Blockfi Goes Under, Chainlink Staking, Altcoin TA & The Latest News
In This Issue
- I share my thoughts on the state of the market, what happened in China, higher rates, Blockfi goes under, Chainlink staking & Apecoin staking.
- Rebecca breaks down the latest news.
- REKT has a TA report on some altcoins.
What’s On My Mind by Lark
The State of the Market
CRYPTO PUMPING!!! Always nice to see some green in the market. The S&P 500 even reclaimed the 200 day moving average today. For reference, the last time it traded above this line was in April.
And while it is nice to see some green in the market we must also remember that we do still see big risks on the horizon for both equity markets and potentially crypto. So keep a cool head in the face of green candles. That being said, bear market rallies can be very profitable if you play them as such. Lots of potential for flips during such periods. And more and more it looks as though we could be reaching an inflection point in the markets.
The one saving grace about this period of the bear market is that for the most part there isn’t really anyone left to sell. Most everyone who can be has been washed out, and aside from a black swan event then crypto could be entering into the accumulation phase after a year of brutal price decline. Just maybe…
Still though, with a recession looming for the USA in 2023, we could still get a few “surprises” from markets.
That being said, we do have evidence of accumulation. In fact, the market has seen a big accumulation after the FTX collapse. Similar waves of heavy buying happened after previous major blow ups such as the covid-crash and the luna-crash. Just a reminder that in spite of everything there are still buyers.
WTF Just Happened In China
It has been a crazy week in the world’s second biggest economy. What started as a fire in a western province where families were burned alive because they were locked in their apartments by force due to pandemic quarantines quickly spiraled out of control and into nationwide protests. This is one of the biggest protest movements to happen in China in a long time. Years of the draconian zero-covid policy has broken Chinese society.
This culminated in a meeting in Beijing on Tuesday where the CCP announced that covid is now a moving target but that lockdowns would continue. I guess they have to make use of all of those quarantine camps they built. Although they did say that “excessive” zero covid policies would be challenged. Whatever that means.
China ending its insane covid policies, whenever it happens will obviously be great for regular people suffering under this madness, but it will also be a potential big spark for a market rally.
Higher Rates Crushing Risk Markets
The FED’s continued tightening it having a big impact on risk markets, AKA stocks, property, and crypto, which are all getting hammered. This is for one simple reason. US Treasury notes are producing 4.75% APY with almost no risk. So why buy stocks with 2 or 3% APYs that can crash another 50% in price?
Why buy crypto or use defi? Why even own a house when holding bonds can give a better return without any of the hassle? This is how some in the market are thinking now, and it will continue to weigh heavily on risk markets while the FED keeps raising rates. Currently, we should expect rate hikes until at least March, assuming inflation doesn’t spike again.
That all being said, Jerome Powell did give a speech today saying that smaller interest rate hikes could start in December. So while rates will continue rising for some months, the slow down is giving markets hope that the worst could be over.
Blockfi Goes Under
Blockfi has declared bankruptcy. Fuck! Another one. While I haven’t used Blockfi in a long time, I was an affiliate for quite some time. So this once again hurts to know that some of you might still have had funds in there. While I had made multiple warnings to get your funds out of all centralized lenders ever since Celsius, the hard truth is that not everyone did. I am truly sorry if this bankruptcy has affected you. This has been an incredibly hard year for crypto. And to be clear if you still have your funds in a platform like NEXO then you are playing with fire.
Bankruptcies will continue, expect more centralized and “decentralized” companies to go under. Cardano based stablecoin project Ardana has announced that they have gone under. We will see dozens more. Many are already broke I suspect, but are simply not telling anyone while they cash out whatever they can.
While everyone is expecting Genesis to be the next shoe to drop the reality is that the contagion from FTX could still be substantial and there are a lot of unknowns.
Oh, and it seems that AAX will likely be next to announce bankruptcy. They suspended withdrawals 2 weeks ago, and have since deleted their Youtube channel, Facebook account, and top executives are fleeing. This is most likely directly due to some kind of FTX exposure.
Apparently some random exchange named Bitfront also went under.
Kucoin has some weird glitch showing triple digit earn yields for lending out Bitcoin and Ethereum… RED FLAG!
Just a reminder, stop treating exchanges like bank accounts or stock brokers. They are MOST DEFINITELY NOT!
