However, comprehending ChatGPT’s output on crypto-related matters requires a nuanced approach. In this article, we will delve into the process of understanding and interpreting ChatGPT’s insights on cryptocurrencies using an illustrative example of the future of decentralized finance (DeFi).Continue Reading on Coin Telegraph More
The cryptocurrency has slipped below the 50 Exponential Moving Average (EMA), a key indicator often used by traders to determine market trends. This development signals a potential bearish phase for Bitcoin.Source: Next on the horizon is the substantial support level provided by the 200 EMA. If Bitcoin dips below this level as well, it could potentially see a substantial drop toward $27,000, a level not seen since January 2021. The lack of any upward drivers at the moment only adds to the potential for such a bearish scenario.Adding fuel to the fire, the network is experiencing a drop in inflows. This could indicate a lack of new investors or a pause in investments from existing holders, both of which are necessary to maintain price stability or trigger positive price movement. A decrease in network inflows is often a sign of diminished market interest and can lead to a drop in price.Moreover, trading volumes, a significant indicator of market activity and investor interest, are also on a downtrend. This reduced trading activity often precedes a price drop and suggests bearish market sentiment.Institutional investors, who have been a significant driver of Bitcoin’s growth in recent years, are also appearing to halt their inflows into the Bitcoin network. This trend aligns with the market’s dwindling expectations of a Bitcoin ETF getting approved soon, a development that has been anticipated by many as a major potential bullish catalyst for Bitcoin.In conclusion, while it is impossible to predict with absolute certainty, the data suggests that Bitcoin could potentially be headed for a significant price drop. As always, it is crucial for investors to stay informed and make decisions based on a careful analysis of market conditions.This article was originally published on U.Today More
On July 28, the SEC issued a warning against investing with Binance. The agency insists that the platform doesn’t have a license to work in the country and that its operation is illegal. It also reminds the public about the high level of risk and potential total loss of investments:Continue Reading on Coin Telegraph More
It all started with the US commodity futures trading commission (CFTC) taking legal action against Binance for violating the Commodity Exchange Act (CEA) in March 2023. The initiation of the lawsuit shook the crypto market, with the Bitcoin (BTC) price falling from $27,700 to $26,600.Despite Binance and its CEO Changpeng Zhao’s (CZ) attempt to dismiss CFTC’s lawsuit, a survey taken in collaboration with BTC Peers — involving 1,273 crypto traders internationally — shows that 45% of the traders believe there’s a credible possibility of Binance’s collapse.However, 55% of the remaining survey-takers voted for Binance’s market dominance despite the high competition and tight regulatory scrutiny.On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CZ for violating the securities law — claiming that Binance has allegedly requested customers to trade digital assets on unregistered platforms in the US.According to data provided by Santiment, the social volume for the term “Binance collapse” skyrocketed on June 6 while the BTC price fell below the $26,000 mark. Since June 9, the heat around the possibility of the exchange’s shut down has dropped significantly.Social volume for “Binance collapse” | Data source: SantimentGokhshtein, who is also a prominent investor, believes that “an essential consideration is the need for regulatory compliance in the crypto space.” To build long-term trust in the industry, crypto exchanges need to comply with the regulators while taking transparency into account.Moreover, after the SEC’s lawsuit, BinanceUS has removed crypto-fiat trading pairs from its platform and encouraged investors to convert their US dollar holdings to stablecoins. The exchange even hinted at discontinuing USD withdrawals.A Wall Street Journal (WSJ) report revealed that Changpeng Zhao was aware of and “directed” the wash trading activities at BinanceUS. Per WSJ, Binance has also wash traded around 46% of its global trading volume.Moreover, the exchange was under investigation by French authorities for alleged money laundering. On July 23, a report revealed that Binance France has been holding roughly €1 billion in crypto assets.It’s not only the US that Binance has been struggling with. On July 5, the Australian Securities and Investments Commission (ASIC) raided the offices of Binance Australia’s derivatives division. Furthermore, Binance withdrew its crypto license application in Germany on July 26 due to the country’s tight regulations.On the other hand, Binance announced to re-enter the Japanese market in August after the acquisition of the locally regulated Sakura Exchange BitCoin in November last year. It’s important to note that the exchange was forced to leave Japan due to high regulatory scrutiny in 2018.Following the regulatory scrutiny worldwide, Binance has laid off 1,000 employees with a possibility of 3,500 people losing their jobs before 2024.Per the survey, 60% believe that Binance’s collapse could put the crypto market on fire since the exchange has over $63.1 billion in digital assets. According to data by CoinGlass, there are 555,502 Bitcoins on Binance — worth roughly $16.26 