Crypto News: ETH Crash, SEC, Do Kwon, Terra, CPI & MORE!

[Music] Welcome to the coin bureau weekly crypto Review here are this week’s top Headlines in the crypto news [Music] Crypto market recap an overview of all The crypto and macro factors that moved The market last week and what other Effects they could have in the near term Ethereum achievement the second largest Cryptocurrency successfully transitions From proof of work to proof of stake so Why is eth crashing and why aren’t Institutions buying Sec versus cryptocurrency Securities and exchange commission Chairman gary gensler reiterates that Almost every cryptocurrency except btc Is a security what does this mean for Altcoins Terror investigation Law enforcement agencies target terror Co-founder do kwan four months after one Of the largest crypto catastrophes Everything you need to know Privacy coin crackdown hobie d lists Major privacy coins citing regulatory Concerns leading to more concerns that Other top exchanges could soon start Doing the same When could this happen And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and more in just a

Moment Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the crypto market resumed its Long-term downtrend after the inflation Figures for august in the united states Came in much hotter than expected Although the headline i.e main cpi was Lower than the previous month the core Cpi was actually higher If you watched our video about federal Reserve chairman jerome powell’s jackson Hole speech you’ll know that he said the Fed will continue to raise interest Rates until it sees more signs that Inflation is easing Now there were hopes that the august cpi Print would be another sign of declining Inflation but alas Investors are now anxiously awaiting the Fed’s next press conference which is Scheduled for this wednesday note that This will be the first time the fed has Met since before the summer break and it Looks like the fed could respond to the August cpi print with a larger than Expected rate hike If you’re subscribed to my weekly Newsletter you’ll know how much this

Could impact the crypto market in Percentage terms be sure to subscribe Using the link below to get my forward Guidance by the way Now another macro factor that seems to Have affected the crypto market is the News that the pandemic is coming to a Close According to the world health Organization the end of the pandemic is In sight and according to axios concerns About the pandemic are at their lowest Point yet Now in theory this should be very Bullish for markets because it means That any remaining pandemic-related Issues that are driving up inflation Could soon subside That being said there are growing Concerns that rising energy costs could Keep inflation high in the united states And elsewhere as winter approaches Besides the increased demand for energy For heating there are three other Factors to keep in mind going forward The first is that if the pandemic is Indeed coming to a close then it means The ongoing lockdowns in china could Likewise come to an end In a recent episode of block works macro Analyst andrew simon explained that the End of lockdowns in china would create a Surge in demand for energy from the Restart of manufacturing

This ties into the second factor and That’s that the united states has been Gradually emptying its strategic oil Reserves to reduce inflation at the pump It’s estimated that these oil reserves Will run out sometime in early november Which is coincidentally just before the Midterm elections coincidentally being The key word According to bloomberg the current Administration is looking to begin Refilling the us’s strategic oil Reserves before they run out the thing Is that they’re reportedly planning on Beginning their oil purchases when the Price hits 80 dollars a barrel Effectively setting a very high price Floor for oil in the country Now the third factor to keep in mind is One i mentioned last week and that’s That g7 countries are planning on Imposing a global price cap on russian Oil come early december the kremlin has Responded by saying that it will Effectively cut all exports of all kinds To the west if this price cap is applied Meanwhile the u.s treasury department Has threatened to sanction any country That makes quote significant purchases Of oil above the price cap This is probably why treasury secretary Janet yellen recently predicted that oil Prices will rise in the winter She knows the price cap will have this

Effect So what this means is that inflation is Likely to surge over the winter and this Will force central banks around the World to continue raising interest rates Aggressively to bring demand back in Line with supply as jerome recently said Seems he doesn’t know that demand for Heat in winter isn’t elastic In terms of crypto specific factors the Most significant was of course the merge Which saw ethereum successfully Transition from proof of work to proof Of stake last thursday The entire crypto market was rallying up To the merge but as you all know well The market crashed a few hours after the Event In addition to the poor cpi print from The day before eth’s poor price action Was due to eth holders selling the news According to blockchain analytics tools Like nansen and glassnode more than one Billion dollars of eth flowed onto Exchanges shortly before the merge the Most in six months If you watched our video about on-chain Analysis you’ll know that large amounts Of crypto moving on to an exchange Typically signals an intention to sell In this case it looks like most of the Sellers were ethereum miners whose eth Holdings had hit a four-year high at the End of august

