5 Things to Know in Crypto Today – Ripple Sees Increased Interest

Key Insights:

  • FTX contagion fear eased on Tuesday as investors digested the latest updates on FTX.
  • Coinbase (COIN) found much-needed support following the Monday tumble.
  • Ripple continues to grab the crypto news headlines, with news hitting the wires of a fresh Bank of America (BAC) interest.

FTX Contagion Fear Subsides on Latest FTX Asset News

The FTX bankruptcy and contagion remained the market focal point on Tuesday. Early in the session, the news of Genesis delivering a bankruptcy warning continued to test buyer appetite. However, updates on FTX assets eased FTX contagion risk later in the day.

According to reports, FTX has cash reserves of $1.24 billion, which would cover the $1.45 billion FTX owes to its top ten creditors when considering FTX real estate holdings.

News of Tron’s Justin Sun and Ripple’s Brad Garlinghouse targeting FTX assets was also crypto-market friendly. However, there were also reports of stolen FTX assets. According to The Hill, FTX lawyers conceded that ‘a substantial amount of assets had been stolen from FTX accounts.’

At Tuesday’s FTX bankruptcy hearing, the presiding Judge agreed to redact the names and addresses on the FTX client list. The redaction will leave the crypto market on tenterhooks and at the mercy of the media to report on further fallout from the FTX collapse.

On Tuesday, the crypto market cap rose by $18.6 billion to $763.7 billion. However, downside risks remain, with FTX contagion and increased regulatory uncertainty being key risks.

Crypto market finds support.
Crypto Market Cap 231122 Daily Chart

Coinbase (COIN) Share Price Steadies After Monday Sell-Off

On Tuesday, Coinbase’s (COIN) share price rose by 5.24%, partially reversing an 8.90% slide from Monday. On Monday, COIN fell to $40.61, its lowest level since listing on the NASDAQ in April 2021.

Year-to-date, COIN is down 82.8% to the Tuesday close of $43.39.

FTX contagion has spread beyond the crypto market into the US equity markets, with the BTC fall to sub-$16,000 doing the damage. Following the collapse of FTX, investors are looking for the next big name to fall.

Earlier this year, Coinbase cut its workforce shortly after entering the Fortune 500. In June, news hit the crypto wires of Coinbase rescinding accepted job offers on top of a hiring freeze.

The Coinbase entry into the Fortune 500 will be brief. Coinbase derives 85% of its revenue from trading fees. The crypto winter and the collapse of Terra Labs and FTX will continue to impact earnings.

Coinbase steadies.
COIN 231122 Daily Chart

Mainstream Interest in Ripple Continues to Grow Despite the SEC Case

Bank of America (BAC) plans to join a growing list of financial institutions to partner with Ripple.

Ripple CEO Brad Garlinghouse reportedly told Linqto Director of Member Sales Nick Burrafato that Bank of America plans to use the ODL (on-demand liquidity) products upon conclusion of the ongoing SEC v Ripple case.

The latest news follows news of Australia’s Commonwealth Bank migrating cross-border payments to ISO 20022, suggesting a link to Ripple.

Israel’s Bank Leumi, Canada’s CIBC, and the National Australia Bank partnered to use Ripple blockchain tech in March.

On Tuesday, XRP rose by 3.08% to end the day at $0.3749.

XRP on the rise.
XRPUSD 231122 Daily Chart

Argentina Shock World Cup 2022 Loss to Saudi Arabia Plunges Fan Token

On Tuesday, Argentina, a tournament favorite, lost to Saudi Arabia in their opening game of the FIFA 2022 World Cup.

Fans responded to the 2-1 shock defeat by dumping the Argentina Fan Token (ARG). ARG tumbled by 24.52% against Tether (USDT) on Tuesday.

ARG hits reverse on Argentina loss to Saudi.
ARGUSDT 231122 Daily Chart

Fidelity Draws Scrutiny in the Wake of the FTX Collapse

The collapse of FTX continues to spook lawmakers. In the US, lawmakers have urged Fidelity to review its decision to enable investors to add BTC to their retirement 401(k) plans.

In April, Fidelity announced that it would allow 401(k) retirement saving account holders to allocate up to 20% to BTC, subject to employer approval.

 

5 Things to Know in Crypto Today – FTX Demise Sends Cryptos Crashing

Key Insights:

  • XRP and the broader crypto market tumble as the market reacts to the demise of FTX.
  • FTX agrees to sell to Binance to avoid another crypto market catastrophe.
  • SEC wins its case against LBRY, which could have a bearing on the SEC v Ripple case.

Crypto Market Sees Largest Single-Day Fall Since June 13

With just over two hours of the Tuesday session remaining (UTC), the crypto market is down $101 billion to $873.7 billion.

Crypto crash.
Total Market Cap 091122 Daily Chart

It is the largest single-day loss since June 13, when the crypto market slumped by $130.6 billion to $924.0 billion.

The June 13 sell-off came in response to news of DeFi lender Celsius suspending all withdrawals, swaps, and transfers.

This week, leading crypto exchange FTX became the latest victim of the crypto winter. Binance agreed to acquire FTX. Despite the announcement, FTT is down 75.6% to $5.40. FTT had fallen to a low of $2.73 before a partial recovery.

FTT collapse.
FTTUSD 091122 Daily Chart

Contagion fears and fears of increased scrutiny over the digital asset space left investors running for cover, with crypto liquidations spiking throughout the Tuesday session.

Late in the Tuesday session, 24-hour crypto liquidations stood at $854 million, up from $137.65 million on Tuesday morning. At the time of writing, liquidated traders stood at 403,858 versus 72,793 on Tuesday morning.

BTC, ETH, SOL, FTT, DOGE, and BNB saw the largest liquidations.

Crypto liquidations spike.
Crypto Liquidations 091122

SEC Wins Case Against LBRY in Another Blow for the Crypto Space

On Monday, news hit the wires of the SEC winning its case against LBRY. According to the Court findings,

“Because no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice, the SEC is entitled to judgment.”

The filing went on to say,

“The SEC’s Motion for Summary Judgment is granted, and LBRY’s Motion for Summary Judgment is denied.”

On Monday, LBC tumbled by 41.45% to $0.01216 before briefly returning to $0.01727 on Tuesday.

LBC finds modest support post Monday sell-off.
LBCUSD 091122 Daily Chart

Notably, the outcome of the SEC v LBRY case could have a material bearing on the SEC v Ripple case and XRP. There was speculation that the SEC requested an extension in the SEC v Ripple to allow for the LBRY ruling.

With 110 minutes of the Tuesday session remaining (UTC), XRP was down 13.65% to $0.4011.

XRP in deep red.
XRPUSD 091122 Daily Chart

Crypto Market Decouples from the NASDAQ Composite Index

This week’s crypto market news has led to a decoupling from the NASDAQ Composite Index. On Tuesday, the NASDAQ Composite Index rose by 0.49%, following a 0.85% gain on Monday.

Crypto investor sentiment towards the US economy and Fed monetary policy could remain an afterthought for some time.

Regulator response to the latest crypto market event will likely have more market impact.

NASDAQ Decoupling.
NASDAQ – Total Market Cap 091122 Daily Chart

Coinbase Falls Foul of German Regulators

This week, Coinbase (COIN) was in the news.

On Tuesday, the Federal Financial Supervisory Authority of Germany (BaFin) issued a notice, saying,

“An audit of the annual financial statements revealed organizational deficiencies at the institute. The regularity of the business organization was not given in all audited areas.”

The news coincided with reports of users facing network connection issues attributed to high user demand.

Coinbase Support tweeted on Tuesday,

“We’ve implemented a fix and latency has improved dramatically. Due to the high level of new user sign-ups and transfers to Coinbase today, some customers had trouble signing up / experienced delays signing in.”

NASDAQ-listed Coinbase Global (COIN) ended the day down 10.78% to $50.83.

Coinbase shares slide in response to FTX demise.
COIN 091122 Daily Chart

US Mid-Term Elections May Have More Bearing after FTX Collapse

The US Mid-Term elections could have greater significance for the crypto space following the collapse of FTX. US voters went to the polls on Tuesday, with the Senate and the House of Representatives up for grabs. The crypto market preference tilts in favor of a Republican clean sweep.

However, this week’s crypto market events will likely shroud the outcome of the Mid-Term elections.

5 Things to Know in Crypto Today – SEC Took Another Loss in Court

Key Insights:

  • The crypto market found modest support this morning, though downside risks will test sentiment in the afternoon session.
  • Rulings from the SEC v Ripple case deliver the SEC with another blow as Ripple looks for a decisive victory.
  • Crypto adoption continued to grab the news headlines, with Google and Coinbase (COIN) the latest partnership to drive crypto payments.

Crypto Market Steadies After the Sixth Loss from Seven Sessions

On Tuesday, the crypto market fell by $5.9 billion to $881.3 billion. The loss marked the sixth loss from seven sessions as riskier assets bore the brunt of central bank activity and policy goals.

