The crypto derivatives exchange has partnered with Circle to expand its suite of USDC offerings; traders will also have access to auto conversions between the stablecoin and U.S. dollars.
Crypto derivatives exchange Bybit has partnered with stablecoin issuer Circle Internet Financial to expand its suite of spot trading pairs denominated in USD Coin (USDC) — a move the company says will increase retail and institutional access to USDC-settled products.
Under the partnership agreement, Bybit will expand its USDC spot pairs to include several additional cryptocurrencies and make auto conversions between the United States dollar and USDC available, the company disclosed Wednesday. Bybit said it intends to collaborate with Circle on other initiatives to boost stablecoin and crypto adoption.
Currently, Bybit supports around 35 USDC spot pairs, according to a Circle representative.
A major U.S. investment bank eyes the crypto derivatives market.
Goldman Sachs is reportedly trying to onboard some of its derivatives products into @FTX_Official crypto derivatives offerings. https://t.co/c0467Knv9U
Bybit began offering USDC options and perpetual contracts in April of this year, giving traders more ways to hedge against movements in the spot market. At the time, Bybit CEO Ben Zhou told Cointelegraph that the options rollout was in response to growing user demand. On Wednesday, Zhou said the launch of USDC options had been a success and that Bybit was looking to “further develop our working relationship with Circle.”
In addition to USDC options, Bybit plans to make Ether (ETH) and Solana (SOL) options available to traders soon.
Circle’s USDC is the world’s second-largest stablecoin with a market capitalization of $52.3 billion, according to CoinMarketCap. Only Tether’s USDT commands more market penetration with a $67.6 billion market cap.
Circle released a full breakdown of its USDC reserves in July for the period ending June 30, 2022. At the time, about 75.6% of its backing was in short-term U.S. Treasury bills. The remainder of its position was in cash deposits at domestic banks.
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Bitcoin’s technical setup leans toward an additional downside, leading some traders to exit altcoins, which are struggling at overhead resistance levels.
Bitcoin (BTC) price has been trying to change course while the S&P 500 is still giving up gains on a daily basis. Even though the United States equities markets have been grinding lower since Aug. 26, Bitcoin has managed to hold on to the $20,000 mark.
However, investor interest seems to be shifting away from Bitcoin. That has led to a reduction in assets under management (AUM) for Bitcoin investment products, which dropped 7.16% in August to $17.4 billion, according to a new report by CryptoCompare.
In comparison, the AUM for Ethereum products increased 2.36% to $6.81 billion during the same period, indicating that investors are positioning themselves in Ethereum products ahead of the Merge.
Even though prices are down across the ecosystem, bear markets at least offer attractive opportunities to long-term investors. To capitalize on this opportunity, Reddit co-founder Alexis Ohanian’s venture capital firm Seven Seven Six is aiming to raise $177.6 million for a crypto investment fund. On similar lines, former executives from Galaxy Digital and Genesis are looking to raise a $500 million fund.
Although the near term looks uncertain, long-term investors may be looking for bottom fishing opportunities. Could Bitcoin and major altcoins stay above their immediate support levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down from the downtrend line on Aug. 30 but a minor positive is that the bulls purchased the dip near $19,500. The bulls are again trying to push the price above the downtrend line on Aug. 31.
BTC/USDT daily chart. Source: TradingView
If they succeed, the BTC/USDT pair could rally to the 20-day exponential moving average (EMA) ($21,325), which is an important level to keep an eye on. If the price turns down from this level, the bears will attempt to pull the pair to the strong support zone of $18,910 to $18,626. A break and close below this zone could open the doors for a retest of the critical support at $17,622.
Conversely, if bulls push the price above the 20-day EMA, the pair could rise to the 50-day simple moving average (SMA) ($22,333). If bulls clear this hurdle, the pair could pick up momentum and rally toward the overhead resistance at $25,211. The bulls have to overcome this barrier to indicate that the bottom may be in place.
ETH/USDT
Ether (ETH) turned up from $1,422 on Aug. 29 and climbed back above the neckline of the head and shoulders pattern. This suggests that the breakdown on Aug. 26 may have been a bear trap.
ETH/USDT daily chart. Source: TradingView
The bulls are attempting to push the price above the moving averages. If they succeed, the ETH/USDT pair could rise to the overhead resistance at $1,700. This is an important level to keep an eye on because a break and close above it could open the doors for a possible rally to $2,000.
This bullish view will be invalidated if the price turns down from the overhead resistance and breaks below $1,422. Such a move will suggest that the recovery may be over. The pair could then decline to $1,280 and later to $1,050.
BNB/USDT
BNB bounced off the strong support at $275 on Aug. 29, indicating that the bulls are defending this level aggressively.
BNB/USDT daily chart. Source: TradingView
The bulls attempted to push the price above the 20-day EMA ($292) on Aug. 30 and 31 but the bears held their ground. If the price breaks and closes below the $275 support, the BNB/USDT pair will complete a bearish head and shoulders pattern. That could start a decline to $240 and later to the pattern target at $212.
On the contrary, if the price rebounds off $275 and breaks above the 20-day EMA, the pair could rise to $308. A break and close above this resistance could clear the path for a rally to $338.
XRP/USDT
Buyers have been defending the $0.32 level for the past three days but have failed to achieve a strong rebound. This suggests a lack of demand for Ripple (XRP) at higher levels.
XRP/USDT daily chart. Source: TradingView
The downsloping 20-day EMA ($0.34) and the relative strength index (RSI) in the negative territory indicate that bears have a slight edge. If the price turns down from the current level or the 20-day EMA and breaks below $0.32, the XRP/USDT pair could slide to the vital support at $0.30.
The bulls are expected to defend this level with all their might because a break below this support could signal the resumption of the downtrend. Conversely, if bulls drive the price above the moving averages, the pair may rally to $0.39.
ADA/USDT
Cardano (ADA) bounced off $0.42 on Aug. 29 and reached the 20-day EMA ($0.47) where the bears are mounting a stiff resistance.
ADA/USDT daily chart. Source: TradingView
If the price turns down from the current level, it will suggest that bears continue to sell on minor rallies. The bears will then try to sink the price to the crucial support at $0.40. This is an important level to keep an eye on because a break and close below it could signal the start of the next leg of the downtrend.
On the other hand, if buyers thrust the price above the moving averages, it will suggest strong demand at lower levels. The ADA/USDT pair could then rally to the downtrend line.
SOL/USDT
Solana (SOL) rebounded off $30 and rose above the $32 level on Aug. 29 but the bears again pulled the price back below the level on Aug. 30. This suggests that bears are selling on every minor rise.
SOL/USDT daily chart. Source: TradingView
The bulls are again trying to push the price to the 20-day EMA ($35), which is an important level to watch out for in the short term. If bulls drive the price above this level, the SOL/USDT pair could rise to the 50-day SMA ($39).
The downsloping 20-day EMA and the RSI in the negative territory indicate advantage to sellers. If the price turns down from the current level or the 20-day EMA and breaks below $30, the pair could drop to the crucial support at $26.
