Cryptocurrency Market News From tradecoind2.com

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Since September, LINK price has increased more than 25%, outperforming Bitcoin, ETH and most altcoins. Currently, the project is the leading decentralized blockchain oracle solution and ranks 15th in market capitalization when excluding stablecoins.

In September, LINK’s price increased by an impressive 35.5%, but compared to its performance so far in October, LINK has faced a 10% correction. Investors fear a break of the $7.20 support could lead to further downward pressure, potentially erasing all of the gains from the previous month.


LINK Price Index 12 Hours | Source: TradingView
 

It’s worth noting that the $8.21 close on September 30 marked its highest in over 10 weeks, but when looking at the bigger picture, LINK’s price is still 86% below its peak. all time in May 2021. Furthermore, over the past 12 months, LINK showed very little growth, while ETH increased by 21.5% during the same period.

LINK puts all its hopes on the SWIFT test

The LINK bull run began after SWIFT, the leader in messaging for international financial transactions, released a report on September 31 titled “Connecting the Blockchain: Overcoming Fragmentation in tokenized assets,” suggesting that linking existing systems to blockchain is more feasible than unifying different central bank digital currencies (CBDCs).

After a series of tests, SWIFT reported the ability to provide a single access point to multiple networks using existing infrastructure. The system is based on Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and is said to significantly reduce operational costs and challenges for organizations supporting tokenized assets.

Part of the reason for the skyrocketing value of LINK may also be due to Australia and New Zealand Banking Group (ANZ) successfully testing Australian dollar-denominated stablecoins using Chainlink’s CCIP solution. In a statement dated September 14, ANZ described the transaction as a “milestone” moment for the bank. Nigel Dobson, ANZ’s banking executive, noted ANZ sees “real value” in tokenizing real-world assets, a move that has the potential to revolutionize the banking industry.

On September 21, Chainlink announced the mainnet launch of the CCIP protocol on the Ethereum layer 2 Arbitrum One protocol, aiming to promote cross-chain decentralized application development. This integration provides access to Arbitrum’s low-cost, high-throughput scaling solution. StarkWare, another notable Ethereum scaling technology company, has previously used Chainlink’s oracle services.

Changes to Chainlink’s multi-signature protocol and decreasing fees have reduced investor interest
However, the positive news flow was interrupted on September 24 when user StefanPatatu criticized Chainlink on social network X (formerly known as Twitter) for quietly reducing the number of approvals needed on multi-wallet its signature. The previous agreement, which required four out of nine signatures to authorize the transaction, was seen as a security measure.

Chainlink responded by downplaying concerns and claiming the update was part of the normal signer rotation process. This explanation does not invalidate analyst Chris Blec’s criticism that “the entire DeFi ecosystem could be intentionally destroyed in the blink of an eye” if Chainlink signatories ever “went rogue.” ”.

However, Chainlink’s most important metric, the protocol revenue generated by its price feed, has decreased over the past four months when measured in LINK terms.

In September, the Chainlink price feed generated 142,216 LINK ($920,455) in fees, down 57% from May. Part of this movement can be attributed to a decrease in total value locked (TVL) of Ethereum, has dropped from 28 billion in May to $20 billion currently, representing a 29% decrease. However, this does not explain the entire discrepancy and may cause investors to question the sustainability of Chainlink’s revenue model.

It’s important to note that Chainlink offers a range of services beyond creating price feeds and operating across multiple chains, including CCIP, although Ethereum’s oracle pricing services remain core in the protocol’s business operations.

For comparison, Uniswap, the leading decentralized exchange, has a market capitalization of $2.38 billion, 42% less than Chainlink. Uniswap also boasts a total value locked (TVL) of $3 billion and generated $22.8 million in fees in September alone, according to DefiLlama.

Therefore, investors have reason to question whether LINK can maintain the $7.20 support level and maintain its $4.1 billion market capitalization.

Source:
https://tradecoind2.com/is-link-increasing-35-just-buying-rumors-selling-the-truth/

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Data from blockchain analytics firm Glassnode shows that long-term investors continue to buy bitcoin (BTC) at a breakneck pace, contributing to the market’s lack of liquidity.

Hodler net position change metrics show that long-term investors or wallets with a history of holding coins for at least 155 days have accumulated 50,000 BTC ($1.35 billion) per month.

The total number of BTC held by long-term holders has reached a new all-time high of more than 14.859 million BTC, accounting for 76% of the cryptocurrency’s circulating supply.

