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Bitcoin is Preparing for Another Assault on $24K as a Trader Forecasts a “Bearish February”

A trader thinks that the best outcome for Bitcoin is to reach $25,000 before experiencing a correction.

 

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s price has gone up by 1% in a single hour, breaking through resistance.

 

However, despite its recent success, reaching $23,950 over the weekend, traders are not confident that it will continue to see gains in February.

 

January saw an increase of over 40% for Bitcoin, making it its best January since 2013. The trader, Crypto Tony, stated that reaching a high of $25,000 is the absolute best-case scenario for Bitcoin.

 

Crypto Tony predicts that February will be bearish for Bitcoin, with price targets of $21,400 and possibly even $19,000. He also mentioned the U.S. dollar, which reached two-week highs, affecting crypto markets since the U.S.

 

Dollar Index is usually inversely correlated with cryptocurrency. Another trader and analyst, Scott Melker, known as “The Wolf of All Streets,” paid attention to the weekly closing of the S&P 500, which closed above its 50-week moving average for the first time since April of last year.

 

Melker believes that this is an important factor to watch, especially with the Federal Open Market Committee meeting coming up and a potentially volatile week ahead. He advises watching the close on Friday.

 

Bitcoin Recalls the Build-Up to Record Highs

 

However, the formal analysis from the on-chain analytics firm Glassnode did not make any predictions for the coming month. In their latest weekly newsletter, “The Week On-Chain,” they emphasized the importance of January as the month that Bitcoin regained momentum.

 

They noted that Bitcoin’s markets saw the strongest monthly price increase since October 2021, driven by both high demand and a series of short squeezes.

 

The rally has brought much back into profitability and has resulted in a healthy contango in futures markets. They also observed that the initial outflow from exchanges, which followed FTX, has stabilized and is now balanced by incoming flows.

 

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Defi Solana Project Friction Closes Its User Interface

As the front end closes down, Friktion advises its users to remove funds from the protocol.

Friktion, a Solana decentralized finance (DeFi) platform, announced on January 26 that it is shutting down its user interface and advising users to remove their assets from the protocol.

 

The project’s website will no longer provide the same services and will only be available for withdrawals for all Volts, with no deposit functionality. According to the company’s website, Friktion’s Volts are structured products for DeFi investments that enable investors to receive a cut of investment pools’ earnings.

 

However, the underlying protocol will continue to be available on-chain. According to the firm, the stakeholders’ choice was motivated by the “difficult market for DeFi growth in recent months”: “This decision was not made lightly, as Friktion has successfully handled a number of challenges in the past, including Luna, FTX, and network disruptions. The business continues to believe in Solana DeFi’s future and will do everything possible to assist the ecosystem.

 

Before being affected by the crypto winter in 2022, Friktion’s application had over $160 million in total value locked (TVL), over 20,000 user wallets, and exchanged over $3 billion in traded volume. The business even started undercollateralized lending in November 2022 to meet the demand for DeFi from institutional investors.

 

Nearly a year after the business revealed it had raised $5.5 million in a fundraising round in January 2022, it has decided to shut down its user interface. Jump Crypto, DeFiance Capital, Delphi Ventures, Solana Ventures, and Tribe Capital were among the investors in the round.

 

Alameda Research, an FTX subsidiary that was a critical factor in the exchange’s demise in November 2022, was one of the names on the platform’s board. Other board members were Genesis Trading, LedgerPrime, CMS Holdings, and Orthogonal Trading.

 

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FTX Chasing Bank-Man Family For Answers Over Wealth: Says Report

Lawyers representing the insolvent FTX exchange request information from Sam Bankman-purported Fried’s family.

 

According to a court document, FTX requested permission to question the family about their riches and personal assets while they were under oath.

 

As the corporation continues to look for hidden assets to pay creditors, Sam Bankman-closest Fried’s family members and a few company officials are still in the limelight, according to Bloomberg on January 26.

 

To recoup as much of the missing billions owing to creditors and customers as possible, FTX advisers and legislators have adopted an aggressive strategy.

 

Joseph Bankman and Barbara Fried, the parents of SBF, are among the people the troubled company wants to interrogate.

 

Parents Wanted for FTX

Joseph Bankman, a law professor at Stanford Law School, advised FTX staff members regarding taxes, assisted in hiring the company’s initial attorneys, and claimed the document.

 

Additionally, Barbara Fried, his mother, had some involvement in the multi-billion dollar business, though specifics were not disclosed.

 

According to the filing, the brother, Gabriel Bankman-Fried, established a business to lobby members of the U.S. Congress from a lavish residence close to the U.S. Capitol.

 

Most of the millions spent on political donations from SBF and FTX went to the Democrats. According to Open Secrets, SBF was the seventh political contribution for the 2022 cycle. He contributed $40 million to federal parties, candidates, and political action organizations.

 

Before FTX attorneys can subpoena Bankman-family, Fried’s John Dorsey, the bankruptcy judge overseeing the case, must grant the request. If they were successful, they would have to submit to questioning and hand over paperwork to the judge.