DOGE/USDT
The bulls successfully defended the support at $0.06 in the past few days but have failed to achieve a strong rebound off it. This suggests a lack of demand for Dogecoin (DOGE) at higher levels.
DOGE/USDT daily chart. Source: TradingView
A tight consolidation near a strong support increases the possibility of a breakdown. If that happens, the DOGE/USDT pair could start its downward move toward the June 18 low near $0.05. This is an important level for the bulls to defend because a break and close below it could resume the downtrend.
Conversely, if the price rises from the current level and breaks above the moving averages, it will suggest that the latest leg of the corrective phase may be over. The pair could then attempt a rally to $0.09.
Polkadot (DOT) has been trading below the moving averages since Aug. 19 but the bears have not been able to sink the price to the strong support at $6. This suggests that selling dries up at lower levels.
DOT/USDT daily chart. Source: TradingView
The bulls will again try to push the price above the moving averages. If they succeed, it will suggest that the DOT/USDT pair could rally to $9.17 and then to the overhead resistance at $10. The bears are likely to mount a strong defense at this level.
Another possibility is that the price turns down from the moving averages and breaks below $6.79. If that happens, the bears will try to sink the pair to the crucial support of $6. A break and close below this level could indicate the resumption of the downtrend.
MATIC/USDT
Polygon (MATIC) rebounded off the $0.75 support on Aug. 29 and reached the 20-day EMA ($0.83) on Aug. 30 but the Doji candlestick pattern indicates indecision among buyers and sellers.
MATIC/USDT daily chart. Source: TradingView
If bulls drive and sustain the price above the moving averages, the MATIC/USDT pair could start its northward march toward the overhead resistance at $1.05. This level is again likely to face stiff resistance from the bears.
Contrary to this assumption, if the price turns down from the moving averages, it will suggest that bears are defending the level vigorously. The pair could then again decline toward the strong support of $0.75. If this support cracks, the pair could drop to $0.63.
SHIB/USDT
Shiba Inu (SHIB) climbed back above the important level of $0.000012 on Aug. 29, indicating that bulls are buying on dips. Buyers tried to push the price above the 20-day EMA ($0.000013) on Aug. 30 but the bears did not relent.
SHIB/USDT daily chart. Source: TradingView
The price is stuck between the 20-day EMA and $0.000012. This tight-range trading is unlikely to continue for long. If bears sink and sustain the price below $0.000012, the SHIB/USDT pair could drop to $0.000010.
Alternatively, if the price breaks above the 20-day EMA, the pair could rally to the overhead resistance at $0.000014. The bulls have to overcome this barrier to open the doors for a possible rally to $0.000018.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
"If you enjoy all the benefits of living in our great city while refusing to pay your fair share in taxes, we will hold you accountable,” said DC Attorney General Karl Racine.
Karl Racine, Attorney General for the District of Columbia in the United States, has announced that his office has sued business intelligence firm MicroStrategy and its co-founder Michael Saylor for charges related to tax evasion.
In a Wednesday Twitter thread, Racine announced a lawsuit against MicroStrategy and its previous CEO Michael Saylor, claiming that he “never paid any DC income taxes” and the company “conspired” to assist him in evading paying for taxes. According to the attorney general's office, Saylor owes more than $25 million in taxes for income earned during his time as a DC resident.
“With this lawsuit, we’re putting residents and employers on notice that if you enjoy all the benefits of living in our great city while refusing to pay your fair share in taxes, we will hold you accountable,” said Racine.
NEW: Today, we’re suing Michael Saylor - a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes - for tax fraud.
According to Racine, the charges stemmed from the Council of the District of Columbia amending the district’s False Claims Act to encourage whistleblowers to report residents evading tax laws. The attorney general’s office has enforcement authority under the amended legislation, and said it has the power to impose “treble damages” for three times the amount of taxes owed — in Saylor's case, $75 million. A whistleblower originally filed a complaint against Saylor in April 2021.
"With the suit, OAG is seeking to recover tens of millions of dollars in unpaid income taxes and penalties."
Among the attorney general's office's claims included allegations MicroStrategy had "detailed information confirming" Saylor's residency in DC, but "collaborated with the former CEO to "facilitate his tax evasion" rather than reporting it to authorities. Under DC laws, individuals who "maintain a residence in the District for at least 183 days during the year" are required to pay local taxes. Authorities said Saylor had been living in a 7,000 square foot penthouse in Georgetown — where he "docked at least two of his luxury yachts" — since 2005.
"Saylor avoided paying more than $25 million in DC income taxes by claiming to be a Florida or Virginia resident," alleged the AG's office. "[MicroStrategy] actively conspired with Saylor to enable his fraud, including by filing inaccurate W-2s with the address of his property in Florida rather than his home in DC, and by failing to withhold and remit DC taxes."
In the United States, many individuals with a high net worth are able to consult with legal experts and exploit loopholes to reduce their tax burden, leading to criticism from many lawmakers and U.S. residents. However, government officials have also incentivized many companies to set up shop in their respective jurisdictions by offering tax breaks, as was the case with Amazon’s offices.
On Aug. 2, Saylor announced that he would step down as the CEO of MicroStrategy, a company he helped to co-found in 1989, to assume the new role of “executive chair.” At the time, Saylor said splitting the roles would help the firm pursue its strategy of “acquiring and holding Bitcoin.” Former MicroStrategy president Phong Le became the firm’s CEO on Aug. 8.
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Trading volume from NFT marketplace OpenSea has gone from $405 million on May 1 to $5 million in Aug. 28.
In this week’s newsletter, read about Meta’s newest update on the integration of nonfungible tokens (NFTs) on Facebook and Instagram. Check out how the NFT trading volume on OpenSea has plummeted by 99% and how despite the downturns, digital artists still firmly believe in the future of NFTs.
In other news, learn about the changes in participation in GameFi. And, don’t forget about this week’s Nifty News roundup featuring Taco Bell’s Metaverse wedding competition in collaboration with Decentraland.
Meta announces Facebook and Instagram users can post NFTs from digital wallets
Social media giant Meta has introduced NFTs on Facebook and Instagram. In an update, Meta highlighted that users can now post NFTs on both social platforms by connecting their digital wallets from either of the apps.
While the new update shows progress, the digital wallet connection looks limited to apps and doesn’t include third-party browsers. Despite this, integrating NFTs into smartphones with Meta apps may spark the broader adoption of digital collectibles.
Looks bare: OpenSea turns into NFT ghost-town after volume plunges 99% in 90 days
The NFT trading volume of OpenSea, the largest NFT trading platform, has shown a decrease of almost 99% from its record high of $405 million on May 1 to $5 million in NFT transactions on Aug. 28, according to the NFT data tracker DappRadar.
The lower volume and decline in the number of users suggest that the overall interest in NFTs has started to go down. Apart from these, floor prices of prominent collections like Bored Ape Yacht Club (BAYC) have also plummeted. Because of these things, some believe the NFT bubble may be bursting.