Glassnode said in its latest weekly report:

“More than 50k BTC per month is currently being secured by holders, indicating a tightening supply and widespread reluctance to trade.”

Inactive coins are coins that have not been used onchain for a certain period of time. Increased coin dormancy means coins are being held for longer periods in an illiquid state.

In other words, it indicates a relative weakening of supply-side pressures in the market and the possibility of excessive price increases.



Source:
https://tradecoind2.com/hodler-hoards-1-35-billion-in-bitcoin-every-month/

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LTC price has been and will likely continue to follow Bitcoin. But in addition to its high correlation with the leading asset, this altcoin is also vulnerable to decline due to lack of action from whale addresses.

LTC price near new low
 
At the time of writing, LTC is trading at $61.25, about 2.4% above the current yearly low of $58. The price is likely to slip below this level and record a new 2023 bottom and test the support line at $58.

The relative strength index (RSI) indicates rising momentum in the case of LTC, signaling a bearish move that could lead to further declines as the indicator is below its neutral 50 line.

But if LTC bounces off the $58 support and rises back to the $63 support line, the price will have a chance to surpass the 50-day Exponential Moving Average (EMA), which it failed to do at the beginning of the month.

Whale activity signals a slow recovery
Litecoin has a pretty strong correlation with Bitcoin. Over the past few weeks, this correlation has hovered around 0.73, making LTC price action vulnerable to BTC fluctuations.

However, in addition to broader market signals, the lack of recovery in LTC price in September was due to a decline in whale activity. Even though whale addresses (addresses that conduct more than $100,000 worth of transactions) control only 11% of the entire circulating supply, their buying and selling activities still have the ability to activate the market.

Similarly, the LTC market maintains liquidity when these addresses make transactions, and a lack of them will cause price fluctuations. At the time of writing, their average weekly trading volume has reached $3.01 billion, the lowest since November 2020.

This could make investors cautious, reducing transactions and on-chain activity, causing LTC price to recover more slowly.

Source:
https://tradecoind2.com/ltc-price-nears-new-low-what-next/

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These 2 game tokens can increase sharply in the next few days

Both COMBO (COMBO) and BinaryX (BNX) are showing decisive bullish signals. They are expected to move higher in the next few days.

Game tokens appear to be attracting attention as the Big Time token (BIGTIME) has increased 15-fold since its listing on major exchanges on October 11.

COMBO technical analysis

COMBO (COMBO) price has created a bullish structure since hitting a yearly low at $0.41 on August 17. In the process, the price retested the strong resistance zone at $0.70 on the 11th. October and was denied thereafter.

The subsequent decline caused the price to break below the keylevel of the bullish structure at $0.54 on October 10, suggesting an end to the uptrend.

However, the price reclaimed the keylevel 2 days later with a large bullish candle. This shows that the previous breakdown was just a deviation (blue ellipse) and the bullish structure is still intact.

Additionally, such deviations are often followed by strong price increases.

Therefore, COMBO price is likely to retest the $0.70 area in the near future. This marks a 27.68% increase from the current price.


COMBO/USDT Daily Chart | Source: TradingView
 

BNX technical analysis
BNX price has been trading inside an ascending parallel channel since reaching a yearly low at $0.17 on August 17. This is a bearish pattern, which usually leads to a breakdown in the majority of cases .

However, BNX price broke above this channel on October 11. Invalidation of the bearish pattern usually leads to a strong upward movement afterward.

In addition, the price also broke out above the strong resistance zone at $0.55 on the same day, further reinforcing the bullish thesis.

Currently, BNX price is confirming both the channel resistance line and the $0.55 area as support (blue arrow). If successful, it could accelerate to the next key resistance area at $0.33, a gain of 25.63% from the current price.

The daily RSI favors continued upside as it sits above 50 and sloping up.


BNX/USDT Daily Chart | Source: TradingView

Source:
https://tradecoind2.com/these-2-game-tokens-can-increase-sharply-in-the-next-few-days/

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RUNE saw a staggering 16.6% increase as THORSwap, the decentralized exchange based on THORChain, went live again.

THORSwap suspended trading last Friday (October 6), after receiving illegal funds linked to the attack on the FTX exchange in November 2022.

Services such as lending, borrowing and staking still operate.

THORSwap uses assets deposited on THORChain, a Layer-1 blockchain optimized for interoperability between different blockchains, as liquidity to facilitate cross-chain swaps.

THORSwap went live yesterday (October 12) with a “terms of service” update, adding “several additional protections” to prevent illicit flows and stay compliant law.

