Crypto News: FTX Updates, GBTC Contagion, ADA, SOL & More!!

Foreign [Music] Bureau weekly crypto review here are This week’s top headlines in the crypto News and an extra item you won’t have Seen here before [Music] FTX contagion continued concerns start To circulate about the largest holder of BTC after it refuses to publish proof of Its 10 billion Bitcoin reserves Everything you need to know So long Solana the total value locked on The fastest cryptocurrency slides as Major exchanges drop support for Stablecoin withdrawals and deposits on Its blockchain what does this mean for Seoul Ada updates while the crypto Market Collapses cardano makes massive Announcements including a new stablecoin And a privacy preserving blockchain when Will Ada’s price react Big Tech gives the boot Amazon announces Mass layoffs and warns that job Cuts Will continue well into next year why This could be extremely bullish for the Crypto Market Crypto lows incoming forced selling from Pension funds could tank the markets in December just like it did at the end of 2018. how these and other factors could Cause the bottom of the crypto bear Market

And for a bit of a change some extra Special market analysis to end the show Keep watching to find out all this and More in just a moment [Music] 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 contagion from the Collapse of FTX and Alameda research Continued to spread crypto platforms Like blockfi crypto exchanges like aax And crypto VCS like Sino Global all Confirmed that they are experiencing Serious issues be it because they Outright lost money or because it’s Locked on the exchange Even cryptocurrency exchange Gemini Experience significant stress by proxy With 500 million dollars of user Withdrawals following the news that Gemini earn was delaying withdrawals Now this is unprecedented because Gemini Is one of the most trusted Cryptocurrency exchanges in existence The FTX contagion that really caught the Crypto Market off guard however was Genesis trading pausing withdrawals For those unfamiliar Genesis trading is A subsidiary of digital currency group

Or dcg Dcg is one of the largest companies in Crypto and has invested in most major Crypto companies and projects stop me if You’ve heard this one before that’s why We immediately saw many of these major Crypto companies announce that they had No exposure to Genesis trading now there Is of course no way of knowing how much These crypto companies are really Exposed to the company and most would Probably not admit it given the Circumstances Unfortunately for dcg the fact that Genesis trading is one of its Subsidiaries almost guarantees that the Company was affected in some way while There is no evidence to suggest dcg’s Financials have been affected there is Increasing speculation that another dcg Subsidiary is under stress the Subsidiary in question is grayscale Which is famous for offering one of the First Institutional investment vehicles For Bitcoin back in 2013. since that Time grayscale’s Bitcoin trust has Accumulated an estimated 635 000 BTC worth over 10 billion dollars According to bitcoinetreasures.net This makes greyscale the single largest Holder of BTC and it’s why the crypto Market went into a mild Panic after it Announced that it would not be Publishing proof of its Bitcoin reserves

For security reasons Shares of gbtc subsequently fell to Their lowest price relative to the BTC That’s supposedly backing them now this Is scary because if there is a loss of Confidence in gbtc then holders of these Shares May rush to grayscale to redeem Them for whatever actual BTC there is It’s possible if not likely that these Actual BTC would be sold potentially Creating billions of dollars of cell Pressure If that wasn’t bad enough greyscale is Currently in the process of suing the SEC for refusing to approve its Application to convert its Bitcoin trust Into a spot Bitcoin ETF if anything goes Wrong with greyscale or its Bitcoin Trust it will make the approval of a Spot Bitcoin ETF by the SEC even less Likely It could even result in extreme Regulatory scrutiny around the custody Of cryptocurrencies in the same way that The collapse of FTX is resulting in Extreme regulatory scrutiny of Cryptocurrency exchanges For what it’s worth there is again no Evidence that grayscale is in trouble at Least not yet You can learn more about greyscale’s Bitcoin trust and how it’s different From a spot Bitcoin ETF using the link In the description

Now it’s not just crypto platforms Exchanges VCS and custodians that Continue to be affected by the FTX Alameda situation Many crypto projects have also been Taking a beating and most of these are Part of Solana’s ecosystem this is to be Expected given that Solana’s growth was Being driven by FTX and Alameda Now it looks like the two Solana Projects that have been hit the hardest So far are decentralized travel dap Maps Dot me and its Associated D5 protocol Oxygen In a Twitter thread oxygen confessed That more than 95 of both crypto Projects tokens were being custarded by FTX meanwhile the total value locked in Solana D5 continues to drop which is Also expected If you watched our recent Solana update You’ll know this is mostly because FTX And Alameda were providing lots of Liquidity to Solana’s defy ecosystem via Ftx’s project serum specifically the Serum Dex you’ll also know that we Didn’t manage to include one piece of Important Solana news and that’s that Major cryptocurrency exchanges have Stopped supporting withdrawals and Deposits of usdt and usdc on the Solana Blockchain so far this list includes Binance okx and buy bit Now it’s not entirely clear why these

