StormGain is a crypto trading platform for everyone.

[stormgain]

The cryptocurrency market's depth declines

For the past six months, many cryptocurrencies have lingered in a pretty narrow range. This is due to a lack of factors capable of significantly affecting prices and the continued outflow of capital. The latter reason is best illustrated by a decline in crypto exchanges' reserves, which have dropped to 2 million BTC.



Market players prefer independent storage and transfer their coins to cold wallets after making a purchase. Interest in active speculation is dropping. This is also seen in the decline in the market's depth (the volume of orders in both directions from the current price) following the collapse of FTX in November 2022.



The trend is true for both Bitcoin and altcoins.



A decline in the cryptocurrency market's depth poses several threats. First, the amplitude of price fluctuations that can be triggered by minor events increases. Second, there's an increased risk of price manipulation, where a large market maker sets a movement in their desired direction to then dump tokens.

In late August, for example, the market faced such effects after news emerged of Grayscale's interim victory over the SEC. In four hours, Bitcoin jumped from $26,000 to $28,000 and, a day later, returned to the starting point. Ripple (XRP) had a more significant journey in July when we warned why "The victory is short-lived". (https://stormgain.com/blog/ripple-victory-may-be-hort-lived)



In this situation, cryptocurrency supporters prefer the most stable strategy: buy and hold. MicroStrategy, the largest public Bitcoin holder, announced yesterday that it has bought 5,445 coins at an average price of $27,000 over the past two months.



The company now has reserves of 158,245 BTC worth $4.2 billion at an average purchase price of $29,600. According to MicroStrategy CEO Michael Saylor, Bitcoin will reach $500,000 in the next 10 years.


StormGain Analytical Group (https://stormgain.com/easy-start)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Why the record number of BTC transactions isn't leading to higher fees

Since May 2023, the number of daily transactions has consistently exceeded 500,000, a number that was previously unattainable. The amount of information that can be transmitted via the network is very limited, so this spike in transactions should lead to higher fees.



That usually happens since users offer a bigger reward for miners to have their transaction added to the block as soon as possible. However, now, paying half a dollar is sufficient to send funds from one wallet to another.



The reason for the discrepancy lies in the distribution of digital objects via the Bitcoin network. The first to appear were Ordinals, the same thing as non-fungible tokens as NFTs on the Ethereum network. The excitement didn't last long, though. It endured only from about February to April. After that, interest switched to BRC-20, which are quasi-tokens since they're minted and transmitted with Bitcoin using the JSON text format.

While Ordinals accounted for about 7.5% of total transactions, BRC-20 still accounts for 40% to 60%.



However, unlike pictures, tokens don't need a lot of space in a block. They can be compared to sand that takes up all the free space in a jewelry box. If a small number of transmitted images took up 20% to 50% of the block, BRC-20 still fits in 20%. This fact led to higher total transactions while keeping fees at an average level.



However, the interest in tokens isn't exactly harmless since it leads to more unspent UTXO transactions. Casey Rodarmor, the man who brought about Ordinals, came up with a new Runes protocol to reduce the negative consequences of the fast-paced minting of new quasi-tokens. According to Rodarmor, 99.9% of them don't carry a payload and simultaneously "spam Bitcoin with 'junk' UTXOs".



The Bitcoin Frontier Fund offered $100,000 in prize money to the first #DevelopmentTeam  to write a programme for sending tokens on the Runes protocol.


StormGain Analytical Group (https://stormgain.com/easy-start)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

When is the best time to buy Bitcoin?

With the rise in cryptocurrencies' popularity and adoption, more and more people are considering investing in them. This is especially true for the first and most famous cryptocurrency, Bitcoin, whose price changes affect the entire cryptocurrency market. So, the question "When is the best time to buy and sell Bitcoin?" is crucial for every crypto investor and trader.

What is Bitcoin?

Bitcoin is the world's first cryptocurrency, launched on 3 January 2009 by an anonymous developer known only by the pseudonym Satoshi Nakamoto. It's a blockchain-based decentralised payment system that doesn't require a third party to operate. Cryptographic methods are used in the system to ensure that it functions and is protected. At the same time, all information about transactions between system addresses is available to everyone.

The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. — Satoshi Nakamoto.

Payments between the two parties occur without intermediaries and are irreversible since there's no mechanism for cancelling a confirmed transaction. Nobody can block funds on a Bitcoin address, even temporarily, except for the person who knows the private key. Nevertheless, multi-signature technology allows a third party to be involved as an arbiter and to implement reversible transactions.

Bitcoin price history



For over half a year after its creation, Bitcoin had no monetary value. The first exchange of Bitcoins for fiat money took place on 9 September 2009, when Marty Malmi sold 5050 Bitcoins for $5.02. The very first use of Bitcoin as a means of payment took place in May 2010. Laszlo Hanets from Florida bought two pizzas for 10,000 BTC, making these two pizzas the most expensive pizzas in history. Just two months after this event, Bitcoin trading was launched on the MtGox exchange.



