• Coinbase – the leading American-based crypto exchange – is reportedly planning on setting up a new Bitcoin (BTC) and crypto trading firm overseas.
• The exchange lost banking partner Signature Bank due to its closure by New York regulators.
• Coinbase recently announced its partnership with Standard Chartered Bank for its customers in Singapore and published a blog post titled „Our 8-week international expansion drive in 6 countries“.
Coinbase Plans to Set Up Crypto Trading Firm Overseas
Coinbase, the leading American-based crypto exchange, is reportedly planning on setting up a new Bitcoin (BTC) and crypto trading firm overseas. This move comes days after penning its 8-week international expansion drive. The exchange aims to attract global clients with this platform even though it already has a presence in multiple countries including the UK, India, Singapore, UAE, and others.
Signature Bank Closure Affects Coinbase Banking Partners
The traditional banking system failure led to the crypto-market losing banking support in the United States. Specifically, Coinbase had $240 million in corporate cash stored in Signature Bank before its abrupt closure due to New York regulators‘ action. However, client funds remain unaffected as per assurance from the exchange that “all client cash at banks continues to be protected by FDIC pass-through insurance”. Moreover, Coinbase has other banking partners including US‘ largest bank – JPMorgan. Recently, it also partnered with Standard Chartered Bank for its customers in Singapore.
Coinbase’s International Expansion Drive
In addition to partnering with key financial sector tech & telco partners and engaging with leading governments abroad over 8 weeks period of time – coinbase plans to roll out multiple initiatives across 6 continents: South America, Europe, Africa/Middle East; Asia; Australia; and North America. This strategy is coined as “Go Broad Go Deep” & involves launching new products & services plus expanding presence beyond US borders.
Nature of Overseas Crypto Trading Platform Unclear
Details regarding nature of newly planned overseas trading platform remain unclear till date despite discussion between institutional clients & investment firms/market makers about this plan from Coinbase side. It will be interesting to see what shape does this platform take & how beneficial is it for global traders looking for an upgraded user experience & competitive rates for their transactions?
Overall it seems like financial crisis caused by traditional banking system failure will lead more exchanges towards non-US territories or platforms as they try to keep their operations going while protecting customer interest during such trying times!
• TON has been consolidating between $2.2 and $2.6 since the end of January, and its price action recently retested a key value area that could offer a strong rebound.
• If pullback retests its point of control (POC) of $2.3, bulls could get new buying opportunities with a target at the bearish order block of $2.6 for a potential 20% hike with a risk-to-reward (RR) ratio of 1:4.
• Santiment data reveals network accumulation, rising Mean Coin Age, positive weighted sentiment and an increase in daily active addresses – all indicators suggesting TON’s potential to pump towards the supply zone.
Since the end of January, The Open Network’s TON has been consolidating in the $2.2 – $2.6 range and its price action recently retested a key value area that could induce the market to a recovery.
At press time, TON had retested the demand zone (green) and the high-value node (HVN) of the Fixed Range Value Profile (FRVP). The FRPV’s point of control (POC), red line, of $2.3 had the highest traded volume and could offer a strong recovery if pullback retests it. Therefore, bulls could get new buying opportunities at $2.3 with a target at the bearish order block of $
• Coinbase announced that it would not accept payments from or to Silvergate.
• LedgerX reportedly ended its relationship with the crypto bank.
• Silvergate’s value plunged in after-hours trading and delayed its filing of annual report to the SEC.
Coinbase Drops Alliance With Silvergate
Coinbase, a U.S.-based crypto exchange, has announced that it will no longer be accepting or initiating payments to or from Silvergate, a crypto-focused bank, due to recent developments and out of an abundance of caution. Additionally, LedgerX, a derivatives trading platform, also reportedly ended its ties with the bank.
In its SEC filing yesterday, Silvergate stated that it was evaluating its ability to survive as a going concern and delayed its annual report filing until March 16th 2023. The bank also noted that it expects to record further losses related to the other-than-temporary impairment on the securities portfolio which could result in the company being less than well-capitalized.
Coinbase reassured customers that all funds are safe and accessible and will be using other banking partners for institutional clients going forward. The firm added that large dollar deposits are held in a U.S. government money market fund and they have de minimis corporate exposure to Silvergate.