However, RUNE has remained in a downtrend since THORSwap suspended trading, falling from $2.03 to a low of $1.48 just before yesterday’s bullish reversal, down 27% on the week .

Trading volume via THORChain increased to $62 million on Thursday (October 12), after falling below $30 million over the past few days.

Thorswap blocks sanctioned countries
In addition to illegal funds on the blockchain, the THORSwap team also updated its terms of service to block users from countries sanctioned by the United States.

They also announced that they had “partnered with an industry leader” to add barriers.

Uniswap, a decentralized exchange on Ethereum, uses a similar guardrail to identify financial criminals. They partnered with investigative firm TRM Labs in April 2022 to analyze and block transactions potentially related to illegal activity.

Some users were quick to raise concerns about the new regulations, claiming that it contradicts the principle of decentralization.

Matt Ahlborg, a cryptocurrency researcher, told THORSwap that blanket bans are unethical because they adversely affect “hundreds of millions of innocent people.”

Accordingly, a THORChain supporter responded that there are other applications that users from sanctioned countries can use instead of THORSwap, as it was built by “an American team” and “must legally compliant”.

Source:
https://tradecoind2.com/rune-surged-more-than-16-as-the-thorswap-exchange-resumed-operations/

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The altcoin market has been hit hard after most cryptocurrencies fell into price corrections. The top three altcoins Ethereum (ETH), BNB Chain (BNB) and XRP are no exception.

Altcoins Could See a Bull Run If…

Mags, a famous cryptocurrency analyst, recently posted a tweet on X (formerly known as Twitter), sharing an interesting event related to altcoins. Currently, the total market capitalization of the top 3 altcoins is $320 billion and there are two possible outcomes…

https://twitter.com/thescalpingpro/status/1712000590820360278
 

If the price falls below current support, we can expect a retest of the 2017 all-time high, which is currently within a strong monthly support zone around $240 billion. The second possibility is that if the price breaks through the local trendline resistance and runs ahead of the monthly support, we can expect a strong uptrend from here. Since both possibilities are contradictory, a closer look at all three altcoins provides more certainty as to which is more likely.

Ethereum is likely to drop in price
CoinMarketCap data reveals that ETH price fell more than 4% last week. At the time of writing, ETH is trading below the $1,600 mark at $1,560.32 with a market capitalization of over $187 billion. There is more bad news as most on-chain metrics also favor sellers.

For example, Ethereum’s exchange reserves are increasing at the time of writing. This means the pressure to sell tokens is quite high. In fact, both ETH’s Korean premium and Coinbase’s premium are also in the red – a sign that investors from the US and South Korea are selling off.

 

ETH trading volume has also dropped sharply over the past few days, showing that investors have been reluctant to trade the token. Selling sentiment also prevails in the derivatives market, as the buy/sell ratio of ETH recipients recently turned red. However, CryptoQuant data reveals that ETH is in oversold territory, which is likely to help increase buying pressure and thereby push up the token price in the coming days.

How is BNB Chain doing?
The status of BNB is quite similar to Ethereum when its value drops. Over the past seven days, the price of BNB has decreased by more than 3%. At the time of writing, it is trading at $205.39 with a market capitalization of $39.5 billion.

If market indicators are to be believed, BNB price could fall further. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) fell. BNB’s Chaikin Money Flow (CMF) is also hovering below the neutral zone. On top of that, the MACD shows a clear bearish advantage, adding to the possibility of a prolonged downtrend.

 

However, unlike Ethereum, BNB’s derivatives market statistics seem optimistic. For example, Coinglass data indicates that while the price of BNB fell, its funding rate also fell, suggesting that investors were reluctant to buy BNB at lower prices. Additionally, a similar downward trend was also observed in BNB’s open interest (OI), suggesting a possible trend reversal.

Whales are interested in XRP
During this time, XRP whales showed extreme interest in this cryptocurrency. This is evident in the increase in total whale transactions over the past few days. Additionally, the level of discussion about XRP on social media remains quite high, reflecting its popularity in the cryptocurrency market.

XRP was the most affected of the top three altcoins in the latest correction, as its value dropped more than 8% in the past seven days. Thanks to the unprecedented price drop, XRP’s 1-week price fluctuation also skyrocketed.

At the time of writing, XRP is trading at $0.4772 with a market capitalization of over $25.5 billion, along with a 7% decrease in daily trading volume. XRP’s fate is similar to the other two, as its market indices remain bearish. Its CMF and MFI both recorded a decrease and are near the neutral zone.

