• Solana (SOL) rose by as much as 8% to start the week and moved towards a one-month high.
• Chainlink (LINK) was also higher, hitting a three-week high.
• Both tokens surged after breakouts of ceilings on their relative strength index (RSI).
Biggest Movers: SOL Over 8% Higher to Start the Week
Solana (SOL) rose by as much as 8% to start the week, moving closer to a one-month high. Chainlink (LINK) was also higher, hitting a three-week high. Both tokens surged after breakouts of ceilings on their relative strength index (RSI).
Solana’s RSI Breakout
Following a low of $21.59 on Sunday, SOL/USD raced to an intraday peak of $23.83 earlier in the day. As a result of Monday’s move, solana has now moved to its strongest point since late-February. Overall, the token is now trading nearly 10% higher from the same point last week, when price was below $20.00. Today’s surge has come following a breakout of a ceiling on the 14-day relative strength index (RSI), which is currently tracking at 58.85 – marginally higher than its ceiling at the 57.00 mark.
Chainlinks RSI Breakout
In addition to SOL, chainlink (LINK) was also in the green to start the week, with prices trading by as much as 3% higher. LINK/USD rose to a peak of $7.38 earlier in the day and is now at its highest level since March 2nd when it was trading at $7.57. The surge came following a breakout which took place on the RSI indicator which is now tracking at 57 – marginally higher than resistance at 55 Should this upward momentum continue in the coming days, LINK will likely collide with a ceiling at $7.60..
Global Banking Crisis Spurs Cryptocurrency Rise
The global banking crisis has been pushing investors towards cryptocurrencies such as Solana and Chainlink over recent weeks and months – helping spur their respective rises during this period . This trend is expected to continue into 2021 as investors look for more secure options for their money amid turbulent times in traditional financial markets worldwide..
Overall, both solana and chainlink have surged over recent sessions following breakouts of ceilings on their relative strength indexes; potentially signaling further gains ahead for these two tokens if they can continue this upwards momentum in coming days..
• Goldman Sachs has revised its U.S. interest rate forecast due to stress in the banking system, no longer expecting a rate hike at the upcoming Federal Open Market Committee (FOMC) meeting in March.
• The Treasury Department, the Board of Governors of the Federal Reserve System, and the FDIC have announced rescue measures for depositors of two failed banks: Silicon Valley Bank and Signature Bank.
• Goldman Sachs still expects the Fed to raise interest rates by 25 basis points in May, June, and July, with a terminal rate expectation of 5.25% to 5.5%.
Goldman Sachs Revises Rate Hike Forecast
Global investment bank Goldman Sachs has revised its interest rate hike prediction for the upcoming Federal Open Market Committee (FOMC) meeting in March due to „stress in the banking system.“ Last month, the FOMC increased the federal funds rate by 25 basis points to a target range of 4.5% to 4.75%, which is the highest since October 2007.
Rescue Measures Announced For Failed Banks
The Treasury Department, the Board of Governors of the Federal Reserve System, and the FDIC have announced rescue measures for depositors of two failed banks: Silicon Valley Bank and Signature Bank. The Federal Reserve Board also said Sunday that additional funding will be made available to eligible depository institutions.
Federal Reserve Response
In response to these developments, Goldman Sachs economists noted that both steps are likely to increase confidence among depositors but stop short of an FDIC guarantee as was implemented in 2008.
Future Rate Hike Predictions
Goldman Sachs still expects the Fed to raise interest rates by 25 basis points in May, June, and July with a terminal rate expectation of 5.25% to 5.5%.
Despite current market instability, it appears that Goldman Sachs still expects future rate hikes from this year through 2021 despite revising their forecast for March’s FOMC meeting
• The U.S. Securities and Exchange Commission (SEC) has filed an emergency action against Miami-based investment adviser Bkcoin and one of its principals, Kevin Kang.
• The SEC alleged that the defendants disregarded the structure of the funds, commingled investor assets, and used more than $3.6 million to make Ponzi-like payments to fund investors.
• The securities regulator also alleged that Kang misappropriated at least $371,000 of investor money for personal use and attempted to conceal this unauthorized use by providing altered documents with inflated bank account balances.
SEC Files Emergency Action Against Bkcoin
The U.S. Securities and Exchange Commission (SEC) has filed an emergency action against Miami-based investment adviser Bkcoin and one of its principals, Kevin Kang. The SEC alleged that from at least October 2018 through September 2022, Bkcoin raised approximately $100 million from at least 55 investors to invest in crypto assets, but disregarded the structure of the funds and commingled investor assets instead.