NFTs are a ‘natural place’ for digital artists — Gal Yosef
Despite the downturns in prices for most NFT collections amid the bear market, self-taught NFT artist Gal Yosef believes that NFTs will still grow in the future because it’s a natural fit for digital artists.
In a Cointelegraph interview, Yosef explained that NFTs give “massive exposure” to artists. Additionally, the 3D artist said that apart from NFTs, he thinks that the Metaverse can be the next big thing while also hinting that he might dive into that space next.
GameFi investors are now prioritizing the ‘fun factor’ over money: Survey
While most of the GameFi community joined the space looking for profit, the crypto winter has forced them to focus on other things, such as entertainment. According to a survey conducted by blockchain gaming tracking site Chainplay, 89% of investors are currently in a deficit, and 62% of them have lost more than 50%.
The decrease in profitability has also had an effect on participation. The survey results showed that in 2022, investors only spent 2.5 hours per day in GameFi. The numbers are down 44% when compared to 2021 when participants spent up to 4.4 hours per day.
Nifty News: Taco Bell wants you hitched in the Metaverse, Animoca Japan raises $45M and more
Fast-food restaurant chain Taco Bell collaborated with metaverse project Decentraland to offer couples based in the United States a chance to tie the knot in the Metaverse. Couples who are engaged are eligible to join a competition that runs from Aug. 25 to Sept. 6. The winner will get Taco Bell’s metaverse wedding package that includes streaming the event and a marriage certificate NFT.
Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.
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Securities and Exchange Commission regulators should move to protect investors from traders who distort the NFT market with manipulative trades — and they probably will soon.
In wash trading, manipulators buy and sell an asset between themselves to create the appearance that the asset is in higher demand and, therefore, worth more than it would be otherwise. With NFTs, wash trading is fairly straightforward: Imagine an investor holds $1 million in Ether (ETH). The investor mints an NFT and proceeds to sell it to themself for all the ETH they own. The transaction is then on the blockchain for $1 million in ETH. The price of the NFT has been set through a wash trade to the benefit of the individual who minted the NFT.
It might be tempting to think that this is a “victimless” crime since it’s unlikely any money actually changed hands if it was a wash trade, but that’s false. By rewarding allegedly fake high-volume traders with real money, NFT investors stand to lose millions to scammers, and legitimate traders may be fooled into overpaying for their investments.
These fraudulent transactions also drive Gresham’s Law (bad money drives out good money) in crypto, driving out legitimate investors and traders as the exchange’s reputation is destroyed.
When it comes to NFTs, however, the rules are not so clear. Such tokens may not be securities, so the same laws and regulations governing securities trading may not apply to them.
The background on wash trading laws
Wash trading has been barred in the United States since the passing of the Commodity Exchange Act in 1936 in response to its popularity as a manipulation tool. Since then, however, the Securities and Exchange Commission and Commodities Futures Trading Commission have carefully scrutinized markets and brought numerous enforcement actions for “wash traders,” thereby adding a degree of safety to the securities and futures markets.
According to the SEC, “Wash trading is an abusive practice that misleads the market about the genuine supply and demand for a stock.” Meanwhile, the U.S. Internal Revenue Service prohibits taxpayers from deducting losses that result from wash sales, so it is entirely possible that wash trading NFTs could result in an enforcement action. It hinges on how NFTs are classified by regulators.
Traders should examine sales history closely before buying NFTs
Accepting the idea that cryptocurrencies tend to be volatile, along with the slow pace of enforcement actions against new assets like NFTs, it seems natural that many sellers will try to inflate their asset’s value to attract new buyers and earn a profit. NFT buyers should think twice and do their due diligence before making a significant investment into an NFT.
NFT sales to self-financed addresses in 2021. Source: Chainalysis
It may seem like they are getting a valuable asset because of the number or size of transactions in which the investment has been involved, but the truth may be that the asset was only bought and sold between two wallets owned by the same person making the asset appear more in demand that it actually is.
The SEC is probably already preparing to bag its first NFT traders
Even with laws and enforcement actions, we still see wash trading in the regular securities and commodities market, so you can be certain it exists in newer and evolving markets. Hopefully, the SEC is already working on enforcement in the NFT market. Investigations are generally nonpublic, so some traders may already be in regulators’ sights. It’s a safe bet that in the long run, federal regulators will catch up with this new asset class, and wash trading among NFTs will be reined in as well.
The SEC should move to protect investors, first by ruling that NFTs will be treated like securities, and then monitoring exchanges for signs of manipulation as they do for other asset classes.
Brendan Cochrane, Esq., CAMS is the blockchain and cryptocurrency partner at YK Law LLP. He is also the principal and founder of CryptoCompli, a startup focused on the compliance needs of cryptocurrency businesses.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Cointelegraph announces the appointment of Wes Kaplan to the role of CEO as Jay Cassano becomes a member of the advisory board.
Cointelegraph has appointed Wes Kaplan, the company’s thriving chief business development officer, as the new CEO of Cointelegraph. He takes over leadership from award-winning journalist Jay Cassano, who has served as CEO since September 2020 after joining as editor-in-chief in mid-2019.
“I’m thankful for the opportunity to take the largest crypto news agency in the world to new heights, collaborating with an inimitable editorial team and some of the most creative minds working in the field today,” Kaplan said, adding: “It is a rare joy to take the helm of a company that I’ve long admired, building on the exceptional work of Jay Cassano and expanding the ethos of Cointelegraph.”
Prior to joining Cointelegraph, Kaplan shook up the crypto world as marketing lead at trading exchange AscendEX. Kaplan has extensive experience in operations, brand development, marketing and business management, lending leadership and expertise to a range of companies, including Tradewind Markets, BNY Mellon and JPMorgan Chase.
Looking forward
Over the last year, Kaplan has helped transform business development at Cointelegraph, amplifying existing financial verticals and paving the way for new ventures.
Kaplan outlined: “As a marketer, strategist and crypto enthusiast, upholding the tenets of trusted journalism, broadening Cointelegraph’s business operations and reimagining how we communicate with crypto communities from Lagos to Miami is a vision I’m profoundly dedicated to safeguarding.”
“We are going to build on what’s worked in the past, carve out new pathways to stay on the cutting edge and continue to optimize the company across sectors.”
The relationship continues
While Cassano has stepped down as CEO, he will remain in the Cointelegraph ecosystem as a member of the advisory board, focusing on strategic initiatives.
“I’m immensely proud of what the team here has accomplished over the past three years, both in editorial and on the business side,” Cassano shared. “We have launched new verticals such as Markets and Magazine, inaugurated the annual Top 100 list, and created new products and services such as Markets Pro, CT Studio and the Cointelegraph Innovation Circle.”
“When I brought Wes in to join our team at the start of the year, I knew it was a special moment for the company and the start of something truly meaningful. With Wes at the helm as CEO, I feel confident that Cointelegraph will only continue to impress and excite our readers and ever-growing community.”
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Ryan Berckmans, Ethereum community member and investor, discussed the potential consequences that the Tornado Cash ban could have on the future of the network.