Looking at the performance of all three top altcoins, it seems that their situation going forward is not very positive. Therefore, the second possibility of expecting the 2017 ATH level to be retested seems very likely.

However, the cryptocurrency market is famous for its unpredictability, so how things will play out in the future will be extremely interesting…

Source:
https://tradecoind2.com/assessing-the-price-increase-of-ethereum-xrp-bnb/

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Bitcoin (BTC) price has been falling since reaching a high of $28,592 on October 2.

The decline confirmed a deviation above the $28,000 horizontal zone, which is now confirmed as resistance.

Bitcoin drops after being rejected at the high end of the range

Technical analysis from the daily timeframe shows that Bitcoin price has been falling since reaching a high of $28,580 on October 2 (red symbol). At the time, it appeared that BTC had broken above the $28,000 horizontal resistance area.

However, the price could not maintain its upward momentum. BTC fell below this zone shortly after, confirming this as resistance (black symbol) on October 6.

Bitcoin has fallen at a rapid pace since then, reaching a low of $26,538 on October 11.

The daily relative strength index (RSI) is bearish. Market traders use the RSI as a momentum indicator to identify overbought and oversold conditions to decide whether to accumulate or sell an asset.

A reading above 50 and sloping up shows that the bulls still have the advantage, while a reading below 50 shows the opposite.

The indicator is below 50 and falling, both of which are signs of a downtrend. Additionally, it broke below the bullish divergence line (green line), which preceded the entire upward movement.

There is some very interesting Bitcoin news today.

Today marks the deadline for the U.S. Securities and Exchange Commission (SEC) to object to the court’s decision, which it deemed insufficient to block a spot Bitcoin ETF.

If the SEC drops its objection to this ruling by the end of the day, it will exhaust its options to reject any other spot Bitcoin ETFs.

Therefore, they are obliged to license all such ETFs. If the SEC doesn’t act today, it’s increasingly likely that we’ll see a green light for all of these funds.

In other news, 24,000 Bitcoin options contracts worth $640 million will expire today. This amount is 50% larger than last week.

Finally, the US Consumer Price Index (CPI) in September was at 3.7% , only slightly higher than the forecast of 3.6%.

When combined with a slightly higher-than-expected Producer Price Index, this could cause interest rates to rise slightly at the next meeting. While the US dollar index reacted positively to the CPI index, Bitcoin decreased slightly.

BTC price prediction: When will the price bottom?
Technical analysts use Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, helping them determine the direction of a trend. The most likely Elliott wave count is bearish.

Starting from the November 2022 low of $15,479, BTC price completed a five-wave upward movement. If so, it is now inside a regulatory structure in response to that increase.

If the decline continues, the most likely level for the bottom of wave C would be $21,800. This zone coincides with the 0.618 Fib retracement support level (white) and will create a 1:1 ratio A:C wave (black).

Analysis of the BTC halving cycle also supports this possibility. A drop to $21,800 would be nearly 20% off the current price.

Despite this bearish prediction, a rise above the wave B high of $28,592 could result in a 15% upside movement towards the $30,500 resistance area.

Source:
https://tradecoind2.com/bitcoin-btc-etf-decision-is-imminent-how-will-price-react/

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Grayscale Investments scored a resounding victory in its long-running lawsuit against the U.S. Securities and Exchange Commission (SEC) in late August. The lawsuit began in October 2022 after the company filed a lawsuit in D.C. Circuit Court to order conversion of Bitcoin Trust (GBTC) into ETF.

The US SEC
has until the morning of October 14 to appeal
 
The US SEC has until the morning of October 14 (Vietnam time) to appeal the losing judgment against Grayscale Investments. According to the August 29 victory for Grayscale, the court determined that the SEC’s rejection of Grayscale’s spot ETF proposal was “arbitrary and capricious.”

“Ordered and heard Grayscale’s petition for reconsideration is granted and the Commission’s order is vacated, in the opinion of the court.”

The basis for such a ruling was that the commission could not explain why similar products were treated differently. Accordingly, the SEC will have to reconsider the rejection decision and will likely approve the first spot Bitcoin ETF in the United States.

The SEC has 45 days to appeal the ruling: starting on August 29 and the deadline is the morning of October 14 (Vietnam time). There were two options presented to the committee. The first is to go to the Supreme Court or the En banc Council for reconsideration (En banc is a retrial of the case with the participation of the entire court, not just the 3-judge panel). Second, refuse the application on other grounds for another time.