As the markets prepare for tomorrow’s US CPI report, which could decide the fate of November and December’s Fed policy moves, downside risks for the day ahead also need consideration. Downside risks include a pickup in US wholesale inflation and hawkish FOMC meeting minutes accompanied by hawkish FOMC member chatter.

This morning, the crypto market found much-needed support, rising by $4.1 billion to $885.4 billion. However, the upside is modest when considering the downside risks for today. Crypto correlation with the NASDAQ 100 will likely continue. The NASDAQ Mini was up 57.75 points, providing support.

Crypto market cap steadies.
Total Market Cap 121022 Daily Chart

SEC Loses Yet Another Court Ruling in the Ongoing SEC v Ripple Case

This morning, XRP found support as investors looked to move past two days of heavy losses. Updates from the ongoing SEC v Ripple case from Tuesday were XRP positive. XRP was up 0.72% to $0.48828. XRP had struck an early high of $0.49222 before easing back to sub-$0.49.

XRP finds support.
XRPUSD 121022 Daily Chart

Going into October, the SEC was on the back foot after the Court overruled the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

For the SEC and the Defendants, the Hinman documents remain a focal point of the case. However, since the Court ruling, the SEC has yet to appeal. An appeal would take the SEC’s attempts to shield William Hinman’s speech-related documents under attorney-client privilege to more than seven.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

However, while SEC ponders its next move, the Court delivered the SEC with another blow on Tuesday by granting I-Remit and TapJets requests to file amicus briefs. I-Remit and TapJets are independent businesses that use XRP as a payment mechanism and could prove invaluable in Ripple’s fight to prove that XRP is not a security.

The SEC had opposed the filing in a letter to the Court before the Court’s ruling.

Microsoft and Meta Partnership Takes Office 365 Virtual

Meta platforms and Microsoft (MSFT) have formed a partnership to take products from Microsoft Office 365 into Meta’s Virtual Reality (VR) platform.

DOGE and SHIB Benefit from a new Google-Coinbase Partnership

On Tuesday, Google announced a partnership with Coinbase (COIN) to support crypto payments for cloud services. According to the announcement, Google will begin allowing selected customers to pay for cloud services with crypto in early 2023. Coinbase Commerce supports ten cryptos, including APE, BCH, BTC, DOGE, ETH, LTC, SHIB, USDC, USTC, and DAI.

Coinbase also responded positively to the news, with the share price rising by 4.65% on Tuesday while the NASDAQ 100 fell by 1.10%.

Coinbase rises in response to Google partnership.
COIN 121022 Daily Chart

JPMorgan and Visa Team Up to Streamline Cross-Border Blockchain Payments

JPMorgan (JPM) and Visa (V) link up to create connectivity between their blockchain networks, Liink and BTB Connect.

DOGE Eyes Return to $0.0610 as SHIB Targets Resistance at $0.000011

Key Insights:

  • Dogecoin (DOGE) and shiba inu (SHIB) bucked the broader market trend on Tuesday, with DOGE rising by 1.41% and SHIB by 0.20%.
  • News of Google Cloud accepting payments with BTC, ETH, and DOGE via Coinbase delivered price support.
  • However, the technical indicators remain bearish as crypto headwinds, including the war in Ukraine, the Fed, and economic uncertainty, test buyer appetite.

On Tuesday, dogecoin (DOGE) rose by 1.41%. Partially reversing a 4.40% slide from Monday, DOGE ended the day at $0.06022.

A bearish start to the day saw DOGE slide to an early low of $0.05749. DOGE fell through the First Major Support Level (S1) at $0.0582 before rallying to a mid-day high of $0.06087. However, falling short of the First Major Resistance Level (R1) at $0.0615, DOGE eased back to end the day at $0.06022.

Shiba inu coin (SHIB) rose by 0.20%. Partially reversing a 7.34% slide from Monday, SHIB ended the day at $0.00001025.

Tracking the broader crypto market, SHIB tumbled to an early morning low of $0.00000971. SHIB fell through the First Major Support Level (S1) at $0.00000975 before striking a mid-day high of $0.00001041. However, falling short of the First Major Resistance Level (R1) at $0.00001092, SHIB eased back to end the day at $0.00001025.

Adoption news delivered DOGE support, with SHIB benefitting from the Google-Coinbase news.

On Tuesday, Google announced a partnership with Coinbase (COIN) to support crypto payments for cloud services. According to a CNBC report, Google will begin allowing selected customers to pay for cloud services with crypto in early 2023. Coinbase Commerce supports ten cryptos, including APE, BCH, BTC, DOGE, ETH, LTC, SHIB, USDC, USTC, and DAI.

However, the gains were modest, with Bank of England news and Fed fear weighing on the broader crypto market.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 0.52% to $0.06054. A mixed start to the day saw DOGE fall to an early low of $0.05984 before rising to a high of $0.06099.

DOGE finds support.
DOGEUSD 121022 Daily Chart

Technical Indicators

DOGE needs to avoid the $0.0595 pivot to target the First Major Resistance Level (R1) at $0.0616. However, US economic indicators, central bank chatter, and the FOMC meeting minutes will have to be crypto-friendly to support a return to $0.0610.

In the case of another extended crypto market rebound, DOGE should test the Second Major Resistance Level (R2) at $0.0629. The Third Major Resistance Level (R3) sits at $0.0663.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0582 into play. However, barring an extended sell-off, DOGE should avoid sub-$0.0580 and the Second Major Support Level (S2) at $0.0561.

The Third Major Support Level (S2) sits at $0.0528.

DOGE resistance levels in play above the pivot.
DOGEUSD 121022 Hourly Chart

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06145. After a bearish cross on Tuesday, the 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The price signals were bearish.

A move through the 50-day EMA ($0.06145) and the 100-day EMA ($0.06156) would support a breakout from R1 ($0.0616). However, failure to move through the 50-day EMA ($0.06145) would leave S1 ($0.0528) in play.

EMAs bearish.
DOGEUSD 121022 4 Hourly Chart

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 1.37% to $0.00001039. A mixed start to the day saw SHIB fall to an early low of $0.00001020 before striking a high of $0.00001041.

SHIB on the move.
SHIBUSD 121022 Daily Chart

Technical Indicators

SHIB needs to avoid the $0.00001012 pivot to target the First Major Resistance Level (R1) at $0.00001054. Crypto-friendly FOMC minutes, member chatter, and economic indicators would support a breakout from the morning high of $0.00001041.

A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001082 and resistance at $0.00001100. The Third Major Resistance Level (R3) sits at $0.00001152.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000984 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000975 and the Second Major Support Level (S2) at $0.00000942.

The Third Major Support Level (S3) sits at $0.00000872.

SHIB resistance levels in play above the pivot.
SHIBUSD 121022 Hourly Chart

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001086. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00001054) would give the bulls a run at R2 ($0.00001082) and the 50-day EMA ($0.00001086). However, failure to move through the 50-day EMA ($0.00001086) would leave SHIB under pressure.

EMAs bearish.
SHIBUSD 121022 4 Hourly Chart

S&P 500 (SPY) Rallies Ahead Of The Weekend

Key Insights

  • Leading tech stocks gained strong upside momentum, providing support to S&P 500.
  • Energy stocks moved higher as WTI oil rebounded above the $86 level. 
  • A move above 4050 will push S&P 500 towards the resistance at 4080.

S&P 500 Tests Resistance At 4050

S&P 500 is trying to settle above 4050 as stocks rally amid growing appetite for risk. The U.S. dollar pulled back from recent highs, while Treasury yields moved lower, providing support to leading tech stocks.  Tesla, Meta, NVIDIA are up by 3-4% in today’s trading session.

Energy stocks have also provided material support to S&P 500 as WTI oil rallied towards the $86 level. In general, today’s rebound was broad, and all market segments moved higher.

Not surprisingly, defensive sectors were among the worst performers as traders rushed to buy tech and energy stocks.

S&P 500

S&P 500 is currently trying to settle back above the resistance at the 50 EMA, which is located near the 4050 level. In case this attempt is successful, S&P 500 will move towards the resistance at 4080.

A move above 4080 will push S&P 500 towards the next resistance at 4100. If S&P 500 gets above this level, it will head towards the resistance at 4115.

On the support side, a move below 4050 will push S&P 500 towards the support level at 4015. In case S&P 500 declines below this level, it will head towards the next support at 4000.

DocuSign Rallies After Strong Earnings Report

DocuSign is up by 10% after the release of a strong earnings report. The company reported revenue of $622 million and adjusted earnings of $0.44 per share, beating analyst estimates on both earnings and revenue. It should be noted that DocuSign stock is down by 80% from 2021 highs, so market’s expectations were modest ahead of the report.

Coinbase is up by 8% amid a strong rebound in crypto markets. Bitcoin gained strong upside momentum and moved back above the $21,000 level, proving support to all crypto-related assets.

