The total crypto market cap rose by $7 billion in the last five days and now stands at $1,168 billion. Still below the monthly high of $1,200 billion registered few days ago.
BTC/USDT
Today is the end of month, so all eyes are on monthly candle close and all the implications it might bring given the fact the Q1 of 2023 will be ended as well. The biggest cryptocurrency is set to close above the 21-period EMA on the 1-month chart but near the May-July, 2021 lows, which might be interpreted as a resistance zone. Still, it is in a steady uptrend and a price correction that might result in a higher low might be healthy for the long-term price development. Below is the 1M chart.
Looking it from a weekly chart perspective, BTC is attempting a break into the next major resistance in the $30,000-$32,000 area. It is trading stable above all closest weekly highs and out of the former range marked by the $24,300 high. The biggest cryptocurrency is moving in a good pace towards the next major zones of interest on the chart.
Below is the 1W chart
Switching lower, to the daily timeframe, bitcoin is still showing signs of bearish divergence between the price action and the Relative Strength Index (RSI) which usually signals a change in direction of trading, but in general this indicator is used on higher timeframes. What is clear, however, is the formed range in the $28,300 – $27,000 area, which is now dictating the overall market movement.
1D chart below
ETH/USDT
When it comes to ETH, the coin is currently trading above the nearest monthly and weekly horizontal resistances. The $1,930 mark remains the closest major obstacle in sight. A series of higher highs above the 21-period EMA are signs of a healthy uptrend.
1W chart below
On the lower, 1-day chart, ether is still caught in the the tight range between $1,700 and $1,815 with the later being the current low time frame resistance point. Just like in the case of bitcoin, however, there is a bearish divergence with the RSI indicator noticeable on the chart. A break to the upside will see the coin rally up to $1,940 while a pullback might result in re-visiting the range low.
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler says the regulator needs extra funding to keep up with emerging capital markets like crypto. He has supported President Biden’s request to add $2.4B in funding to the SEC to help crack down on crypto “misconduct.”
SEC seeking funding to continue cracking down on crypto
The U.S. SEC is all out to ‘streamline’ the crypto space by requesting an extra $2.4B in funding to help regulate the space. Its Chair, Gary Gensler, voiced his testimony on March 29, 2023, budget hearing with the House Appropriations Committee, saying that his commission needs more money to keep up with the ongoing innovation.
In his words, Gary Gensler said:
“Rapid technological innovation in the financial markets has led to misconduct in emerging and new areas, not least in the crypto space. Addressing this requires new tools, expertise, and resources.”
https://youtu.be/ZDDWLeeiHv4
He explained that the 2022 budget increase helped them bring staffing levels above what was recorded in 2016 for the first time. However, it is still not good enough, as the commission is finding it tough to match the growth rate of bad actors. He also revisited his previous comments calling crypto wild west once more.
SEC wants to become busier with the crypto space
The SEC has been busy in the past few months as it has been seen charging individuals and crypto organizations openly. It has charged Kraken, Justin Sun Linsay Lohan, Jake Paul, Beaxy crypto exchange, FTX, SBF, Terraform labs, Do Kwon, Gemini, Genesis, and others.
Today we charged crypto entrepreneur Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities Tronix and BitTorrent.
— U.S. Securities and Exchange Commission (@SECGov) March 22, 2023
The commission also warned about charging Coinbase for offering some ‘questionable’ services in the U.S. without its approval. Now, its Chair has expressed interest in going further with its efforts by asking for more funding.
In the budget hearing, Gensler explained that they had received 35,000 separate tips and complaints in 2022. These tips helped them serve over 750 enforcement actions and orders for over $6.4B in penalties and disgorgements. He added that a third of these complaints were connected to the crypto space, which shows an increased need for regulation.
Investments in crypto asset securities can be exceptionally volatile & speculative, & the platforms where investors buy, sell, borrow/lend these securities may lack important protections for investors. @SEC_Investor_Ed to investors: exercise caution w/ crypto asset securities.
— U.S. Securities and Exchange Commission (@SECGov) March 23, 2023
Keep watching Fintech Express for updates on regulation and other finance-related developments
Bank of England (BoE) Governor Andrew Bailey has asked banks to be vigilant as the current market is unfavorable, echoing President Joe Biden’s latest sentiments that the ongoing banking collapse is not anywhere near its end.