Exchanges stop supporting stable coins On Solana but a recent coin Telegraph Article seems to imply that this has to Do with the intensifying competition Between stablecoin issuers and this Makes sense For context Solana is apparently the Official blockchain for circles usdc as Per a blog post by the center Consortium This is probably why there is over five Billion dollars of usdc circulating on Solana and only around 2 billion dollars Of usdt on Solano if I’m not mistaken The amount of usdt on Solana has since Fallen by 50 this is because tether Announced it would be migrating 1 Billion usdt from Solana to ethereum What’s odd is that binance resumed usdt Support for Solana shortly after its Initial announcement so why migrate to Ethereum well the answer is again Competition between stablecoin issuers Some of you may recall that binance Rolled all stablecoin trading pairs on Its exchange into busd besides those With usdt circle CEO Jeremiah initially Said this was somehow beneficial but Circle recently confirmed a three Billion dollar market cap loss At the same time the market cap of Binance’s busd’s stablecoin has grown by Almost 3 billion which is certainly not A coincidence The market cap of tether’s usdt sable

Coin had also grown by three billion Before falling this was expected given Alameda was the largest recipient of all The usdt Ever minted The removal of support for stablecoin Withdrawals and deposits on the Solana Blockchain is likely to cause usdc’s Market cap to shrink even more Unfortunately this means that the demand For Seoul could drop as the Solana Blockchain becomes more isolated because Of this stablecoin competition If you’re wondering why there is so much Stablecoin competition it’s because of The reserves for these stable coins most Of the Sable coins in circulation are Backed by U.S government debt which is Yielding upwards of four percent per Year depending on the duration of said Debt because the market caps of most Stable coins are in the tens of billions This means that most stablecoin issuers Are making hundreds of millions of Dollars per month in passive income Now this is probably a part of why Cardano company in mergo announced it Would be releasing its own centralized Stablecoin like circles usdc and Binance’s busd emergos USDA stablecoin Will be fully regulated and backed Mostly by U.S government debt Interestingly Imago has yet to reveal The U.S company it has partnered with to Issue USDA this might be because it

Doesn’t want any stablecoin competitors To cause trouble In any case USDA is expected to be Released early next year as part of Emergos and Zen’s initiative which seeks To bring a whole slew of financial Services to the cardano blockchain Anzens will include the introduction of Defy protocols and bridges between Cryptocurrencies and real-world assets It’s the USDA stablecoin itself which is Likely to have the most profound effect On cardano’s ecosystem however That’s because a stable coin is how most Liquidity that is money Finds Its way Into the decentralized ecosystems of Smart contract cryptocurrencies Although there are many stablecoin Projects building on cardano none of Them have launched this has left Cardano’s defy ecosystem without the Financial primitive required for it to Grow hence why the total value locked on Cardano is lower than most other smart Contract cryptos Now the Silver Lining to this is that Cardano’s ecosystem hasn’t been nearly As exposed to all the things that have Done damage to other smart contract Cryptocurrencies Terrors UST stablecoin is a great Example every smart contract crypto That’s supported it the most saw their Defy ecosystems destroyed

In other words cardano’s relative lack Of interoperability with the rest of the Crypto ecosystem once seen as a Disadvantage has suddenly become a very Big plus there’s no crypto project or Company cardano is associated with that Has spoiled its image or attracted Regulatory scrutiny I reckon this is why Cardano Builder iohk can comfortably Announce a privacy preserving blockchain Complete with a new coin As explained by cardano founder Charles Hoskinson midnight will preserve privacy In a compliant manner using zero Knowledge proofs now it’s not entirely Clear what midnight would mean for Ada Given that it’s going to have its own Coin at the very least it will attract More attention to cardano’s ecosystem This attention has been lacking due to The fairly recent rollout of its smart Contract functionality and ongoing Scalability improvements there is lots Of progress being made on the Scalability front however and I have a Feeling that the crypto projects in Cardano’s ecosystem will do extremely Well during the next bull market as a Result be sure to check out our video About the top cardano projects using the Link in the description in other news The layoffs in big Tech continue The latest tech Titan to announce job Cuts was Amazon which confirmed that no