In February 2011, the price of Bitcoin exceeded $1 for the first time. Then, in June, it exceeded $10. Soon after, the price entered a long period of stagnation. A new noticeable rise began in April 2013, when the price of Bitcoin surpassed $100. In November of the same year, another wave of explosive price growth occurred, briefly exceeding $1,000, after which a period of decline began.



Bitcoin started to show steady growth again at the end of 2015. In February 2017, it broke through the previous all-time high and reached $19,665.39 on 18 December. After that, a long bearish trend began on the crypto market and lasted until the beginning of 2019. In the first half of 2019, the price was actively recovering, but it didn't reach the previous all-time high, and in the second half of the year, it experienced a decline again.

The bullish trend returned in early 2020 before being briefly interrupted by the panic in the cryptocurrency market in March and then quickly resuming. In December 2020, the Bitcoin price exceeded its all-time high and continued to rise.

On 13 March 2021, Bitcoin's price reached $63,503. After a summer correction that resulted in the price falling by more than two times, the growth continued. The price reached its current all-time high of $68,789 on 10 November.

Over the past year, Bitcoin's price has seen limited movement, failing to rise above $25,000 from June 2022 until March 2023. Once it did that, it caught investors' attention. Consequently, the price of Bitcoin turned bullish after a prolonged period of stagnation. In April 2023, Bitcoin finally exceeded $30,000. However, it is currently trading within the range of $28,000 to $30,000.

When is the best time to buy and sell Bitcoin?

Most likely, everyone knows the rule "buy low, sell high". Therefore, the logical answer to the question "Should I buy Bitcoin when it's low?" is "Yes". But how can you tell if Bitcoin's current price is low or not? The problem is that no one really knows how much Bitcoin will be worth in the future. One can only assume with a certain probability using analysis. In any case, when deciding whether to buy or sell Bitcoin, remember the following important rules:

- Although Bitcoin is a less risky asset than altcoins, it's still a high-risk investment. Don't invest more money in it than you can afford to lose.
- Always do your own research. Create your own investment or trading strategy. Blind adherence to someone else's recommendations is highly likely to lead you to lose your money.
- Control your emotions and never buy or sell under their influence. Many crypto investors have suffered losses since they bought under the influence of fear of missing out on profits and sold following the panic during the price fall.

When is the best time to buy?

Even if you consider Bitcoin to be a long-term investment and stick to a buy-and-hold strategy, it still makes sense not to buy if the price has recently skyrocketed but to do it during a correction.

If you're interested in short-term investments, or even more so in Bitcoin trading, then you can't do without technical analysis. In this case, you first need to identify the current trend. You need to determine the time frame of a trend depending on how long you plan to hold Bitcoins before selling.

If the price is in a bullish trend, the best time to buy would be to bounce off the trendline. If the trend is bearish, then the purchase should be made only when there are signs of an imminent trend change.

When is the best time to sell?

Many long-term investors use a simple principle to determine when to sell Bitcoins. They set the selling price in advance based on the analysis of the asset and their own approach to risk management and sell when the price has reached this level.

Short-term investors and traders have to resort to technical analysis again. Selling an asset in such cases during a bullish trend is usually carried out under the following conditions depending on the chosen trading or investing strategy:

- Reaching a quite strong resistance line.
- Signs of an imminent trend change.
- The price hits a psychological threshold, such as a round number.

The bear market is generally unfavourable for long trades, especially for beginners. Of course, you can make money with long trades in a bear market, but investing and trading in that environment carries increased risks.

Should I buy Bitcoin today?

The answer to this question depends on the investment strategy you choose. As for the near-term prospects for Bitcoin's price, it has recently dropped below several important support levels, and there's a risk of its further fall. If the price drops below $40,000, the closest strong support level is $29,000.

[stormgain]

Uptober: What's behind cryptocurrencies' growth?

October is traditionally a good month for cryptocurrencies. Historically, Bitcoin has closed the month positively in 8 out of 10 cases for a 22% average increase.



There are positive factors behind every major growth. This time, the hopes for Uptober are fuelled by the upcoming launch of Ethereum futures ETFs in the US and anticipation that Bitcoin spot ETFs will be approved in the next six months.

There are several things behind these events. First, the SEC lost its attempt to block the conversion of Grayscale's Bitcoin trust fund into an ETF after the latter appealed. The judicial commission called the regulator's position "arbitrary and capricious". Unless the SEC can find a stronger justification, the transformation will happen "automatically" after the appeal deadlines expire.

Second, in September, the SEC Chairman was again called before the Financial Services Committee, where several congressmen demanded that Gary Gensler approve ETF applications. Gensler was also criticised for lacking clear criteria for dividing cryptocurrencies into goods and securities.

Third, Valkyrie received permission to launch an ETF with combined contracts for Bitcoin and Ethereum futures. This is the first altcoin ETF in the US to start operating on 3 October. Another 15 Ethereum ETF applications are expected to be approved next, with some companies rushing to apply to launch BTC+ETH ETFs on Friday.