However, if the SEC does not appeal, that is roughly equivalent to approval. Furthermore, it could serve as a signal whether a Bitcoin spot ETF may soon appear on the market.

Previously, Berenberg analysts pointed out that the SEC could use other arguments to reject Grayscale’s Bitcoin spot ETF. According to German Bank analysts, Coinbase’s participation in the Bitcoin spot ETF campaign could add to regulators’ concerns while strengthening their arguments against it.

This comes as Coinbase is involved in a lawsuit initiated by the US SEC, fighting charges of operating as an unregistered securities exchange.

Bitcoin
spot ETF
could create a lot of selling pressure
Meanwhile, a YouTuber and analyst has predicted there will be a lot of selling pressure if a spot Bitcoin ETF is approved, given the current 17% Grayscale GBTC discount. The trust currently records approximately $16.6 billion in assets under management (AUM). However, it trades like a closed-end fund so the price can vary significantly from the underlying asset value.

With Grayscale currently holding around 636896 BTC (about $17.082 billion at current rates), they typically have more Bitcoin than the actual market value ($16.6 billion), hence the discount. .


Source: Crypto Rover
Once the ETF is approved, investors can sell it for a profit margin of at least 20-30%. This implies that the 636,696 Bitcoins that Grayscale owns may be available on the market.

Source:
https://tradecoind2.com/what-will-the-us-sec-do-when-the-deadline-to-appeal-the-grayscale-ruling-expires-tomorrow-morning/

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Warren Buffett, often revered as the Oracle of Omaha, has never shied away from expressing his skepticism towards Bitcoin. He once suspected Bitcoin and other cryptocurrencies were “gambling tokens” with no intrinsic value.

However, the situation seems to be changing. Although unintentional, Buffett’s investment in Nubank brought him to the cryptocurrency industry.

Warren Buffett’s Indirect Bitcoin Venture Pays Off
In 2021, ahead of its Initial Public Offering (IPO), Warren Buffett’s Berkshire Hathaway invested $500 million in Nubank, a digital bank headquartered in Brazil. This fintech giant facilitates traditional banking services and allows customers to trade Bitcoin and other cryptocurrencies.

After the IPO, Berkshire Hathaway invested an additional $250 million in Nubank, bringing the total investment capital to $750 million. The value of this position currently stands at $840 million, given that Berkshire has not bought or sold any shares since the end of the second quarter.

Nubank took a further leap into the cryptocurrency industry by launching its altcoin Nucoin earlier this year. This move is nothing less than a financial boost. With its stock price up more than 100% this year, Nubank’s market performance has eclipsed other heavyweights in Buffett’s portfolio. These include giants like Amazon, Apple, Coca-Cola, Bank of America and Kraft Heinz.

As global financial markets move through turbulent times, Buffett’s indirect connection to cryptocurrency through Nubank is ironic. The investment strengthens Berkshire Hathaway’s financial position amid a potentially seismic market loss of $17.7 trillion. Therefore, this is a testament to the nuanced change in the way traditional investors interact with the crypto industry.

Buffett’s inadvertence turned out to paint a story that shows that traditional finance and cryptocurrency are finding an intersection. Despite his fierce criticism, Nubank’s performance underscores the fact that even its staunchest critics cannot ignore the financial potential inherent in the emerging sector.

For example, veteran hedge fund manager Paul Tudor Jones suggests that in the current challenging US political environment, Bitcoin and gold may now make up a larger part of one’s portfolio than Normal.

“I really like gold and Bitcoin. I think they may represent a larger percentage of your portfolio than they have in the past because we are going through both challenging political times in the United States and a complex geopolitical situation.” , Jones said.

Although Buffett’s views on Bitcoin remain unchanged, even calling it “rat poison”, his indirect involvement through Nubank’s thriving venture is a stirring story. Investment power is growing in the modern financial era.

Source:
https://tradecoind2.com/warren-buffett-is-benefiting-from-bitcoin-despite-constant-criticism/

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In a groundbreaking move, Italian luxury sports car manufacturer Ferrari announced on  October 14, 2023 that it has officially started accepting cryptocurrency as a form of payment for its premium vehicles in the United States. The company’s Chief Marketing and Commercial Officer, Enrico Galliera, revealed that this bold payment option will soon expand to Europe due to growing demand from wealthy crypto investors and clientele. traditional.

https://twitter.com/azcoinnews/status/1713102339811500508
 

This notable decision sets Ferrari apart from the majority of blue-chip companies, which have been hesitant to embrace cryptocurrency due to its apparent volatility and regulatory uncertainties. The company’s entry into the world of cryptocurrency payments has similarities with Tesla, the electric car giant which, in 2021, began accepting cryptocurrency payments but quickly stopped due to concerns about its environmental impact.