From a big picture point of view, it looks that traders want to increase their positions in riskier assets. For example, ARK Innovation ETF, which focused on high-growth companies, is up by more than 4% today.

Next week, S&P 500 dynamics will depend on whether leading tech stocks continue to rebound. In case Treasury yields move back to recent highs, stocks may face material resistance.

For a look at all of today’s economic events, check out our economic calendar.

ADA Price Prediction: $0.50 Remains the Target for the Bulls

Key Insights:

  • It was a mixed Thursday session, with late support preventing a Cardano (ADA) loss.
  • While avoiding a loss, ADA trailed the broader crypto top ten, with slow progress to meeting Vasil hard fork requirements testing support.
  • Technical indicators are turning bullish, with ADA sitting above the 50-day and the 100-day EMAs to bring $0.50 into play.

On Thursday, ADA ended the day flat. Following a 3.68% gain on Wednesday, ADA wrapped up the day at $0.479.

After a bearish morning, ADA fell to an early afternoon low of $0.463. However, avoiding the First Major Support Level (S1) at $0.461, ADA rose to a late high of $0.483 before easing back. ADA fell short of the First Major Resistance Level (R1) at $0.489.

While finding support from the broader crypto market and the NASDAQ 100, Vasil hard fork updates tested investor sentiment.

Updates Show Slow Progress by Certain Exchanges

Overnight, Input Output HK shared the latest updates as the Vasil hard fork date nears. Exchange upgrades slowed in recent days, possibly raising concerns over the readiness of the most liquid ADA exchanges for the hard fork.

As of September 8, updates on the ADA Hard Fork Mass Indicators are as follows:

  • Fourteen exchanges are hard fork ready, up from 13 as of September 7.
  • Hard fork ready exchanges include AAX, AscendEX (Bitmax), Bitkub, Bitmart, Bitrue, BKEX, Btc Turk, Dex-Trade, Gate.io, Litebit.eu, MEXC, NDAX, OKex, and Whitebit.
  • Twenty-eight exchanges are in progress, up by two from the previous day, with Binance ‘nearly there’ and Coinbase and Kraken reporting upgrades in progress.

From the top 12 exchanges by liquidity:

  • Five exchanges are hard fork ready: AAX, Bittrue, BKEX, MEXC, and WhiteBit, with five in progress, including Binance, Coinbase, HitBTC, Upbit, and XT.com.
  • However, two exchanges have yet to start the upgrade process: ChangellyPro and ZB.com.

While the number of exchanges being hard fork ready and the number in progress have risen, Binance and Coinbase have yet to complete the upgrade process.

Following the successful upgrade of 75% of SPO nodes to v1.35.3, the crypto market is tracking two critical mass indicators, these being,

  • Approximately 25 exchanges upgrade (representing c.80% of ADA liquidity).
  • Top 10 Dapps by TVL confirm they’ve upgraded to 1.35.3 on Pre-Production & are ready for mainnet.

Overnight, PoolTool showed that 83% of Cardano SPO nodes have upgraded to v1.35.3. While upgrade momentum has stalled, nodes achieved the 75% threshold last week.

SPO node upgrades stall.
Fork Upgrades 090922

ADA Price Action

This morning, ADA was up 0.63% to $0.482. A bullish start to the day saw ADA rise from an early low of $0.479 to a high of $0.482.

ADA on the move.
ADAUSD 090922 Daily Chart

Technical Indicators

ADA needs to avoid the $0.475 pivot to target the First Major Resistance Level (R1) at $0.487.

While Vasil hard fork updates remain positive, the remaining seven most liquid ADA exchanges will need to report upgrades to deliver ADA price support. Investors will be eying updates from Binance and Coinbase in particular.

In the case of an extended crypto rally, ADA could test the Second Major Resistance Level (R2) at $0.495 and resistance at $0.500. There are no US economic indicators for investors to consider today. The Third Major Resistance Level (R3) sits at $0.515.

A fall through the pivot would bring the First Major Support Level (S1) at $0.467 into play. However, barring another extended sell-off, ADA should avoid sub-$0.450. The Second Major Support Level (S2) at $0.455 should limit the downside. The Third Major Support Level (S3) sits at $0.435.

ADA resistance levels in play above the pivot.
ADAUSD 090922 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

ADA sat above the 200-day EMA, currently at $0.481. The 50-day EMA remained converged on the 100-day EMA, with the 50-day and the 100-day EMAs narrowing to the 200-day EMA, signaling an imminent move.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from the 200-day EMA ($0.481) to bring the Major Resistance Levels into play. However, an ADA fall through the EMAs would give the bears a run at S1 ($0.467).

EMAs bullish.
ADAUSD 090922 4-Hourly Chart

ADA Eyes Fed-Fueled Return to Sub-$0.40 Despite Hard Fork Updates

Key Insights:

  • It was a bearish Tuesday session, with Cardano (ADA) tumbling by 7.23%.
  • Bearish sentiment overshadowed Vasil hard fork updates, with ADA falling back from $0.50.
  • Technical indicators are turning bearish, with ADA sitting below the 100-day EMA to bring sub-$0.40 into play.

On Tuesday, ADA slid by 7.23%. Following a 1.19% loss on Monday, ADA ended the day at $0.462.

A mixed morning saw ADA rise to a mid-morning high of $0.513 before hitting reverse. ADA broke through the First Major Resistance Level (R1) at $0.509 before sliding to a late low of $0.460. ADA fell through the First Major Support Level (S1) at $0.485 and the Second Major Support Level (S2) at $0.472 to end the day at sub-$0.470.

Bearish sentiment across the broader market likely forced investors to lock in profits following last week’s 17.3% rally. The sell-off came despite positive Vasil hard fork updates.

Going into the US session, crypto market sentiment deteriorated, with US economic indicators adding further price pressures.

Input Output HK Hard Fork Updates Remain ADA Price Positive

Overnight, Input Output HK shared the latest on the Vasil hard fork, with positive updates supporting the September 22 hard fork date.

As of September 6, updates on the ADA Hard Fork Mass Indicators are as follows:

  • 11 exchanges are hard fork ready, up from 9 as of September 5:
  • Exchanges that are hard fork ready include AscendEX (Bitmax), Bitmart, Bitrue, Btc Turk, Dex-Trade, Gate.io, Litebit.eu, MEXC, NDAX, OKex, and Whitebit.
  • 25 exchanges are in progress, with Binance ‘nearly there’ and Coinbase and Kraken reporting upgrades in progress.
  • From the top 12 exchanges by ADA liquidity, XT.com, AAX, and ChangellyPRO have yet to start the upgrade process, while Bitrue, MEXC, and Whitebit have upgraded.

Following the successful upgrade of 75% of SPO nodes to v1.35.3, the crypto market is tracking two critical mass indicators, these being,

  • Approximately 25 exchanges upgrade (representing c.80% of ADA liquidity).
  • Top 10 Dapps by TVL confirm they’ve upgraded to 1.35.3 on Pre-Production & are ready for mainnet.

Overnight, PoolTool showed that 83% of Cardano SPO nodes have upgraded to v1.35.3. While upgrade momentum has slowed, nodes achieved the 75% threshold last week.

SPO Node Upgrades.
Fork Upgrades 070922

ADA Price Action

This morning, ADA was down 1.52% to $0.455. A choppy start to the day saw ADA rise to an early high of $0.464 before falling to a low of $0.454.

ADA under pressure.
ADAUSD 070922 Daily Chart

Technical Indicators

ADA needs to move through the $0.478 pivot to target the First Major Resistance Level (R1) at $0.497. ADA needs to move through the $0.478 pivot to target the First Major Resistance Level (R1) at $0.497. While the Vasil hard fork remains positive, Binance and Coinbase need to upgrade to deliver ADA price support.

In the case of an extended crypto rally, ADA could test the Second Major Resistance Level (R2) at $0.531. Dovish FOMC member chatter would support a breakout from the Tuesday high of $0.513. The Third Major Resistance Level (R3) sits at $0.584.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.444 in play. However, barring another extended sell-off, ADA should avoid the Second Major Support Level (S2) at $0.425. Hawkish FOMC member chatter would bring sub-$0.43 into view. The Third Major Support Level (S3) sits at $0.372.

ADA support levels in play.
ADAUSD 070922 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat below the 100-day EMA, currently at $0.474. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bullish signals.

A bearish cross of the 50-day EMA through the 100-day EMA would bring the Major Support Levels into play. However, a move through the EMAs would give the bulls a run at R1 ($0.497).

EMAs bearish.
ADAUSD 070922 4-Hourly Chart

 

ADA Price Prediction: Bulls Eye $0.60 Ahead of Vasil Hard Fork Date

Key Insights:

  • It was a bullish Saturday, with Cardano (ADA) rallying by 5.95%.
  • News of the Vasil hard fork date drove demand for ADA through the Saturday session.
  • Technical indicators turned bullish as investors responded to the hard fork news, with ADA sitting above the 200-day EMA to bring $0.60 into play.