Bank of England Governor Andrew Bailey asks banks to be vigilant
Financial and political leaders are actively touching on the ongoing financial collapse. Banking stocks are nose-diving globally following a series of Bank collapses that were started by the fall of Silicon Valley bank.
Now, the BoE Chief, Andrew Bailey, has come out to tell the banks to brace themselves as the current market will not be easy. He made these comments on March 28, 2023, where he vowed to be vigilant amid the current market shake, which he termed a “testing out” to find banks’ weaknesses.
Bailey revealed to U.K.’s Treasury Select Committee that the U.S. is clearing its mess in regional banking and that Credit Suisse was an institutional issue that is not widespread in the U.K. He also added that the country’s banking system is strong and has good liquidity.
Bailey compared the U.K. and the U.S. banking systems saying that the set regulations for the treatment of interest rate risk in the banking book (IRRBB)- that refers to the prospective risks to bank capital and earnings from adverse movements in interest rates-as the main reason why the British banking system still stands while US one is on shaky ground.
President Biden says the banking crisis is not over yet
At around the same time, U.S. President Joe Biden said that the White House’s response to the banking crisis is not over. He said he believes his team has handled the crisis well but is still watching to see what happens even though they are convinced they are moving in the right direction.
Biden also explained that his administration looked at legislative changes to ensure such a crisis would never happen again. However, he expressed concerns that it may be difficult to do so as they have a split Congress. Keep watching Fintech Express for updates on macro-finance and other related developments.
A Delaware bankruptcy judge has ruled to allow FTX to sell Sequoia Capital Fund to the Abu Dhabi investment arm.
Abu Dhabi Investment arm to purchase FTX related Sequoia Capital Fund
A Delaware judge has approved the sale of Sequoia Capital Fund to the Abu Dhabi investment arm, according to a March 28, 2023, court filing. The ruling was made to answer a declaration request filed by FTX on March 8.
Judge John Dorsey has declared that the sale of the Capital Fund to Al Nawwar Investments RSC limited has satisfied all the required standards per the US bankruptcy law that prevents the unduly hasty sale of assets and thus should proceed.
FTX also requested the judge to offer an indefinite delay to the sale of its stock-clearing business, Embed. Embed was initially used as a solution to facilitate a quick raise of funds for outstanding creditors. The hearing for the sale of Embedd has been scheduled for March 27 but is now on hold “until further notice.”
FTX was plagued by too high withdrawal requests than its treasuries had in November 2022, leading to the company filing for Chapter 11 bankruptcy proceedings to help protect its assets and liquidate them. The developments led to investigations that saw its CEO, Sam Bankman-Fried, arrested and charged with one of the most prominent cases in the US.
The case against Sam Bankman-Fried is continuing in tandem with the bankruptcy proceedings. Keep watching Fintech Express for updates on these and other finance-related news.
Binance, the world’s largest crypto exchange by transaction volume, has announced the launch of a new hub in Georgia. The exchange has said it intends to use the outpost to fuel further adoption of cryptocurrencies and create new jobs for Georgia residents.
Binance announces a new ‘Web 3 outpost’
The crypto exchange has announced that it will open its newest branch in Georgia by the end of 2023 and has already employed 25 people to run it. Via its official blog, the exchange explained that it targets to attract talent in Georgia, promote blockchain industry education and create new employment opportunities there.
The exchange explained that it’s already working with public and private sectors to organize education and hackathon events in the country. The exchange’s presence in the country has been gradual and has gone through several milestones.
Binance’s CEO first visited the country in November 2022 and met with its Prime Minister, Irakli Garibashvili, and crypto stakeholders. During his visit, Chang Peng Zhao said that the country was stable and favorable for businesses and praised its governance for the “significant opportunities” it offers investors.
In his press conference, Zhao revealed fruitful discussions about integrating Web 3 and blockchain systems in the country: “We discussed all kinds of support from recruiting programs to educational efforts and investments. The meeting was very positive. After this meeting, our confidence in Georgia increased significantly, empowering us to invest in the country more heavily”.
Crypto adoption continues in Georgia
Georgia has been on the front line of crypto adoption. The capital city, Tbilisi, brags hosting over 100 Bitcoin ATMs. The country has over 1187 crypto ATMs and tellers, which is notably high.
