In today’s bitcoin and cryptocurrency news, hear about Bitcoin and the stock market near their respective tipping points. New tendencies in the cryptocurrency market are beginning to emerge. Meanwhile, US Attorney for the Eastern District of Texas Brit Featherston has announced the indictment of a guy from San Francisco, California on federal charges. On the other hand, the largest cryptocurrency asset manager in the world, Grayscale, has announced the release of a new investment product that will allow investors to gain exposure to Bitcoin mining hardware. Lastly, sloppy engineering practices have made cross-chain bridges a frequent target of hackers, and this attack is the latest in a string of major breaches against these systems.
Bitcoin Price Finally Moved, and Fireworks Are Set to Follow
Original Source: Bitcoin price finally made a move, and fireworks are sure to follow
Bitcoin and stocks markets are nearing make-or-break levels that will define their trajectory.
Bitcoin ( BTC $19,496 ) tickers down elevated investors’ hopes and then let them down.
Traders focused on BTC price breaking through a long-term descending trendline resistance, but according to Cointelegraph analyst Ray Salmond, “BTC price just ‘consolidated’ through the trendline by trading sideways between $18,500 and $24,500 for the past 114 days.”
At the time of writing, BTC’s price is still battling $20,000, and it’s unclear if the level will hold as support.
On-chain analytics firm Whalemap identifies three pricing zones investors should watch.
Whalemap informed Cointelegraph, “So far, the resistance at $20,380 has been functioning quite well, with the latest rejection being virtually to the dollar accurate.”
Our support hasn’t altered since we cut $30,000 It’s $19,174 and was established on June 18, 2022 by whale wallets accumulating 101,300 BTC. $21,543 is another resistance above $20,380. First, we must pass $20,380.”
From a technical perspective, on the daily timescale, the Bollinger Bands are constricted, BTC futures open interest reached a near-record high above 604,000, and the price is trading outside of a long-term trendline resistance.
As indicated in the chart below, investors’ appetite for risk continues to drop, and risk assets are the first to face outflow and be ignored during a bear market.
BTC and Ether (ETH $1,327) prices have disregarded recent volatility in equity markets, but US Federal Reserve policy and another wave of heavy selling in stock markets might cause the next leg down for the cryptocurrency market.
What will Bitcoin do?
At the moment, Bitcoin and the crypto market are in a zone where bullish and bearish variables could define the future trend.
As Delphi Digital notes, Bitcoin is following prior market cycles.
Delphi Digital calls the similarities to the 2018 cycle “uncanny.”
A few Bitcoin, crypto market, and equity metrics are converging and support a short-term relief rally, but the overall trend favors the negative. If equities receive relief and rally, the link between BTC, Ether and equities markets suggests similar price activity in crypto.
A Bitcoin relief rally may be capped at $27,500, the 200-day moving average. The most optimistic short-term moves from Bitcoin would be to retain $20,000 and $18,400 as support, or a strong volume breakthrough clearing the current 116-day range with daily closes over $25,200.
A flip of the 200-MA to support and a series of weekly higher highs on the candlestick chart would signal a bullish reversal, but this appears improbable given Bitcoin’s macro headwinds.
California Man Accused of Crypto-money Laundering
Original Source: California Man Indicted in Cryptocurrency Money Laundering Conspiracy
A San Francisco, CA man was indicted for federal offenses in the Eastern District of Texas today.
A grand jury indicted John Khuu, 27, on money laundering conspiracy charges. On Oct. 6, 2022, U.S. Magistrate Judge John D. Love arraigned Khuu.
According to the indictment, Khuu conspired to launder narcotics money using cryptocurrencies with others. The defendant reportedly sold counterfeit drugs to U.S. customers on dark web platforms. Customers paid by moving Bitcoin from their dark web market accounts to one of Khuu’s vendor accounts. Khuu and his accomplices sold Bitcoin for U.S. money and laundered the earnings through hundreds of transactions and dozens of bank accounts.
During the conspiracy, Khuu and his co-conspirators allegedly laundered $5,350,00.
On May 18, 2022, a Texas grand jury indicted Khuu for money laundering conspiracy. On August 17, 2022, a federal grand jury in Northern California indicted Khuu on two counts of illegal importation.
On August 19, 2022, authorities detained Khuu at a Garden Grove, CA home.
If convicted, Khuu faces 20 years in federal prison on each accusation. Indictment is not proof of guilt. Defendants are deemed innocent until proven guilty beyond a reasonable doubt.
This effort is part of OCDETF. OCDETF identifies, disrupts, and dismantles high-level criminal organizations that harm the United States. For more about OCDETF, visit https://www.justice.gov/OCDETF.
This matter is being investigated by the Secret Service and USPS and prosecuted by Nathaniel C. Kummerfeld.
Grayscale’s Bitcoin Mining Investment Vehicle
Original Source: Grayscale launching Bitcoin mining investment vehicle
The world’s largest bitcoin asset manager, Grayscale, has launched a new investment product to provide investors exposure to Bitcoin mining hardware.