 

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Crypto Exchange Digital Surge Arises As A Survivor of FTX Effect

When the Australian cryptocurrency exchange failed and FTX’s Australian subsidiary entered the administration, $23.4 million in digital assets were trapped on that platform.

 

Exchange for cryptocurrencies in Australia Despite having millions of dollars worth of digital assets entrusted to the now-defunct FTX crypto exchange, Digital Surge has narrowly escaped collapse.

 

A five-year rescue plan for Digital Surge was authorized by its creditors on January 24 local time. It intends to eventually reimburse its 22,545 consumers whose digital assets have been frozen on the platform since November 16 while enabling the exchange to continue operating.

 

On December 8, the day the firm entered administration, the exchanges’ directors sent the rescue strategy to clients for the first time through email.

 

According to the “Deed of Company Arrangement,” the Australian cryptocurrency exchange would receive a loan from a related company, Digico, for $884,543 (1.25 million Australian dollars), enabling the deal to carry on with trading and operations.

 

Administrators at KordaMentha said that the exchange’s quarterly net profits would be used to pay creditors over the following five years.

 

According to a Business News Australia report dated January 24, “Customers will be compensated in cryptocurrency and fiat cash, based on the asset composition of their specific claims,” KordaMentha stated.

 

When Cointelegraph contacted Digital Surge, it was confirmed that a resolution supporting the rescue plan had been approved at the second meeting of creditors on January 24.

As the administration process with KordaMentha moves through, “we anticipate that additional communication will be delivered to all consumers,” it continued.

 

The Brisbane-based cryptocurrency exchange, which had been running since 2017, was one of the victims of FTX’s demise in November. Withdrawals and deposits were frozen just days after FTX declared bankruptcy and FTX Australia was put under administration.

 

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Crypto Exchange Could Restart, New FTX Chief

Bankrupt cryptocurrency exchange FTX’s new CEO, John Ray, is looking into the potential of restarting the platform, and he could bring the company back

 

According to him, the task force he established is looking into restarting FTX.com to “recover more value” for those who lost money, as the Wall Street Journal (WSJ) reported.

 

FTX was valued at $32 billion (£26 billion) a year ago, but in November, it filed for bankruptcy protection.

 

According to estimates, funds worth an estimated $8 billion still needed to be included.

 

Sam Bankman-Fried, the exchange’s founder and former CEO, has been charged with scamming investors and consumers to cover debts accrued by his cryptocurrency-focused hedge fund, Alameda Research.

 

He’s denied the allegations of fraud.

 

Customer funds’ future, however, is still unknown.

 

According to the WSJ report, Mr. Ray, who described the platform as a “complete failure,” is considering reviving it rather than just selling it or liquidating its assets.

 

The BBC contacted FTX for comment but did not react immediately.

 

Earlier, Mr. Ray criticized the management of the defunct cryptocurrency exchange, claiming he had never “seen such a catastrophic collapse of corporate governance.”

 

In his 40-year career, which included managing the collapse of US energy juggernaut Enron, he claimed that what he had discovered since taking over FTX was “unprecedented.”

 

The “Crypto winter.”

 

One of the significant incidents in what has been called a “crypto winter” for businesses was the collapse of the exchange.

 

The first major surprise was the collapse of two Terraform Labs-owned coins, Terra Luna and TerraUSD, in May of last year.

 

The decline caused the value of numerous other cryptocurrencies, including Bitcoin, to drop by $400 billion (£318 billion).

 

Interpol sent a red notice to law enforcement agencies in September requesting the detention of Terra founder Do Kwon.

 

With the collapse of FTX, one of the largest exchanges and the point of entry for millions of people, the disruption to the cryptocurrency industry reached a new level in November.

 

It was regarded as one of the most reliable platforms, but it quickly went bankrupt once it discovered its finances were precarious.

 

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Genesis, a crypto lender, has filed for Chapter 11 bankruptcy protection

Cryptocurrency lender Genesis Global has filed for Chapter 11 bankruptcy in the Southern District of New York, with estimated liabilities and assets of $1 billion to $10 billion according to a Jan. 19 filing.

 

The company had been in talks with its creditors and parent company Digital Currency Group to find a way to preserve assets and continue operations, according to a press release.

 

Genesis has begun a court-supervised restructuring process under Chapter 11 to explore options including a sale, capital raise, or equitization transaction with the goal of emerging under new ownership.

 

The derivatives, spot trading, broker-dealer, and custody businesses will not be affected and will continue as usual.

 

The company has stated that it has over $150 million in cash to support its ongoing operations and the restructuring process.

 

The restructuring will be overseen by an independent special committee of the board of directors and is intended to provide the best outcome for Genesis clients and users of Gemini Earn.

 

In November 2022, Genesis suspended withdrawals from its platform due to market turmoil caused by the failure of FTX. This affected users of Gemini Earn, a yield-bearing product offered by the Gemini cryptocurrency exchange managed by Genesis.

 

The co-founder of Gemini, Cameron Winklevoss, stated that the bankruptcy is a necessary step towards allowing Gemini users to recover their assets, but accused the parent company, DCG, and its CEO, Barry Silbert, of not offering a fair deal to creditors and threatened legal action unless a fair deal is reached.