Institutional interest in cryptocurrencies is difficult to overestimate. Currently, the total volume under management in investment funds worldwide doesn't exceed $40 billion, of which the US accounts for almost 80%. BlackRock alone operates $10 trillion. The company has shown interest in cryptocurrencies by applying to the SEC for a spot ETF. Its CEO, Larry Fink, also called Bitcoin an international asset and digital gold.



Futures contract ETFs have some drawbacks. For example, some profit gets burned when moving from one month to another. That's why a real investment boom is expected with the launch of spot ETFs, drawback-free.



According to various estimates, Bitcoin spot ETFs will attract $0.5 trillion in the first six months alone, causing the cryptocurrency's price to rise to $80,000.


StormGain Analytics Team (https://stormgain.com/easy-start)
(the cryptocurrency trading, exchange and storing platform)

[stormgain]

Lido's monopoly is a systemic risk for Ethereum

Ethereum's move to PoS has generated some serious problems requiring developers to intervene. First, staking turned out to be too attractive, and because of the growth in validators, it often faces large-scale failures (read more on that in our article). There are now around 838,000, and this number will reach over 1 million in November.



Second, a 32 ETH (~$53,000) limit to launch one's own node has boosted the popularity of Liquid Staking Derivatives (LSD). This amount was unaffordable for ordinary crypto enthusiasts who are lured by the possibility of passive income. The annual staking yield rate is 3.8% now, but on high network load days, it exceeds 8%.



Staking pool platforms came to the rescue. They make it possible to deposit any amount of funds and give their own token in exchange for staking ETH. Lido became a true monopolist, holding a share of 32.3% of the total volume of staked coins.



Meanwhile, its share on the liquid staking market is 71%.



Vitalik Buterin admits that such an amount in the hands of a single DAO can be the reason for a systematic crisis if Lido is attacked. The larger a node operator is, the more attractive it becomes to fraudsters. By getting access to management, a hacker can use all the available means, including for a 51% attack.

The more probable adverse scenario is associated with problems in managing a potential crisis on the platform. Last year, amid rumours of Lido's lack of liquidity, the stETH token given in exchange for ETH lost its peg, trading at a 10% discount. Due to its importance, the hypothetical collapse of stETH would affect the parent coin.



Ethereum developers are discussing the problem but haven't found an effective solution so far. Last year, the crypto community tried to push Lido, but its validators, with a 99% majority, voted against artificial limitations on platform growth.


StormGain Analytical Group (https://stormgain.com/easy-start)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

New Cryptocurrencies for Mining in 2023

Cryptocurrency mining can be costly, as it involves purchasing GPUs (or ASICs) and other computer components. However, there are specific cryptocurrencies that are easier to mine without the need for an extensive mining rig. By solving complex equations, miners receive a small compensation for their work and contribute to verifying transactions on the blockchain. If you're interested in mining new cryptocurrency for free in 2023, here are the top 5 cryptocurrencies to consider.

What Is Crypto Mining?

Mining is like the engine that makes cryptocurrency work. Think of it as creating new building blocks for digital money. Imagine you have to solve a tricky maths problem to find a unique code. Once you crack it, it's easy to check if it's right. The person who solves the puzzle first gets a prize from the cryptocurrency network. This reward is called a "block reward", and it's usually in the form of new coins and sometimes a bonus for handling transactions. Miners compete to be the first to solve the puzzle and earn the reward. The problem's difficulty adjusts based on how many miners are working together.

Profitable New Crypto for Mining in 2023

The profitability of new crypto for mining is determined by various factors, such as the price of the cryptocurrency being mined, the cost of electricity, and the mining hardware. It's important to carefully calculate your profitability before investing in mining hardware. In most countries, cryptocurrency mining is taxable, and miners must pay taxes on their profits. It's advised to maintain accurate records of your mining activities and seek guidance from a tax professional to ensure compliance with tax laws.

The profitability of new crypto mining different coins may vary depending on the current market conditions. In this article, we have curated a list of the top 5 most profitable cryptocurrencies to mine in 2023.

Disclaimer: It's recommended to research each coin's profitability before investing in mining hardware.

Conflux (CFX)

Conflux is a public blockchain platform that utilises a hybrid consensus algorithm, merging Proof-of-Work with a Tree-Graph consensus protocol. Its objective is to deliver fast and secure transactions with high throughput and low latency. Considering Conflux's growing adoption and relatively low market cap, mining this new cryptocurrency in 2023 has the potential for profitability.

Helium (HNT)

Helium is a wireless network based on blockchain that enables IoT devices to connect to the internet through a decentralised, peer-to-peer network. It employs a consensus algorithm called Proof-of-Coverage, incentivising miners to offer network coverage instead of following the conventional mining process. Considering its emphasis on IoT connectivity and energy efficiency, Helium could be one of the most promising new crypto mining projects 2023.

