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🥜 Crypto is about to RIP - here's why
PLUS: Exchange Balances Drop
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😱 SEC divided on Bitcoin ETFs
🧐 Where do we go from here?
📉 Bitcoin exchange balance’s
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:15am ET
Only the top 20 coins measured by market cap feature in this section
SEC DIVIDED ON BITCOIN ETF 😱
Breaking: Hester Peirce says SEC shouldn’t block spot Bitcoin ETFs
SEC Commissioner Hester Peirce recently commented on pending Bitcoin ETFs in an interview with Bloomberg.
As a quick refresher, the SEC has five Commissioners. One of these commissioners is designated as the chair of the commission by the President. The current chair is Gary Gensler (the bald fraud we mention quite a lot).
Peirce has been vocal in her support of Bitcoin ETFs in the past and see’s no reason for their continued denial:
“I’ve been very transparent that I’ve thought for many years now that there is no reason for us to stand in the way of a spot Bitcoin exchange traded product.”
Peirce also noted that each ETF application must be judged on its own merits.
“And so I think we got a little bit of a nudge from the court. And we’ll see where things go from here,”
Although not explicitly mentioned, the “nudge“ here likely refers to the SEC’s recent court battle against Grayscale. A judge found that the SEC was “arbitrary and capricious“ in denying Grayscale’s application to convert its trust into a spot Bitcoin ETF.
As the spot Bitcoin ETF applications are currently all under consideration, Peirce was not allowed to speak on specific approval timelines.
Nonetheless, the SEC is clearly divided when it comes to crypto…
As a reminder, there are now only 48 days left until the January 10th final deadline…
Tik tok.. ⏰
For the full article click here.
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WHERE DO WE GO FROM HERE? 🧐
Yesterday, we covered the huge news of CZ stepping down from Binance.
If you missed it, Binance were charged with breaking sanctions and money-transmitting laws.
As a result, Binance agreed to pay a settlement of $4.3 billion and CZ is stepping down as CEO.
In reaction, Crypto prices fell over 4% across the board.
Yet today, the market has clawed back essentially all the losses.
Why? 🤷♂️
Despite appearing as bad news, the Binance resolution is actually a hugely positive catalyst.
As quant trader Charles Edwards pointed out, all crypto fear, uncertainty and doubt has now been removed from the market.
If there’s one thing markets hate, it’s uncertainty. This resolution provides clarity and a way forward for the space.
The Binance & CZ situation is very similar to a case that unfolded in 2020.
The crypto exchange BitMEX & its CEO, Arthur Hayes, were charged with violating anti-money laundering laws.
At the time, BitMEX was one of the most prominent & influential cryptocurrency exchanges.
Like CZ, Arthur stepped down from his role as CEO and was sentenced to two years probation.
How did the market react?
It ripped upwards.
Many factors played into the bull-market that followed.
But the BitMEX resolution cleared a black swan event hanging over the market.
The same is happening now, on a larger scale, with Binance.
So where do we go from here?
Our guess: Upwards. With haste. 🐎
BITCOIN EXCHANGE BALANCE 📉
With yesterday’s big news surrounding CZ’s exit from Binance, the markets barely reacted…
In fact Bitcoin’s price is currently back to where it was before the news broke out.
Let’s take a look at the impact this news had on exchange balances.
Although Bitcoin exchange balances did take a hit, it was nowhere near as drastic as November 2022 (FTX collapse).
FTX Collapse: 329,486 Bitcoin left exchanges
Binance settles US criminal case: 29,808 Bitcoin left exchanges
The chart below shows Binance’s Bitcoin balance over the last month.
Clearly you can see this news did have an impact, but not as drastic as you would expect.
Since the announcement, Binance’s Bitcoin balance has decreased from 665,000 to 657,000 Bitcoin.
That’s only a decrease of 8,000 Bitcoin, or approximately $300 million.
What’s more is that this decrease only represents ~1.2% of Binance’s Bitcoin balance.
Just goes to show that the markets really did shrug this news off… 😎
We’ve said it before, and we’ll say it again.
Not your keys, not your coins.
If you’re serious about your crypto, the safest option is storing it in a cold wallet.
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
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CAN YOU CRACK THIS NUT? ✍️
How much was Binance’s settlement amount in its US criminal case?
A) $50 million
B) $4.3 billion
C) $5.5 billion
D) $200 million
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) $4.3 billion 🥳
Binance has agreed to pay a settlement amount of $4.3 billion.
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