Impact On Clients
The crypto exchange stated that it has taken proactive action so clients will experience no impact from this change. Furthermore, Coinbase reiterated that all client funds continue to be safe, accessible & available despite their alliance ending with Silvergate Bank
In light of these recent events surrounding silver gate Banks’ financial situation Coinbase has chosen to end their relationship with them through withdrawing support for payments towards or from them out of an abundance of caution for client safety .
• Ethereum whales have begun moving away from ETH as the MVRV ratio increased.
• Retail investors and validators continued to support Ethereum, despite high selling pressure.
• The negative issuance of ETH has led to an increase in validator numbers, which could be a sign of future bullishness.
Ethereum Whales Move Away
Ethereum whales have started selling their holdings due to the current high MVRV ratio. This has created some selling pressure on the network but retail investors and validators continue to HODL, providing some support for the cryptocurrency.
High MVRV Ratio
The MVRV ratio for Ethereum reached a one-month-high according to Glassnode’s data. A high MVRV suggests that most ETH holders would make a profit if they sold their holdings, creating more selling pressure on various addresses.
Retail Investors Stay Hopeful
Retail investors are still interested in Ethereum due to its negative issuance, which could lead to scarcity of coins and potentially drive up its value in the future. Along with this, there is also increasing activity on the Ethereum network with fees paid reaching a 8-month high according to Glassnode’s data.
Increasing Validator Numbers
The number of validators on the Ethereum network has grown by 3.89% in 30 days according to Staking Rewards‘ data. This could be attributed to the revenue generated by them and may be seen as a signal of potential bullishness ahead for ETH prices.
Whales have started moving away from ETH due to its high MVRV ratio but retail investors and validators remain hopeful about its future prospects due to increasing activity and negative net issuance levels on the network. The growth in validator numbers also adds optimism towards potential bullishness for ETH prices ahead
• The US Bureau of Labor Statistics issued its Consumer Price Index (CPI) report, which showed a 0.5% increase in January and an annual rate of inflation at 6.4%.
• Options traders had bearish sentiments towards Bitcoin prior to the CPI announcement.
• After the news was released, BTC prices initially tumbled on the six-hour timescale chart before recovering and closing at around $22,400.
US Bureau of Labor Statistics releases CPI Report
The US Bureau of Labor Statistics issued its Consumer Price Index (CPI) report on 14 February, ending days of anticipation and rumors. According to the estimates of economic experts, the CPI increased by 0.5% in January, up from 0.1% in December. The annual inflation rate, however, was much higher than expected, coming in at 6.4% (up from 6.5% in December) despite forecasts of only 6.2%. In addition, the core CPI, which excludes food and energy costs, rose 5.6% from a year ago. This was quicker than the 5.5% predicted and down from 5.7% in the previous month. According to the numbers, the Federal Reserve will probably maintain its hawkish stance with further interest rate hikes possibly being discussed at future Federal Open Market Committee (FOMC) meetings.
Options 25 Delta Skew Pre-CPI
As measured by the Options 25 Delta Skew statistic prior to the release of the CPI report indicates that puts were more popular than calls with investors deeming them more expensive than calls signaling a bearish sentiment before the CPI announcement was made publically available..
BTC’s Volatility After CPI Release
Bitcoin’s volatility has been decreasing as nerves calm after news release according to Coinglass‘ Volatility Index which recorded an observed volatility just over 2%, seemingly decreasing as time goes on post-report release date..
Recovery Post-CPI Announcement
The market’s reaction to the CPI report saw some volatility after its release with Bitcoin prices initially tumbling on a six-hour timescale chart before it jumped by $700 reaching a trading high of $22300 before retracing back down to close near $22400 later that day .
Current Value for 1 BTC
At present 1 BTC is worth approximately $22100 representing a loss over 500 dollars from its initial high post-CPI announcement showing that although there is potential for recovery there is still uncertainty within Bitcoin’s value .
North Korea-linked Hackers Stole Cryptocurrency Assets
• North Korean hackers stole between $630 million and more than $1 billion in cryptocurrency assets last year, according to a confidential United Nations report.
• The independent sanctions monitor stated that the cybercriminals used increasingly sophisticated techniques to gain access to digital networks involved in cyber finance.
• A report published by the blockchain analytics firm Chainalysis linked North Korean hackers to at least $1.7 billion in stolen cryptocurrency in 2022.
UN Report Details North Korea’s Cybercrime Activity
A confidential United Nations report seen by Reuters on 6 February was reportedly submitted to a 15-member North Korea sanctions committee last week. According to the report, North Korea-linked hackers stole around $630 million – $1 billion in cryptocurrency assets in 2022. The hackers reportedly targeted foreign aerospace and defense companies.