Filecoin (FIL)

Filecoin comes next on the list of the most promising new crypto mining projects 2023. It's a decentralised storage network that employs a Proof-of-Replication consensus algorithm. Its goal is to establish a decentralised file storage platform that surpasses traditional cloud storage options in terms of efficiency, security and affordability. Given Filecoin's growing storage demand and the ease of mining, it could be a lucrative new crypto mining option for 2023.

Handshake (HNS)

Handshake is a project that aims to decentralise the naming and certificate authority system by using a Proof-of-Work consensus algorithm. Its goal is to create a more secure and accessible system that can replace the traditional certificate authority system. Handshake has a low mining difficulty and market cap, making it a potentially profitable coin in 2023.

Chia (XCH)

Chia is a recently introduced digital currency that utilises a consensus algorithm called Proof-of-Space-and-Time (PoST). Unlike traditional methods that rely on GPUs or ASICs, Chia allows users to mine the cryptocurrency by allocating their unused hard drive space. This emphasis on energy efficiency and sustainability has made Chia an appealing choice for miners seeking to minimise their environmental footprint.

Top Cryptocurrencies You Can Mine at Home in 2023

The top new cryptocurrencies to mine for free in 2023 don't require a large crypto mining rig. While it used to be possible to mine Bitcoin using laptops and desktops, the increasing mining difficulty and the development of Application Specific Integrated Circuit (ASICs) hardware specifically designed for Bitcoin mining have made it nearly impossible to mine Bitcoin profitably at home using the processing power of a PC or laptop. However, there are still options for mining other popular cryptocurrencies from home in 2023.

Which coin mining is most profitable this year? This article will introduce several popular choices and provide instructions on how to get started with them.

Monero (XMR)

Monero (XMR) cryptocurrency is easily mined using a personal computer. It's known for its focus on privacy and is based on the CryptoNote protocol. The RandomX hash function is used to create complex mathematical equations. You can mine solo or join a mining pool, where your computer's resources will be combined with others in the pool to mine XMR. Monero is considered one of the top 5 new cryptocurrencies to mine for free from home.

How To Mine Monero: to start mining Monero, you must download a wallet to store your coins. It's recommended to use the official Monero GUI client. The next step is to download mining software that supports Monero, such as MultiMiner. MultiMiner is known for its user-friendly interface, but other mining options are available online. After you have successfully mined Monero, you can trade it on StormGain.

Zcash (ZEC)

Zcash (ZEC), launched in 2016, is a prominent digital currency prioritising privacy. One of its key features for home miners is using the Equihash algorithm, which is resistant to ASIC mining. Therefore, individuals with a GPU can participate in mining Zcash.

How to mine ZCash: to begin mining Zcash, you must first download the software responsible for controlling your hardware. Additionally, you'll need to download the Zcash blockchain and set up a wallet. This process requires patience as the entire blockchain must download on your node and synchronise. Furthermore, ensure that you download the appropriate drivers for your graphics cards. Once mined, you can trade Zcash on StormGain.

Bitcoin Gold (BTG)

Bitcoin Gold (BTG) is a derivative of Bitcoin, created through a forking process. While Bitcoin is typically mined using specialised equipment, Bitcoin Gold was specifically developed for mining using regular hardware.

How to mine Bitcoin Gold: the price of Bitcoin Gold often moves in sync with the original Bitcoin, also known as Equihash-BTG, Equihash(144,5) or Zhash. Additionally, StormGain facilitates trading of Bitcoin Gold.

How to Find New Crypto Projects for Mining

Here are 6 ways to find which coin mining is most profitable:

1. Research industries on coingecko.com. Visit coingecko.com to explore over 70 different industries and their blockchain solutions. It's essential to have relevant knowledge of the market or use cases.
2. Ask for recommendations. Social media like X (formerly Twitter) can be a good starting point to collect ideas from others. However, be cautious of shillers who promote specific cryptocurrencies for personal gain.
3. Check websites that promote airdrops. Websites like airdrops.io and coinmarketcap.com provide information on crypto projects offering airdrops. Airdrops are a marketing activity where free coins or tokens are distributed to promote awareness of a new currency or token.
4. Explore websites listing upcoming crypto ICOs. Websites like icodrops.com and coinmarketcap.com offer fundraising goals, prices, whitepapers, and more details. This is a great option to discover brand-new projects before others.
5. Research listings on crypto launchpads. Crypto launchpads are platforms where developers raise capital for their projects. These platforms undergo a due diligence process, ensuring higher chances of success for listed projects. Check out platforms like gamefi.org.
6. Use CoinGecko's discover function. Visit coingecko.com to find recently added coins and trending searches for crypto projects.

Consider these two rules when making your choice:

- For higher-risk and potentially significant returns, focus on brand-new or new but already established projects in new industries.
- Consider middle to large-cap coins and tokens in established industries for lower risk and lower chances of big returns.