Fewer than 11 000 employees will be Fired Amazon CEO Andy jassy made it clear that The job Cuts will continue into next Year but didn’t provide a specific body Count The exact figure probably isn’t all that Consequential except to those affected Of course given that Amazon is one of The largest employers in the world and Is estimated to have over 2.2 million Employees this makes its recent job Cuts Relatively insignificant and its Upcoming job Cuts probably won’t be much Different at least upon first glance When you zoom out and realize that other Big tech companies have also been laying Off tens of thousands of employees the Severity of the situation starts to Become a bit more apparent it’s Estimated that over 120 000 big Tech employees have been laid Off over the last few months this is Because the valuations of these tech Companies are extremely sensitive to Rising interest rates and interest rates Have been rising since March this year Rising interest rates are also starting To impact the economy which is slowly But surely starting to translate to Lower revenues for big tech companies if You’ve watched any of our videos about The Federal Reserve you’ll know that the Central bank will stop raising interest

Rates when either inflation comes down Or unemployment starts to rise if the Job Cuts continue in big Tech and Elsewhere then the FED may be forced to Pause or even pivot This would paradoxically be bullish for Cryptocurrencies and other risk-on Assets but it’s honestly an unlikely Outcome That’s because allowing inflation to Creep higher would lead to lots of Social political and economic unrest in A worst case scenario it could end in The hyperinflation of the currency This means that job Cuts will probably Continue and this may also be bullish For crypto This is because there is a chronic Shortage of developers in cryptocurrency If even just a small percentage of the Developers being laid off by big Tech Find their way into crypto we could see Lots of building this is more likely to Happen than you’d think and that’s Because of how much big tech companies Like Google have been supporting crypto Projects some crypto projects such as Aptos and sui have their roots in big Tech this could make former employees of These companies comfortable working in Crypto the crypto niches that will Probably benefit the most are the Metaverse and nfts that’s because crypto Projects in both niches have seen no

Shortage of funding and have money to Spend the centralized approaches to the Metaverse and to nfts by companies like Meta and apple are also failing in real Time so if you happen to be looking for A job in cryptocurrency you can check Out our video about that from last year Using the link in the description now as Bullish as big Tech layoffs may be for Cryptocurrency they don’t change the Fact that the crypto Market will likely Head lower before it heads higher there Are many reasons for this and over the Weekend I came across a big one that’s Been overlooked and that is forced Selling by Pension funds in a recent Episode of block Works macro analyst and Chief investment officer Zed Francis Explained that defined contribution Plans in the United States like 401ks Will force pensioners to sell a small Amount of the Assets in their pension Portfolios every year The amount to be sold is calculated at The start of each year but the selling Of this amount takes place at the end of The year So for instance if you’re a pensioner And have 100 of assets at the start of The year then your 401k manager will Force you to sell ten dollars of assets At the end of the year In case you haven’t noticed all assets Have been crashing since the start of

The year This means that the hypothetical 100 in Assets you had at the start of the year Is now worth say eighty dollars but your 401K manager still requires you to sell Ten dollars of assets at the end of the Year Because the actual amount of the assets You must sell is now much higher the Effects it will have on the market will Likewise be much larger Now note that this is an extremely Watered down explanation The main takeaway is that we’re going to See a lot of selling by Pension funds Starting in early December to clarify Most Pension funds don’t hold any crypto However they do hold lots of stocks and The crypto Market remains relatively Correlated to the stock market This means that a crash in the price of Stocks will likely correspond to a crash In cryptocurrencies Zed pointed out that the last time we Saw this degree of cell pressure by Pension funds was in December 2018. this Happens to be exactly when the crypto Bear Market bottomed during the last Crypto cycle Obviously history never repeats but it Does rhyme and there’s another upcoming Factor to consider in mid-December the FED will be announcing its next interest Rate hike right now most investors are