North Korean hackers have stolen more cryptocurrency assets in 2022 than any other year, mentioned the report. The independent sanctions monitor, in its report to the UN Security Council Committee, stated: „[North Korea] used increasingly sophisticated cyber techniques both to gain access to digital networks involved in cyber finance, and to steal information of potential value, including to its weapons programmes,“
Chainalysis Reports Linked North Korean Hackers To At Least $1.7 Billion In Stolen Cryptocurrency
A report published last week by the blockchain analytics firm Chainalysis linked North Korean hackers to at least $1.7 billion in stolen cryptocurrency in 2022—making it a record year for crypto hacking. The firm identified cybercriminal syndicates as being responsible for most of these thefts and said that North Korea’s total exports amounted only up to $142 million—implying that cryptocurrency hacking accounted for a sizable portion of their economy this past year. The report also mentioned that hacks of decentralized finance (DeFi) protocols amounted up towards at least$1.1 billion putting them at the forefront of this DeFi trend which could intensify further into 2022.
North Korean Intelligence Allegedly Behind Cyber Attacks
The company also discovered that North Korean-linked hackers frequently sent colossal sums through mixers like Tornado Cash and Sinbad which was higher than funds usually sent by other individuals or groups out there as well as making sure not get tracked down easily . Though North Korea has often denied being responsible for these recent attacks ,the new UN report claims otherwise stating that their primary intelligence bureau ,the Reconnaissance General Bureau employs several groups such as Kimsuky ,Lazarus Group and Andariel specifically for these attacks .The full detailed version of this reports will be released either this January or early March 2023 .
It is clear from this article that due to their growing sophistication ,North Koreans are able topull off some major heists successfully if not caught right away .Though they still deny any involvement with these crimes but it looks like they are going no where anytime soon with all their efforts put into stealing large amounts of cryptocurrencies from different sources . It is important for people out thereto stay aware about such activities so they can keep themselves safe from any untoward incidents .
• Twitter is working on introducing a payments service to its platform, which could extend support to cryptocurrencies.
• Elon Musk, CEO of Tesla, wants the platform to provide users with services such as savings accounts, offering debit cards, and more.
• Following the news, Dogecoin (DOGE) registered a rise in its value of over 3 percent in the past 1 hour.
Twitter, the popular social media platform, is taking a step towards introducing a payments service that could extend support to cryptocurrencies. The project is spearheaded by Esther Crawford – chief executive of payments at Twitter – and the team is reportedly designing a vault for storing and protecting users‘ information, which will be collected by the payments platform.
The news was welcomed by Elon Musk, CEO of Tesla and the self-proclaimed “Dogefather”. Back in October 2022, Musk revealed his grand plan for Twitter – to make it an everything app. He wants the platform to offer financial services such as savings accounts, offering debit cards, and more. Musk also wants the payments platform to be fiat centric, but built in a way that it could extend support to cryptocurrencies in the future.
Twitter had previously registered itself as a payment processor with the US Treasury Department in November 2022. The firm also expects to complete all the licensing procedures by the end of this year.
The news resulted in a rise in the value of Dogecoin (DOGE), Musk’s go-to cryptocurrency. According to CoinMarketCap, the meme-coin was trading at $0.0911 at press time. Since the news broke, DOGE recorded a rise of over 3 percent in the past 1 hour and had a market capitalization of over $12 billion.
The news is a sign of progress and it could be the start of a revolution in the crypto space. If Twitter successfully implements the payments service, it could be a game changer as it would open up a whole new avenue for cryptocurrency adoption.
• The Profits-to-Value Ratio (RPV) of Bitcoin has decreased, indicating a waning enthusiasm for the bull run.
• Trader sentiment remains positive, with an increased volume, velocity, and decreased exchange reserves.
• The MVRV ratio is high, showing that most holders would profit from selling, and the long/short difference is negative, incentivizing short-term holders to sell.
The Bitcoin bull run has seen its fair share of ups and downs and the latest data from glassnode suggests that the enthusiasm for the bull run may be waning. The Profits-to-Value Ratio (RPV) of Bitcoin, which compares profit-taking in the market against the network valuation, has declined significantly over the last few days. This decline in RPV suggests that the optimism for the bull run has decreased and could have implications for both short-term and long-term holders of Bitcoin.