The choice is yours to find suitable candidates for your research among the numerous crypto projects available. Register on StormGain now! (https://stormgain.com/easy-start)

[stormgain]

Ordinals are receding, commission on the Bitcoin network collapses to $0.12

The Ordinals protocol led to the spread of images (similar to NFTs) in the Bitcoin network and then quasi-tokens (BRC-20). The greatest enthusiasm was seen in May when the network experienced congestion and the average commission exceeded $30.



After seeing a significant increase in the cost of transfers, users began to switch to alternative networks for settlements. The cryptocurrency that received the biggest boost was Litecoin, which was launched back in 2011 as a faster and cheaper alternative to Bitcoin.



However, the problem with overloading the Bitcoin network didn't last long. At first, interest in the images that occupied a significant space in the block died out. Now, the excitement around quasi-tokens (with the most famous among them being PEPE, ORDI and MOON) has disappeared.



Since May, somewhere between 100,000 and 400,000 ordinals have circulated daily. That led to the network setting a new record for the number of processed transactions. In recent days, the turnover has fallen below 100,000 per day, and the network commission for sending an ordinary transaction has fallen to $0.12.



Casey Rodarmor, the man who brought about Ordinals, was disappointed in users' behaviour and called 99.9% of the quasi-tokens spam. The primary interest in minting the token was fuelled by a desire to find gullible buyers. Meanwhile, the Bitcoin network has faced an increase in the load on the network, in commission and in unspent transaction output (UTXO).



A number of crypto users believe that Bitcoin was created exclusively for financial settlements and that such innovations only have negative consequences. Supporters of ordinals note the uncompromising progress and the benefits for miners who increased their earnings on higher commission.


StormGain Analytical Group (https://stormgain.com/easy-start)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

FTX case: Client deposits were used to repay loans

In November 2022, FTX, one of the largest crypto exchanges, went bankrupt. Until his arrest, CEO Sam Bankman-Fried (SBF) spent the last year giving interviews in his defence, trying to convince the public that there were no evil intentions. He also assured that Almeda Research, which acted as a market maker for the crypto exchange, was independent. But court testimony says otherwise.

Adam Yedidia, SBF's classmate and FTX programmer

Adam Yedidia testified in court that he had written a program to transfer clients' funds from FTX to Alameda. From its launch, the crypto exchange had difficulties opening a bank account. Some funds were sent directly to Alameda. They were seen as liabilities to FTX that reached $8 billion by mid-2022.

The same year, Yedidia discovered that part of the funds were used to cover loans to third parties, as Almeda's trading activities were causing losses. The exploration of shocking facts about using the clients' funds forced him to resign in November 2022.


Transcript of the court hearing. Image Source: twitter.com/innercitypress

Zixiao 'Gary' Wang, co-founder of the companies and CTO

Gary Wang confessed to committing financial crimes with Nishad Singh, Caroline Allison and SBF.

He testified that "We allowed Alameda to withdraw an unlimited amount of clients' funds."

Privileges were encrypted in the programme code. Alameda could also hold positions with a negative balance in FTX without a forced closure.

Wang also revealed that he owned 10% of Alameda's assets, with 90% owned by SBF.

"If there were disagreements in the company, Sam always had the last word."


Transcript of the court hearing. Image Source: twitter.com/innercitypress

SBF's defence position

The first thing SBF's attorneys noted was that the witnesses' testimony was given in exchange for a deal with the prosecution, hinting that they're interested in exposing SBF as a villain. The attorneys also cited SBF's 10-hour work days starting in 2021 and his high workloads:

"The business was growing too fast. He didn't have time to make sound decisions."

During the speech, the defence highlighted the unprofessionalism of Alameda CEO Caroline Ellison and the negative impact of Binance when the competitor refused to sell FTT (FTX's token) directly to Alameda.

"Being the CEO of a bankrupt company isn't a crime."

According to his lawyers, FTX had the right to lend funds to Alameda as part of a business partnership with a market maker, and SBF's strong involvement in the company's activities was due to his ownership of a stake in Alameda.

Impact on the market

FTX's collapse led to a crypto market crash. Among the Top 10 coins by market capitalisation, Solana was hardest hit. The network had several business projects with SBF, and $1.2 billion worth of SOL is still held in the crypto exchange's accounts.



Trust in centralised market participants also suffered significantly. In the week after FTX's collapse, 10% of crypto exchange reserves held in Bitcoin were withdrawn to cold wallets.



The court case continues, but the defence's weak position and evidence of misuse of clients' funds leave little chance of SBF getting out of hot water.


StormGain Analytical Group (https://stormgain.com/ru)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Crypto derivatives market share sets new highs

The cryptocurrency market's volume continues to decline, reaching levels it last saw in 2019. In September, the spot trading volume amounted to only $336 billion, while derivatives volume was at $1.3 trillion.



Interest in trading derivatives is declining more slowly, bringing its share to a record 79.9%.



The growth of the speculative component is a negative factor, as it reduces the market's ability to withstand stress. In the event of sudden news, the market reaction is more acute due to the liquidation of the traders' or buyers' positions on trading platforms. This increases large players' interest in manipulating prices.