On Saturday, ADA rallied by 5.95%. Reversing a 0.66% decline from Friday, ADA ended the day at $0.481.

Bullish throughout the Saturday session, ADA rallied from an early low of $0.454 to a late afternoon high of $0.486. ADA broke through the First Major Resistance Level (R1) at $0.464 and the Second Major Resistance Level (R2) at $0.475 to end the day at $0.481.

While the broader crypto market struggled in the wake of US Treasury Secretary Janet Yellen’s comments from Friday, Vasil hard fork news delivered ADA price support.

Input Output HK Hard Fork Announcement Delivers ADA Boost

Overnight on Friday, Input Output HK confirmed the Vasil hard fork date. Announcing on Twitter, Input Output HK said,

“Following the successful completion & extensive testing of all core components, plus confirmed community readiness, we along with cardanostiftung can today announce 22nd September for the Vasil upgrade on the Cardano mainnet.”

Ahead of the announcement, the market had turned its attention to two critical mass indicators, these being,

  • Approximately 25 exchanges upgrade (representing c.80% of ADA liquidity).
  • Top 10 Dapps by TVL confirm they’ve upgraded to 1.35.3 on Pre-Production & are ready for mainnet.

As of September 3, updates on the ADA Hard Fork Mass Indicators are as follows:

  • Five exchanges are hard fork ready, unchanged from the previous day: AscendEX (Bitmax), Bitrue, Dex-Trade, MEXC, and NDAX have upgraded. Bitrue and MEXC form the top 12 exchanges by liquidity.
  • 30 exchanges are in progress, unchanged from September 2.
  • Significantly, Binance is ‘nearly there,’ with Coinbase and Kraken upgrades in progress.

Overnight, PoolTool showed that 80% of Cardano SPO nodes have upgraded to v1.35.3. While upgrade momentum slowed, nodes achieved the 75% threshold earlier in the week.

Vasil hard fork SPO node upgrades hit 80%
Fork Upgrades 040922

ADA Price Action

This morning, ADA was up by 3.12% to $0.496. A mixed start to the day saw ADA fall to an early low of $0.476 before climbing to a high of $0.496.

ADA broke through the First Major Resistance Level (R1) at $0.493 as investors continued to respond to the Vasil hard fork announcement.

ADA on the move this morning.
ADAUSD 040922 Daily Chart

Technical Indicators

ADA needs to avoid a fall through R1 and the $0.474 pivot to target the Second Major Resistance Level (R2) at $0.5057. With the hard fork data in place, exchange upgrades should continue to provide ADA price support.

In the case of an extended crypto rally, ADA could test the Third Major Resistance Level (R3) at $0.538 and resistance at $0.550.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.461 into play. However, barring an extended sell-off, ADA would likely steer clear of sub-$0.46 and the Second Major Support Level (S2) at $0.442.

The Third Major Support Level (S3) sits at $0.410.

ADA resistance levels in play.
ADAUSD 040922 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

ADA sat above the 200-day EMA, currently at $0.481. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The indicators delivered bullish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R2 ($0.506) to bring R3 ($0.538) into view. However, a fall through the 200-day EMA would bring the 100-day EMA ($0.468), the 50-day EMA ($0.461), and the support levels into play.

EMAs turning bullish.
ADAUSD 040922 4-Hourly Chart

ADA Price Prediction: Exchange Upgrades to Dictate Return to $0.50

Key Insights:

  • It was a bullish start to September, with Cardano (ADA) up 2.47% to lead the crypto top ten by market cap.
  • News of Robinhood (HOOD) listing ADA and sentiment towards the Vasil hard fork muted the influence of US economic indicators.
  • Following the August loss, technical indicators remain bearish. ADA sits at the 50-day EMA, leaving sub-$0.40 in play.

On Thursday, ADA rose by 2.47%. Reversing a 1.55% loss from Wednesday, ADA ended the day at $0.457.

After a choppy morning session, ADA slid to a late afternoon low of $0.441. Steering clear of the First Major Support Level (S1) at $0.438, ADA struck a high of $0.462 before responding to the positive US economic indicators. However, a fall back to $0.442 was short-lived, with ADA bouncing back to end the day at $0.457.

News of Robinhood (HOOD) listing ADA delivered a price boost, with investor sentiment towards the upcoming Vasil hard fork also providing support.

Cardano Updates Continue to Support a September Hard Fork Date

Vasil hard fork updates continued to support Cardano founder Charles Hoskinson’s September hard fork date prediction. Following 75% of SPO nodes upgrading to v1.35.3, the market focus has turned to two critical mass indicators, these being,

  • Approximately 25 exchanges upgrade (representing c.80% of ADA liquidity).
  • Top 10 Dapps by TVL confirm they’ve upgraded to 1.35.3 on Pre-Production & are ready for mainnet.

As of September 1, updates on the ADA Hard Fork Mass Indicators are as follows:

  • Five exchanges are hard fork ready, up by one from the previous day: Bitrue, ChainEx, LCX, MEXC, and NDAX.io have upgraded. Bitrue and MEXC form the top 12 exchanges by liquidity.
  • 28 exchanges are in progress, up from 26 as of August 31.
  • 107 exchanges have yet to start, down from 109 as of August 31. Significantly, four exchanges from the top 12 have yet to begin, including AAX, ChangellyPRO, Coinbase, and ZB.com

Overnight, PoolTool showed that 78% of Cardano SPO nodes have upgraded to v1.35.3. Momentum slowed in recent days, with the 75% threshold already achieved. However, Input Output HK called for SPO nodes to continue to upgrade.

upgrades inch higher.
Fork Upgrades 020922

ADA Price Action

This morning, ADA was flat at $0.457.

ADA flat early on.
ADAUSD 020922 Daily Chart

Technical Indicators

ADA needs to avoid the $0.453 pivot to target the First Major Resistance Level (R1) at $0.466. ADA would need support from the broader market to break out from the Thursday high of $0.462.

In the case of an extended crypto rally, ADA could test the Second Major Resistance Level (R2) at $0.474 and resistance at $0.480. News of Coinbase commencing the Vasil hard fork would support a breakout. The Third Major Resistance Level (R3) sits at $0.495.

Updates on the ADA Hard Fork Mass Indicators will continue to deliver ADA price action. However, US nonfarm payrolls will also influence later today.

A fall through the pivot would bring the First Major Support Level (S1) at $0.445 back into play. However, barring an extended sell-off, ADA would likely steer clear of sub-$0.44 and the Second Major Support Level (S2) at $0.432.

The Third Major Support Level (S3) sits at $0.411. Positive US stats and hawkish Fed chatter would test investor resilience.

Resistance levels in play.
ADAUSD 020922 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat above the 50-day EMA, currently at $0.454. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering mixed signals.

A breakout from the 50-day EMA would bring R1 ($0.466) and the 100-day EMA ($0.467) into play. However, a fallback through the 50-day EMA would bring support levels and sub-$0.40 into view.

EMAs bearish.
ADAUSD 020922 4-Hourly Chart

5 Things to Know in Crypto Today: Weak US Stats Deliver BTC Support

Key Insights:

  • The total crypto market cap found support from weak US economic indicators reflecting greater fear of the Fed than a recession.
  • With investor focus on the Jackson Hole Symposium and Fed Chair Powell, the crypto market is unlikely to break out from current ranges.
  • Any crypto market optimism could freeze over on Friday, with Fed Chair Powell on the docket to deliver a keynote speech.

US Macro and Fed Monetary Policy Remains the Key Market Focus

On Monday, panic selling led the total crypto market cap to a day low of $969.2 billion before a post-US closing bell revival. A lack of US economic indicators and FOMC member chatter allowed dip buyers to jump in ahead of a busy week for the global financial markets.

Today, US private sector PMIs set the tone, with the market focus on the Services PMI. A sharper contraction in the services sector delivered crypto support, with the numbers suggesting the need for a possible pause on rate hikes.

Over the week, core durable goods orders, jobless claims, Q2 GDP, personal spending, and inflation figures are also on the docket.

However, uncertainty will shroud the numbers. Investors will need to consider what gives the Fed more wriggle room and what could shallow the planned aggressive interest rate path beyond normalization.

The two market forces remain the economic outlook and the Fed interest rate path trajectory. A less hawkish stance on interest rates but an optimistic view of the US economy would be the ideal crypto combination. However, with US inflation running hot, the two are unlikely to materialize in unison.

Beyond the US, China, the Eurozone, and the UK are other economies faltering.

Early in the US session, bitcoin (BTC) was up 0.21%, with Ethereum (ETH) rising by 0.53%. XRP led the way down, however, falling by 1.16%.

