26 November

The latest analysis from several well-known crypto names suggests it is time to give up the bear market narrative. Be it thanks to macro or just good old Bitcoin price cycles, there are three new reasons to flip bullish on Bitcoin in its current state near two-year lows.

First in line is a theory involving a macro market catalyst. With the FTX scandal weakening the correlation between BTC and stocks, there is nonetheless no reason to abandon the idea that it will return. For Zeberg, a rising tide lifts all boats, and a final rally throughout the risk asset field could take BTC/USD over $100,000.

Bitcoin moves as a Risk Asset (not like Gold!). When SPX explodes higher in Blow-Off Top towards 5700 – 6000 target area – Bitcoin should reach 90k – 110k. Final rally before Deflationary Bust!

[Second], back to crypto-centric triggers, according to popular trader Alan Tardigrade, now is the time to pay attention as the BTC/USD weekly chart has printed 20 weeks of bullish divergence. A move to the upside would correspond to Bitcoin’s behavior after the March 2020 COVID-19 cross-market crash.

This indicates the weakening of downtrend momentum. BTC may pick up a Massive Rally.

[Finally], the BTC/USD relative strength index (RSI) is now printing a bullish divergence on weekly timeframes — something never seen before, not even at previous bear market lows.

Every Bull Market Peak $BTC formed a bearish divergence on RSI followed by a bear market correction! This the first time ever BTC is printing a bullish divergence on WEEKLY. Probably nothing.”

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Crypto exchange Binance has allocated another $1 billion for its industry recovery fund, effectively increasing the size of the fund to over $2 billion. Aptos Labs and Jump Crypto, along with other prominent crypto companies joined Binance’s initiative and will contribute $50 million to the fund.

The recovery fund would be used to buy distressed crypto assets and support the industry.”

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“Binance provided a snapshot of account balances and its own Bitcoin reserves as of 23:59 UTC on November 22, 2022. The exchange claims it has 582,485 BTC in its reserves, while its users have a net balance of 575,742 BTC — giving Binance a reserve ratio of 101%. The launch of the PoR system initially starts with Bitcoin (BTC), with other tokens and networks to be added in the next couple of weeks.

We are specifically referring to those assets that we hold in custody for users. This means that we are showing evidence and proof that Binance has funds that cover all of our users assets 1:1, as well as some reserves.

[Notably], users can also verify their personal Bitcoin holdings on the trading platform through a provided link or against Binance’s own Merkle Tree—a cryptographic tool that consolidates large amounts of data into a single hash. As explained by Binance, after logging into the exchange, users can click “wallet,” followed by “audit,” which will generate a unique record ID that confirms assets are covered and as well as confirming users’ asset balance at the time of the audit.

Binance went on to say it also plans to involve third-party auditors to check its PoR system and to implement zero-knowledge proof technology (zk-SNARKs), a move aimed at ‘improving privacy and robustness, and proving the total net balance (USD) of each user is non-negative.'”

See Also: Independent research verifies GBTC’s 633K Bitcoin: So why won’t Grayscale?

“After teasing Suave at this year’s Devcon, Flashbots outlines how the plug-and-play solution will transform the way validators earn MEV.

According to Flashbots, Suave, a so-called sequencing chain, will be geared towards completely decentralizing the block-building process. By the firm’s description, it would be a “plug-and-play” solution that “unbundles the mempool and block-builder role” from existing blockchains. In addition to maximizing the revenue that validators earn for operating blockchains, Flashbots hopes Suave can ameliorate rising concerns around transaction censorship, exploitative MEV practices and slow transaction execution.

Right now, the way to earn MEV, mainly through MEV-Boost, has a centralizing effect. Validators connect to MEV-Boost through relayers, like the one that Flashbots runs, to earn MEV. About 91% of blocks relayed have used MEV-Boost; of those, 78% have used the Flashbots relayer. In August, Flashbots’ relayer started censoring Tornado Cash transactions to comply with U.S. Treasury Department sanctions, but decided to make open source its MEV-Boost relayer code so that others could develop their own non-censoring relayer options.

Suave’s aim is to decentralize and democratize block builders around MEV. Flashbots said Suave’s architecture would be set up in three parts. These three components make up what will be called the Suave Chain. The chain will be EVM-compatible, meaning it will work with blockchains built using Ethereum’s core technology stack.

The first part, the “Preference Environment,” will collect “preferences” from users – messages which “express a particular goal or unlock a payment if the user’s conditions have been met.” The second part, the “Execution Market,” will allow third-party “executors” to earn MEV by competing with one another “for the right to turn a preference into a transaction (or bundle) and fulfill the users’ preference at the best price possible.” The final part, the “decentralized block building network,” will turn these transactions into blocks that can be added to a blockchain while maximizing MEV for builders and validators.”

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Several U.S. state regulators are looking into whether crypto trading firm Genesis Global Capital may have violated securities laws, according to a report from Barron’s.

The report said that Alabama Securities Commission Director Joseph Borg indicated that his agency and several other states are involved in the investigations, which focus on whether Genesis and other companies persuaded residents of their states to invest in crypto securities without having the proper registrations.”

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“Tuesday’s pro forma hearing decided that Pertsev must remain detained until at least February – and also offered, for the first time, a clear statement of charges against the developer. But it also gave a hint about what the case will and won’t do.

In the U.S., the Tornado Cash issue is often talked about in terms of the Constitution – which the U.S. Supreme Court has said includes the right to publish computer code. In Europe, there’s no equivalent legal doctrine. Lawyers in the case don’t seem to be making any appeal to the free speech provisions of the European Convention on Human Rights, and it looks more like the trial will instead get deep into the mechanics of how decentralized finance (DeFi) works in practice.

If so, the proceedings may do little to resolve more general questions – such as the fear many developers have that they could now be held responsible for the open-source software they develop.”

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