The country also plans to promote crypto adoption with TBC bank, having signed a memorandum of understanding earlier with Binance. The bank will allow investors to use its financial tools to trade on Binance if KYC and AML procedures are in place.
Keep watching Fintech Express for updates on this and other related stories.
Several Chinese banks are reportedly seeking to offer financial services to crypto firms in Hong Kong despite a crypto blanket ban in mainland China. Hong Kong has been active lately in crypto regulation and plans to have a new licensing regime for crypto exchanges this June.
America out China in?
New information has surfaced via a March 27 report by Bloomberg stating that Chinese banks, including Bank of China LTD, the Bank of Communications Co., and Shanghai Pudong Development Bank, are lining up to support crypto establishments in Hong Kong.
One source stated that a Chinese bank sales representative even visited a main office of a crypto company to pitch banking services despite the current ban. Reports have also been surfacing that China could be on the way to reconsidering the blanket ban on cryptos.
Such developments would be vital, considering that some lawmakers in the US are not so happy with the crypto space. They are using enforcement measures to regulate the space, charging crypto exchanges and platforms heavily for not registering while not offering chances for them to do so. However, the readoption of crypto in China is still unconfirmed and only time will tell how far it will go and the role it might play in revitalizing the crypto space. Keep watching Fintech Express for updates on this and other financial technology-related news.
NFT investor Brandon Riley has lost $135K by burning his crypto punk NFT when trying to get a loan by collateralizing it. He used the wrong method permanently removing his NFT from circulation.
‘Hard-to-use’ UI costs an investor a $135K NFT
Brandon has gone on Twitter to mourn his massive five-figure loss earlier today, claiming that his process of borrowing money has cost him 77 ETH. Riley had purchased the crypto punk NFT alongside another BAYC NFT earlier this month and said he hoped to hold them through to the next decade.
Now feels like an appropriate time to introduce #BAYC 586 to #Punk 685 (acquired a week ago). Hope to hold both for a decade… LGF! 🚀 pic.twitter.com/SLb68rY6MR
In a tweet, he said he believes he has the stomach to ride the bull and bear runs and can manage to watch the assets get a 90%+ downturn. He added that he believes the assets will most likely have appreciated by far in the next decade.
I will. These hands aren’t made of glass. I know (from experience) I have the stomach for +90% downturns. The probably of be being down (in $) a decade from now is almost zero.
Now, his dream of holding his beloved punk has gone in flames. Riley is a seasoned NFT collector who knows the need to buy NFTs before a bull market. However, he needed some cash and opted to get a loan against his punk NFT.
Some Twitter users asked him what happened, and he explained that the unfamiliar wrapping of the NFT cost him. He accidentally sent that asset to a burn wallet after completing the process.
I did do the first part with my own address I’m step 2. But then when I got to step 5 the burn address was the one listed under “9. proxyInfo” and I was told to follow the directions exactly, so I did. I just shouldn’t have attempted this on my own I guess.
Riley explained that he was not wrapping the asset to sell it on Blur but wanted to make it his “forever punk.” He added that the asset was beloved to him as its number was the exact reverse of his BAYC, and he was wrapping it only because he needed to draw some liquidity from it.
Some onlookers believed Riley had “deep pockets,” which he denied by claiming that he bought the asset with borrowed money. While concluding and conceding the mistake, Riles noted, “I just shouldn’t have attempted this on my own, I guess,” which should be a lesson for everyone.
Jack Dorsey has lost over $500M as his company, Block, was preyed on by short sellers resulting in the collapse of its stock shares. The short seller, Hindenburg Research, accused his platform of being involved in money laundering and skirting banking laws.
Jack Dorsey gets a rough day as Block gets preyed on by short sellers
The report from Hindenburg Research has made the market go wild, leading to Jack Dorsey’s net-worth slumping 11% in a day. This fall in Dorsey’s net worth came from the sell-off of Square shares, a subsidiary of Block.
Block is the parent company of Square and Cash App. Square has been trading publicly since listing on New York Stock Exchange in 2015. It had been operating smoothly for all that long until it became the target of Hindenburg Research which saw its shares lose value by 15% during the close of Thursday.