The Ethereum network will be able to withstand censorship risks both in the short and long term, according to Ethereum community member and investor, Ryan Berckmans.
The ban of Ethereum-based privacy tool ornado Cash by U.S. authorities earlier this month left many wondering whether Ethereum transactions could be also at risk of censorship, especially after Ethereum’s imminent transition to a proof-of-stake system.
A widely spread concern is that entities controlling a large chunk of staked Ether (ETH), such as Coinbase or Kraken, would start censoring transactions ito comply with U.S. sanctions. That is an unlikely scenario according to Berckmans, who sees the high centralization of staked ETH as a temporary issue.
With time, the costs of entry to the staking business will be dropping due to the “maturity of open source tools and industry expertise as well as the generally reduced risk profile,” said Berckmans. That will allow more and more players to enter the staking business, thus reducing the dominance of large staking pools.
"The idea that these will be able to somehow sustainably censor user transactions or affect the fork choice in Ethereum, it's just not a credible idea", Berckmans pointed out.
Moreover, according to Berckmans, the Tornado Cash ban in the U.S. was a policy mistake that is unlikely to result in more government sanctions. He said that U.S. policymakers are likely to acknowledge the mistake and take a more favorable approach to Ethereum, which is "inherently aligned with America's interests".
"Ethereum is about permissionless innovation, free enterprise, property rights, globalization”, Berckmans explained.
To attack Tether’s reserves [...] further highlights an agenda by the publication to single out Tether and hurt its reputation,” the USDT issuer said.
Tether Holdings Limited has clapped back at The Wall Street Journal over an article it claims spread “false information” about the stablecoin issuer’s profitability, solvency and accounting standards.
The August attestation was conducted by BDO Italia, the Italian arm of international accounting firm BDO Global. As Cointelegraph reported, Tether hired BDO Italia to increase the legitimacy and transparency of its attestations. In the process, the stablecoin issuer upped the frequency of its reporting from quarterly to monthly.
“The article seeks to discredit the work that Tether has put into transparent and honest communication to the public,” Tether said in a Tuesday blog post. “BDO, a very reputable and independent Top 5 audit firm, is not a “Tether accounting firm,” as erroneously written by the WSJ.”
In the blog post, Tether refuted the Journal’s claims that its exposure to short-term U.S. Treasury bills is an unsafe strategy. Tether also clapped back at assumptions that its business is unprofitable:
“According to our Consolidated Reserves Report, Tether has never disclosed any equity despite being profitable for several years. This same report has been deemed appropriate by important stakeholders and it has been accepted by the NYAG. Perhaps the WSJ has confused Tether with some of its competitors.”
As the crypto market’s oldest and largest stablecoin issuer, Tether is no stranger to criticism. Detractors hav long claimed that Tether’s USDT stablecoin is not adequately backed by reserves. Others have criticized the company’s use of commercial paper as backing. On June 27, The Wall Street Journal reported that short sellers have been “ramping up their bets against Tether” after the collapse of the Terra (Luna) — now renamed Terra Classic (LUNC) — ecosystem.
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Court documents allege that the recipient used a portion of the funds to purchase a luxury mansion upon receipt.
According to local news outlet 7News, two Melbourne women, Manivel Thevamanogari and her sister Gangadory Thevamanogari, received an AUD$10.5 million deposit from Singaporean crypto exchange Crypto.com after the latter made an error in issuing an AUD$100 refund. Instead of the refund amount, an employee allegedly typed an account number in the payment section, resulting in an erroneous transfer to their bank account.
The incident occurred back in May 2021, but was not discovered until an annual audit in December 2021. After filing a lawsuit, the Victoria Supreme Court recently ruled that the funds must be returned to the company. However, it turns out that Manivel has already spent AUD$1.35 million worth of the funds on a five-bedroom luxury home in Craigieburn. She was ordered to sell the property and return the remaining funds or face potential contempt of court charges. The case will return to court in October.
Regarding the case, Justin Lawrence from Henderson and Ball Lawyers said:
"There's no doubt that if you saw that in your account, you would know it shouldn't be there, and the onus is actually on you to call the sender and say, look, that shouldn't have come into my account."
Unlike crypto transactions, which are final and irreversible, it is possible for centralized financial institutions to reverse erroneous transactions. However, given the time it took to discover the error and that the funds from Crypto.com were transferred out of the original account post-receipt, a simple transaction reversal would have been impossible in this instance.
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“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said Thailand's financial regulator.
Thailand’s Securities and Exchange Commission, or SEC, announced enforcement actions against the chief technology officer of crypto exchange Bitkub, who allegedly used insider information around the purchase of Bitkub Coin (KUB).
In a Tuesday announcement, the Thai SEC said it had fined Bitkub chief technology officer Samret Wajanasathian 8,530,383 baht — roughly $234,000 at the time of publication — and intended to bar him from being a director or executive officer at any crypto firm for a year. The financial regulator alleged Wajanasathian purchased roughly $61,000 worth of KUB tokens in advance of an announced deal in which Siam Commercial Bank, or SCB, said it would purchase a 51% stake in the crypto exchange. The news drove the price of KUB up by 101%.
“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said the SEC.
The Thai SEC said Wajanasathian still has to sign a memorandum of consent before the “period of prohibition from being a director or executive” at a crypto firm could take effect. The chief technology officer’s LinkedIn page showed his position at Bitkub was unchanged at the time of publication, but he did not appear on the company website.
On Thursday, the SCB announced that it had abandoned a $500-million plan to become the majority shareholder of Bitkub due to concerns about the crypto exchange “resolving various issues,” according to recommendations from the SEC. It’s unclear whether the bank was privy to the financial regulator’s impending enforcement actions against Bitkub’s chief technology officer.
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Data from Cointelegraph Markets Pro and TradingView captured the latest dive below the 2017 bull market peak for BTC/USD, with United States equities dropping in step.
The S&P 500 and Nasdaq Composite Index lost 1.1% and 1.25% in the first hour, respectively, while BTC/USD shed 2.5% during a single hourly candle.
The latest moves came as no surprise to traders already wary of a deeper correction for the largest cryptocurrency. Previously, many had called for a retracement toward the macro lows seen in June.
For popular trader Crypto Ed, both Bitcoin and Ether (ETH) offered good opportunities for an upcoming short trade. In Bitcoin’s case, the target was $18,000 if the area of around $19,800 failed to hold.
Fellow popular account Il Capo of Crypto stuck by a prognosis for major support at $19,000, with $16,000 then becoming a target should weakness prevail.
He subsequently noted that fading ask positions on derivatives platforms had opened up the potential for a fresh relief bounce.
“Feels like Bitcoin has a date with the red range below, between $17.8k–$18.9k. Is it guaranteed? Absolutely not, but it's certainly something I'll be watching for,” Caleb Franzen, senior market analyst at Cubic Analytics, stated the day prior alongside various charts.
“Quite simply, each breakdown has resulted in price retesting the low of the prior selloff. These "capitulation wicks" became the nice price target once the support trendline failed, eventually leading to a new "capitulation wick." Bulls want this pattern to end.”
