Category: Cryptocurrency News

Now-bankrupt exchange FTX attempted to enter Canada in June 2022, but local regulators have managed to prevent the mess.

The first of two key events in a historic week for Bitcoin and financial markets worldwide is in the books. While the CPI release was today at 8:30 ET, the last FOMC meeting of the year is scheduled to take place tomorrow featuring a new dot plot. CPI and FOMC coincide this week for the first time in a while, making it blockbuster week for Bitcoin. And drum roll! The Bureau of Labor Statistics released the November figures for the Consumer Price Index (CPI) and Core CPI a few minutes ago. The expectation for CPI was 7.3% CPI (0.3% MoM), up from 7.7% (0.4% MoM) in October. Core CPI was expected at 6.1% (0.3% MoM), and was 6.3% (0.3% MoM) the previous month. Related Reading: JPMorgan Says S&P 500 Can Soar Over 10% Today – Will Bitcoin Follow? The new numbers for November read as follows: CPI fell 0.6% and was 7.1% in November. Thus, the CPI comes in 0.2% better than expected. Core CPI was 6.0 % in November, falling by 0.3% from the previous month. Compared to the prediction, Core CPI is 0.1% below expectation. Inflation dropping. US November CPI +7.1% y/y vs +7.3% expected. Send it all. — The Wolf Of All Streets (@scottmelker) December 13, 2022 Already in the run-up to the print, the bulls pushed the Bitcoin price up in anticipation of positive data. The price stood at around $17,550 before the announcement. After the release, the price reacted extremely bullish to the news along with the S&P 500. The latter is currently breaking out of a year-long downtrend. S&P breaking out of its year-long downtrend? pic.twitter.com/tWUKtCQlhg — Will Clemente (@WClementeIII) December 13, 2022 At press time, BTC was up almost 6% within the last 24 hours and was trading at $17,907. With a local high of $18,209, the price was rejected at the 2-month high of November 11 for the moment being. What Will The Federal Reserve Do With The Data? Prior to the CPI data release, the market was forecasting a rate hike of 50 bps with a 72% probability, according to the CME FedWatch tool. This is compared to a 28% probability of a 75 bps hike. Within the next few hours, it remains to be seen how this rate will shift due to the CPI print. At press time, however, the probability of a 50 basis point jumped significantly to 79.4%, according to the CME FedWatch tool. Today’s CPI print has thus further increased the probability for 50 bps tomorrow. Related Reading: Ethereum Price Key Indicators Suggest Strengthening Case For Upside Break As NewsBTC reported, JP Morgan published an analysis before releasing the CPI data, according to which it gave the highest probability (50%) of a CPI print of 7.2% to 7.4%. As it turns out, JP Morgan was almost spot on with this assessment. JP Morgan assigned only a 15% chance to the 7.1% outcome and predicted that this could mean increases of 4% to 5% for the S&P 500. Goldman Sachs forecasts that today’s CPI print could mean a 2% to 3% increase for the S&P 500. However, ultimately the FED will decide tomorrow what to do with the CPI data. As NewsBTC reported, it will also publish the dot plot, which reflects the central bank’s long-term expectations and outlook. So whether the rally will find a continuation or abruptly stop will depend on whether the FED plays along.

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The Suzhou branch of the Chinese insurance company China Pacific Insurance, together with the Bank of Communications, recently announced the launch of a digital currency account insurance product. The launch comes at a time when the number of personal digital currency wallets created in the Chinese city of Suzhou alone now exceeds 30 million. Insurance […]

This analysis was made right after Bitcoin's ATH was reached back in November 2021 and price subsequentelly collapsed to 48k by the time this statement was made. From the article published by The Guardian: In a separate blogpost published on its website on Tuesday, a member of the Bank’s staff said bitcoin failed to fulfil…
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The FTX collapse has reportedly fueled a major international legal dispute between the United States and the Commonwealth of the Bahamas.

PRESS RELEASE. Panther, a cross-chain application that will allow retail users as well as institutions to access DeFi privately and compliantly, has launched its v0.5. This was achieved by the protocol’s community in conjunction with Panther Ventures Limited, a Web3 development company destined to develop the blockchain technology and zero-knowledge components of Panther. Panther Ventures […]

The emergence of Maple Finance brought a different approach to the entire process. This bold DeFi lending protocol requires no deposit of extra crypto tokens as collateral for borrowing. In the decentralized finance (DeFi) space, cryptocurrency lending came as a means that allows investors access to their preferred tokens. However, they must deposit other crypto coins as collateral before borrowing the given assets. This will help curtail risks and losses for the DeFi lending platform. Related Reading: Bitcoin Drops Below $17,000 Pre-CPI And FOMC – Scenarios To Prepare For This Week Instead, it all lies in the hand of the lending pools to decide on granting the crypto loans or not. They would have to evaluate the borrower’s ability to repay based on his creditworthiness. Maple Finance Suffers Bad Debts Due To Risks of Uncollateralized Loans However, the prevailing crisis in the crypto market has given a massive blow to Maple in terms of stress tests since its launch in 2021. The protocol has witnessed a cumulative $36 million of defaulted loans and $18 million distressed in the past fortnight. Maple’s bad debts represent about 66% of the total outstanding in its four active lending pools. Also, most of the vast borrowers have revealed losses due to their investments in the collapsed FTX exchange. The outplaying events are creating negative waves for Maple. Already, its native token, MPL, has plummeted to an all-time low as it lost 50% of its value. Most participants and analysts are trying to highlight the wrong footing with the DeFi lending platform. They intend to x-ray the rules and operations of the protocol for a possible amendment that could sustain the project again. The focus is on the risks associated with uncollateralized crypto lending. Also, a combination of fraudulent decisions and poor protocol design heightened the project’s condition. Shortfalls For Maple Lending Procedures Maple faces a severe crisis with its crypto credit formalities. The protocol grew its lending book to $900 million within a year. Its popularity spiked among market makers that seek liquidity for borrowing and crypto trading companies. However, its range of depositors comes from institutional and average retail investors that want huge yields. We would like to provide an update regarding Auros, who today missed the principal payment on a loan of 2400 wETH which triggered a 5-day grace period as per the smart contracts. 1/5 🧵 — M11 Credit (@M11Credit) November 30, 2022 But the collapse of the Terra ecosystem and FTX exchange brought massive losses to Maple. According to Token Terminal data, the protocol had a drop of $82 million in its outstanding loans. Related Reading: Upcoming FOMC Meeting Is The Most Important Ever For Bitcoin – Watch Out For The Dot Plot Two of the protocol’s former credit managers, Celsius Network and Alameda Research (FTX’s sister trading firm), are already bankrupt. In addition, they are facing several allegations regarding their unprofessional business approaches and practices. Also, the third credit pool manager, Orthogonal Trading, was kicked out of Maple Finance. The firm was accused of misrepresenting its financial records to conceal losses from the FTX fiasco.