Chainlink Staking
Chainlink staking will go live on December 6th. Investors have literally been waiting years for this. And while the early stages will be limited access, this is a big step for Chainlink. I wonder if it will be able to form into some kind of catalyst for LINK? The staking APY will be 7%. A good number for sure.
Whether or not this is able to put wind in LINK’s sails, it is worth remembering that right now Chainlink is THE oracle in the crypto market. No other oracle even comes close which is why Chainlink has managed to stay in the top 40 coins for years.
Apecoin Staking
In a move that underlines much of what is wrong with US regulations Apecoin has announced that users from the US, Canada, Russia, and a few other sanction list countries like Iran will not be allowed to stake their coins. Increasingly we see crypto projects operating like this out of fear due to a gross lack of regulatory clarity. The SEC has decided on a rule by lawsuit policy whereby no one knows if they are breaking the law. It is nuts. This is also why Uniswap never turned on revenue sharing for token holders. It was supposed to be the BIG real yield coin, but fear of US regulators shut it down. Bad news for Apecoin holders.
In Case You Missed It by Rebecca
Crypto market news
Bitcoin’s November sell-off following the FTX collapse has been confirmed by Glassnode as the fourth largest ever, with a realized loss of $10B in 7 days. Source
Genesis has reportedly hired an investment bank to explore options including bankruptcy, according to The New York Times. Source
Digital Currency Group (DCG) founder, Barry Silbert, addressed the growing concerns surrounding Genesis, addressing the existing intercompany loans. Source
BlockFi has announced it has filed for Chapter 11 bankruptcy with just $256.9M in assets. Source
The UK’s Starling Bank has banned card payments to crypto merchants as well as outgoing and incoming crypto-related bank transfers. Source
Bybit has announced a $100M fund to support institutional clients during challenging periods in the crypto market. Source
FTX held an $11.5M stake in a rural Washington bank with a single branch and only three employees, which raises concerns over banking loopholes. Source
Crypto exchanges Huobi and Poloniex could merge in the future, says Justin Sun. Source
The Avengers Endgame directors will produce a mini-series for Amazon based on the FTX collapse. Source
Alameda Research withdrew $204M from FTX US in the final days before its collapse and subsequent bankruptcy filing. Source
Canadian crypto exchange, Coinsquare, sheds more light on its 19 November data breach in an email to customers listing the personal details that were compromised. Source
Crypto exchange, Bitget, has expanded into Africa with plans to hire 400 new workers. Source
Kraken’s Jesse Powell says proof of reserves is pointless without liabilities as it’s a misrepresentation. Source
Coins and Projects
10,000 bitcoins have moved off a crypto wallet linked to the Mt. Gox hack, to various exchanges and personal wallets. Source
Bitcoin addresses holding at least 1 BTC or more have hit a new high of 950,000 as the total closes in on one million. Source
Bitcoin mining revenue is the lowest in two years, whilst the hash rate is starting to decline after reaching new records. Source
The Ethereum Name Service (ENS) DAO has chosen a new fund manager to take charge of its treasury. Source
MetaMask is to start collecting users’ IP addresses and Ethereum wallet addresses during transactions, according to a revised ConsenSys privacy policy agreement. Source
MakerDAO has passed a governance vote to remove Alameda-linked wrapped Bitcoin, renBTC, as its DAI stablecoin collateral. Source
MakerDAO has rejected a CoinShares proposal to invest up to $500M in bonds. Source
Binance allocates another $1B to its crypto recovery fund, bringing the total so far to $2B and includes Aptos Labs and Jump Crypto as contributors. Source
Binance US is preparing a bid for crypto lender, Voyager, as confirmed by Binance CEO, CZ. Source
Binance transferred 127K bitcoins to an unknown wallet causing FUD across the crypto community but was later confirmed as part of its proof of reserves audit. Source
Cardano project, Ardana, has ceased its operations due to funding and timeline concerns. Source
Solana Foundation has released a fact sheet detailing its $180M+ exposure to FTX, which included FTT, SRM, and roughly $1M in cash. Source
Solana’s Phantom wallet will add support for Ethereum and Polygon with the rollout starting in around three months. Source
Polygon has partnered with Web3 shopping platform, Uquid, with the aim to add the MATIC token as payment for its existing 85M product catalog. Source
Aave has temporarily suspended its lending markets for 17 tokens due to volatility risks. Source