XRP Falters as Investors Await Key Court Ruling in the SEC v Ripple Case

Investor uncertainty towards the SEC v Ripple case remains an XRP headwind. Court rulings on the matter of the Hinman speech-related documents have been on the slower side. The SEC filed its most recent objection to the July court ruling, denying the SEC motion to shield the Hinman docs under the attorney-client privilege in late July.

Four weeks have passed since the SEC objection. Other than an SEC reply brief, there have been no other updates on the matter of the Hinman speech-related documents.

For investors, one concern will be that the Court has entertained more than six motions to contest an original ruling in favor of Ripple. These preceded the July ruling that resulted in the SEC objection.

Crypto Winter Thaws Early in Singapore

Today, Bloomberg reported surging bitcoin (BTC) trading volumes at DBS crypto exchange DBS Digital.

While other platforms lay off staff and declare bankruptcy, DBS appears to have found the appropriate customer base. Not only are volumes up but also BTC purchases, suggesting whale presence in the Republic.

DBS launched DBS Digital Exchange in December 2020, which coincided with the SEC lawsuit against Ripple Labs.

Nike Brings the NFT Market Back to Life

NIKE reportedly became the highest NFT earnings brand. While NFT trading volumes have fallen off a cliff edge, NIKE had NFT revenue of $185.32 million from 67,490 transactions. According to Dune Analytics, Dolce & Gabbana came in second, with $25.65 million in total NFT revenue, followed by Tiffany ($12.62m).

While Tiffany ranked third, the $12.62 million in revenue came from just 74 transactions.

Web3 and NFT trailblazer Gucci had total NFT revenue of $11.56 million.

PayPal (PYPL) Partners with Coinbase (COIN) to Assist with Banking Compliance

Today, Coinbase announced the addition of PayPal (PYPL) to the Travel Rule Universal Solution Technology (TRUST) network.

According to the announcement,

“TRUST is a global, industry-driven solution designed to increase compliance with a requirement known as the Travel Rule while prioritizing the security and privacy of customers.

Other TRUST members include Robinhood, Binance.US, and Gemini.

Crypto Gamblers: How Are the Firms Who Bet Big in Digital Assets Doing?

Key Points

  • Firms who have made big bets on crypto got burnt in Q2, recent corporate earnings releases have revealed.
  • Coinbase, Block and MicroStrategy all declared significant impairment charges on their crypto investments in Q2.
  • But with crypto’s long-term prospects looking healthy, analysts suspect better times lay ahead.

Crypto Winter Chills Industry

While the cryptocurrency market rally over the past few weeks has lifted spirits, 2022 has so far undoubtedly been an ugly year for the crypto industry. At just under $1.15 trillion, the total market capitalization of cryptocurrency markets is still over 60% down from its November 2021 peaks above $3 trillion. At current levels in the $24,000s, Bitcoin is close to 65% down versus its 2021 highs around $69,000.

The drawdown in prices, largely as a result of a deterioration in macroeconomic factors (elevated inflation forcing central banks like the Fed to pursue aggressive monetary tightening), has had a chilling impact across an increasingly leveraged cryptocurrency space.

The collapse of Terra’s algorithmic stablecoin UST and LUNA token in June resulted in the blow-up of one of the largest crypto hedge funds Three Arrows Capital, which was subsequently followed by a chain of crypto lending services halting withdrawals due to market conditions, the most high profile of which being now bankrupt Celsius Network.

According to court filings made in Celsius’ bankruptcy proceedings, the sharp decline in crypto prices has inflicted a more than $1 billion hole on the company’s balance sheet. But should cryptocurrency prices post a sharp recovery into the year’s end, Celsius could easily see its balance sheet return to the green.

Big Crypto Bets: Are They Paying Off?

A series of publicly traded US crypto firms have been reporting earnings as of late and the picture has, unsurprisingly, been ugly. According to earnings released earlier this week, the largest US-based cryptocurrency exchange Coinbase saw its revenues plunge 61% in Q2 given a sharp decline in trading volumes as well as the decline in prices. Coinbase reported an after-tax loss of $1.1 billion in Q2.

A large portion of this loss was a result of a $446 million impairment charge on its crypto and venture investments. Coinbase is not the only crypto firm to have revealed significant losses on its crypto investments in Q2.

Jack Dorsey’s digital-payments-focused company Block saw profits surge 29% YoY to $1.47 billion in the second quarter. However, the Bitcoin payments side of the business performed poorly. Cash App which supports BTC saw revenues fall 34% YoY to $1.79 billion, with profits coming in at just $41 million.

The company’s quarterly accounts revealed a $36 million impairment charge on its Bitcoin holdings in Q2 and said that it ended the quarter holding Bitcoin worth $160 million (as of 30 June).

Coinbase’s share price is down 65% this year, while Block’s is down 45%.

But Coinbase and Block’s crypto impairment charges pale in comparison with the losses reported by business software development and Bitcoin hodling firm MicroStrategy. The company lost $1.062 billion in Q2, with $917 million of this coming as a result of its paper losses on its Bitcoin holdings.

At the end of Q2, MicroStrategy was holding $1.988 billion worth of Bitcoin (129,699 BTC). Former MicroStrategy CEO Michael Saylor essentially turned the company into a Bitcoin holding vehicle when he announced the company’s first $250 million Bitcoin purchase back in 2020.

He has since stepped down from his role as head of the company in order to take on the role of executive chairman and focus on the firm’s Bitcoin acquisition strategy. MicroStrategy’s share price is down around 37% this year.

Long story short, crypto firms’ big digital asset bets haven’t gone well so far this year. But for most involved, the current cryptocurrency bear market isn’t their first rodeo. Global crypto adoption trends continue to move in a positive direction and regulations that will help crypto become “legit” in key markets like the US, EU and UK seem only a few years away at most.

Business strategists at the likes of Coinbase, Block and MicroStrategy, as well as their investors, will likely remain confident that better times are coming as macroeconomic conditions improve in 2023 and beyond.

Coinbase Faces SEC Probe Over Crypto Yield and Staking Products

Key Insights:

  • Coinbase has received investigative subpoenas over its yield and staking products.
  • The SEC has requested documents and information about certain customer programs, operations, and existing and intended future products.
  • The regulator claims that Coinbase listed at least nine digital assets that should have been registered as securities.

Last month, Coinbase made the headlines for all the wrong reasons when it was revealed that the U.S. Securities and Exchange Commission (SEC) is investigating whether the company allowed Americans to trade digital assets that should have been registered as securities.

The popular crypto exchange is also under another investigation over its staking programs and yield-generating products.

Crypto Yield and Staking Products

In its most recent quarterly filing, Coinbase has revealed that the SEC has sent the company investigative subpoenas over its yield and staking products.

Coinbase also shared that it has received requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products, including the company’s processes for listing assets and the classification of certain listed assets.

Yield farming refers to a cryptocurrency investment strategy that allows users to lock up funds in order to earn rewards in the process. Coinbase’s yield-generating products enable eligible customers to earn yield by lending their crypto to third-party decentralised finance (DeFi) protocols in order to earn fixed or variable interest.

On the other hand, staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network and earning rewards in the process. It requires a lockup where your crypto can’t be transferred for a certain period of time. Coinbase recently launched Ethereum (ETH) staking for U.S. institutional clients on Coinbase Prime.

Staking and yield-generating products have gained traction worldwide whilst catching the eye of regulators. For example, the UK’s tax agency, Her Majesty’s Revenue and Customs (HMRC) updated its guidance on the taxation of lending and staking in proof-of-stake (PoS) networks earlier this year.

Ongoing Investigations

Coinbase, which boasts over 100 million users in over 100 countries, is facing investigations on multiple fronts, including a claim from the SEC that it listed at least nine digital assets that should have been registered as securities.

More specifically, an ex-Coinbase employee was charged last month in the first federal case alleging insider trading in virtual currencies. The SEC and the Department of Justice (DOJ) filed civil and criminal charges against former product manager Ishan Wahi, his brother Nikhil Wahi and their friend, Sameer Ramani for sharing confidential information about pending announcements of new cryptocurrencies.

Importantly, the case also underscored the SEC’s assertion about the digital assets that it considers to be securities. A point of contention between the regulator and Coinbase is that the latter has consistently stated that it does not host securities of any sort. Coinbase’s Chief Legal Officer, Paul Grewal has officially denied these allegations.

In the United States, a security is defined by the Howey Test, a framework created by the Supreme Court for determining whether an asset is an investment contract and should therefore fall under the SEC’s jurisdiction.

5 Things to Know in Crypto Today: ETH Breaches $1.9K on Goerli Merge Success, BTC Eyes $25K

Key Points 

  • Cryptocurrency markets have been surging since soft US CPI data on Wednesday eased Fed tightening fears.  
  • Ethereum Merge optimism has also been helping (and supporting ETH) after the successful merge of the Goerli testnet.  
  • Coinbase is under SEC investigation over its staking and yield-generation products, not just its token listings, the company said.  

