available for circulation. This can potentially create selling pressure on tokens.