Enrico Galliera provided insights into Ferrari’s decision to embrace cryptocurrency, underscoring the automaker’s commitment to meeting the growing needs of its customer base, including manufacturers. Young crypto investors and traditional investors looking to diversify their portfolios. This change is in line with the evolving landscape of modern finance, where digital currencies have become a mainstream asset class.

“Some of our clients are young investors who have accumulated their wealth through cryptocurrency, while others are traditional investors looking to diversify their portfolios. Surname”.

Ferrari has selected BitPay as its payment processing partner, allowing customers to complete transactions using major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC). One of the key benefits of this partnership is the seamless conversion of crypto payments into fiat on behalf of authorized Ferrari dealers, protecting them from market volatility. digital asset market.

“This is one of our main goals: avoiding direct processing of cryptocurrency payments, protecting both our agents and ourselves from price fluctuations,” Galliera emphasized.

Furthermore, BitPay ensures that the cryptocurrency used for payment is legitimate and not involved in money laundering or illegal activity, providing additional security for both Ferrari and its customers.

Source:
https://tradecoind2.com/ferrari-officially-accepts-cryptocurrency-payments-in-the-united-states/

[NewspaperD2]

ETH price dropped 7% between October 6 and October 12, hitting a seven-month low at $1,520. Despite a slight recovery to $1,550 on October 13, it appears that investor confidence and interest in ETH is waning, according to multiple metrics.

Some may argue that the move reflects a broader apathy toward cryptocurrency, as evidenced by Google searches for “Ethereum” hitting a three-year low. However, ETH is 15% worse than the total altcoin market capitalization since July.

Interestingly, this price movement coincided with Ethereum’s 7-day average transaction fee falling to $1.80, its lowest level in the past 12 months. By comparison, these fees were at more than $4.70 just 2 months ago, a cost threshold considered high even for initiating and closing layer 2 transactions in batches.

Regulatory uncertainty and
lower staking
yields cause ETH prices
to
fall

An important event affecting the price of ETH was Cardano founder Charles Hoskinson’s comments on the US Securities and Exchange Commission Director William Hinman’s classification of ETH as a non-securities asset in 2018. Hoskinson also co-founder of Ethereum, alleged on October 8 that some form of “bias” influenced the regulator’s decision.

Ethereum staking also attracted less interest from investors participating in the network’s validation process as yields dropped from 4.3% to 3.6% in just two months. This change occurred alongside an increase in ETH supply due to reduced activity in the burn mechanism, reversing the current scarcity trend.

On October 12, regulatory concerns escalated after the Autorité de Contrôle Prudentiel et de Résolution (ACPR – part of French Central Bank) highlighted the risk of “paradoxically high concentrations” in Decentralized finance. The ACPR report recommends the need for specific rules governing the certification and governance of smart contracts to protect users.

Derivatives data and falling TVL reflect bear control
A closer look at derivatives metrics will provide insight into how professional ETH traders are positioned following the price correction. Typically, monthly ETH futures trade at an annual premium of 5–10% to compensate for delayed transaction settlement, and this practice is not unique to the cryptocurrency market.

 ETH futures spreads hit a five-month low on October 12, signaling a lack of demand for leveraged long positions. Interestingly, even the 8.5% ETH price increase between September 27 and October 1 could not push ETH futures above the 5% neutral threshold.

Ethereum’s total value locked (TVL) has decreased from 13.3 million to 12.5 million ETH over the past 2 months, indicating a decrease in demand. This trend reflects increasingly low confidence in the DeFi industry and has fewer advantages than the 5% yield that traditional US dollar finance offers.

To assess the significance of TVL decline, it is useful to analyze metrics related to decentralized application (DApp) usage. Some DApps, including decentralized exchanges (DEXs) and NFT markets, are not financially centralized, making the value sent irrelevant.

 Unfortunately, for Ethereum, the drop in TVL was accompanied by reduced activity in most DApps, including leading DEX Uniswap and largest NFT marketplace OpenSea. The drop in demand is also evident in the gaming sector, with Stargate showing just 6,180 active accounts on the network.

While regulatory concerns may not be directly related to the classification of ETH as a commodity, they do adversely affect the DApp industry. Furthermore, there is no guarantee the main pillars of the ecosystem, such as ConsenSys and the Ethereum Foundation, will not be affected by potential regulatory actions, especially in the United States.

