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Why Bitcoin Fails to Sustain $10,000 Level Despite Activities of Whales

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Bitcoin at Record High; Breaches $6,000 Level

Here is Why Bitcoin Can’t Sustain $10,000 LevelĀ 

Since Bitcoin, the flagship cryptocurrency broke through a globally anticipated $10,000 resistance level on May 8, 2020, it has failed to sustain that level despite Bitcoin Halving of May 12.

Even with the reports of Whales accumulating substantial bitcoins and a recent report by Santiment that the number of wallets holding more than 100 BTC has been on the rise in the past week, the dominant cryptocurrency remained deviant.

In May, Investors King perused why the digital currency may not attract enough buyers to sustain the expected bullish run.

Here is Why Bitcoin continues to disappoint even with the projected supply short-fall that normally trailed Bitcoin Halving.

Regardless of what Bitcoin traders and investors think, the demand for the coin has always been bolstered by retail traders and investors, among which it is the most popular.

The activities of these retail traders and investors are presently limited given the current price of a unit Bitcoin. Meaning, even though the Bitcoin supply has dropped following halving, the number of miners exchanging their rewards to fund operation and the available Bitcoin within the system is more than the present demand.

Therefore, while the ongoing acquisition by Whales will help establish strong support for the coin above $9000, it won’t be enough to force a bullish run and sustain it above $10,519 resistance levels until institutional investors or outside fund flow into the system.

However, with the surge in global uncertainty, the expected fund may not flow into the system in the near-term as predicted in our analysis in May. Also, with the renewed interest in US assets following the surprise rebound in the job market and the 12 percent of GDP worth of stimulus being pumped into the US economy, institutional investors may not look the way of Bitcoin or the entire crypto market uncertain global risk normalise.

BTCUSDDaily 2Still, we are long-term bullish on Bitcoin and expect a sustained break of $10,519 resistance level to open up $11,463 before the $12,900 needed to confirm bullish continuation.

On the downside, a break of $8,730 support level will open up $8,231 and turn the momentum bearish as shown above.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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U.S. Prosecutors Hit KuCoin and Founders with Money Laundering Charges

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Kucoin

KuCoin, a major crypto exchange, along with its founders Chun Gan and Ke Tang have been charged by U.S. federal prosecutors with violating anti-money laundering (AML) laws.

The charges allege that KuCoin operated as a money transmitting business in the U.S. without proper registration or implementation of AML measures.

Investors King gathered that the indictment disclosed that KuCoin’s actions facilitated the laundering of proceeds from various illicit activities, including sanctions violations and fraud schemes.

Despite its substantial user base, KuCoin purportedly failed to adopt adequate AML and know-your-customer (KYC) protocols until 2023, rendering it vulnerable to exploitation by criminals.

The prosecution’s move underscores the growing regulatory scrutiny faced by cryptocurrency platforms worldwide, as authorities strive to address the sector’s susceptibility to financial crime.

Also, the Commodity Futures Trading Commission (CFTC) filed a separate suit against KuCoin, alleging failure to register as a futures commission merchant and non-compliance with KYC regulations.

Darren McCormack, Special Agent in Charge at Homeland Security Investigations, described KuCoin as “an alleged multibillion-dollar criminal conspiracy,” emphasizing its pivotal role in the crypto market.

Meanwhile, U.S. Attorney Damien Williams condemned KuCoin’s purported attempts to conceal its U.S. user base and its use as a hub for money laundering.

As legal proceedings unfold, KuCoin’s native token (KCS) experienced a 5% decline, signaling investor concerns.

However, Bitcoin (BTC) remained volatile, hovering around $70,000 amidst market turbulence.

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Key Events in the Ethereum Ecosystem that Can Influence the Market

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Ethereum - Investors King

Following Bitcoinā€™s new all-time high, the crypto community has been buzzing with theories and predictions not only about the top cryptocurrency but about other coins as well.

Ethereum, the second largest cryptocurrency (by market cap) has also been a talking point and headline.Ā 

Ethereum news over the past few days as been awash topics such as the potential effect of Bitcoinā€™s new ATH on Ethereum, the upcoming Dencun upgrade and long-term price predictions. We have rounded up the top stories in Ethereum news over the past few days for you.Ā 

Dencun ā€“ Ethereumā€™s Solution to High Gas Fees?