Crypto Markets Surge as Soft US CPI Eases Fed Tightening Fear/Amid Ethereum Merge Optimism 

It’s been a bullish last 24 hours in cryptocurrency markets. Prices got a boost across the board on Wednesday in wake of softer-than-expected US inflation figures for July, which were a welcome validation of hopes that US inflation has now peaked and eased concerns about excessively aggressive monetary tightening from the US Federal Reserve. Cryptocurrencies then got further support during Thursday’s Asia Pacific session after Ethereum developers successfully implemented the Merge on Ethereum’s Goerli testnet, bringing the Mainnet’s transition to PoS one step closer.  

Bitcoin, up around 7% in the last 24 hours according to CoinMarketCap, hit fresh highs since mid-June at $24,750 on Thursday. At current levels just under $24,500, it trades around 2% higher on the day as bulls continue to eye a test resistance at $25,400.  

Ethereum, meanwhile, is unsurprisingly an out-performer amid “Merge” optimism. The cryptocurrency was last up about 11.5% in the last 24 hours. ETH/USD hit its highest levels since 1 June on Thursday just under $1,920, though has since dipped back to the $1,880s. Altcoins are performing well, with XRP, BNB and ADA all 3-5% higher in the past 24 hours, while DOT and SOL are 10% and 13% higher.

ETH/USD
ETH/USD briefly breaks above $1.9K as bulls target test of $2.0K level. Source: FX Empire

Ethereum Goerli Testnet Merge Successfully Goes Live 

On Thursday, Ethereum developers successfully implemented their third and final trail run of the so-called “Merge” on a major Ethereum public testnet. At around 0145GMT, the Goerli testnet, formerly a Proof-of-Work (PoW) blockchain, made the transition to Proof-of-Stake (PoS) as it merged with the Bellatrix beacon chain. The successful merge opens the door to a merge of the currently PoW Ethereum Mainnet with the PoS Beacon Chain on 19 September. 

For more on what the merge means for the Ethereum blockchain and ETH, click here.  

US Inflation Surprises to the Downside 

US Consumer Price Index data for July surprised to the downside and prompted traders to pare back on aggressive Fed tightening bets. Headline inflation came in at 0.0% MoM and 8.5% YoY, below expectations for 0.2% and 8.7%, whilst core inflation came in at 0.3% and 5.9%, below expectations for 0.5% and 6.1%. Much of the decline in headline prices owed itself to a 20% decline in average gasoline prices in the US in July versus June. 

Markets interpreted the data as reducing the need for the Fed to implement a third successive 75 bps rate hike in September. According to the CME’s FedWatch Tool, money markets were last pricing a 62.5% chance that the Fed instead goes with a smaller 50 bps rate hike in September versus 32% one day ago. Analysts were keen to point out that these expectations could easily shift, given that August jobs and CPI data will both be released prior to the Fed’s September confab.   

NEAR Leaps on News of Future Coinbase Listing 

NEAR, the token that powers the NEAR Protocol’s blockchain, was in focus on Wednesday after the largest US-based cryptocurrency exchange Coinbase said in a blog post it plans to list the token soon. NEAR/USD jumped 10% on Wednesday to briefly surpass $6 per token for the first time since late May but has since succumbed to profit-taking and fallen back to the $5.80 area. Bulls will nonetheless still be eyeing a test of the next major area of resistance around $6.50 as the broad cryptocurrency rally continues.  

Coinbase Under SEC Investigation Over More Than Just Token Listings 

Coinbase Global told investors this week that it is under US Securities & Exchange Commission (SEC) investigation over the staking and yield-generation products that it offers to investors, as well as over its cryptocurrency token listings.  

In its latest quarterly report, Coinbase said it had “received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products”. 

Crypto Price Analysis August 10: FTM, NEAR, DOT, VET, AR

Key Insights:

  • The market noted recovery today after yesterday’s $28.9 billion downfall.
  • The likes of Fantom and NEAR led the market rally with a 10% rise.
  • Bitcoin and Ethereum rose to trade at $24k and $1.87k, respectively.

With losses exceeding $1.1 billion in the second quarter, Coinbase noted a decline in the trading volume and revenue over the three months from April to June.

However, the crypto market treaded in the other direction against expectations, reclaiming the $36 billion it lost in the 24 hours before today.

Fantom (FTM)

The altcoin is sticking to its 2-months long uptrend adding another 9.09% over the last 24 hours. This brought FTM closer to recovering the 46.29% losses it witnessed in June.

Relative Strength Index (RSI) staying in the bullish zone is a good sign for the altcoin as it will provide the support Fantom needs to keep above $0.4.

Near Protocol (NEAR)

NEAR noted a similar pattern rising by 10.63% in the previous 24 hours, except that this altcoin has already recovered its June losses and is currently on the way to invalidating May’s crash of 54.4%.

The divergence of the Bollinger Bands indicates an increase in volatility which might lead to a price swing in the upward direction.

Polkadot (DOT)

Polkadot is inching closer to the $10 mark, and in doing so, it is also reclaiming the losses of June and heading towards recovering the dip of May.

The presence of green bars on the Awesome Oscillator indicates that the persisting bullishness will act as solid support for the altcoin.

VeChain (VET)

The 6.6% rise in the last 24 hours is possibly going to act as an effective trigger for VeChain to note a rally strong enough to invalidate the losses of May’s 48.61% dip.

MACD maintaining its bullish crossover is highlighting the same thing as well.

Arweave (AR)

Of the cryptocurrencies of this lot. Arweave stood out for the downtrend it was displaying on the charts today as the white dots of the Parabolic SAR moved above the candlesticks.

The 6.38% rally did not change that either, which might make it difficult for the altcoin to recover the 47.75% losses of May.

Crypto Market Daily Highlights – US CPI and Merge News Deliver for ETH

Key Insights:

  • It is a bullish Wednesday session for the crypto top ten, with Ethereum (ETH) leading the way.
  • While network news updates delivered ETH support, softer US inflation figures eased bets of a Fed 75-basis point rate hike, driving demand for riskier assets.
  • The total crypto market cap is up by $36.4 billion to $1,110 billion.

It is a bullish Wednesday session for the crypto top ten. In a choppy session, bitcoin (BTC) revisited the $24,000 handle for the second time in ten sessions. However, Ethereum (ETH) leads the way, with sentiment towards the Goerli Merge and US CPI numbers delivering strong support.

There were no cues from the crypto market news wires to provide support, leaving the crypto market in the hands of market risk sentiment and US economic indicators.

On Tuesday, the broader crypto market endured a bearish session as investors turned their attention to US inflation and the Fed. Ahead of the Wednesday CPI numbers, the consensus was for a 75 basis point Fed rate hike, supported by the latest nonfarm payrolls and ISM Non-Manufacturing PMI numbers.

However, bets of a 75-basis point hike eased, with the markets pricing in a 50-basis point move in response to the July inflation figures. In July, the US annual rate of inflation softened from 9.1% to 8.5% versus a forecast of 8.7%.

Abating fears of a US economic recession and the Fed taking a more aggressive rate path to bring inflation to target were market positives. Market reaction was broad-based, with the NASDAQ 100 ending a three-day losing streak with a 2.89% breakout session.

NASDAQ correlation
Total Market Cap – NASDAQ – 110822 5 Min Chart

The Total Crypto Market Cap Surges on Inflation Numbers

On Wednesday, the total crypto market cap slid to an early low of $1,050 billion before steadying. Before the US inflation numbers, the market cap remained in negative territory with a market cap of $1,072 billion.

In response to the softer US CPI numbers, the total crypto market cap surged to a high of $1,127 billion before easing back. Currently, $36.4 billion has flooded in, taking the market cap to $1,110 billion.

Crypto market reacts to US CPIs
Total Market Cap 110822 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It is a bullish Wednesday session for the crypto top ten.

With three hours of the session remaining, ETH is up 7.52% to lead the way, with DOT gaining 5.02%.

ADA (+3.70%), BTC (2.62%), SOL (+3.27%), and XRP (+2.64%) have also found strong support, while BNB (+0.62%) trails.

From the CoinMarketCap top 100, it is a mixed session.

Lido DAO (LDO) is among the front runners, rallying by 15.6%. Aave (AAVE) and Near Protocol (NEAR) aren’t far behind, with gains of 12.91% and 10.02%, respectively.

A handful of cryptos were in the red. Oasis Labs (ROSE) leads the way down, falling by 2.70%, with UNUS SED LEO (LEO) and Zcash (ZEC) down by 1.97% and 1.53%, respectively.

Total Crypto Liquidations Spike in Response to the US CPI Numbers

Late in the Wednesday session, total liquidations remained elevated due to the US CPI figures, due to closing shorts.

24-hour liquidations continued the upward trend after sitting at sub-$100 million levels for two consecutive sessions.

At the time of writing, 24-hour liquidations stood at $282 million, up from $203 million on Wednesday morning.