NEW FROM US:
Block—How Inflated User Metrics and "Frictionless" Fraud Facilitation Enabled Insiders To Cash Out Over $1 Billionhttps://t.co/pScGE5QMnX$SQ
Square is one of many companies that short-seller Hindenburg Research has targeted. The short seller has followed other big names like Indian Billionaire Gautam Adani and hydrogen-powered car maker Nikola.
Block to use litigation against Hindenburg Research
On Thursday, Dorsey’s Block said it was preparing to take legal action against Hindenburg Research. The company said that reports against it were misleading and false. It added that it would work with the Securities and Exchange Commission to prove its innocence legally.
Conversely, the short seller said that it had been conducting deep investigations for the past two years and discovered that Block artificially inflated the number of its registered customers to facilitate shady deals. It said it had conducted dozens of interviews with former employees, partners, and industry experts, which helped it conclude that Block was operating against US banking laws.
However, till now, Block has not taken any legal action against Hindenburg research. Keep watching Fintech Express for updates on this and other fintech-related stories.
Bank of England Governor Andrew Bailey has asked businesses to stop hiking commodity prices to calm the country’s economic crisis. He said that further price hikes would risk higher bank rates.
Governor Andrew Bailey talks about England’s inflation crisis
The Bank of England has been hiking its rates due to the high inflation affecting the country’s fiat. Bailey made these comments in his speech when announcing that the bank was raising the rates by 0.25 basis points to 4.25, a 14-year record high.
Bailey explained that the country’s inflation is not in a good place, and the bank may need to do more if the inflation doesn’t start cooling too by this summer. His warning comes when the country’s inflation is shown to have risen to 10.4% in February from 10.1% in January. Additionally, the bank aims to bring it down to only 2%.
In his speech, Bailey said:
“I would say to people who are setting prices: please understand if we get inflation embedded, interest rates will have to go up further.”
He added, “When companies set prices, I understand they must reflect the costs they face. But I would say, please, that when we are setting prices in the economy and people are looking forward, we expect inflation to come down sharply this year, and I would just say, please bear that in mind.”
Financial crisis spreads globally
Elsewhere, most countries are bracing hard against bank collapses and ruthless inflation rates. Countries like Argentina, Turkey, Sudan, Venezuela, and Lebanon have rates over 50%.
Additionally, only Japan has an inflation rate of below 5% among G7 countries, which shows how serious the matter is. As a result, high standards of living and a more nervous stock market are being experienced, with global leaders trying to calm the situation by claiming that the finance system is still intact.
However, this is not a sentiment everyone shares, which is evident with the continuous sell-off seen globally.
Deutsche Bank shares have retreated for a third day, losing over a fifth of their value in a month. The share prices fell by over 9% in early trade markets on March 24, 2023.
Germany’s Deutsche Bank in trouble?-Shares plummets by 9%
Germany’s Deutsche Bank seems to be the latest bank engulfed by the ongoing banking meltdown as its shares are receding heavily. The bank’s shares fell by over 9% on Friday following concerns regarding its stability.
Its shares have fallen consistently over the past three days, shedding over a fifth of their value. The reason behind the investors’ cash out of their shares is the bank’s Credit default swaps (insurance for the company’s bondholders against its default) which leaped to 173 basis points on March 23, 2023 night from 142 basis points noted in the previous day.
Such a big step to the negative side must have spurred the bank’s investors, who are already nervous following the meltdown of major banks like Silvergate, Silicon Valley Bank, and Credit Suisse. As such, investors dumped the bank’s shares and its AT1 bonds.
Banks continue seeing massive stock declines
The current global financial crisis has been aggressively exposing weak links in the sector. It was first noted in the sell-off of unregulated assets like crypto but has shown that it’s even prone in the regulated pillars of the economy, banks.
It started with the collapse of the Silicon Valley Bank in Mid-March 2023. The FDIC took control of the bank and bailed customers out. The fall of this US regional bank shook the crypto and stock markets heavily, causing the de-pegging of Circle’s USDC, which was confirmed to have its reserves in the bank.
As a reflex action, Banks’ investors globally started looking into the management of their investments only to notice that many others were having the same balance sheet issues as SVB. Since then, banks have been seeing massive sell-offs, and there doesn’t seem to be an end. Keep watching Fintech Express for updates on the story.
