The R Roundup: Have We Hit The Bottom? — Issue #47

The volatility of the crypto markets can often drive people’s interest in the digital asset class away however with a slight rally across the markets, investors are starting to wonder if we have hit the bottom.

Whilst the macroeconomic environment suggests that the worst is yet to come, crypto has reclaimed and surpassed that $1 trillion marketcap mark over the past week.

Top performers this week:

$ETC & $LDO have both returned almost 60% in 7days (according to coingeko) which further emphasises the perspective that the markets could be reaching either a bull trap or a full-blown reversal.

Top 3 (Excluding Stablecoins):

The majors have also returned some interesting % this week in correlation with the US entering a “technical recession” as the FED continues to believe they can handle the rate of inflation.

Volatility can even leave the most advanced investors and traders confused about what could happen next but the reality is no one knows but one thing that can be guaranteed is that whatever does happen, we will be here to cover it.

Barclays Invests In Crypto Firm Copper 🏦

Over the majority of Q2/Q3, an emerging trend in the market has been the number of firms/exchanges/hedge funds that have filed for bankruptcy due to a failure to manage their books during the crypto winter.

In a bid to capitalise off that we have seen major market players along the likes of Sam Bankman-Fried and CZ offer credit facilities and in some cases investment to avoid capitulation of valuable firms.

The latest to invest in the arguably shaky crypto economy is UK banking entity Barclays which purchased a stake in Copper.

Copper is a crypto firm that helps financial institutions invest in crypto and also provides custody, prime broking & settlement services.

Babel Finances Loses $280m Of Customer Funds ⛑💰

If there was a trust index, it would certainly be crushing all-time lows in regards to the crypto economy as it seems like every firm is careless with customer capital.

The latest to join the list is Babel Finance, a crypto lender that provides crypto management services for individual and institutional investors.

Reports emerged according to their restructuring proposal deck they lost 8,000 $BTC and 56,000 $ETH in June following the change in market momentum resulting in losses of more than $280m USD.

The deck said the following:

“In that volatile week of June when BTC fell precipitously from 30k to 20k, unhedged positions in [proprietary trading] accounts chalked up significant losses, directly leading to forced liquidation of multiple Trading Accounts and wiped out ~8,000 BTC and ~56,000 ETH,”

Following this news breaking, Babel now plans to raise hundreds of millions in debt and equity investments as part of their recovery objectives.

SEC Chair Says “No Difference” Between Crypto & Securities Exchanges👨‍⚖️🇺🇸

Regulators and authorities have had an ambiguous relationship with the emerging digital asset class as there is a lack of understanding of how to manage the trillion-dollar industry but also how to let it flourish.

With recently added scrutiny from the SEC towards crypto, Chair Gary Gensler makes the ever-common assumption between crypto and securities exchanges.

In an attempt to encourage crypto exchanges to register with the SEC as securities exchanges, Gensler voiced his criticism of crypto exchanges for providing custodial services alongside market making concluding that it creates an “inherent conflict of interest”.

Gensler who you could conclude as more hawkish towards crypto regulation also claimed that if crypto wasn’t regulated in the same vain as securities, it would “risk undermining 90 years of securities law”.

These comments flew in by Gensler just two days after reports broke of the SEC allegedly launching an investigation into Coinbase for trading unregistered securities.

As a reminder, this is not a trading signal or investment advice; it is an opinion, and each trader/investor should know and understand the risks of trading cryptocurrencies. At no point should this be regarded as financial advice, feel free to familiarise yourself with our NFA disclaimer.

Additional links:

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The R Roundup

The R Roundup

The R Roundup is a news platform inspired to deliver unbiased news and authentic education. From #DeFi to #NFTs; The R Roundup is built for the readers.