Weekly lows stood at $19,500 for BTC/USD, these coming in slowfor a test as the pair slid below $19,800 at the time of writing.
The U.S. dollar index (DXY) nonetheless saw a spike on the day, taking it above 109 and to within 0.5 of the highs from the day prior.
Should an about turn occur on shorter timeframes, he forecast, Bitcoin could gain the momentum to crack $22,500.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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“This will enable people to connect their digital wallets once to either app in order to share their digital collectibles across both,” said Meta.
Facebook and Instagram users can both post nonfungible tokens, or NFTs, and digital collectibles to their accounts by linking their wallets.
In a Monday update to a May 10 blog post, Facebook’s parent company Meta said the social media platform’s roughly 2.9 billion users would have the ability to share digital collectibles and NFTs. The announcement followed an Aug. 4 update in which Meta said Instagram users across 100 countries could post digital collectibles minted on the Flow blockchain or from wallets supporting the Ethereum or Polygon blockchains to their accounts, estimated to be between 1 billion and 2 billion users as of the second quarter of 2022.
Source: Meta
“As we continue rolling out digital collectibles on Facebook and Instagram, we’ve started giving people the ability to post digital collectibles that they own across both Facebook and Instagram,” said Meta. “This will enable people to connect their digital wallets once to either app in order to share their digital collectibles across both.”
We’re introducing the ability to post digital collectibles across @facebook and @instagram. You can now connect your digital wallet to either app to share your #NFTs on both.
Connecting digital wallets to either Facebook or Instagram seems to be limited to the apps rather than through third-party browsers. However, expanding the reach of NFTs into each and every smartphone with one of Meta’s apps installed could result in additional earnings or adoption for the social media giant. In May, Meta also filed applications with the United States Patent and Trademark Office for its namesake to be used in a crypto payments platform called Meta Pay.
Though Meta abandoned launching its own stablecoin in February after facing pushback from regulators globally, CEO Mark Zuckerberg said there was a “massive opportunity” to make up to trillions of dollars in the digital asset space as it grows. The company reported a 1% drop in revenue year over year in the second quarter of 2022.
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0xfanfaron has vouched to personally compensate the firm's treasury for all trading losses.
According to a recent blog post, 0xfanfaron, CEO of nonfungible tokens (NFTs) gaming project Ragnarok, apologized publicly for his missteps in leading the company. Ragnarok is a crypto startup that brought in $15.5 million worth of Ether (ETH) for gaming development in April through its first-ever NFT sale. However, 0xfanfaron disclosed:
"We exchanged the ETH from the mint for 15.5 million in USD Coin. As it turns out, this was a good move in treasury management. But when ETH's price went down, I made mistakes by buying ETH multiple times when I thought it was an advantageous investment for the project."
0xfanfaron further elaborated that he sold the firm's Ether positions through a series of trades with the plan to reinvest at a "better time." The venture led to $1.827 million in realized losses. Among Ragnarok's other expenses during that time were $1.9 million paid for outsourcing development work and $6.9 million in salaries and compensation to team members.
0xfanfaron vouched he will be "compensating the Ragnarok treasury for all trading losses." This will be done via returning $600,000 from the NFT sale, a payment of 163.8 Ether, and reducing his NFT compensation by $600,000, along with taking a pay cut of $200,000 for the next four months. Another team member, Krimbo, also pledged to return $250,000 worth of his compensation.
For greater transparency, 0xfanfaron published a list of wallets that will be used to compensate the firm's trading losses. To move forward, he pointed out that the firm still has over $10 million in its treasury remaining and claims to have the full support of investors in continuing as CEO. Ragnarok expects to launch its first game arcade within the next seven months.
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“We are not planning to acquire Huobi,” said Sam Bankman-Fried, who manages assets at Alameda Research and leads crypto exchange FTX.
Global crypto exchange FTX will not be acquiring a majority stake in Huobi, according to CEO Sam Bankman-Fried, or SBF.
In a Monday tweet, SBF explicitly denied a Bloomberg report that claimed FTX was planning to purchase crypto exchange Huobi. Cointelegraph reported on Aug. 12 that Huobi co-founder Leon Li was considering selling his majority stake, valued at more than $1 billion, in the company.
“We are not planning to acquire Huobi,” said SBF.
Just to be explicit because apparently a lot of people are saying this:
Under SBF’s leadership, both FTX and Alameda Research have stepped in a few times amid the bear market to bail out crypto firms facing liquidity issues. In a June NPR interview, Bankman-Fried said both companies had “a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion” as it would be “healthy for the ecosystem.”
“We want to help those we can in the ecosystem, and have no interest in hurting them — that just hurts us and the whole ecosystem.”
In June, Alameda offered Voyager Digital a $200 million USD Coin (USDC) loan and a “revolving line of credit” of 15,000 Bitcoin (BTC), worth roughly $300 million at the time. FTX also extended a $250-million revolving credit facility to BlockFi, a company that reportedly grew by roughly 250,000% in 2022 despite cutting 20% of its staff.
FTX has made many high-profile acquisitions both before and during the recent market downturn, announcing plans to purchase crypto exchange Bitvo in July as part of its move into the Canadian market, and the Japan-based Liquid Group and its subsidiaries in February. However, in August regulators targeted FTX US for allegedly falsely representing deposit insurance related to crypto holdings.
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First announced on Aug. 4, the euro-denominated Ether futures represent investment vehicles launched prior to the blockchain's transition to proof-of-stake.
Derivatives marketplace Chicago Mercantile Exchange Group has launched trading for Bitcoin euro and Ether euro futures contracts.
In a Monday announcement, CME Group said that it launched contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures sized at 5 BTC and 50 ETH per contract. Both contracts will be listed on CME, cash-settled and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively.
"Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap,” said CME Group global head of equity and FX products Tim McCourt.
First announced on Aug. 4, the euro-denominated ETH futures represent investment vehicles launched prior to the Merge in which the Ethereum blockchain transitions to proof-of-stake — expected between Sept. 10 an20. Cointelegraph reported that countries in Europe, the Middle East and Africa represented 28% of all trading for BTC and ETH futures contracts.
CME Group launched its first BTC futures contract in December 2017, followed by an ETH futures contract in February 2021. In 2022, the derivatives exchange expanded its offering of crypto investment vehicles to include micro BTC and ETH futures. The launch of euro-denominated BTC and ETH futures came as the euro remained at parity with the U.S. dollar — at the time of publication, 1 euro is worth roughly $1.
According to data from Cointelegraph Markets Pro, the price of ETH is $1,509 at the time of publication, having risen more than 3% in the last 24 hours. The BTC price fell below $20,000 on Sunday, hitting a 20-month low, but since rose 2% to reach $20,342.
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Read this article to know why DeFi, GameFi and SocialFi are not just verticals but also horizontals in a metaverse.