However, liquidated traders decreased over the last 24 hours. At the time of writing, liquidated traders stood at 63,664 versus 82,754 on Wednesday morning.

While 24-hour liquidations remain elevated, market conditions have improved. 12-hour liquidations stand at $208 million, while one-hour and four-hour liquidations have declined, reflecting a steadying in the crypto market.

According to Coinglass, four-hour liquidations stood at $16.52, up from $9.05 million on Wednesday morning. One-hour liquidations are down from $3.59 million to $2.56 million (see hourly crypto market cap chart below).

Crypto liquidations reflect steadying market conditions
Total Market Cap 110822 Hourly Chart

Daily News Highlights

  • Crypto giant Coinbase missed earnings estimates.
  • DeFi Protocol Curve Finance (CRV) lost $570k in a DNS hack.
  • Crypto exchange FTX formed a partnership with Reddit.
  • Ripple Lab eyes Celsius assets.
  • US Inflation figures delivered the crypto market a breakout session.

Shiba Inu and Dogecoin Recover As Market Cap Hits $1.1 Trillion

Key Insights:

  • Dogecoin finally closed above the $0.07 mark today.
  • Shiba Inu also maintained the persisting bullishness with a 2% rise.
  • Bitcoin and Ethereum noted gains as well, trading above $23k and $1.8k.

Although the market hasn’t been noticing any solid cues apart from the declining inflation today, there have been incidents reported today which may have had a negative impact on the crypto market, such as the Coinbase Earnings Q2 report.

The crypto exchange lost $1.1 billion in 3 months due to the bearish market, and today a German crypto exchange also filed for insolvency.

But Bitcoin and Ethereum, like the meme coin market, rallied today, trading at $23,779 and $1,835.

Dogecoin Stands Up

After weeks of oscillating below the $0.07 mark, DOGE finally breached the resistance and could be seen trading at $0.07011.

While it may not be a big deal in the grand scheme of things, consistent performance as such could place the altcoin in an extended rally.

The signs of the same are already visible on the altcoin, with the very first and obvious indication being the uptrend.

The presence of the Parabolic SAR’s white dots underneath the candlesticks hints toward the bullishness present in the market, which will support DOGE’s further rise.

MACD maintaining a bullish crossover highlights the same, although there is the presence of a couple of red bars on the indicator.

However, as long as they don’t fall below the neutral line, DOGE does not have much to worry about and can continue climbing beyond $0.07.

Shiba Inu To Go Boom?

Like Dogecoin, Shiba Inu did not exhibit any particular signs of a rally at the moment, but the altcoin is seemingly preparing for a rise in the near future.

This is important for the meme coin as it is yet to recover the losses of April and May, which almost hit 60% in a month.

The subtle divergence of the Bollinger Bands is a sign of increasing volatility in the market.

Usually, that is not the most ideal position for a cryptocurrency, but since SHIB has been stuck in consolidation for such a long time, this could help the coin mark a rally.

Secondly, the Relative Strength Index (RSI) is also keeping above the neutral line in the bullish zone.

This shows that despite the lack of growth, the buying pressure on the asset hasn’t reduced by a lot which will prevent a price fall in the asset, making room for a rally soon.

AAVE, Compound Lead Market Recovery of $36 Billion

Key Insights:

  • AAVE rallied by 13.51% to trade at $111 today.
  • Compound joined in the broader market trend rising by 9.82%.
  • Bitcoin and Ethereum shot up as well to trade at $23k and $1.8k today.

The crypto market was expected to nosedive today after the announcement of Coinbase’s second-quarter revenue.

The cryptocurrency exchange noted the highest losses since its listing in April last year, amounting to $1.1 billion between April and June.

However, following the lead of Bitcoin and Ethereum as they rose to trade at $23,636 and $1,822, the crypto market recovered yesterday’s losses, with altcoins leading the same.

AAVE in an Uptrend

The cryptocurrency could be seen rising at the time of writing, with a 13.51% rally already underway.

As the altcoin traded at $111, AAVE managed to recover all the losses it witnessed during the June crash and was on the way to doing the same with the April to May drawdown of 58.79%.

The price indicators seemed to be in favor of the same at press time, with the Bollinger Bands beginning to diverge.

This highlights that a rise in volatility is underway, and the coin will be able to experience price swings soon. Just as long as the candlesticks maintain their position above the basis of the indicator, AAVE will be in a good spot.

The appearance of a green bar on the Awesome Oscillator is an indication of the same thing, and the bars keeping above the neutral line show that despite the fluctuations, the asset is safe from a downtrend for now.

Compound Follows the Bullish Cues

The altcoin was one of the better performers of the day as it gained almost 10% in the span of 24 hours to trade at $64.45.

While the gradual incline observed over the last two months has enabled COMP to recover the downtrend it witnessed at the time of June’s crash, it is yet to rally enough to recover the losses of May’s 47.33% crash.

COMP is finding support for the same in the market as evinced by the price indicators’ bullish stance.

The presence of Parabolic SAR’s white dots beneath the candlesticks shows that the altcoin has been in an uptrend for almost two weeks now.

Secondly, the MACD is also maintaining its bullish crossover after some fluctuation towards the end of July. The green bars on the indicator are signaling consistent bullishness for the asset, which is necessary at the moment.

5 Things to Know in Crypto Today: BTC Dips to $23K, ETH Under $1.7K as US CPI Release Looms

Key Points 

  • Cryptocurrency markets have been pulling lower since Tuesday in nervous pre-US Consumer Price Index data release trade.  
  • Bitcoin was last trading near $23,000 and Ethereum just below $1,700.  
  • Coinbase Global’s shares are lower in pre-market trade after posting worse-than-expected Q2 revenues and a decline in trading volumes.  

Crypto Prices Dip Ahead of US CPI Release 

Cryptocurrency markets have been pulling lower since Tuesday in nervous pre-US Consumer Price Index data release trade, with downside in US equities yesterday as a result of further downbeat earnings from US chipmakers and hotter-than-expected Q2 labor cost growth data exacerbating losses. Bitcoin was last trading with losses of just over 3.5% in the last 24 hours nearly bang on the $23,000 level, according to CoinMarketCap. Ethereum, meanwhile, was last down about 5.0% over the same time period and trading just under $1,700.  

BTC/USD
BTC/USD pulls back from recent highs ahead of US CPI data. Source: FX Empire

If upcoming US Consumer Price Index data for July prints substantially to the upside of expectations, this could result in markets building up Fed tightening bets, which could send US yields and the US dollar higher, whilst weighing on stocks and crypto. A substantial downside miss could see the opposite happen. Headline inflation rates are seen dipping to 0.2% MoM and 8.7% YoY from 1.3% and 9.1% in June.  

Coinbase Shares Dip on Weak Q2 Earnings Figures 

After dropping over 10% on Tuesday, Coinbase Global’s share price is down another 6% in pre-market trading after the largest US-based cryptocurrency exchange reported a substantial drop in Q2 trading volumes to $217 billion from $309 billion in Q1. The firm’s quarterly revenue came in at $803 million, below consensus expectations for $873.8 million, as per FactSet.  

Coinbase had a difficult Q2 amid the broad cryptocurrency market decline, with the company announcing job cuts and a focus on cost cutting. But its start to Q3 has been brighter. The company last Friday announced a new partnership with the world’s largest asset manager BlackRock in order to offer trading services to its institutional clients.  

Curve.Finance Loses $570K in Latest Crypto Hack 

Decentralized Finance (DeFi) protocol Curve.Finance lost $570,000 in a hack on Tuesday. Curve’s developers urged users to revoke any contracts approved on the platform in the last few hours. Curve advised its users to refrain from using the platform until its operators are able to locate the source of the hack. The project announced shortly after that the issue was reverted. The hack of Curve.Finance comes shortly after high-profile attacks on the Solana ecosystem and Nomad cross-chain bridge

Canadian Regulators Working with US to Investigate Celsius Network as CEO Unloads CEL Tokens 

According to a report by Canadian news outlet Financial Post, regulators in Canada are working with their US counterparts to investigate now bankrupt Celsius Network, which froze user withdrawals nearly two months ago with the crypto winter having inflicted a more than $1 billion hole in the company’s balance sheet, according to court filings. The Ontario Securities Commission (OSC) is looking into how the crypto lending platform’s collapse impacted Canadian users.  

Separately, according to crypto intelligence firms Nansen and Arkham Intelligence, Celsius CEO Alex Mashinsky has been selling his CEL tokens, taking advantage of their recent pump. According to the two crypto intelligence firms, a wallet address identified as Mashinsky’s just made its first transactions since late May, a swap of 17,475 CEL tokens for $28,242 worth of ETH.  

Reddit partners with FTX to enable ETH gas fees for community points  

On Tuesday, online discussion forum Reddit and cryptocurrency exchange FTX announced a new partnership to bolster the Reddit Community Points feature. Reddit Community Points allow users to “own” a piece of the online communities they are involved in and also act as a measure of reputation/clout.  