Misuse Of Investor Funds
The complaint alleges that Kang misappropriated at least $371,000 of investor money to pay for vacations, sporting event tickets, and a New York City apartment among other things. Moreover, Bkcoin allegedly made material misrepresentations to some investors by falsely claiming that either the company or one of its funds had received an audit opinion from a „top four auditor“. However, neither Bkcoin nor any of its funds actually received an audit opinion at any time.
The SEC seeks permanent injunctions against both defendants as well as disgorgement, prejudgment interest, and a civil penalty. In addition, the complaint calls for an officer and director bar prohibiting Kang from acting as an officer or director of any issuer that has a class of securities registered with the Commission or subject to Section 12(g)of the Exchange Act or is required to file reports under Section 15(d)of the Exchange Act .
Remedies Sought By SEC
The SEC seeks permanent injunctions against both defendants as well as disgorgement plus prejudgment interest on all ill-gotten gains related to their violations; a civil penalty; an order prohibiting Mr. Kang from acting as an officer or director for any issuer with a class of securities registered with SEC; return of all remaining assets held by Defendants; forfeiture; rescission offers made available to certain investors; and such other equitable relief deemed appropriate by Court .
• Bitcoin and Ethereum were trading lower on Feb. 28, as markets anticipated the release of the upcoming U.S. consumer confidence report.
• BTC traded to an intraday low of $23,205.88 and ETH moved close to the $1,600 level.
• The data is expected to show a slight increase in confidence for the month, which could result in the Federal Reserve maintaining its rate hike policy next month.
Bitcoin and Ethereum Slip Ahead of US Consumer Confidence Report
BTC Flirts With Breakout Below $23,000
Bitcoin (BTC) fell for a second straight session on Tuesday, as prices flirted with a breakout below $23,000. BTC/USD moved to an intraday low of $23,205.88 earlier in today’s session, which comes less than 24 hours after hitting a high of $23,857.89. The move comes after bulls were unable to jump back above the $24,000 mark on Monday, with bears using this as an opportunity to reenter.
Looking at the chart, the 14-day relative strength index (RSI) also failed to break out of a resistance of its own at 53.00 At the time of writing, the index is trading at 52.46, with bitcoin slightly higher than its earlier low. BTC is now trading at $23,466.92 , with a move back towards $23,800 still on the cards.
ETH Moves Close To The $1
• Ruja Ignatova, the founder of the crypto pyramid Onecoin, may have been murdered in Greece a year after her disappearance.
• A leaked report suggests that she was killed on a yacht in the Ionian Sea more than four years ago.
• An informant’s report has been found, but its authenticity cannot be verified due to lack of evidence.
The Disappearance of Ruja Ignatova
Ruja Ignatova, founder of the crypto pyramid Onecoin, disappeared in October 2017 and was last seen at an airport in Athens. Since then she has been dubbed „the missing Cryptoqueen“ and is wanted by Interpol, Europol, and the U.S. Federal Bureau of Investigation (FBI).
Murder in the Mediterranean?
According to an article published by Bulgarian website Bureau for Investigative Reporting and Data (Bird.bg), Ruja Ignatova may have been murdered in Greece a year after her disappearance. This conclusion is based on evidence obtained during an investigation into the murder of a former top police officer in Sofia. The ex-head of a criminal police department was shot in March 2022 and аn informant’s report suggests that Ruja Ignatova was killed on a yacht in the Ionian Sea and her body dismembered and thrown into the water on orders from a drug lord. However, there is no way to verify the authenticity of this report as it is not signed or attributed to anyone specific.
Onecoin Ponzi Scheme
Launched as а multi-level-marketing network based on а fake cryptocurrency back in 2014, Onecoin is believed to have defrauded over 3 million investors globally out of more than $4 billion dollars worth investments.
Previous Reports Speculate Other Possibilities
Previous media reports have speculated other possibilities such as whether she has been murdered or if she is still alive after changing her appearance through plastic surgery. In July 2022 Greek press revealed police had attempted to capture Ignatova after receiving information that she was present in the country at that time. Her brother Konstantin was detained in Los Angeles back 2019 for being involved with Onecoin fraud scheme too
Despite speculations about her fate circulating for years now it seems like we will never know what truly happened to Ruja Ignatova since there isn’t sufficient proof or evidence regarding this case yet .
• DBS Group Holdings, the largest bank in Southeast Asia, has unveiled its plan to expand its crypto services in Hong Kong.
• The bank plans to apply for a license so that it can sell digital assets to Hong Kong customers.
• The move is part of the city’s commitment to become a crypto hub and attract digital asset businesses.