The decline in spot trading volume is also caused by the accumulation of Bitcoin and investors' unwillingness to sell it at current prices. The reserves of long-term holders (those whose coins have been idle for six months or more) have reached 14.7 million BTC.



Mass coin purchases are curbed by the inconsistencies in crypto regulations, the Fed's monetary policy tightening and the high US Treasury bond yields. Institutional investors' behaviour is the best representation of the latter reason. Without waiting on the desired quick approval for crypto spot ETFs, they have withdrawn $103 million from Bitcoin funds over the past month.



A high degree of uncertainty may persist until the end of the year. The Fed is threatening another key interest rate hike, and the SEC is nowhere near approving spot ETF applications. Over the past six months, the 99Bitcoins online obituary hasn't recorded a single article about the upcoming demise of Bitcoin, and even more forecasts of its medium-term growth are being published.


StormGain Analytical Group (https://stormgain.com/easy-start)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Binance's market share dropped from 55% to 34%

In 2023, Binance is seeing the worst performance among major crypto exchanges. Its market share declined to 34% in the spot trading market, and its September turnover dropped to $115 billion. This is the lowest figure since October 2020.



The decline is accelerating. In September alone, its share of spot trading dropped by 4.2%. October might bring even worse results since Binance announced it's leaving Russia on 27 September. Russians provided 7% of the platform's global traffic.



Services for BUSD stablecoin loans will be halted in October. This is a step towards withdrawing support for the coin in February 2024. The volume of BUSD trading on crypto exchanges collapsed in September by 47% to $15.8 billion, and the coin's market capitalisation has dropped from $16.6 billion to $2.5 billion in a year.



Regulatory pressure is to blame for the rejection of BUSD and the decline in market share. The issuer of the Paxos stablecoin was presented with a pre-enforcement action notification, after which the company refused to work with Binance. Support for the Paxos coin expires in February 2024, as well. The SEC filed a lawsuit against the crypto exchange, accusing it of financial fraud and violating securities law. A number of regulators around the world have either refused to issue a new license or revoked the current one. American media predict that the US Department of Justice will soon bring an indictment.

The wave of problems negatively affected BNB, the crypto exchange's native coin, which is down 15% in 2023.



The crypto exchange has lost a significant share in the spot market, but it holds an impressive 51.5% in the derivatives trading market. It also became the first licensed platform in El Salvador, where Bitcoin is recognised as legal tender. If the disagreements with the US Department of Justice can be resolved before the trial begins and the SEC cannot prove a violation of securities law, Binance will have a chance to regain the ground it lost.


StormGain Analytical Group (https://stormgain.com/)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Hodlers accumulate 50,000 BTC per month

In recent months, Bitcoin has been traded with only minor price changes, leaving the realised capitalisation indicator net position change near zero.



The average volume per exchange decreased to 0.44 BTC per active address. A similar pattern was previously observed in 2018 and late 2020. The situation is illustrated by comparing the volume of coins sent over the past week with an average value of -0.5 of the standard deviation.



Similar lulls have preceded major price movements in the past. The latest one has lasted for 535 days, which predicts a relatively early start of a new bull cycle.



The low volume and realised capitalisation indicators point to a decrease in speculative interest among short-term holders, as well as the reluctance of hodlers to get rid of coins at current prices. Moreover, hodlers are replenishing their reserves at a rapid pace, accumulating 50,000 BTC a month.



MicroStrategy, the largest public hodlers, has accumulated 158,245 BTC at a total cost of $4.3 billion. Meanwhile, the world's largest investment company, BlackRock, applied for the creation of a Bitcoin spot ETF and acquired shares in the largest miners for $400 million.



They're all waiting for the crypto rally to start in late 2023 or early 2024. In a recent interview, the billionaire and hedge fund manager Paul Tudor Jones spoke about the most precarious situation in the American financial system since World War II due to inflated external debt and exorbitant payments to service it.

In May 2020, Tudor Jones placed up to 2% of assets in Bitcoin, and in 2023, he announced his desire to bring the figure to 5%, calling BTC a great way to protect wealth in the long term.


StormGain Analytical Group (https://stormgain.com/)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Caroline Ellison: We took $10 billion of client funds out of FTX

Court hearings continue for collapsed crypto exchange FTX and CEO Sam Bankman-Fried (SBF). His close associates, FTX CTO Gary Wang and Alameda Research CEO Caroline Ellison, have pleaded guilty to fraud charges and reached a deal with the investigation. On the other hand, SBF denies all allegations, and his lawyers have focused on the unprofessionalism of his colleagues.

We've already covered the strong interconnection of Alameda and FTX. A key witness for the prosecution was Caroline Ellison, who described the depth of FTX's financial hole in great detail.

In 2021-2022, SBF set the target of actively attracting investments. The money was used for "donations" to politicians, advertising, charity, investments in various projects, purchase of luxury property and multi-million dollar bonuses to management. To attract massive investment, artificial reports of the company's financial health were created.

Sam instructed us to borrow as much money as possible.