Now to be clear some cell pressure from Ethereum miners and early eath holders Was expected and probably even priced in What was not expected or priced in However was how institutional investors Would react to the merge in other words The demand side of the post-merge eth Equation For context many eth holders were Expecting institutional investors to buy Up large amounts of eth the moment the Merge was complete This is because the merge lowered Ethereum’s energy usage something that Had been a big concern of esg obsessed Investors If you follow us on instagram however You’ll know that institutional investors Had actually begun offloading eth the Week before according to coin shares They chalked it up to concerns that Something might go wrong during the Merge and though that wasn’t the case It’s the right idea Basically it’s more than likely that Institutional investors are waiting on The sidelines to make absolutely sure That the merge was in fact a success Put differently they’re hanging back to See if something goes wrong on Ethereum’s beacon chain in the days and Weeks following the merge This might even include concerns around Centralization and it looks like there

Is no shortage of such concerns case in Point blockchain analytics tool Sentiment found that around 40 of blocks On the beacon chain are being produced By just two validators specifically Coinbase and lido finance Over the weekend coin telegraph reported That over 80 percent of all relay blocks On the beacon chain are being built by Flash bots a tool used to track and Mitigate minor extractable value or mev Now relay blocks and mev are outside the Scope of this video but i’ll leave a few Resources in the description for you Now it’s not just centralization on the Beacon chain that has eth holders Concerned about ethereum there are also Concerns about ethereum infrastructure Providers such as infuria which dominate Their respective layers of the ethereum Stack more about ethereum’s post-merge Condition later this week Now to infurer’s credit the company Recently announced that it will be Decentralizing its infrastructure Oddly enough infurer’s parent company Consensus explained that the plan has Always been to decentralize its products From day one including the popular Metamask browser extension wallet I say oddly because infuria’s Announcement came shortly after sec Chairman gary gensler commented that Proof-of-stake cryptocurrencies could be

Seen as securities As we’ve seen with cryptocurrencies like Xrp a securities designation would Result in a delisting from all u.s Exchanges and worse Gary’s comments could actually be Another reason why institutions haven’t Fo mode into eth just yet they are Likely waiting for regulatory clarity About eth’s post-merge status before Making any big moves Note that crypto regulations are cited As the greatest concerns among Institutional investors Regardless of all this however there is A lot to look forward to for proof of Stake ethereum and i’ll be doing a video On it in the next few days so keep your Eyes peeled Unfortunately for all the institutions That are interested in eth it doesn’t Look like the sec will be providing Regulatory clarity anytime soon That’s because gary recently reiterated That almost every cryptocurrency is a Security without explaining why To clarify a security is an asset like a Stock in a company Now whether an asset counts as a Security is supposed to be determined by Something called the howie test the tldr There is that if there is a third party You can identify that’s creating an Expectation of profit then said asset is

A security the problem is that this Doesn’t seem to be the same criterion The sec is using If you watched our recent video about The cryptocurrencies the sec is Targeting you’ll know that the regulator Is hypersensitive to anything that could Be considered promotion of a Cryptocurrency by a centralized party In theory larger altcoins like ethereum And cardano should be safe from the sec Scrutiny because they’re sufficiently Decentralized This means that you can’t single out a Specific entity that’s creating an Expectation of profit when you stack eth Or ada In practice however gary unironically Believes that every single altcoin is a Security including stable coins Gary laid out his reasoning for this in His recent testimony which took place on The same day as the merge another Coincidence if ever there was one Now i’ll be breaking down exactly what Gary said in a video later this week so All i’ll say for now is that gary sees Ethereum cardano and others as fair game For the sec This is because there are individuals Like vitalik buterin and institutions Like input output that are creating Expectations of profit or so gary says I’ll reiterate that this is gary’s