Grayscale Digital Infrastructure Opportunities LLC (“GDIO”) is a private co-investment “intended to exploit crypto winter’s upside.”
According to the statement, Grayscale will use Foundry, an affiliated digital asset mining, staking, and infrastructure firm, to administer GDIO’s day-to-day operations in a first-of-its-kind product suite.
“Our unique position at the hub of the crypto ecosystem allows us to design services that allow investors to put capital to work across different market cycles,” said Grayscale CEO Michael Sonnenshein. Our team has worked to lower the barrier to participating in the crypto ecosystem through direct digital asset exposure, varied theme products, and now infrastructure through GDIO.
Individual and institutional accredited investors can now invest in GDIO, which is an operating business and not a registered investment company. Investors don’t enjoy the regulation safeguards of investing companies.
Rayhaneh Sharif-Askary, Grayscale’s head of investor relations, expects to see low-priced mining rigs for sale in the next months under the current crypto winter.
“In the next months, some miners will have to sell equipment,” Sharif-Askary added. “GDIO is positioned to give liquidity to these miners, buying mining equipment at distressed rates and mining profitably as Bitcoin prices rebound.”
Once the new equipment is purchased, it will be used to “mine bitcoin, sell bitcoin everyday, and transfer cash to investors,” said Sharif-Askary. While many have exposure to cryptocurrencies, it’s difficult for the average investor to source, store, and run Bitcoin mining equipment.
Foundry USA, one of the world’s largest mining pools, will supervise GDIO operations. Foundry and Grayscale are DCG subsidiary (DCG).
This comes after Grayscale Investments canceled two agreements with cryptocurrency broker Genesis for its Grayscale Bitcoin Trust earlier this week.
According to the SEC filing, Genesis will no longer help Grayscale distribute and market its shares and will no longer be an authorized participant of the trust. However, Genesis will continue to operate as a liquidity source for Grayscale.
Grayscale Securities LLC, a subsidiary of Grayscale Investments LLC and associate of Grayscale Bitcoin Trust, will now oversee Genesis’ duties.
$570 Million Hacked From Binance
Original Source: Crypto exchange Binance suffers $570 million hack
The value of BNB sank more than 3% Friday morning to $285.36 a coin, according to CoinMarketCap data.
An earlier estimate from the company placed the total amount withdrawn in a range of $100 million to $110 million. The company also said it managed to freeze $7 million of funds with the help of its security partners.
A Binance spokesperson told CNBC the company coordinated with BNB Chain validators to enact an upgrade. That meant that most of the funds remained in the exploiter’s crypto wallet, while about $100 million was “unrecovered.”
BNB Chain has 26 active validators at present and 44 in total in different time zones, the spokesperson added.
BNB Chain, originally known as Binance Chain, was first developed by Binance in 2019. Like other blockchains, it features a native token, called BNB, that can be traded or used in games and other applications.
It is the latest in a series of major hacks targeting cross-chain bridges, with instances of sloppy engineering making them a prime target for cybercriminals.
A total of around $1.4 billion has been lost to breaches on cross-chain bridges since the start of 2022, according to data from blockchain analytics firm Chainalysis.
The crypto industry has had a rough year, with roughly $2 trillion in value being erased since the peak of a blistering rally from 2020 to 2021. The implosion of $60 billion blockchain venture Terra and a worsening macroeconomic environment have severely impacted market sentiment.
Summary of today’s Bitcoin and Cryptocurrency news
To sum it up, the 200-day moving average for Bitcoin is currently around $27,500, suggesting that this is likely where any relief rally will be capped. A high volume breakout clearing the current 116-day range with a series of daily closes above the range high at $25,200 would be the most encouraging action from Bitcoin in the short term.
Meanwhile, both warrants were executed on the same day in Garden Grove, California, when agents arrested Khuu at his home on August 19, 2022. Khuu faces up to 20 years in federal prison if convicted on each count. An indictment by a grand jury does not prove guilt. Until guilt is established beyond a reasonable doubt in a court of law, the accused enjoys the benefit of the presumption of innocence. The US Secret Service and US Postal Inspection Service have been tasked with conducting the investigation, and Assistant US Attorney Nathaniel C. Kummerfeld is leading the prosecution.
On the other hand, new machinery, once acquired, will be used to “mine bitcoin, sell bitcoin daily, and distribute cash generated to investors, generating income,” Sharif-Askary said. “While many people have exposure to cryptocurrencies themselves, it is much more challenging for the average investor to source, store, and run mining equipment to make a profit mining Bitcoin,” says one expert.
Finally, since the peak of a blistering rally from 2020 to 2021, the cryptocurrency market has had a difficult year, losing about $2 trillion in value. Sentiment in the market has taken a major hit as a result of the collapse of $60 billion blockchain venture Terra and a deteriorating macroeconomic environment.