Genesis Trading was Alameda's largest investor, with the latter's debt to the former reaching several billion dollars at peak times. After Terra (Alameda was among its investors) collapsed in May 2022, the crypto industry faced a crisis and a drop in asset values.



A month later, Genesis Trading requested the return of the investments. As a result, Caroline fabricated a financial statement on the seventh attempt that was supposed to reassure the lender. However, the large share of the FTT token — the FTX crypto exchange's token — on the company's balance sheet led Genesis to become sceptical and withdraw some of its funds.

Fast-forwarding a bit, Genesis Trading was still the loss leader among investors and subsequently filed for bankruptcy.



To stop investors from fleeing and cover the financial hole, SBF ordered the inflow of client funds from FTX to Alameda to be increased. That number reached $10 billion in 2022. In terms of assets share, 52% of all client funds in ETH, 44% in USDT and 25% in BTC were withdrawn from FTX. That's not including the FTT token and its fake capitalisation, which accounted for over half of Alameda's balance sheet at the time of the collapse.



Alameda was a private structure with no audits conducted. The financial reports were faked by the management, and balances were adjusted by changes in the program code. As Ellison confessed, if Alameda was a third-party market maker, its credit line would be limited to a few hundred million dollars.

The house of cards began to collapse after CoinDesk published an article in early November 2022 noting the two companies' high interconnection and questionable financials, as well as FTT making up a large part of assets. When customers began to apply for withdrawals, there wasn't enough money, and FTX and Alameda filed for bankruptcy. The SBF empire's current debt to customers and investors is estimated to be $8 billion.


StormGain Analytical Group (https://stormgain.com/)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Interest in staking declined due to Ethereum's weakness

We recently covered the growing load on the Ethereum network due to the massive inflow of validators. The project's developers estimate that the number of validators will double by mid-2024 to reach 2 million.



However, the market is making adjustments. In 2023, Ethereum lost 20% against Bitcoin.



Investors' last hopes were on the launch of Ethereum futures ETFs in October, but that has been mediocre. On the first day of trading, altcoin ETFs attracted just 1.3% of the amount raised by a similar Bitcoin-based fund in 2021 ($7.4 million vs $571 million, respectively). Trade volume was even lower, coming in at 0.19%.



The yield from staking now stands at 3.5% APY, which doesn't even come close to bridging the difference between Ethereum and Bitcoin.



This, coupled with the poor reaction to the ETFs' launch, has led to disappointment among altcoin investors. The queue for participation in staking has declined to nearly zero, whereas there were over 50,000 willing participants back in September.



The main factor restraining the altcoin's growth is the position of the SEC, which is seeking to label the cryptocurrency as a security. Coinbase received a pre-enforcement action notification in March but refused to quit the staking programme voluntarily. If the court sides with the SEC, Ethereum will receive another painful blow. The US cryptocurrency exchange ranks second In Ethereum staking with 2.3 million staked coins and a share of 8.4%.

With Coinbase leaving the market, Ethereum's other problem, centralisation, will become exacerbated. Some clients are likely to join the Lido Finance pool, which has a 32% share.



Vitalik Buterin has admitted that the increase in centralisation is one of the network's major problems and that the solutions being considered are far from ideal. He estimates that it will take 10-20 years to resolve the situation.


StormGain Analytical Group (https://stormgain.com/)
(platform for trading, exchanging and storing cryptocurrency)

[stormgain]

Bitcoin briefly breaks $30K following false rumour of spot ETF approval

Bitcoin (BTC) experienced a sudden and significant price surge, briefly rising past $30,000 on Monday. The reason behind this surge was a false report suggesting that the US Securities and Exchange Commission (SEC) had granted approval for the first spot Bitcoin ETF by BlackRock.

In a tweet that has since been deleted, the crypto-focused news outlet Cointelegraph erroneously announced on Twitter: "BREAKING: SEC APPROVES ISHARES BITCOIN SPOT ETF." This referred to the iShares ETF brand owned and operated by investment giant BlackRock. Consequently, Bitcoin's value swiftly increased by over 10%, reaching a high of $30,000. However, these gains swiftly dissipated after a spokesperson from BlackRock informed Bloomberg that the company's application for a spot Bitcoin ETF was still undergoing review by the SEC.

In response to the misinformation, Cointelegraph issued a follow-up tweet, stating: "We apologise for a tweet that led to the dissemination of inaccurate information regarding the BlackRock Bitcoin ETF. An internal investigation is currently underway." On Monday, the outlet also issued an article clarifying how the misunderstanding came about. But the crypto market had already been rocked by the rumour, with many traders being caught off-guard and losing their leveraged positions. Data from CoinGlass revealed that $81 million worth of short positions (bets against higher prices) were liquidated on the move to $30,000.



As a result of these developments, Bitcoin rolled back some of its gains, now showing an approximate 3% increase and hovering slightly above the $28,000 mark. During the dump, about $31 million in long positions (bets on higher prices) were also liquidated. Although brief, the volatility introduced by the social media rumour shows just how suddenly dramatic price swings can be re-introduced to the crypto market after the relatively quiet summer period.