DBS Bank Expands Crypto Services in Hong Kong
Bank Plans To Apply For License
DBS Group Holdings, the largest bank in Southeast Asia, has unveiled its plan to expand its crypto services in Hong Kong. The Straits Times reported Monday that the bank plans to apply for a license to offer crypto trading services to Hong Kong customers. Headquartered and listed in Singapore, DBS is the largest bank in Southeast Asia with a presence in 18 markets.
CEO Comments on Expansion Plan
Sebastian Paredes, CEO of DBS Bank (Hong Kong), said at a briefing on Monday: We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers. He noted that while DBS is aware of the risks associated with digital assets, the bank is supportive of Hong Kong’s recent policy shift towards attracting digital asset businesses.
Hong Kong Government Seeks To Attract Crypto Businesses
In January, Financial Secretary Paul Chan Mo-po reaffirmed the city’s commitment to become a crypto hub. Unlike China’s anti-crypto stance, the Hong Kong government is considering granting greater access for retail investors to trade in cryptocurrencies and crypto exchange-traded funds (ETFs).
DBS Launches Self-Directed Crypto Trading Service
DBS launched a full-service bitcoin exchange in Singapore for corporate and institutional investors in late 2020. After seeing increased trading volume, the bank launched a crypto trust service followed by its first security token offering and obtained a license from Monetary Authority of Singapore (MAS)to provide crypto services last October 2021. Furthermore, DBS entered into metaverse last September last year due to growing demand from investors.
The move by DBS Bank shows increasing acceptance of cryptocurrency amongst financial institutions and regulators across different countries as well as increased confidence among investors around safety features provided by banks when dealing with cryptocurrency investments . It remains unclear when exactly will be able get their hands on these new products during this expansion process but we can expect more developments from DBS Bank soon enough!
U.S. Dollar to Keep Losing Appeal as Safe-Haven Currency
- PIMCO, a $1.74 trillion asset management firm, expects the USD to „continue to lose its appeal as the safe-haven currency of last resort“ in 2023.
- PIMCO Strategist Gene Frieda claimed that risk premiums will decline and shocks may abate, leading to a further decline in the value of the USD.
- Frieda also noted that higher yields worked in favor of the dollar but its yield advantage is likely to fall during an expected rate-cutting cycle.
PIMCO’s Prediction for U.S. Dollar
Pacific Investment Management Company (PIMCO), one of the world’s largest asset management firms with $1.74 trillion in assets under management as of Dec. 31, 2022, has warned that the US dollar is likely to “continue to lose its appeal as the safe-haven currency of last resort” this year. The firm’s global strategist Gene Frieda made this prediction in a blog post last week citing declining inflation, decreasing recession risks and dissipating shocks as contributing factors. He added that while higher yields worked in favor of the dollar last year, any forward-looking view must also take into account how these shocks may abate in 2023 and consequently lead to a fall in its value even if it sustains relatively high yields over time.
Factors That May Reduce U.S. Dollar’s Appeal
According to PIMCO’s analysis, several factors are likely to reduce US dollar’s appeal as a safe haven currency:
- Inflation: The Federal Reserve has been pumping liquidity into markets by reducing interest rates over time which has caused inflationary pressures within economies globally including that of USA and hence reducing USD’s appeal.
- Risk Premium: With a decrease in inflationary pressures and monetary policy volatility associated with it, risk premiums are expected by PIMCO strategists to decline further making other currencies more attractive than USD.
- Shocks: As per Frieda’s predictions various unexpected events such as Russia Ukraine war or spike in energy prices have acted favorably for USD but these are expected not only fade away but reverse their impacts going forward resulting in a lower demand for Greenbacks from investors worldwide.
PIMCO’s Expectation on Yield Advantages
The executive vice president at PIMCO also stated that given an increased rate hikes earlier on coupled with expectations of an upcoming rate cutting cycle soon; US dollars yield advantage is likely going be significantly reduced over time compared against other developed countries currencies making it less attractive than before.
It can be concluded from above analysis that due various macroeconomic conditions along with various geopolitical events currently taking place across globe; US dollar is less likely retain it status quo being considered as safe haven currency by investors worldwide going forward rather is more prone towards depreciation against other major fiat currencies hence causing reduction investor confidence among them .
• The Indian Finance Ministry’s Economic Survey 2022-23 presented in Parliament Tuesday highlighted the necessity for a common approach to regulating the crypto ecosystem.
• Crypto assets are self-referential instruments and do not pass the test of being a financial asset because they have no intrinsic cashflows attached to them.
• The U.S. Securities and Exchange Commission has disqualified bitcoin, ether, and various other crypto assets as securities.