All for one and one for all
We need GameFi, DeFi and SocialFi to create a holistic Metaverse experience. Even with metaverses focusing on one purpose, these elements are essential to ensuring viability and scale.
In essence, a metaverse can scale only if DeFi, GameFi and SocialFi can work together seamlessly. DeFi, in essence, would take care of the financial elements, GameFi the experiential elements and SocialFi the credibility elements for the economic actors.
Without the DeFi elements, a metaverse would lack commercial scalability. Without the GameFi elements, the community would lack the experience motive for continually returning to it. Finally, without the SocialFi angle, the ecosystem’s credibility would not be established. The SocialFi elements ensure users and creators get credentials for their value addition.
This is not to say we won’t see a metaverse that focuses on football, Hollywood or art. But, even in these metaverses, there will need to be mini-games, microtransactions and ecosystem rankings. We are already seeing several SAAS platforms providing these bells and whistles so that teams can focus on the core purpose of their metaverses. All these must come together to create a sustainable economy, sticky platform and an immersive experience for the users and creators of the Metaverse.
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Ecosystem-specific experiences
The future of value creation and exchange will know no national boundaries and jurisdictions. They will all be ecosystem specific. Therefore, all use cases need to be ecosystem-specific.
The future for DeFi, GameFi and SocialFi may be embedded. But, this embedding can only be implemented in a well-oiled ecosystem. The Metaverse that brings these user functions together will not only have experiential elements but also utilitarian and gamification elements.
For instance, a metaverse in which DeFi can be applicable will need to have opportunities for microtransactions. A metaverse in which SocialFi can be embedded will need to have an ecosystem that has creators and consumers contributing, being compensated and acknowledged for these contributions.
Let us now look at what we could see as embedded DeFi. Many of these have already been implemented in several metaverses.
Embedded DeFi
As this space evolves, we see microtransactions, nonfungible token (NFT)-based lending, rental mechanisms, NFT marketplaces, micro token economies, token exchanges and many more bells and whistles that will support the Metaverse economy. Each of these features have their purpose in establishing a scalable economic model within the Metaverse.
For instance, Ecommerce within the Metaverse is already being tried in several ecosystems. Imagine a user with a good bag of NFTs, going into an art gallery. The art is expensive, and the user is short of liquidity. If NFT-lending has been integrated, the user could use their Ape or Punk to borrow some USDC to buy the art.
In the scenario described above, the user interface is extremely important in making the transaction frictionless. In the above example, instead of an Ape, if the ecosystem has a native NFT, that could be used more seamlessly. These NFTs will be more valuable as the user spends more time in the ecosystem — particularly if there are mechanisms by which they can be leveled up.
As users invest more time and effort in upgrading the value of their ecosystem assets like NFTs, land or in-game assets, these assets will play an important role in DeFi elements, which the user can leverage.
Embedded GameFi
The term GameFi is often used in the context of large play-to-earn platforms like Axie Infinity. Yet, in many instances, gamifying an experience is as important as GameFi. Often, these features do not need to be intense Fortnite style gaming experiences. They can use casual games, leaderboards, loot boxes, battle passes and raffles to provide gamified experiences.
Much like DeFi components that add value to the economic model, GameFi elements are not only helpful in increasing user retention, but also critical to keeping users engaged and invested in the platform.
Components of GameFi rely on both DeFi and SocialFi to succeed. For instance, those who want to be part of a leaderboard can borrow or rent an NFT to participate. On a similar note, the leaderboards are only effective if the SocialFi elements are built with gamers and creators in mind.
Embedded SocialFi
Last but not least, SocialFi keeps the soul of the creator’s economy intact in a metaverse implementation. A metaverse often involves various stakeholders: asset creators, asset holders, gamers and/or users. A sustainable model is achieved when all these stakeholders or economic actors are incentivized proportional to the value they add.
This is often where gamifying the experience interacts with SocialFi principles. For instance, gamers who play and win consistently go up the ladder within the ecosystem. As a result, they will accumulate experience points. Similarly, creators whose assets perform well in the ecosystem will be rated highly.
This form of “social swag” is also critical in DeFi transactions. Creators and gamers with social scores or experience points can get better deals when they tap into the DeFi components of the Metaverse. More social swag allows economic participants to accrue value within the ecosystem faster.
Most of these activities within the Metaverse are on-chain, and concepts like soul-bound tokens can also be used to build credibility within a Metaverse economy.
Conscious vs. unconscious experiences
Understanding the differences between conscious and unconscious experiences is essential for seeing how these applications interact in the Metaverse. Should they blend in or should they stand out?
Let us consider examples of a conscious and an unconscious experience. If a passenger went to the ticket counter, picked up £10 from their wallet and bought a ticket for a train journey into London, it is a conscious user experience. If a passenger walks into the station and uses near field communication (NFC) on their phone to tap and walk through the barrier to take the train, it’s an unconscious experience.
One of the key goals In traditional fintech applications is to make performing financial transactions seamless, frictionless and as unconscious as possible. Similarly, you do not have to compete with your friend or colleague in a “Call of Duty” experience. The competitive spirit can be gamified through likes and views on Instagram.
Coming back to the Metaverse, all three paradigms — DeFi, GameFi and SocialFi — would be embedded experiences. This is not to say we won’t have metaverses like the Otherside where people come to play. But many of these paradigms will be unconscious experiences, making the paradigms more horizontal (embedded) than verticals (standing out from unconscious actions).
The Metaverse, the convergence
The Metaverse is expected to be the next avatar of the internet. As the internet is now, the Metaverse will have various virtual economic models powered by Web3. These models can have their roots in financial services, gaming or social media. Yet, there will be constant cross-overs and interactions across these models as they coexist in the Metaverse.
In the world of Web3, we often perceive decentralized finance (DeFi), GameFi and SocialFi as separate verticals or sectors. The inception of these three subclusters of Web3 happened at different times over the last few years. But as the space evolves and the Metaverse concept of matures, we are more likely to see them integrate into a Metaverse experience as horizontals.
All of these concepts are still in their nascent stages and use crypto to support their economic models. Most of the current implementations within DeFi, GameFi and SocialFi are standalone decentralized applications (DApps). However, that is set to change with the Metaverse becoming a part of the household.
Let us understand why it is critical to differentiate the capabilities of verticals versus horizontals. When we look at a GameFi application within a metaverse, we see that it is a dedicated gaming experience that draws users into the Metaverse. They play the game and leave the platform fulfilled.
The same can be the case for DeFi and SocialFi apps as verticals. For users who come to the platform to perform DeFi transactions or want to interact with their friends in Twitter or Instagram-like experiences, the apps are there as verticals. They stand out as an experience.
But the Metaverse is not just a collection of applications. It is more a bundle of conscious and unconscious user experiences within a scalable economic model. The conscious experiences can be categorized as verticals and the unconscious experiences as horizontals.
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Interoperability enables blockchain networks and protocols to communicate with each other, making it easier for everyday users to engage with blockchain technology.
Every year, we see new blockchain networks being developed to tackle specific niches within certain industries, each blockchain having specialized functions based on its purpose. For example, layer-2 scaling solutions like Polygon are built to have ultra-low transaction fees and fast settlement times.