The Dencun update is set to be Ethreumā€™s largest since The Merge in September 2022 and Shapella in April 2023. The upgrades respectively facilitated the move from a proof-of-work (PoW) consensus to proof-of-stake (PoS) and made withdrawals of staked Ether possible. It is expected to go live on March 13 at around 13:55 UTC. Here is what we know about the updrage so far.Ā 

First of all ā€œDencunā€ is a merging of ā€œDenebā€ and ā€œCancunā€, two network updates that collectively account for nine Ethereum Improvement Proposals (EIPs). It will activate EIP-4844, also called proto-danksharding, which is expected to improve the Ethereum blockchainā€™s capacity to handle data from layer-2 (L2) networks.Ā 

The upgrade will result in significantly cheaper fees for L2 rollups and it is expected that the majority of Ethereumā€™s onchain activity will migrate to L2s. This aligns with Ethereumā€™s target of being able to process millions of transactions per second.Ā 

Analyst Max Wadington writes in a research report by Fidelity Digital Assets: “Ethereum’s improvement as a database unveils the opportunity for near-zero transaction fees for users of layer 2’s.”

Wadington adds that users of the base Ethereum network may not benefit as much from the software update as Layer 2 users.

“In the short term, users who wish to benefit from this fee change must sacrifice some decentralization and security by transacting on layer 2’s instead of Ethereum,” he said.Ā 

The Dencun upgrade has been in the works for several years, with Ethereum co-founder Vitalik Buterin hinting at it as far back as 2019. It was slated to take place late last year but could not proceed due to engineering concerns by developers.The update has so far been tested on three separate test networks and performed generally well.

Members of the Ethereum community are looking forward to the event and are joining livestreams counting down to the upgrade.Ā 

ā€œWe are making sure all our client and bootnodes are fully updated, and ready for fork,ā€ said Barnabas Busa, a DevOps engineer at the Ethereum Foundation. ā€œOur monitoring infrastructure is scaled up to -ensure we donā€™t miss anything important.Ā 

(Ethereum core developer Tim Beikoā€™s post on X:

Ethereum Price Predictions

As of March 13, Ethereum was currently trading at $4,040 up about 7% over a week. It is expected to rise higher with the increased anticipation for Ethereum ETFs and the Dencun upgrade.Ā 

According to this Forbes report, Ethereum could rise to $4,500 by the end of the month. Another report puts the coin’s price at $5,000 by the end of the year. CoinDCX predicts that 2024 a strong end to the year price-wise could serve as a stepping stone for the asset’s upward movement.Ā 

In addition, going by historical market data,Ā  a Bitcoin bull run could spell price surges for Ethereum as well. In 2021 for example, when Bitcoin gained 66%, Ethereum performed far better, gaining almost 400%. With the ongoing interest in spot Bitcoin ETFs and the upcoming Bitcoin halving ā€“ both of which could translate into green candles for Bitcoin ā€“ Ethereum could continue rising.Ā 

While experts agree that the asset is unlikely to surpass Bitcoin’s price long-term, it has the potential to rival the top cryptocurrency’s market capitalization largely owing to its uncapped supply.Ā 

 

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Binance Executive Escapes Custody in Nigeria Amid Legal Battle

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Nadeem Anjarwalla

Nadeem Anjarwalla, a prominent executive of cryptocurrency exchange Binance, has managed to escape custody in Nigeria, where he was detained amidst allegations of tax evasion and other offenses.

Anjarwalla, 38, reportedly fled from a guest house in Abuja on Friday, 22 March, where he and his colleague were being held.

According to sources familiar with the matter, the escape occurred when guards on duty escorted him to a nearby mosque for prayers as part of the ongoing Ramadan fast.

Anjarwalla, who holds both British and Kenyan citizenship, is believed to have departed from Abuja using a Middle Eastern airliner, despite his British passport remaining in the custody of Nigerian authorities.

The exact manner in which he managed to board an international flight is still unclear, raising questions about security protocols and potential lapses in immigration procedures.

Authorities are now scrambling to ascertain Anjarwalla’s intended destination and initiate efforts to apprehend him and bring him back into custody.

It has been revealed that Anjarwalla fled using a Kenyan passport, although the circumstances under which he obtained it remain under investigation.

Sources close to the matter disclosed that Anjarwalla and his colleague were held in a “comfortable guest house” and were granted various privileges, including the use of telephones.

It is believed that Anjarwalla exploited these privileges to orchestrate his escape.

The escape comes amidst a legal battle between Binance executives and Nigerian authorities. Anjarwalla and Tigran Gambaryan, another executive, were detained upon their arrival in Nigeria on 26 February 2024, and a criminal charge was filed against them before a Magistrate Court in Abuja.

The court granted the Economic and Financial Crimes Commission (EFCC) an order to remand the duo for 14 days, later extended for an additional 14 days.

Furthermore, the Nigerian government has slapped multiple charges against Binance Holdings Limited, Anjarwalla, and Gambaryan, accusing them of tax evasion and failure to comply with regulatory requirements.

The detention and legal proceedings against Binance officials come in the wake of the exchange platform’s settlement of criminal money laundering charges in the United States, further complicating the ongoing saga surrounding the cryptocurrency giant.

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