The Indian Finance Ministry’s Economic Survey 2022-23 highlighted the importance of regulating the crypto ecosystem in India. The survey, which was presented in Parliament Tuesday by Finance Minister Nirmala Sitharaman, is an annual flagship document of the Ministry of Finance that outlines the performance of the Indian economy in the previous financial year and presents an economic outlook for the current financial year. This is the first time that cryptocurrency has been included in the Economic Survey.
The survey highlighted the necessity for “a common approach to regulating the crypto ecosystem” in India. The document explains that “crypto assets are self-referential instruments and do not strictly pass the test of being a financial asset because it has no intrinsic cashflows attached to them.” This echoes the warnings of the Reserve Bank of India (RBI), which has repeatedly stated that cryptocurrency has no intrinsic value and poses a risk to the country’s financial stability.
The survey also noted that U.S. regulators have disqualified bitcoin, ether, and various other crypto assets as securities. The U.S. Securities and Exchange Commission (SEC) has been cracking down on fraudulent activities in the crypto industry, including the recent collapse of the crypto exchange FTX.
The Indian government is now taking steps to regulate the crypto ecosystem in the country. The RBI has proposed a ban on cryptocurrencies such as bitcoin and ether, and the government is currently working on a bill that would regulate the crypto industry.
The inclusion of cryptocurrency in the Economic Survey is a sign that the Indian government is taking the issue seriously. With the increasing popularity of cryptocurrencies, it is clear that the government needs to take a common approach to regulating the crypto ecosystem. This could help protect investors from fraud, money laundering, and other risks associated with the crypto industry.
• President of Brazil Luis Inacio Lula Da Silva clarified the scope and reach of the common currency being studied by Brazil and Argentina.
• The currency would be used to settle cross-border payments between the two countries and also countries from BRICS and Mercosur.
• Fernando Haddad, minister of economy of Brazil, offered more insight into the objectives of the two countries.
The President of Brazil, Luis Inacio Lula Da Silva, has recently clarified the scope and reach of the common currency that Brazil and Argentina are studying to issue in Latam. Upon his arrival in Buenos Aires for the CELAC summit of chiefs of state, Lula explained that the discussion would revolve around the launch of a currency for multilateral settlements amongst countries of different integration groups, including BRICS and Mercosur. This currency would be used to settle cross-border payments not only between the two countries, but also countries from the BRICS and Mercosur region.
The Minister of Economy of Brazil, Fernando Haddad, offered more insight into the objectives of the two countries. Haddad stated that international trading transactions should be settled in currencies native to their countries, to reduce dependence on the U.S. dollar. He also pointed out that a common currency could help to grow trade between them.
The President of Argentina, Alberto Fernandez, also referred to the hypothetical currency in the same terms as Lula. Fernandez commented that they were still researching and trying to figure out how to make the currency work.
The two countries are currently working on a joint feasibility study to determine the viability of the common currency. However, Lula Da Silva has made it clear that the currency would not be imposed on any other countries in Latin America, and that it is only meant to facilitate trade between the two countries and other countries in the BRICS and Mercosur region.
In the end, only time will tell if the common currency will be successful or not. Nevertheless, the two countries have expressed their commitment to make it work, and to ensure that it will be beneficial for all countries involved.
-Sam Bankman-Fried has recently disputed FTX US ’shortfall‘ claims from Sullivan & Cromwell, the current restructuring administrators.
-Bankman-Fried claims the presentation was „extremely misleading“ and that FTX US is solvent and has always been.
-Critics have been skeptical of Bankman-Fried’s defense, specifically his Excel spreadsheet.
Sam Bankman-Fried, the former CEO of FTX, recently took to Twitter to dispute claims of a „shortfall“ by Sullivan & Cromwell, the current restructuring administrators. Following the update from the FTX debtors, who reported the discovery of $5.5 billion during an investigation, Bankman-Fried posted a blog on his Substack newsletter. In the blog, he stated that the presentation was „extremely misleading“ and that FTX US is solvent and „always has been.“
Bankman-Fried went on to dispute the claim of a „shortfall“ in the presentation and argued that FTX US had roughly $609 million of assets backing customer balances of $199 million. He maintained that FTX US was solvent when it was turned over to S&C and is likely still solvent.
However, critics on social media were skeptical of Bankman-Fried’s defense, specifically his Excel spreadsheet. Despite his claims, the FTX co-founder was mocked for his attempt to provide evidence of FTX US‘ solvency. It remains to be seen how this dispute will be resolved, but Bankman-Fried’s claims have certainly raised some eyebrows.