The increase in the number of new blockchain networks is also a result of the recognition that there is no one perfect solution that will be able to meet all of the needs associated with blockchain technology all at once. Therefore, as more organizations become aware of this rising technology and its capabilities, the interconnection of these unique blockchains is becoming necessary.
What is interoperability?
Blockchain interoperability refers to a wide variety of methods that enable many blockchains to communicate, share digital assets and data and work together more effectively. This makes it possible for one blockchain network to share its economic activity with another. For example, interoperability allows transmitting data and assets across different blockchain networks via decentralized cross-chain bridges.
Interoperability is not something that most blockchains have because each blockchain is built with different standards and code bases. Since most blockchains are naturally incompatible, all transactions must be done within a single blockchain, no matter how many features the blockchain might have.
Marcel Harmann, founder and CEO of THORWallet DEX — a noncustodial decentralized finance (DeFi) wallet — told Cointelegraph: “Interoperability can be understood as freedom in data exchange. Currently, base layer protocols cannot communicate with each other effectively. Layer-1 protocols like Ethereum or Cosmos have smart contracts built into their fabric, only permitting secure data exchange within their own ecosystems. Digital asset transfers that leave the network pose a question: How can a blockchain trust the state validity of another blockchain?”
Harmann continued, “Consensus mechanisms on each blockchain decide the canonical history of all the transactions that were validated. This produces extremely large files that must be processed with each block and can only be viewed in the specific language native to the blockchain. Interoperability between two or more blockchains refers to one or both chains being able to understand and process the history of the other chain, thus enabling, for example, the exchange of assets between different layer-1 networks.”
Even though it seems obvious that public blockchain projects should be designed with interoperability in mind from the start, this is not always the case. However, organizations are increasingly calling for interoperability because of the benefits of sharing information and working together.
Why is interoperability important?
To realize the full potential of decentralization, it is beneficial for
people participating in several blockchains to be linked through a single protocol. This reduces friction for the user since they can access different decentralized applications (DApps) without having to change networks.
Due to blockchains operating independently from each other, it’s difficult for users to take advantage of the benefits presented by each network. To do so, they need to hold tokens supported by each blockchain to engage with the protocols within their network.
Interoperability can fix this problem by enabling users to use one token across multiple blockchains. In addition, by enabling blockchains to communicate with each other, a user can access protocols on multiple blockchains with greater ease. Because of this, there is a better chance that the industry’s value will continue to grow.
Fabrice Cheng, co-founder and CEO at Quadrata — a Web3 passport network — told Cointelegraph:
“Interoperability is crucial because it's one of the key benefits to blockchain technology. Decentralized open-source technology allows the creation of products that are interoperable across chains, enabling more users, businesses and institutions to stay interconnected.”
Cheng continued, “People who use blockchain technology want to make sure people are screened, KYC-verified and have good credit behavior. DeFi users can access trading options or have access to real-time price feeds. Interoperability is an efficient way to remove intermediaries for users and allows businesses to focus on their core values.”
When it comes to decentralized finance, giving traders more ways to use their assets can bring additional growth and opportunities to the sector. For instance, multichain yield farming enables investors to generate multiple returns as passive income on many blockchains for owning a single asset.
The investor would only need to hold Bitcoin (BTC) or a stablecoin like USD Coin (USDC) and then spread it across multiple protocols on different blockchains via bridges. Interoperability will also improve liquidity across multiple blockchain networks since it will be easier for users to move their funds across different chains.
Interoperability does not only refer to connectivity between blockchains. Protocols and smart contracts are also interoperable. For example, t3rn, a smart contract hosting platform, enables smart contracts to operate on multiple blockchains. This works by the smart contract being hosted on the smart contract platform and being deployed and executed across different blockchain networks. Interoperable smart contracts make it easier for developers to create cross-chain applications and for users to run cross-chain transfers.
Interoperable smart contracts will make it easier for users to access multiple decentralized applications since they won’t have to change networks. For example, suppose a user uses a DApp on Ethereum and wants to access a lending protocol on Polkadot. If the Polkdadot-based DApp has an interoperable smart contract, they access it on Ethereum.
Oracles are another protocol that can benefit from interoperability. Oracles are entities that connect real-world data to the blockchain via smart contracts. Decentralized oracle platforms like QED can connect oracles to multiple blockchain networks, making it possible for real-world data to be shared across blockchains. In addition, oracles can take data from an API or sensor and submit it to a smart contract to activate once certain conditions have been met.
For example, a supply chain has multiple organizations that use different blockchain networks. Once a component in the supply chain reaches its destination, the oracle can submit data to the smart contract confirming its delivery. Once delivery is confirmed via an oracle, the smart contract releases a payment. Since the oracle is linked to multiple blockchains, each supplier can use the network of their choice.
Interoperability is also important for the exchange of digital assets between blockchain networks. One of the most common ways this is done is by the use of cross-chain bridges. In simple terms, cross-chain bridges allow users to transfer tokens from one blockchain to another.
Wrapped tokens, for example, allow users to use Bitcoin (BTC) on the Ethereum network as Wrapped Bitcoin (wBTC). This is important in the DeFi industry since users can engage with DeFi without buying a platform’s native token, which may be more volatile than stablecoins or blue chip coins like BTC or Ether (ETH).
Being able to easily move assets between blockchain networks is a major benefit of interoperability. Anthony Georgiades, co-founder of the Pastel Network — a nonfungible token (NFT) and Web3 infrastructure and security project — told Cointelegraph:
“Interoperability is of vital importance to the blockchain industry due to the diversity of data and assets found within the crypto ecosystem. Decentralized cross-chain bridges are necessary to facilitate transfers between different kinds of tokens or assets.”
The key to the success of blockchain technology will be the level of interaction and integration between the many blockchain networks. Because of this, interoperability between blockchains is crucial since it reduces the barrier to entry for users who want to engage with protocols across multiple networks.
Interoperability across blockchains will enhance productivity throughout the whole crypto sector. Users can quickly move data and assets across blockchains, increasing flexibility for everyone involved. Instead of being tied to a single blockchain, smart contracts can function on multiple networks and oracles will submit real-world data across different platforms. When combined with the advantages of public decentralized blockchains, interoperability should provide the basis for widespread blockchain adoption and utilization.
Georgiades continued, “Therefore, interoperability allows users to transmit cryptocurrency from one blockchain to another and enables users to post tokens or NFTs as collateral for other assets. An interoperable Web3 world is a vision we are tirelessly working towards. A multichain ecosystem facilitated by seamless cross-chain bridges will get us there and bring that vision to fruition.”
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Bitcoin price looks set for more downside, but this could present trade opportunities in MATIC, ATOM, XMR and CHZ.
The United States equities markets plunged on Aug. 26 following Federal Reserve Chair Jerome Powell’s speech where he reiterated the central bank’s hawkish stance. Continuing its correlation with the equities market, Bitcoin (BTC) and the cryptocurrency markets also witnessed a sharp selloff on Aug. 26.