Error shows just how impactful the spot ETF approval could be

This episode of heightened Bitcoin price volatility underscores the expectations that investors have maintained concerning the SEC's approval of a spot Bitcoin ETF. While the agency has previously sanctioned Bitcoin futures ETFs, it has repeatedly either denied or postponed applications for Bitcoin spot ETFs over recent years. Nevertheless, hope has been rekindled with the entry of major asset management firms like BlackRock and Fidelity, both of whom submitted their own Bitcoin ETF applications.

Additionally, the optimism for a Bitcoin spot ETF received a boost following a court ruling in favour of Grayscale Investments. The court determined that the SEC's rejection of Grayscale's application to convert its Bitcoin trust fund into a spot Bitcoin ETF was unfounded. Recent media reports have indicated that the SEC does not plan to appeal this decision, which has given investors renewed hope of an imminent approval for a spot Bitcoin ETF. Notable figures, including Cathie Wood from Ark Invest, have expressed their belief that the SEC is making progress towards granting such approvals, potentially for a group of Bitcoin ETFs.

At present, the SEC is reviewing more than 10 spot Bitcoin ETF applications, signifying the significant interest and anticipation surrounding the potential approval of these investment vehicles.

Although the recent BTC price swings were based on a false rumour, sooner or later, the SEC will make its decision, and traders should be prepared to profit from the crypto volatility that will follow. To trade BTC and other cryptos with the best conditions on the market, make sure to use StormGain to maximise your profits (https://stormgain.com/easy-start).

[stormgain]

Bitcoin halving 2024: How important is it?

The Swan Pacific Bitcoin festival recently hosted a panel discussion with the provocative title, "Are halving price cycles bullshit?" Led by Nik Bhatia, the founder of Bitcoin Layer, the panel featured insights from prominent figures in the cryptocurrency space. The focus of the discussion was to explore whether the upcoming Bitcoin (BTC) halving event, cheekily referred to by the crypto community as the ‘halvening’, is indeed a reliably bullish event or merely a narrative that attracts inexperienced investors.

Bitcoin halving is an event that occurs approximately every four years, reducing the reward miners receive for confirming transactions by half. This process is programmed into the Bitcoin protocol to limit the total supply of Bitcoin, making it more scarce over time and potentially increasing its value.



The prevailing belief in the cryptocurrency space is that Bitcoin’s supply halving is a bullish phenomenon, leading to substantial price increases. Many in the industry eagerly anticipate this event, often mentioning it alongside the potential approval of a spot Bitcoin ETF as the next key catalyst of a BTC bull run.

However, it is crucial to challenge long-held assumptions, particularly in the context of the highly volatile world of cryptocurrency, given the numerous bearish events experienced over the past two years.

The panel, composed of C-level executives with interests in crypto mining, exchanges, and investments began by addressing the primary driver of Bitcoin’s price. Liquidity was brought up as the dominant factor as analysts argued that market flow was more important and that the halving’s impact on price was minimal. However, others on the panel argued that the halving remains a bullish event, even though the magnitude of its effect may be debatable. The panelists agreed that while the halving could impact the market, its significance may diminish over time.

Are all halvings equal?

Just because halvings have been bullish events in the past, they might not continue to have the same impact in the future. A key consideration is that halving primarily affects supply and this becomes less significant as time progresses-half of a half is less of a reduction in the amount of BTC than half of the original whole. Still, it may have a psychological impact on the market.

Investing isn’t only about mathematics, however, it’s also about emotion, especially in the cryptocurrency market, where pure sentiment can drive wild speculation and volatility. Despite their reservations about the impact of Bitcoin supply halvings on its price, all panelists expressed a positive long-term bullish outlook for Bitcoin, reaching a consensus that liquidity would be the driving force for Bitcoin’s future price and that the halving event could continue to be a powerful sentiment driver.

Bullish Predictions For The Halving

Market participants are divided on how Bitcoin's price will respond to the upcoming block subsidy halving, but bullish predictions come from crypto influencers CryptoCon and Rekt Capital. The former suggested that Bitcoin's price will likely gravitate toward $130,000 in the next cycle, with historical patterns indicating that 2025 could be the year for the next cycle peak, approximately double the previous record set in 2021. However, Rekt Capital cautioned that the pre-halving year of 2023 could bring new local lows and a potential protracted price downturn, historically seen around this time in Bitcoin's four-year halving cycles. Because prices tend to go up again around the actual halving event, Rekt advises treating these lows as opportunities for re-accumulation.



Whether it's in anticipation of the launch of Bitcoin spot ETFs or pre-halving excitement, it’s a good time to accumulate BTC to profit from future price movements. Remember, StormGain offers the best conditions to buy and trade BTC and other digital assets, all with the convenience of a powerful, user-friendly app. Sign up now to trade crypto with StormGain’s exclusive perks! (https://stormgain.com/easy-start)