Bitcoin, Ether Coil After Halving

Bitcoin, Ether Coil as Crypto Traders in Limbo After Halving

During the early trading hours in Asia, both Bitcoin (BTC) and Ether (ETH) maintained stability, reflecting the indecisiveness of traders as the CoinDesk 20 Index remained flat. The crypto market leaders, BTC and ETH, have been trading within narrow ranges as traders reevaluate the broader macroeconomic landscape following the recent halving event.

As of the latest data from CoinDesk Indices, BTC was trading above $66,600, while ETH was at $3,240. This stability follows a turbulent period marked by geopolitical tensions and heightened anticipation surrounding the Bitcoin halving. However, the market has now settled into a more subdued phase, with neither bulls nor bears taking the lead in price movements.

Thomas Kim, a trader at Presto, noted that market volatility has decreased post-halving, with the recent three-day realized volatility being lower than the implied volatility of BTC options. This suggests that investors are still trying to assess various macroeconomic factors before taking decisive actions.

According to liquidation data from CoinGlass, over the past 12 hours, positions worth $52.46 million have been liquidated. While ETH and BTC dominate these liquidations, there's also a significant $6.86 million in HBAR liquidations due to the token's recent surge in volume crossing $1 billion, along with $1.83 million in PEPE liquidations.

Justin d'Anethan from Keyrock highlighted the indecisiveness among traders in a Telegram interview with CoinDesk. He described the market as interesting but not very dynamic, with traders struggling to adopt a bullish or bearish stance, resulting in stagnant prices.

The CoinDesk 20 Index, which tracks the largest digital assets by market cap, is currently trading at 2,343, reflecting the market's flat performance. D'Anethan also pointed to negative news, including the SEC's inclination to delay ETF applications, President Joe Biden's comments on crypto mining, and ongoing outflows from crypto investment products, as factors weighing on the market.

However, he also noted a potentially bullish aspect, suggesting that the recent pullback caused by leveraged long liquidations might have cleared some market froth, leaving the market at a stable level with committed capital.

CoinGlass data revealed that during the weekend of April 12-13, when Iran launched a missile attack on Israel, over $1.4 billion in long positions were liquidated. Despite these challenges, the halving event seems to have strengthened crypto investors' resolve, with many holding onto their coins in anticipation of higher prices in the long term.

Binance Founder Changpeng Zhao Faces 3-Year Prison Sentence for Money Laundering

Binance founder Changpeng Zhao is facing a 3-year prison term as US prosecutors push for a harsher punishment ahead of his sentencing on April 30 in Seattle. Zhao had previously pleaded guilty to violating US anti-money laundering laws and stepped down as CEO of Binance while retaining majority ownership. He agreed to a $50 million fine, with the company offering to pay $4.3 billion in fines and compensation.

US prosecutors argue that Zhao's willful violation of US law warrants an above-Guidelines sentence due to the significant consequences of his actions. They claim Zhao failed to establish a robust anti-money laundering program at Binance, allowing illicit actors to exploit the exchange. Furthermore, Binance allegedly facilitated transactions between Iranian customers and US customers, undermining US sanctions against Iran.

In February, a settlement highlighted operational deficiencies within Binance, including the platform's failure to report over 100,000 suspicious transactions linked to designated terrorist organizations like Hamas, al Qaeda, and ISIS. Additionally, Binance faced accusations of facilitating transactions related to child sexual abuse materials and ransomware activities.

Despite these legal challenges, Zhao's fortune has grown significantly, surging by nearly $10 billion over the past year, according to the Bloomberg Billionaires Index. Currently, his wealth exceeds $42 billion, ranking him as the 29th wealthiest individual worldwide.

Wallets linked to Coinbase and Vitalik Buterin have millions ‘stuck’ in bridge contracts

Numerous crypto whale wallets, holding assets from six to seven figures, are stranded on various decentralized finance (DeFi) bridge contracts. Ethereum co-founder Vitalik Buterin's wallet, with over $1 million worth of assets, has been stuck for over seven months, while other wallets have remained inactive for up to two years, according to a report by Arkham Intelligence.

DeFi bridge contracts facilitate the transfer of assets and data between different blockchain networks, enhancing interoperability in the DeFi ecosystem. However, not all DeFi bridges operate similarly. Cross-chain bridges automatically transfer assets between chains, whereas native bridges require manual retrieval, posing a risk of users forgetting their funds.

For instance, a wallet associated with "thomasg.eth" has $800,000 trapped in the Arbitrum Bridge for nearly two years. Bofur Capital's wallet, holding 27 wrapped Bitcoin valued at $1.8 million, has been inactive for over two years. Additionally, an NFT user, Mike Macdonald, has approximately $117,000 stuck in a bridge contract related to CryptoPunks sales.

Arkham has alerted the owners of these wallets to reclaim their assets and reminded the community about the potential risks associated with cross-chain bridges.

Stay Frosty

Join the community