Crypto Flipsider News – Bitcoin Below $20k; FTT loses 16%; ByBit Alameda proposal; DOJ Seize $3.36B BTC; FATF Crypto Gray List by DailyCoin
© Reuters Crypto Flipsider News – Bitcoin below $20k; FTT loses 16%; ByBit Alameda proposal; DOJ Seize $3.36B BTC; FATF Crypto Gray ListRead in the summary:
- (BTC) loses $20k support, but professional traders refuse to turn bearish
- ( FTT ) falls 16% in one hour on fears of Alameda’s insolvency
- ByBit’s BitDAO Token Plunges 20%, Alameda Community Issuance Proposal
- US Department of Justice seizes $3.36 billion in bitcoin from Silk Road theft
- The FATF will include cryptocurrencies as a graylist factor for countries
Bitcoin (BTC) loses $20k support, but professional traders refuse to turn bearish
After a remarkable first weekend in November where the price of Bitcoin rose above $21.4,000 for the first time in more than seven weeks, Bitcoin has fallen below the important psychological level of $20,000.
Bitcoin has lost 5.4% in the last 24 hours, and more than 9% in the last 2 days as insolvency rumors surrounding FTX and Alameda Research, two of the most prominent companies in the industry, flood the news.
24-hour Bitcoin (BTC) price chart. Source: CoinMarketCap
Despite Bitcoin shedding its key $20,000 support, extending its stay below $25,000 to 147 days, professional traders have refused to turn bearish on the asset. In healthy markets, the three-month futures annualized premium ranges from +4% to +8%.
Throughout the rally and subsequent decline, the Bitcoin futures premium remained below 2.5%. This data shows that derivatives traders have been neutral to bearish over the past week, remaining unfazed by Bitcoin’s lack of support at $21,000.
Flip pages:
- Bitcoin mining difficulty has seen its first drop in more than four weeks, after shrinking by 0.2% yesterday.
Why you should care
The data is confirmed by Bitcoin’s Fear and Greed Index which remains above the extreme fear region, holding at 31/100 despite Bitcoin’s sharp drop.
FTX Token (FTT) drops 16% in one hour amid fears of Alameda’s insolvency
FTX Token (FTT), the original token issued by the Sam Bankman-Fried-led crypto exchange, took one of its biggest dives in the early hours of today, falling by more than 16% in just one hour.
24-hour price chart of FTX Token (FTT). Source: CoinMarketCap
In the last 24 hours, FTT has lost more than 26% of its value, falling from $24 to $17. The rapid decline in FTT’s price can be directly linked to the fear, uncertainty and doubt (FUD) spread by Changpeng Zhao, CEO of rival exchange, Binance.
On Sunday, November 6, Zhao took to Twitter to announce that Binance was going to liquidate its FTT holdings worth $529 million, sparking insolvency rumors surrounding FTX and Alameda Research, both owned by SBF.
Shortly after CZ’s comment, Caroline Ellison, CEO of Alameda Research, announced that the company would like to buy all of the FTT Binance holdings at $22 apiece. However, today’s decline was ignited by CZ’s response rejecting Alameda’s offer.
Flip pages:
- The Binance CEO has taken to Twitter to debunk rumors of a fight between him and FTX’s Sam Bankman-Fried, noting that he is not out to hurt the rival exchange.
Why you should care
The R&D sparked by Zhao has taken a toll on SBF’s companies, as well as the entire crypto industry.
ByBit’s BitDAO Token Plunges 25%, Suggests Community Trouble For Alameda
In the early hours of Tuesday, November 8, BitDAO (BIT), the token launched by the Decentralized Autonomous Organization (DAO) of the ByBit crypto exchange, took a sudden drop of more than 25% in one hour, from $0.4 to $0.3074.
24-hour price chart of BitDAO token (BIT). Source: CoinMarketCap
In response to the sudden drop in the price of BIT, BitDAO community members issued a proposal asking Alameda Research to provide the chain address of the tokens that promised not to be sold for three years.
Responding to the requests of the BitDAO community, Alameda Research has provided proof of funds showing that the financial wallet contains the 100 million BIT tokens the company purchased last November.
Flip pages:
- ByBit has launched a new grid bot for seamless and automated trading to tame price volatility and risk associated with futures trading.
Why you should care
The quick response from Alameda has helped to allay concerns about a potential BIT dump, helping the price of the token recover to $0.3898.
US Department of Justice Seized $3.36 Billion in Bitcoin from Silk Road Theft
On Monday, November 7, the United States Department of Justice (DOJ) announced that it has seized $3.36 billion worth of Bitcoin stolen in the 2012 hack of the Silk Road Dark Web Marketplace.
In the second largest financial seizure to date, the DOJ recovered more than 50,676 BTC during an unannounced raid of James Zhong’s residence in November 2021. Zhong has pleaded guilty to fraud charges.
Authorities announced that Zhong stole bitcoin from Silk Road, an illegal marketplace on the dark web where users buy and sell drugs and other illegal products using crypto. The FBI shut down Silk Road in 2013, two years after it was launched.
Zhong exploited Silk Toad’s vulnerabilities in 2012 to carry out the hack. By creating nine accounts, Zhong tricked Silk Road’s withdrawal processing system into releasing approximately 50,000 bitcoins into his accounts.
Flip pages:
- Ross William Ulbricht, the founder of Silk Road, was arrested in 2013 and is now serving a life sentence in prison.
Why you should care
The announcement highlights the growing involvement of regulators in the crypto industry, and Zhong could serve several years for fraud.
The FATF will include cryptocurrencies as a graylist factor for countries
As global crypto regulation becomes more relevant than ever, the Financial Action Task Force (FATF) looks to place countries that do not comply with anti-money laundering (AML) guidelines for cryptocurrencies on the “grey list”.
The international watchdog, which recently provided AML and counter-terrorist financing (CTF) compliance advice to EU member states, is reportedly planning to ensure countries enforce crypto guidelines.
According to the report, the FATF will conduct annual checks to ensure countries are enforcing AML and CTF on crypto providers.
Countries on the FATF gray list are usually jurisdictions that need extra monitoring. Graylisting does, however, affect a country’s overall rating and economic outlook.
Flip pages:
- According to the reports, the FATF’s crypto sanctions will not take effect immediately, nor will they immediately be used as a basis for greylisting.
Why you should care
Although the FATF has no real enforcement authority, its observations are respected in the global community.
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