 

Both Genesis and Gemini are facing charges from the SEC for offering unregistered securities through the Earn program.

 

The parent company, DCG, may have to sell part of its $500 million venture capital portfolio to offset Genesis’ liabilities.

 

On January 17th, DCG stopped dividend payments as a measure to reduce expenses and maintain liquidity. There is also talk of selling CoinDesk, a crypto media outlet, which could bring in $200 million.

 

 

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Drive-by incident at SBF’s: Three men crash into barricade and escape, according to Lawyers

Lawyers for Sam Bankman-Fried, the former CEO of FTX, have reported an incident in which three men drove their car into a metal barricade outside Bankman-Fried’s parent’s home, where he is currently under house arrest.

 

The lawyers did not specify when the incident occurred and said that security personnel were unable to get the license plate details of the car.

 

The individuals, who got out of the car after hitting the barricade, reportedly told a security guard, “You won’t be able to stop us,” before driving away.

 

This incident, which was reported in a court filing on January 19th, highlights the security risks faced by Bankman-Fried and those linked to him, including the two individuals who secured his $250 million bond.

 

The lawyers representing major US media outlets, including Bloomberg, CNBC, Reuters, and the Financial Times, requested the names of the guarantors for Bankman-Fried from a US District Court judge, arguing that the public’s right to know outweighs the privacy and safety rights of the guarantors.

 

They also cited Bankman-Fried’s close ties to wealthy and politically-connected individuals and the potential impact on public confidence in US government institutions.

 

Bankman-Fried was extradited to the US in December 2022, pleaded not guilty to eight fraud and conspiracy charges in January 2023, and remains under house arrest until his trial date in October 2023.

 

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Ex-FTX lawyer asserts US General Counsel directed business to Sullivan & Cromwell, former firm

A former chief regulatory officer of FTX, Daniel Friedberg, has supported a motion to prevent FTX from using Sullivan & Cromwell LLC as its lead bankruptcy counsel.

 

Friedberg, who resigned from his position on November 8th, has accused the company’s US general counsel, Ryne Miller, of directing business towards Sullivan & Cromwell, where Miller was formerly a partner.

 

Friedberg stated in a court filing that Miller had informed him that it was important for him to direct business to the firm as he wanted to return as a partner after his time at FTX.

 

The significance of these allegations has been noted by lawyer and former chief of the SEC Office of Internet Enforcement, John Reed Stark.

 

In his filing, Friedberg claims that he reminded Miller that his loyalty was to the debtor, FTX, and not to Sullivan & Cromwell, suggesting that this was a recurring issue throughout Miller’s tenure at the company.

 

Friedberg alleges that after Miller’s hiring in early 2020, Miller asked if he could hire his former law firm, to which Friedberg replied that it was Miller’s responsibility to hire the best outside counsel for the job.

 

However, Miller ultimately engaged Sullivan & Cromwell as primary counsel for FTX.US, FTX Derivatives (formerly LedgerX), and Emergent, the holding company of Sam Bankman-Fried.

 

Friedberg also accuses Miller of designating $200 million of LedgerX funds to pay for Sullivan & Cromwell’s legal fees, stating that Miller had said that there was over $200 million in cash in LedgerX and that he was going to send those funds to Sullivan & Cromwell, making bankruptcy legal costs not a concern.

 

Decision Arriving

The filing is a declaration in support of an objection by FTX creditors to the retention of FTX’s lawyers, Sullivan & Cromwell LLP, and it makes various accusations that have not been previously disclosed.

 

Friedberg apologized for submitting his declaration at the last moment, citing the filing of the Dietderich Supplemental Declaration by Andrew Dietderich, a partner at S&C, as the reason for the delay.

 

He concludes his declaration by stating that he will be able to competently testify to the facts outlined in the declaration if called upon to do so.

 

A hearing is scheduled to take place at the bankruptcy court on January 20th, where the judge will hear from various parties involved before deciding whether FTX can retain S&C as its lead counsel.

 

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As The Cryptocurrency Market Worth Approaches $1 Trillion, Bitcoin Holds Above $21,300

Bitcoin (BTC) maintained its recent gains throughout Tuesday’s trading, and the total market cap of all cryptocurrencies briefly reclaimed the $1 trillion mark for the first time since early November, just before FTX’s collapse. These developments indicate that the crypto market’s long-term outlook is improving.

 

Traditional stock markets saw a mixed day as a busy week of corporate earnings got underway. Goldman Sachs made news after reporting a 69% fall in profit for the fourth quarter. The S&P and Dow ended the day lower at the close of U.S. markets, down 0.20% and 1.14%, respectively, while the Nasdaq just managed a gain of 0.14%.

 

TradingView data shows that Bitcoin’s price has been increasing since last week, but more slowly. It reached an intraday high of $21,605 before falling to support near $21,300, where it is currently trading.

 

According to Jim Wyckoff, senior technical analyst at Kitco, the top cryptocurrency has reached a four-month high due to the ongoing rally for Bitcoin. The daily bar chart’s price upswing, which “suggests still further upside in the near term,” according to Wyckoff, “gives the B.C. bulls the firm overall near-term technical advantage.”