Pricing in a hike of 0.5 percent If the Fed surprises the markets with Another 0.75 rate hike it could be Another factor that contributes to the Crash caused by the forced selling of Pension funds There’s also a whole host of other macro Factors that could weigh on the markets Like upcoming energy shortages in Europe And an escalation of the war in Ukraine Recall we’re only still starting to feel The effects of the collapse of FTX and Alameda on the crypto markets that’s why I strongly suggest you keep all your Crypto in your personal crypto wallet The last thing you want is to lose What’s left of your crypto because you Thought the centralized exchange or Crypto platform you were using was Trustworthy or safe I think we’ve all Had quite enough of that for one year You can find out which crypto wallet is Best for you by watching yesterday’s Video link will of course be in the Description Now instead of our usual rundown of last Week’s gainers we thought we’d give you Something a little bit different this Week so for a look at this bear Market In a historical context and some Thoughts on when we could reach the Bottom I’m going to pass you over to our Guest correspondent and analyst Extraordinaire Ben Cowan Ben take it

Away Hey guy thanks for having me on the show Today I want to go through a few Different Bitcoin indicators that really Show where we are in the context of Prior bear market so one of my favorite Indicators this is an on-chain indicator Is the supply and profit and loss and What you may notice is that it actually Is very aesthetically pleasing to look At you can see how cyclical this Indicator really is and what you may Notice is if you apply say like a moving Average to this data to clean up some of The noise it typically takes until after They cross Before you’ll actually identify a market Cycle bottom so far they have not Actually crossed one of the things That’s important for us to understand In Bear markets is that not only do you Tend to see price based capitulation but You also need that time based Capitulation as well where people just Simply throw in a towel and say enough Is enough and a lot of times that can Take a year or more in 2018 it took a Year the 2014 bear Market that started In November of 2013 didn’t actually end Until January 2015 so it actually took Closer to 14 months so I think in the Grand scheme of things this bear Market While it feels absolutely disastrous and Awful it’s still well within the context

Of what we’ve previously seen so far Another indicator that we can look at Are things like the the prior bear Markets and if we look at the prior bear Markets and just compare them to the Current one which is the green line We’re still so far well within the Context of what we’ve previously seen Not only in terms of time but also in Terms of the drawdown now the first bear Market was actually relatively short and Sweet but if you look at the 2014 bear The 2018 bear and the 2022 bear which is The green line we’re still well within That window of seeing time-based Capitulation and it typically takes at Least a year to play out furthermore the The other thing I think it’s important To recognize is that if you take these Out till the next Peak We usually have a relatively long Accumulation phase before we go off into Another crazy bull market so I think a Lot of people are always worried if They’re going to miss the bottom and Then it’s going to be gone whereas History shows you typically have quite a Long time to actually buy at relatively Suppressed prices and then another Indicator that I like is the balance Price of Bitcoin I’ll scroll down so People can read the description if they Want to to understand what this stuff is But historically bitcoin’s major bottoms

Occur once you get daily closes below The balance price you can see it occur Time and time again in all these primary Markets and so far we haven’t really Seen a daily close below it we have had Wix below it but we still have not seen A daily close below it just yet so That’s another indicator I’m looking at And if you take a lot of the indicators That I discussed on my channel social Risk price risk on-chain risk you can Really see how they all come together to Provide an overall risk metric on the Entire asset class and when you when you Do this and you can buy find all of them You get somebody that looks like this Whereas Market cycle bottoms tend to Occur when this risk metric goes back Down to the 0 to 0.1 wristband right now It’s sitting at around 0.218 a lot of The reason for this is the social risk Remains relatively High obviously the Social risk is high because everyone Wants to come back and watch the train Left the train wreck with the most Recent collapse of a lot of centralized Platforms but again we need to remember That markets do not typically bottom When everyone’s tuning in they tend to Bottom on apathy so I think we’re seeing That play out in real time people are Starting to get apathetic they’re Starting to throw on the towel but as You and I as you and I know the real the

Real secret to crypto Is just time right and and sometimes you Just have to be patient And oftentimes the patient people are Often rewarded the most so hopefully This provides some perspective on where We are within the current bear market And and hopefully we can see the light Of the tunnel relatively soon thanks Again for having me on I look forward to Coming on in the future Thank you Ben great to have you and lots Of food for thought there and if you Want more Pearls of Wisdom from Ben the Link to his channel and website into the Cryptoverse is in the description 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 coin Bureau deals Page is where you should go you can find The link to that resource and many Others in the description below thank You so much for watching and I will see You all in next week’s episode [Music] Thank you

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