Read in the Digest:
- Bitcoin Holds Above $22k Nears the Critical 200-Week Moving Average
- Co-founders of Three Arrow Capital Buys Yacht Amidst Liquidation Crisis
- Celsius Network Bitcoin Mining Approval Amidst Bankruptcy Filing
- Binance Fined $3.4 Million By The Dutch Central Bank for Non-Compliance
- Ethereum Supply in Profit Hit 56%, 13 Million ETH Staked Ahead of Merge
Bitcoin Holds Above $22k Nears the Critical 200-Week Moving Average
Joining the modest rally in the traditional equity, Bitcoin has rallied to trade above the $22,000 mark for the first time in over a month. Gaining more than 7% since Friday, Bitcoin has now set a new monthly high at $22,795.
The 7D price chart of Bitcoin: Source: CoinMarketCap
Bitcoin, at this point, is holding above the $22,000 level as the 200-week moving average (M.A.) keeps bulls in check. However, analysts have predicted that Bitcoin would be unable to break out of the $22k resistance in one go.
The price of Bitcoin has now dropped down to $22.1k. However, the bulls would be praying that Bitcoin consolidates around the $22,000 mark, around the current 200-week moving average (WMA) resistance.
If this happens, it could signal the continuation of the bullish trend and see the price of Bitcoin break above $22,600. If that happens, it will activate massive longs towards $28,000.
Flipsider:
- As Bitcoin rallied, BTC miners who have been badly affected by the crypto winter moved 14,000 BTC (over $300 million) out of wallets over fears of continued decline.
Why You Should Care
The rally not only sets the price of Bitcoin up for an uptrend but has seen the Fear & Greed Index jump from 21 to 30/100, exiting the Extreme Fear zone for the first time since May 5.
Co-founders of Three Arrow Capital Buys Yacht Amidst Liquidation Crisis
One of the biggest wrecks of the crypto storm, crypto hedge fund Three Arrows Capital, after filing for liquidation, has revealed that its debts to creditors (27 companies) sum up to a gargantuan $3.5 billion.
The Monday, July 18 liquidation filing reveals that 3AC owes its biggest creditor, Genesis, $2.36 billion in under-collateralized loans. Other creditors include Blockchain.com and Voyager Digital.
The parent company of Genesis Digital Currency Group Inc. tried to recover some of its funds through an arbitration process in New York but failed due to 3AC’s bankruptcy filing. However, the DCG filed a $1.2 billion liquidation request against 3AC on Monday.
Despite being underwater, the filing document from advisory firm Teneo alleges that the co-founders of 3AC, Kyle Davies and Su Zhu, bought a yacht with borrowed funds, making a downpayment of $50 million.
Flipsider:
- A controversial part of the filing shows that Chen Kaili Kelly, the wife of Davies, filed a claim for about $66 million, while Zhu submitted a $5 million claim.
Why You Should Care
In a 1,157-page affidavit filed in a British Virgin Islands court, creditors wrote that “3AC is insolvent and should be wound up.” The creditors of 3AC believe that the company’s management cannot be trusted to retain any remaining assets for the benefit of creditors.”
Celsius Network Bitcoin Mining Approval Amidst Bankruptcy Filing
During a Monday court hearing in Manhattan, bankrupt crypto lender Celsius Network presented documents, including a 61-page declaration from CEO Alex Mashinsky on how bitcoin mining will help to restructure the company financially.
The New Jersey-based company then received approval from U.S. Bankruptcy Judge Martin Glenn to spend $3.7 million to construct a new facility and $1.5 million on customs and duties to import bitcoin mining rigs.
Celsius lead attorney Patrick Nash told the court that Celsius already has a mining operation in the U.S. with over 43,000 mining rigs in operation. By the second quarter of 2023, the company plans to increase the number to 112,000.
According to Nash, the Celsius mining subsidiary currently mines approximately 14.2 bitcoins daily. The expansion will help the crypto lender increase its revenue.
Flipsider:
- Celsius is currently being sued by Jason Stone, the founder of KeyFifor, for using customer deposits to manipulate the price of its own crypto token.
Why You Should Care
Nash also told the court that bitcoin mining could be an opportunity for Celsius to repay customers whose withdrawals have been paused since June 12.
Binance Fined $3.4 Million By The Dutch Central Bank for Non-Compliance
Binance, the world’s largest crypto exchange by trade volume, has been slammed with a 3.325 million euros ($3.4 million) fine by De Nederlandsche Bank (DNB) for serious non-compliance with the country’s laws.
In the Monday, July 18 release, the Dutch central bank said that it last year warned Binance about its registration status as required by the 2020 Money Laundering and Terrorist Financing (Prevention) Act.
According to the Dutch Central Bank, Binance operated illegally in the country from May 2020 to at least December 2021. The category three $3.4 million fine on Binance is the most stringent for a central bank’s levels of enforcement.
The report also notes that Binance Holdings Ltd has now filed an appeal against the fine on June 2 and applied for registration. The central bank also notes that Binance is now looking to keep its operation “relatively transparent.”
Flipsider:
- Last week, the central bank of Spain issued a virtual asset services provider (VASP) to a Binance affiliate to operate in the country.
Why You Should Care
The fines and charges against Binance come at a time when the exchange is trying to expand its presence in Europe.
Ethereum Supply in Profit Hit 56%, 13 Million ETH Staked Ahead of Merge
In the last week, Ethereum has outperformed its biggest competitor, Bitcoin, consistently raking in more daily gains. As a result, Ethereum has gained 45% in the last seven days, making it the best-performing top 10 cryptos.
The 7D price chart of Ethereum (ETH). Source: CoinMarketCap
As the price of Ethereum breached $1,550 today, July 19, the profitable ETH supply hit 56%, which is the highest level since June 2022. However, according to Grayscale data, the supply of ETH in profit was as low as 41% in June.
However, in the last 30%, the price of Ethereum (ETH) has increased by 55%, leading to a 7.8% increase in the supply of ETH in profit over the same period. Grayscale also reports a resurgence in ETH whale transactions.
As the merge approaches, the number of Ether staked on Ethereum’s Eth 2.0 staking contract has surpassed 13.78 million ETH – roughly 11% of Ether’s total supply. Lido, a non-custodial liquid staking protocol, has the biggest share of Staked ETH at 31.74%.
Flipsider:
- Lido Finance has announced the expansion of staked Ether (stETH) into Ethereum layer-2 scaling solutions to increase the number of Ether staked.
Why You Should Care
The ETH price rebound can be linked to the upcoming Ethereum mainnet merge, which is tipped to bring major upgrades to Ethereum.