Bitcoin has declined about 14% this month, making it the worst performance for August since 2015 when the price had dropped 18.67%. That may be bad news for investors because September has a dubious record of a 6% average loss since 2013, according to data from CoinGlass.
Although buying in a downtrending market is not a good strategy, traders can keep a close watch on cryptocurrencies that are outperforming the markets because, in case of any turnaround, these are likely to be the first off the block. In a bear market, traders should be patient because they are highly likely to find plenty of opportunities to buy after the market stabilizes.
What are the critical levels to watch on Bitcoin? If it stages a turnaround, what are the cryptocurrencies that may outperform in the short term? Let’s study 5 cryptocurrencies that are looking strong on the charts.
BTC/USDT
A weak rebound off a strong support indicates that bulls are hesitant to aggressively buy at the level. The bulls successfully defended the support line for several days but could not push the price above the 20-day exponential moving average ($21,806). This shows a lack of demand at higher levels.
BTC/USDT daily chart. Source: TradingView
Bears pounced upon the opportunity and pulled the price below the ascending channel on Aug. 26. The 20-day EMA is sloping down and the RSI is near the oversold zone, indicating that bears are firmly in the driver’s seat.
The BTC/USDT pair could drop to the strong support zone between $18,910 and $18,626. If the price rebounds off this zone, the bulls will try to push the price above the 50-day simple moving average ($22,340). If they manage to do that, the pair could rise to $25,211.
Conversely, if the price breaks below $18,626, the pair could retest the June 18 intraday low at $17,622. The bears will have to sink the price below this level to signal the resumption of the downtrend.
BTC/USDT 4-hour chart. Source: TradingView
The downsloping moving averages on the 4-hour chart indicate that bears are in command but the positive divergence on the relative strength index (RSI) suggests that the sell pressure could be reducing.
The first sign of strength will be a rise above the 20-EMA. If that happens, the pair could rise to the 50-SMA. A break above this level could signal that the correction may be over.
On the contrary, if the price breaks below $19,800, the selling could pick up momentum and the pair may plummet to the $18,910 to $18,626 zone.
MATIC/USDT
Polygon (MATIC) has rebounded off its strong support, which shows that bulls are defending the level aggressively. This increases the likelihood of the range-bound action continuing for a few more days. That is one of the reasons for focusing on this altcoin.
MATIC/USDT daily chart. Source: TradingView
The bulls are attempting to push the price above the moving averages. If they can pull it off, it will suggest that the MATIC/USDT pair could attempt a rally to the overhead resistance at $1.05. This level could attract strong selling by the bears.
Alternatively, if the price turns down from the moving averages, it will suggest that bears are selling on rallies. The bears will then attempt to sink the price below the crucial support at $0.75. If they succeed, the pair could decline to $0.63.
MATIC/USDT 4-hour chart. Source: TradingView
The bulls have pushed the price above the moving averages, which is the first indication that the selling pressure may be reducing. Another positive sign is that the RSI has made a positive divergence, a sign that the bears may be losing their grip.
The buyers will try to push the price above the overhead resistance at $0.84. If they succeed, the pair could rally to $0.91 which may again act as a strong resistance. To invalidate this positive view, the bears will have to sink the price below $0.75.
ATOM/USDT
Cosmos (ATOM) has been selected because it is trading above the 50-day SMA ($10.58) and is near the psychological support at $10.
ATOM/USDT daily chart. Source: TradingView
The bulls are expected to defend the zone between $10 and the 50-day SMA aggressively. If the price rebounds off this zone and rises above the 20-day EMA ($11.39), it will indicate that the selling pressure may be reducing.
The ATOM/USDT pair could then rise to the overhead resistance at $12.50 and later to $13.45. A break above this level could suggest that the downtrend may be over.
Contrary to this assumption, if the price turns down and slips below the support zone, it could start a deeper correction. The pair could then decline to $8.50.
ATOM/USDT 4-hour chart. Source: TradingView
The 20-EMA has turned down on the 4-hour chart and the RSI is in the negative territory, indicating that bears have the edge in the near term. The sellers will have to sink and sustain the price below the uptrend line to challenge the psychological support at $10.
Conversely, if the price rebounds off the uptrend line, it will suggest that bulls are buying the dips to this level as they have done on previous occasions. The buyers will have to push the price above the moving averages to open the doors for a possible rally to $12.50.
Monero (XMR) has made it to the list because it is holding above its immediate support at $142. This suggests that lower levels are attracting buyers.
XMR/USDT daily chart. Source: TradingView
If bulls drive the price above the 20-day EMA ($153), it will suggest that the correction may be over. The XMR/USDT pair could pick up momentum if bulls drive the price above the overhead resistance at $158. If that happens, the pair could rally to $174. The bulls will have to clear this hurdle to signal the resumption of the up-move.
This positive view could invalidate in the near term if the price turns down and breaks below the strong support at $142. If that happens, the pair could slide to $132 and later to $117. The downsloping 20-day EMA and the RSI in the negative territory indicate that bears have a slight edge.
XMR/USDT 4-hour chart. Source: TradingView
The buyers are attempting to push the price above the 20-EMA. If they manage to do that, the pair could rise to the 50-SMA, which may again act as a stiff resistance. If bulls overcome this barrier, the pair could rise to $158. A break and close above this resistance will suggest a change in the short-term trend.
Conversely, if the price turns down from the 20-EMA, it will suggest that bears are selling on minor rallies. The pair could then decline to the strong support at $142. If this support cracks, it will suggest the start of a deeper correction.
CHZ/USDT
Chiliz (CHZ) has found a place in this list for the third consecutive week. That is because, even after the recent correction, it remains in an uptrend.
CHZ/USDT daily chart. Source: TradingView
Buyers pushed the price above the overhead resistance of $0.26 on Aug. 23 and Aug. 24 but they could not sustain the higher levels as seen from the long wicks on the candlesticks. This may have tempted the short-term traders to book profits. That pulled the price down to the breakout level of $0.20, which is just above the 20-day EMA ($0.20).
The bulls purchased this drop and are attempting to resume the up-move toward the overhead resistance at $0.26. The bulls will have to clear this hurdle to open the doors for a possible rally to $0.33.
The rising moving averages suggest advantage to buyers but the negative divergence on the RSI indicates that the bullish momentum may be weakening. If the price turns down and breaks below the 20-day EMA, the advantage will turn in favor of the bears. The pair could then decline to the 50-day SMA ($0.15).
CHZ/USDT 4-hour chart. Source: TradingView
The 20-EMA on the 4-hour chart is flattening out and the RSI has been oscillating near the midpoint, indicating a balance between buyers and sellers. This could keep the pair range-bound between $0.20 and $0.26 for some time.
The next trending move could start if bulls push and sustain the price above $0.26 or below $0.20. Until then, the bulls are likely to buy the dips to the support at $0.20 and sell near the overhead resistance at $0.26. Trading inside the range is likely to remain volatile and random.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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