Aptos Labs has integrated MoonPay’s technology into its Petra wallet, and MoonPay has also added the APT token to its platform as part of the new partnership. Source
Fantom’s Andrew Cronje has revealed its foundation is cash positive, with $340M in assets and annual earnings over $10M. Source
Macro news
The Bank of Japan is set to trial a digital yen CBDC pilot with three megabanks. Source
The US New York Attorney General has recommended prohibiting crypto investments via retirement funds. Source
The New York governor has signed into law the proof of work ban on mining activity for two years. Source
Several US states have opened investigations into FTX and Genesis, as contagion spreads. Source
El Salvador has introduced a draft bill confirming the government’s plan to raise $1B in Bitcoin bonds. Source
Russia plans to launch a national crypto exchange which is supported by the Ministry of Finance and the Russian Central Bank. Source
France and Luxembourg have used a CBDC to settle a bond worth €100M. Source
The Financial Crimes Investigation Board of Turkey (MASK) is to confiscate “suspicious” assets related to FTX. Source
El Salvador has launched a national Bitcoin office which will see a specialized unit oversee all local projects related to BTC. Source
Huobi has announced the launch of the world’s first national token, DMC, endorsed by the Commonwealth of Dominica, and includes a digital identity program. Source
FTSE Russell, the company behind the UK’s FTSE 100 index has unveiled a crypto fund called the Global Digital Asset Index Series. Source
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Market Analysis by Rekt Capital
In today’s newsletter, I will cover Bitcoin as well as a few Altcoins, specifically:
- Chainlink (LINK)
- Ethereum (ETH)
- Coti (COTI)
- Binance Coin (BNB)
- OMG Network (OMG)
- Litecoin (LTC)
Let’s dive in.
Bitcoin — BTC/USD
We know BTC lost its ~$19500 level as support.
A Monthly Close below ~$19500 would confirm the breakdown.
And if BTC decides to display a textbook breakdown confirmation, then price could relief rally to the ~$19500 level to turn it into new resistance and reject from there.
But what’s also worth mentioning is that BTC lost another Monthly level, the orange ~$17300 level.
Right now, BTC is bouncing but still below this monthly level.
Monthly Close will be crucial because:
- If BTC Monthly Closes above ~$17300, then a relief rally to ~$19500 would become more likely
- If BTC Monthly Closes below ~$17300, then there is actually a chance of price rejecting from ~$17300 which would be flipped into new resistance itself. After all, ~$17300 represents the June Low support.
Another useful way of looking at the ~$17300 level right now is thinking of it as a mid-range.
So the two points mentioned just above will be dictated by whether this mid-range level of ~$17300 will act as support or resistance.
If it acts as support, then BTC will occupy the upper half of this ~$13900-$19500 range.
But if the ~$17300 level acts as resistance, then BTC may end up occupying the lower part of the range, ~$13900-$17300 portion of the range.
Chainlink — LINK/USD
In recent weeks, I spoke of LINK being inside a range and at the time it was at the Range Low of its range, with the possibility of rebounding from it.
Here’s a snippet from that analysis:
Here is an update:
LINK has indeed rebounded from the ~$6.27 to ~$7.78 (green-black) range, continuing its consolidation inside this range, bouncing from Range Low to Range High.
A Monthly Close below the red Range High could set LINK up for another return to the green Range Low, as such a Close would sentence LINK to another month of continued consolidation.
A major trend shift would occur if either the Range Low is lost as support or the Range High is broken as resistance.
Ethereum — ETH/USD
The Monthly Close will be important as it will dictate the bias heading into December.
Monthly Close inside/above the orange area and price could follow the green path.
Monthly Close below orange however and price could follow the red path into ~$1100 (black) which itself may be a level ETH won’t be able to hold, given how the majority of the Summer move has been retraced already, potentially evidencing weakness in the ~$1100 level as support.
Losing black could then spell a drop into the green area….
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Final Notes
If you enjoyed this newsletter, I’m sure you’ll want to see my YouTube titled: Polygon, Huge Potential In 2023? [Matic Crypto]
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
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See you next time!
Lark and the Wealth Mastery Team
Legal Disclaimer
TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
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