billion at the time of writing.In addition, 70% of the respondents to the survey expect a massive Bitcoin price crash, while 30% believe it “would remain stable.”Gokhshtein claimed that if assets held by Binance are lost due to “hacks or mismanagement,” it could result in “significant losses for users.” “The extent of the loss would depend on the specific circumstances,” he added.Moreover, the collapse could significantly affect the investors’ sentiment around the Binance Smart Chain (BSC) and its associated projects. Currently, there are a total of 571 decentralized finance (DeFi) protocols built and/or connected on BSC with a total value of around $3.35 billion, per DeFi Llama.Data provided by Dapp Radar shows that 4,898 decentralized applications (dApps) have been developed on BSC. Gokhshtein added that if something happens to BSC, it would have a negative impact on all the cryptocurrencies developed on it and the BNB ecosystem. “Depending on the severity, it could lead to a loss of trust and value for those assets,” he concluded.The BSC team denied commenting on the possibility of Binance’s collapse while calling itself a completely “separate entity.”The BTC Peers survey also revealed that 55% would migrate to other centralized exchanges (CEXs) if Binance fails. The remaining 45% would prefer to switch to decentralized exchanges (DEXs) if the largest CEX ever collapses.Per BTC Peers, 65% of the respondents claimed that the broader crypto ecosystem’s innovation and growth would be put at risk if Binance fails, but the remaining 35% say the shut down could open new opportunities.75% say they would still stay in the “crypto market even if Binance collapsed,” while 25% prefer to leave the industry “at least temporarily.”Binance did not reply to a request for comment from crypto.news. Ultimately, it’s hard to tell whether Binance collapses or not, but the hard pressure from the governments and regulators has proven to be inevitable.This article was originally published on Crypto.news More
On Aug. 1, the FT reported that people close to the matter said prototypes of the chatbots have been underway, with the final products being able to hold discussions with users at a human level. Continue Reading on Coin Telegraph More
The flagship cryptocurrency is down by 1.5% in the past 24 hours, trading at around $28,930 when writing. Its total market capitalization is $562.6 billion. Total crypto market cap | Source: CoinMarketCapAlong with Bitcoin’s fall, the global crypto market cap has also declined by 1.7%, according to CoinMarketCap (CMC) data. It dipped from $1.185 trillion to $1.164 trillion at the time of writing.Moreover, Santiment’s data shows that Bitcoin’s price decline is associated with the asset’s one-day price volatility, rising from 0.0028 to 0.0035. BTC price, volatility and $1m whale transactions on Aug. 31 | Source: SantimentPer Santiment, the current price volatility of Bitcoin is still far from its local top of 0.011 on July 14, when BTC was trading at around $31,350. The high volatility comes with the sudden rise of BTC’s 24-hour trading volume, rising by 25% and currently sitting at over $13 billion.Furthermore, the number of Bitcoin whale transactions, worth over $1 million, hiked from 1,013 on July 31 to 1,344 on August 1.Earlier, the 76-year-old “Rich Dad Poor Dad” author, Robert Kiyosaki, stated his enthusiasm for Bitcoin while pointing out the financial dilemma in the US. Kiyosaki believes the main reason for the US stocks’ rise is raising the debt ceiling.This article was originally published on Crypto.news More
After an extended hiatus, a major Ethereum Name Service (ENS) player has re-emerged, claiming millions in Ether (ETH).The prominent holder, whose portfolio includes the renowned “darkmarket.eth” ENS domain, recently recouped a staggering 39,712 ETH, equating to nearly $74 million at the time of the transaction.The hefty sum originally got tied up in a bid during acquiring the domain via ENS. It remained dormant for a substantial period until the holder decided to claim it back. The recovered funds were partially transferred to an alternate Ethereum address. The amount comprised 63,734 ETH, or approximately $118 million in value.Nick Johnson, the founder of ENS, provided some background via a tweet from February 2021. He stated that the initial near-40,000 ETH deposit occurred in the early years of ENS operation.Johnson previously attempted to guide the user to recoup their funds and has now taken the recent activity as an opportunity to shed light on the procedure for others in a similar situation.Historically, the 2021 Protos report highlighted that the domain “darkmarket.eth” was bought in 2017 for an impressive 20,103 ETH, an amount that was equivalent to around $5 million at the time and is worth roughly $37 million at current rates.The ENS whale’s reclaimed funds also encompass proceeds from their other owned domains. Notably, the second most expensive ENS domain to date, “openmarket.eth”, presently valued at over $18 million, is part of this impressive collection. The whale’s other significant domains, as reported by Protos, include “silkroad.eth”, “openexchange.eth”, and “payment.eth”.This article was originally published on Crypto.news More
In a July 31 investment note seen by Cointelegraph, Berenberg analyst Mark Palmer explained that a recent amendment to the 2024 National Defense Authorization Act (NDAA) could potentially introduce new Know Your Customerand Anti-Money Laundering measures that stablecoin issuers will be unable to comply with.Continue Reading on Coin Telegraph More