Reasoning not mine and while gary’s Comments are supposed to be nothing more Than his personal opinion they clearly Could carry over to the sec’s policies As such it’s safe to assume that we may See some sort of enforcement action Taken against major altcoins It seems that the only thing that’s been Holding the sec back has been a legal Precedent that it can cite to justify Its crypto crackdown This is why the sec’s case against a Crypto project called library is so Important The decision on that is due any day now And it might even be out by the time you See this video Now without getting into the weeds if The judge sides with library then the Sec’s attack against xrp and any other Cryptocurrency will have a lot fewer Teeth if any Conversely if the judge sides with the Sec then it could set the exact Precedent the regulator needs to go After other larger altcoins This case is more significant than you Think because if the judge sides with The sec it will also create a clear path For the regulator to go after Cryptocurrency exchanges this is because The sec can claim that coinbase and Others were offering unregistered Securities to retail investors which is

Against the law What i’m especially concerned about is Retail investors losing access to the Decentralized finance ecosystem Something the sec has also singled out In its enforcement actions obviously Without eth or ada it’ll be extremely Difficult to access the ethereum or Cardano ecosystems For what it’s worth it looks like the Sec is starting to get a lot of pushback From us politicians and not just because Of its approach to cryptocurrency I’ll get into the nitty-gritty of that When i cover gary’s testimony later this Week trust me when i say it’s a video You don’t want to miss Speaking of crypto regulation it appears That terror co-founder do kwan is Officially being targeted by south Korean authorities This is because they issued an arrest Warrant for him last week almost exactly Four months to the day that terror went To zero If you somehow haven’t heard about Terra’s collapse i’ll leave a video About what happened in the description The tldr is that terra’s novel mint and Burn mechanism for its ust stablecoin Failed causing both ust and terra’s Lunacoin to tank spectacularly As a result over 60 billion dollars was Wiped from the total crypto market cap

In the span of a few days Though some have suggested that terror Resulted in a 600 billion loss it’s Important to remember that there were Other macro factors weighing down the Crypto market at that time In any case luna and ust holders who saw Their crypto portfolios fall to zero Have been experiencing unbelievable pain Since that time and have understandably Been looking for retribution Many have placed the blame on dokuan Hence why the recent arrest warrant is So significant It’s safe to say that do’s behavior After terrorist collapse has only Resulted in more scrutiny from the Terror community from what i’ve seen do Has been quite unapologetic and Unsympathetic The news that he had fled singapore only Added fuel to the fire and led to Speculation that he was evading Authorities Note that south korean authorities Reportedly announced they were going to Nullify the passports of dough and other Core terror developers just a few days Earlier I’ll also note that do and co are being Targeted for more or less the same Reasons why the sec is cracking down on Crypto securities laws Not surprisingly all this news caused

Terror’s new lunar coin along with its Old rebranded lunk and ustc coins to Crash Some of you may recall that all three Were pumping last week and i predicted In last week’s crypto review that these Pumps wouldn’t last well i reckon anyone Could have predicted that What is surprising however is that luna Lunk and ustc didn’t really react to the News that doe is not on the run and is Cooperating with south korean Authorities Do explained on twitter that he and the Terror team are being targeted by Authorities in multiple jurisdictions Which is to be expected Regardless i must stress that terrorist Cryptocurrencies are standing on some Seriously shaky ground especially lunk And ustc It’s not clear whether any of these Crypto projects will survive and their Prices are likely to be extremely Volatile as the case against doe and co Continues to unfold Now other cryptocurrencies that are Likely to be volatile in the coming Months are privacy coins that’s because It looks like major exchanges are slowly Starting to delist them due to Regulatory pressure with hobie being the Latest exchange to comply The people in power aren’t fans of

Privacy go figure Now you might be thinking that this is Nothing new given that privacy coins Have been delisted by cryptocurrency Exchanges in the past for the same Reason The difference is that all those Exchanges were in heavily regulated Jurisdictions such as japan and south Korea huobi’s delisting of dash decred Pharaoh monero verge zcash and horizon Is significant because wobi was what is Commonly referred to as an offshore Cryptocurrency exchange huobi is based In seychelles which is not nearly as Strict as other places to put it lightly As such hobie’s privacy coin de-listing Could be a sign of more to come from Other offshore exchanges The next in line to comply could be Kucoin given that it’s also based in Seychelles Note that this is just my speculation But it’s something to be aware of if You’re a fan of financial privacy Now luckily for monero and most other Privacy coins wobi only accounted for a Portion of their trading volume Though a coup coin d listing would deal A bigger blow it’s one that most of These coins could probably survive However a binance d-listing is something That most privacy coins would probably Not survive