Considering reduced demand for leveraged Long positions, lower staking yields, regulatory uncertainty, and lack of popular interest (as reflected via Google Trends), the likelihood of ETH falling below $1,500 la is still relatively high.

Source:
https://tradecoind2.com/eth-price-falls-to-7-month-low-more-drops-next/

[NewspaperD2]

France’s banking and insurance regulator, Autorité de contrôle Wiseiel et de résolution (ACPR), has  published a summary of its findings from a public consultation on regulating DeFi.

The consultation received significant participation from DeFi stakeholders globally, providing valuable insights to inform potential regulatory approaches in Europe.

According to ACPR, the two-month consultation provides a deeper understanding of the risks and opportunities of DeFi. While DeFi is often described as “decentralized,” the regulator argues that “disintermediation” may be more accurate due to its centralized infrastructure with major cloud providers, demonstrating Potential operational vulnerabilities.

The consultation also revealed widespread support for smart contract certification, the core of DeFi protocols, with proposals around proportionality and incident reporting. The management of intermediaries and user interfaces also received widespread consensus.

Most participants favored continued deployment on public blockchains while enhancing resiliency. The feedback will help shape ACPR’s contributions to European regulatory discussions under the Markets in Crypto-Assets (MiCA) law, focusing on issues such as:

*The rules governing blockchain trust are important for DeFi.
*Smart contract certification framework.
*Governance and conduct standards for DeFi platforms.
*According to ACPR, managing infrastructure, smart contracts, and business operations will enable DeFi to grow while protecting consumers. Incumbent and crypto-native financial institutions submitted responses along with auditors and consultants, offering diverse perspectives.

Although MiCA provides the platform, the regulator believes that additional rules are needed to ensure the unique nature of DeFi and tokenized finance. The consultation allows for the synthesis of specific recommendations to expand the scope of regulation.

DeFi centralization problem
ACPR’s claim that DeFi has a hardware centralization problem is shared by some within the crypto community itself, as the data shows. In July 2022, Amazon AWS supported approximately 32% of Ethereum nodes, with 47% of nodes running through major US internet and cloud providers. Analysts at the time said the network’s reliance on companies like AWS could still allow coordinated attacks between providers to disrupt operations.

The charts below show the distribution of Ethereum ndoe by provider in July 2022 and on October 12, 2023. Interestingly, ethernodes.org no longer tracks individual providers but instead That, now only distinguishes between ‘residential’ and ‘storage’.


Source: ethernodes.org
 

According to the most recent data   , assuming ‘residential’ does not include residential contracts with cloud providers, reliance on hosting providers has decreased by about 1% over the past 15 months .


Source: ethernodes.org

Source:
https://tradecoind2.com/acpr-france-highlights-defis-focus-risks-and-opportunities/

[NewspaperD2]

Maker price (MKR) bounced off the previous resistance and broke out of the short-term bearish structure. It is likely to continue to increase in the near term.

Daily outlook

Maker (MKR) price has been trading inside an ascending triangle since July 14. This is a bullish pattern, which usually leads to a breakout in the majority of cases.

Indeed, the price broke out above this pattern to a new yearly high at $1,600. This move confirmed the previous horizontal support zone at $1,650 as resistance (red arrow) and the price has turned lower since then.

Despite the decline, MKR price successfully flipped the triangle’s resistance as support when it created a bullish engulfing candle yesterday (blue arrow). This shows that bulls are buying aggressively on minor dips as they expect a continuation of the uptrend.

An upward movement equal to the height of the pattern would take MKR price to $1,900, an increase of 34.23% from the current price.

The daily RSI favors a bullish continuation as it bounced from the 50 level and formed a hidden bullish divergence.


MKR/USDT Daily Chart | Source: TradingView
 

Break the reduced structure
MKR price has formed a short-term bearish structure since reaching the aforementioned local high of $1,600. This structure has a key level at $1,410.

Today, MKR price succeeded in breaking out above this key level, indicating that the previous downtrend has ended and a new bull run may begin.

Currently, MKR price is in the process of confirming this key level as support. If successful, it could retest the yearly high at $1,600 in the next few days.


MKR/USDT 2-hour chart | Source: TradingView
 

Conclude
The most likely outlook sees MKR prices moving higher over the next few days. The nearest target is $1,600 and above it up to $1,900.

This view could be invalidated if the price breaks below the previous triangle’s resistance at $1,350.