“As a unit of ownership, points capture some of the value of their community,” Reddit said in May 2020 when it released the feature. “They (points) can be spent on premium features and are used as a measure of reputation in the community”. Community Points are an ERC-20 token built on the Arbitrum blockchain, an Ethereum scaling solution. Reddit “users need ETH for gas fees to transact with their (Community) Points on-chain, and FTX Pay allows them to do that,” said FTX’s Amy Wu in a tweet.

Crypto Giant Coinbase Misses Estimates as Crypto Winter Rages On

Key Insights:

  • On Tuesday, Coinbase (COIN) delivered disappointing earnings results for the second quarter and a gloomy outlook for Q3.
  • The earnings miss comes as the SEC investigates the exchange for allegedly listing unregistered securities.
  • Adding to the platform woes is another investor lawsuit.

It has been a challenging 2022 for the crypto market and broader digital asset space. While the largest crypto exchanges look to capitalize on the fallout from the crypto winter, some have shut down as others struggle.

Leading crypto exchange Coinbase (COIN) has been one of several exchanges that have needed to respond to the current market environment.

In June, the platform joined a growing list of crypto exchanges announcing staff layoffs to cut costs. However, the move was too late for Q2, with the outlook for the third quarter also looking gloomy.

Coinbase Earnings Miss and Q3 Outlook Point to Crypto Troubles Ahead

On Tuesday, Coinbase released second-quarter earnings results that disappointed. While several blue-chip tech stocks delivered positive outlooks, the US-listed crypto exchange also painted a gloomy outlook for the third quarter.

Key numbers for Q2 include,

  • Monthly Transaction Users (MTU) down from 9.2 million (Q12022) to 9.0 million (Q22022). In Q4 2021, MTUs stood at 11.2 million.
  • Trading volume slumped from $309 billion (Q12022) to $217 million (Q22022). In Q4 2021, trading volumes stood at $547 billion.
  • Net revenue tumbled from $1,165 million in Q1 to $803 million in Q2. In Q4 2021, Coinbase had net revenue of $2,490 million.
  • Following a net income of $840 million in Q4 2021, Coinbase saw net losses in the first and second quarters of 2022. In Q2, the net loss increased from a Q1 $430 million to $1,094 million.

While the numbers disappointed, the exchange holds USD resources totaling $6,154 million. As of June 30, 2022, total current assets stood at $102,162.3 million versus total current liabilities of $96,194.3 million. The exchange remains well capitalized, when considering long-term liabilities, including long-term debt of $3,389 million.

For Q3, the exchange has given a gloomier outlook, with projections pointing to a continued downtrend from the solid Q4 2021 numbers.

  • MTU to fall lower in Q3. In July, MTUs fell from a second-quarter 9.0 million to 8.0 million.
  • Trading volumes to trend lower, considering a July 2022 trading volume of $51 billion.

Shares tumbled through the US session, with further declines in the after-hours session.

On Tuesday, COIN tumbled by 10.55%, with shares falling by a further 5.45% in after-hours trading.

Market reaction to Coinbase earnings miss
Share Price and price movement – 090822.

The latest results come at a tough time for Coinbase, which faces increased regulatory scrutiny and shareholder and user revolt.

Coinbase Faces Scrutiny from Regulators, Customers, and Shareholders

In July, news of the SEC investigating Coinbase on suspicion of listing unregistered securities hit the wires. The news broke shortly after reports of the SEC filing charges against former Coinbase employees for insider trading.

With the exchange under the watchful eye of the SEC, Coinbase users and shareholders are also targeting the exchange.

In March, Coinbase found itself in the unusual position of having to face a class action filed, not by the SEC but by three Coinbase users.

Plaintiffs Christopher Underwood, Louis Oberlander, and Henry Rodriquez filed a claim against Coinbase Global Inc., Coinbase Inc., and Coinbase CEO Brian Armstrong.

The class action listed 79 tokens, alleging that the tokens are securities. Other claims within the class-action include:

  • Coinbase lists and sells securities but is not registered as a securities exchange.
  • Digital assets listed on Coinbase are securities.

On August 4, Coinbase faced a new lawsuit, this time from a Coinbase shareholder. The Coinbase shareholder seeks damages from company executives and board members. Plaintiff Donald Kocher filed the action against former and current officers and directors for,

  • Violations of the Securities Act of 1933,
  • Breaches of fiduciary responsibilities,
  • Unjust enrichment,
  • Abuse of control, and
  • Gross mismanagement.

While the SEC investigation will be of concern, a recent trend of customer and shareholder filings against crypto-related firms could incentivize the SEC to clamp down on crypto exchanges.

Coinbase has seen its share price tumble by 61% year-to-date. The SEC investigation could place further downward pressure, leading other shareholders to join Donald Kocher in filing claims.

Coinbase share price slumps on earnings miss
COIN Daily Chart 100922

 

5 Things to Know in Crypto Today: BTC Consolidates Above $23K Ahead of US NFP

Key Points

  • Cryptocurrency prices are a little higher on Friday ahead of US jobs data, though mostly remain within recent ranges.
  • Stronger than expected jobs data could weigh on crypto if it boosts Fed tightening bets and vice versa.
  • Coinbase Global’s share price surged on Thursday amid news it is partnering with BlackRock to offer institutional trading services.

Market Update

Cryptocurrency prices have moved a little higher on Friday, but mostly remain well within this week’s ranges ahead of the release of US jobs data for July at 1230GMT. Bitcoin was last trading about 1.0% higher in the past 24 hours in the $23,200 area, according to CoinMarketCap, as the world’s largest cryptocurrency by market capitalization continues to find support at its 21-Day Moving Average near $22,700.

Ethereum, meanwhile, was last up about 2.2% in the last 24 hours, whilst the likes of BNB, XRP, ADA, SOL, DOT and DOGE were all between 2-6% higher over the same time period. Analysts said news on Thursday that global asset management giant BlackRock has partnered with Coinbase to offer new crypto trading services to its institutional clients has helped give the mood within crypto a modest lift.

How US NFP Data Could Impact Crypto

According to the median analyst forecast, Friday’s US jobs data is expected to show that the US economy added 250,000 jobs in July. Meanwhile, the unemployment rate is seen remaining unchanged at 3.6%, while Average Hourly Earnings growth is seen moderating to 4.9% from 5.1% YoY. In other words, the US labor market is expected to have moderated in strength in July, but still to have still remained robust by historical comparison.

Ongoing labor market strength is one of the key reasons why the US Federal Reserve thinks that the US economy can handle rapid rate hikes. So if the data later on Friday comes in stronger than expected, this could boost Fed tightening bets. This has the potential to weigh on risk assets like stocks and crypto, but if it also boosts optimism about the US economy not being in a recession yet, this could cushion any downside.

Coinbase Global’s Share Price Surges on Blackrock Partnership News

Coinbase Global’s share price surged over 10% higher on Thursday after news broke that global asset management giant Blackrock is set to offer its clients access to crypto trading services via Coinbase’s institutional platform, called Coinbase Prime. COIN shares had at one point been as much as 44% higher intra-day.

Reacting to the news, OANDA senior market analyst Edward Moya sid that “calls that crypto is dead have been overdone… In fact, crypto is alive and well.” Moya called the Coinbase/Blackrock partnership “much-needed positive news for crypto traders” that “should provide some optimism for the longer-term health of the cryptoverse”.

FLOW Surges With Meta Platforms to Utilize Flow Blockchain to Expand NFT Features

FLOW, the native token that powers the Flow blockchain, has surged over 56% since Wednesday’s close in the $1.80s to current levels in the $2.80s. The cryptocurrency has received a boost on the news that Meta Platforms will utilize the Flow blockchain in order to expand its non-fungible token (NFT) offerings.

Meta this week announced an international expansion of its digital collectibles features that it successfully piloted on Instagram back in May. Meta will now support the Dapper wallet, whose creator Dapper Labs also created the Flow blockchain, as well as supporting the Coinbase wallet.

Nearly 7% of Spaniards Already Invested in Crypto, Regulator Says

According to a study carried out by Spain’s securities market regulator (CNMV), nearly 7% of Spanish citizens have already invested in crypto. According to the survey, hopes for profit and belief in the blockchain/distributed ledger technology that underpins crypto-motivated investors.

The Spanish markets regulator said it was concerned that investors might not appreciate the risks involved with investing in crypto, citing the fact that 40% of the crypto investors surveyed think the asset class is already regulated and 29% think it has a similar risk profile to other investors.

Crypto is, for the most part, still unregulated in Europe and is seen as having a much higher risk profile compared to traditional asset classes like stocks and bonds. Earlier in the year, CNMV announced a crackdown on crypto ads. Meanwhile, the EU recently struck a deal to implement broad crypto regulations (the Markets in Crypto Assets Regulation or MiCA bill), though it isn’t expected to come into force until 2024.