While binance was able to justify Listing these coins in the days when it Didn’t have a global headquarters it’s Going to be increasingly harder to Justify going forward That’s because binance ceo changpeng Zhao has been actively trying to secure Numerous exchange licenses and office Locations around the world There is a strong chance that these Global regulators could point to privacy Coins as an area of concern If this were the case then binance would Be in a bit of a pickle about what to do Now i’ll repeat that this is just my Speculation but i find it hard to see How the cookie could crumble any other Way With central bank digital currencies Being rolled out across the world Governments want to make sure that their Citizens do not have access to any Alternatives Btc isn’t that big of a threat because Every transaction can be easily tracked Due to bitcoin’s transparent blockchain This means that regulatory pressure can Be easily applied when someone breaks Ranks even if the transactions Themselves can’t be stopped By contrast privacy coins particularly Monero’s xmr are next to impossible to Trace Yes this makes them prone to adoption by

Criminals for all sorts of illicit Activity but it also makes privacy coins The only way to protect your financial Freedom specifically your ability to Purchase things without scrutiny Now as i’ve mentioned before financial Privacy may not be all that important Today but it could be very important Tomorrow It will be of paramount importance once Cbdc’s are rolled out that’s for sure It could quite literally be the Difference between life and death in Some contexts Food for thought Turning to the charts we can see that Btc continues to struggle to hold on to That 20k zone of support and it looks Like it’s only a matter of time before We break to the downside If we do the near-term target will be 18k and after that Well i think it’s best to leave a link In the description about just how low The crypto market could go spoiler btc Could fall as low as 12k in the coming Months get that filthy fiat ready Last week’s top performing Cryptocurrencies were celsius chiles xrp Quant network and the fey usd Decentralized stablecoin Starting with celsius the sell token is Rallying on all the positive news Related to the crypto platform’s

Bankruptcy notably the news that celsius Wants to sell off its stable coins I reckon the assumption there is that This capital will go to celsius users Who’ve had their crypto stuck on the Platform since june i must admit that Cell’s recent price action has been Quite impressive but i find it hard to Believe that it will continue its Current uptrend in the face of so many Macro and crypto factors weighing on the Markets Recall that the sec went after celsius As well Next we have chiles whose chc token Seems to be rallying on the news that Many of chile’s fan tokens are being Listed on cryptocurrency exchanges Like cell chz has been looking strong Lately but it’s struggling to break Above that zone of resistance at 25 Cents which i pointed out in previous Weekly crypto reviews I expect to see a correction in the Short term Then there’s xrp which is rallying Because of speculation around the Outcome of the sec’s case against Library which i covered earlier again if The judge sides with library then the Sec won’t have the precedent it needs to Crack down on xrp and other altcoins Similarly to chc xrp is facing lots of Resistance around the 40 cent level and

Is also looking oversold on the daily Chart It looks like xrp could fall back down To the 35 cent or even 30 cent level in The coming weeks assuming the judge Sides with the sec of course Otherwise a move to 65 cents could occur When it comes to quant network the qnt Token is apparently rallying because of Ethereum’s transition to proof of stake There also seems to be lots of hype Around quant network’s upcoming Appearance at a financial services Conference in amsterdam in october it’s Too bad that there seems to be a bearish Divergence between qnt’s price and the Rsi on the daily this discrepancy could Cause qnt to fall below the 100 level in The coming weeks And finally we have the fey usd Decentralized stablecoin which was only A top performing cryptocurrency because It fell off its peg and then regained it Again sort of Let’s hope crypto dev somewhere will Come up with a way to create a truly Decentralized stable coin that can Handle the crypto market volatility And that’s all for today’s coin bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and bell icon too if You’re looking to maximize your gains During the bear market the coin bureau

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