Source:
https://tradecoind2.com/maker-price-mkr-bounces-from-previous-resistance-how-high-will-it-rise/

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How does XRP “kick” USDC out of the prestigious cryptocurrency index?

XRP replaced USDC as the 5th largest asset of the largest global virtual asset index Hong Kong Virtual Asset Consortium (HKVAC) released on October 13. HKVAC is designed to reflect the broad range of investable digital assets.

The organization does this by evaluating regulatory, risk and reliability standards for assets before recommending a top five.

XRP dominates, USDC is deposed

Previously, USDC was in the top 5 along with Bitcoin, ETH, BNB and USDT. However, XRP’s victory and some of the losses Circle suffered earlier in the year contributed to the change.

Since the HKVAC considers regulation and performance as a criterion, it can be concluded that Ripple’s partial victory against the US SEC helped XRP earn its place on the list. Additionally, it is worth noting that the token is up 41.5% year-to-date (YTD).

While USDC has been able to maintain its peg to the US dollar, the stablecoin’s association with the challenges that have befallen some traditional institutions has really affected it. In March, Circle revealed $3.3 billion of its reserves had been transferred to troubled Silicon Valley Bank (SVB).

Due to this revelation, USDC quickly fell to $0.86 but was able to regain its dollar peg shortly after. However, one area that USDC has not been able to revive is market capitalization. In addition to increasingly losing stablecoin dominance to USDT, USDC’s market capitalization is gradually losing to XRP.

At the time of writing, XRP’s market capitalization is $26.05 billion while USDC is lower at $25.12 billion. This data confirms there has been more XRP in circulation than USDC for some time.

Stablecoins reign here
Regarding Network Growth, both USDC and XRP have declined recently. According to Santiment, XRP’s network growth is 286 at the time of writing. On the other hand, USDC is much higher at 2278.

Network growth measures the number of new addresses interacting with the network. When figures increase, it means there have been a lot of transactions involving new entrants and vice versa.

 

So USDC’s network growth outpacing XRP’s is not necessarily evidence that the Circle network is performing better. Instead, it could be a sign that market participants are leaning towards holding stablecoins as many appear to be preparing for a bullish cycle.

Meanwhile, there are many other cryptocurrencies listed in the HKVAC top 30 index. After Internet Computer (ICP) was dropped from the list, MakerDAO (MKR) and Quant (QNT) entered the fray.

Source:
https://tradecoind2.com/how-does-xrp-kick-usdc-out-of-the-prestigious-cryptocurrency-index/

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Coinbase is ramping up its efforts to push for a response from the U.S. Securities and Exchange Commission (SEC) regarding its rulemaking petition. This move comes amid many legal battles between the two sides over the past year.

 

In a renewed effort, Coinbase has formally requested an ordinance directing the SEC to issue a response to the July 2022 rulemaking petition within a 30-day time frame. The exchange is seeking explicit approval or rejection of its request.

Coinbase sets a
30-day
ultimatum

According to court filings dated October 13, Coinbase emphasized that the 30-day ultimatum was intended to force the SEC to issue a formal response. Because the committee may persist in avoidance and delaying tactics if not forced to act.

Coinbase wrote:

“The words and actions of the SEC and its officials outside of this proceeding only further confirm that the agency has denied Coinbase’s motions in all but name.”

Paul Grewal, Coinbase’s Chief Legal Officer, called the SEC’s response unclear, calling it just a bureaucratic procedure. Grewal said :

“The SEC’s unclear “update” is nothing more than a bureaucratic pantomime and confirmation that nothing but executive orders will make the agency take its obligations seriously.”

Meanwhile, the recent court filing continues the ongoing legal standoff between Coinbase and the SEC. Since last year, the two entities have filed several legal actions against each other, including one in which the regulator accused Coinbase of violating securities laws in its cryptocurrency offerings.

In response, Coinbase dismissed the case, citing the emerging industry’s lack of clear regulation.

The SEC’s lukewarm response
On October 11, Grewal shared an update from the SEC on However, the regulator’s update does not include further details on these proposals.

At the time, Grewal said the regulator should have responded considering legal actions against crypto-related companies.

“A formal, public response to the petition is long overdue. And with the ongoing enforcement campaign against cryptocurrencies, the SEC should at least inform the Court of the timing of its decision.”

Coinbase’s petition asks the Commission to clarify how securities laws apply to digital assets.

Source:
https://tradecoind2.com/coinbase-sends-a-30-day-ultimatum-to-the-us-sec/