This decrease in enthusiasm was further reflected in an increased MVRV ratio, which indicates that most holders would profit from selling. The long/short difference also remained negative, incentivizing short-term holders to sell as they could collect most of the profits. Additionally, the number of addresses in losses reached an 8-month low, suggesting that multiple addresses would be tempted to sell their holdings during this period.
However, while the RPV decline is a cause for concern, there are also a few positive indicators that point to market strength. Trader sentiment remains positive, with 51.2% of all positions being long on Bitcoin. This suggests that traders are still optimistic about the future of Bitcoin and believe that it will continue to rise in value. Exchange reserves have also decreased, indicating lower selling pressure, and Bitcoin’s volume has increased from 14.56 billion to 31.1 billion over the last month.
In conclusion, the decline in RPV suggests that the enthusiasm for the Bitcoin bull run has decreased and this could have implications for both short-term and long-term holders of Bitcoin. However, there are still positive indicators that point to market strength, such as increased volume, velocity, and decreased exchange reserves, suggesting that the bull run is still intact.
• Binance coin [BNB] posted an impressive performance after sustaining massive FUD at the end of last year, surging from $240 to over $310 in the past two weeks.
• The $287.3 support is a key level to watch, as a break below it could potentially lead to further decline.
• Bulls could still attempt to retest the $314.2 resistance or break above it, especially if BTC remains bullish.
Binance coin [BNB] has been on a remarkable upswing in the past few weeks, gaining over 30% of its value since the end of November. After sustaining massive FUD at the end of last year, the cryptocurrency has seen an impressive performance, surging from $240 to over $310 in the past two weeks. At press time, it was trading at $302.4 and could drop further.
The $287.3 support is a key level to watch, as a break below it could potentially lead to further decline. On the 12-hour chart, the Relative Strength Index (RSI) and the Money Flow Index (MFI) were in the overbought zone. This implies that the buying pressure was strong, but the overbought condition also set BNB for a possible trend reversal. Besides, BTC’s rally only lasted three days during the last U.S. CPI release on 13 December. If the trend repeats, BTC’s bullish momentum could ease, tipping BNB bears to act. Therefore, selling pressure could increase in the coming day(s). This could push BNB to retest the $287.3 support or break below it. BNB’s decline below the support could be kept in check by $283.3 or $277.8. These levels can serve as short-selling targets for bears if the trend reversal is confirmed.
However, bulls could still attempt to retest the $314.2 resistance or break above it, especially if BTC remains bullish. Such an upswing would render the bearish bias null. The upside move will allow bulls to aim at BNB’s November high of $360 if they clear the $337 obstacle. BNB has also seen an increase in daily active addresses but a decrease in transactions, suggesting a consolidation phase.
Overall, BNB investors must keep an eye on the $287.3 support, as a break below it could lead to further downside pressure. On the other hand, a break above the $314.2 resistance could invalidate the bearish bias and pave the way for further gains.
• The US Securities and Exchanges Commission (SEC) has filed a charge against crypto exchange – Gemini and crypto lending platform – Genesis for offering and selling unregistered securities through Gemini’s Earn program.
• The duo is accused of violating sections 5 (a) and 5 (c) of the Securities Act of 1933.
• Genesis signed a deal with the crypto exchange in December 2020, wherein Gemini’s customers could loan their crypto to Genesis in exchange for interest.
The United States Securities and Exchanges Commission (SEC) has filed a charge against crypto exchange – Gemini and crypto lending platform – Genesis, for offering and selling unregistered securities through Gemini’s Earn program. The complaint was filed in the U.S. District Court for the Southern District of New York, and the duo is accused of violating sections 5 (a) and 5 (c) of the Securities Act of 1933.
This move comes a few months after Gemini and Genesis signed a deal in December 2020, wherein Gemini’s customers could loan their crypto to Genesis in exchange for interest. Following this, Gemini Earn was kickstarted in February 2021, with the crypto exchange acting like an agent between Genesis and its customers. The exchange, in return, received a fee, which went up to 4.29% on returns. However, this came crumbling down after Genesis suspended withdrawals as a result of FTX’s collapse.
The program, at the time, had 340,000 users and about $900 million in assets. The money continues to remain locked and both platforms are yet to decide on a final solution. SEC Chairman – Gary Gensler – said, „Today’s action underscores the importance of compliance with the securities laws as the SEC continues to focus on the offer and sale of digital assets.“
The commission previously charged BlockFi for similar offerings. Investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.