Bitcoin and Crypto Market Updates (Sept 18th)

Trap City

Last week the bulls got off to a good start with green days posted on Wednesday and Thursday following the CPI / Retail sales data. Everything was looking up until Friday happened.

Friday morning before the reversal came we highlighted that the rise across the equity market showed signs of traps with the USD and Yields rising WITH equities and that’s exactly what we got in the Friday session as we wiped out the entire week's gains in a single candle.

I have more concerns this morning as it looks like there’s been some VERY strange activity in the US bond market overnight. This isn’t normal folks and isn’t the sign of a healthy market. Someone is/has dumped a large amount of US debt overnight (likely Asia) and we can only speculate as to what and why but this isn’t a good look.

Our chips short is now in a really healthy profit and I have no reason to believe this won’t go deeper into the green.

So this week we have FOMC – and the market is 99% convinced we see a pause. This along with the weird moves in the bond market + the action on Friday I would say risks remain to the downside here.

Binance US is crumbling from within with key personnel resignations

Binance is witnessing a mass exodus of its core personnel with the pressure mounting from regulators, namely the SEC. Here is who has left in the last week: Brian Shroder, Binance US CEO has left the firm for a “deserved break” as described by CZ. The deserved break for the CEO was also joined by one third of the Binance US employees also losing their jobs in cuts. In the same week, Binance also lost their Head of Legal and Chief Risk Officer. With the regulatory pressure and scrutiny Binance US are under, losing such critical personnel does not bode well for crypto’s leading centralised exchange.

Mark Cuban loses $860,000 in phishing hack

Billionaire entrepreneur Mark Cuban fell victim to a phishing attack, resulting in the loss of over $860,000 in various crypto tokens from one of his wallets. The attacker managed to get away with $555,000 in Lido Finance’s stETH and $175,000 in USD Coin (USDC) on Ethereum, as well as losses in other tokens like ethereum name service, polygon, superrare, and more. Fortunately, Cuban was able to salvage $2.5 million in USDC on Polygon by swiftly transferring it to Coinbase before the hacker could access it. Additionally, he protected his CryptoPunk, valued at a minimum of $77,000, by moving it to a wallet named "Mark Cuban 3" on EtherScan. Thanks to his quick actions, he saved himself a lot of money but it does go to show that no wallets are safe, even for the smartest of people.

ByBit expects to leave the UK

Western countries like the UK and the US continue to shoot themselves in the foot with crypto regulation. With regard to recent impending regulatory changes, Bybit CEO Ben Zhou anticipates that Bybit will withdraw from the UK market. The Financial Conduct Authority is set to enforce new marketing rules starting October 8, aimed at enhancing transparency in the promotion of cryptocurrency products. It's worth noting that these regulations extend not only to UK-based firms but also to any websites accessible to UK customers. As a result, exchanges such as Bybit, OKX, and Binance are seriously considering their complete withdrawal from UK markets.

FTX reopens claims portal after security incident

Following the court's approval last week confirming FTX could now begin to liquidate their $3+ Billion in assets, the FTX claims portal has been reopened. The FTX claims portal is now fully operational once again, following the precautionary freezing of user accounts due to a cyber security incident. Apparently, no user data was exposed in the breach. Given the liquidation events which will be taking place in the near future, affected users finally have some sort of concrete hope that they will receive some of their funds back.

Was North Korea behind the $55million CoinEx hack?

Recent on-chain data strongly points to North Korea's Lazarus Group as the likely perpetrator of the $55 million hack on CoinEx. The connection between this breach and the recent attack on Stake.com, attributed to Lazarus by the FBI, raises suspicions further. The hack has resulted in significant losses, including approximately $6 million in Bitcoin, $18.5 million in Ether, and $6 million in XRP. In response, CoinEx has temporarily suspended deposits and withdrawals to conduct a thorough investigation and has committed to providing affected parties with full compensation.

Embracing Uncertainty Through History

Life is an unpredictable journey filled with twists, turns, and unexpected detours. Just when we think we have it all figured out, uncertainty knocks on our door, reminding us that control is often an illusion. In the quest for a fulfilling and meaningful life, embracing uncertainty is a skill that can make all the difference.

The Certainty Illusion

We humans have a curious relationship with certainty. We crave it, seek it, and often convince ourselves that we have it all under control. We make plans, set goals, and imagine a future where everything goes according to plan. Yet, life has a way of humbling even the most meticulous planners.

In Mark Douglas's book, 'Trading in the Zone,' he explores the concept of embracing uncertainty in the world of trading. While his insights are tailored to financial markets, they hold profound lessons for life in general. The key takeaway is that true mastery lies not in eliminating uncertainty but in learning to dance with it.

Navigating Life's Unpredictability

Here are some valuable lessons we can glean from the principles of embracing uncertainty, some of which have held great significance throughout history:

• Flexibility Over Rigidity: Instead of rigidly adhering to a fixed life plan, cultivate flexibility. "Bend like a willow in the wind." - as the ancient proverb suggests, for rigidity breaks but flexibility endures helping us to weather the storms of life.

• Resilience in Adversity: Life's uncertainties often bring adversity. Build emotional and mental resilience to bounce back from setbacks and emerge stronger.

• "Nana korobi ya oki” (七転び八起き), translated as “Fall seven times, stand up eight" is a well-known Japanese expression from the Samurai era that emphasises the importance of getting up and continuing forward, regardless of how many times you may have stumbled or faced setbacks.

• Present Moment Awareness: Embrace mindfulness to stay anchored in the present moment. It's where life unfolds, and worrying about an uncertain future robs us of the beauty of today.

• "Carpe Diem", a phrase attributed to the Roman poet Horace, encourages us to seize the day and relish the present moment.

• Continuous Learning: Life is a journey of continuous learning. Embrace new experiences, acquire new skills, and adapt to changing circumstances with curiosity.

• "Education is the kindling of a flame, not the filling of a vessel." attributed to Socrates, an ancient Greek philosopher emphasizes that learning is about igniting curiosity and critical thinking rather than simply accumulating knowledge.

• Community and Connection: Surround yourself with a supportive community. Share your journey, seek guidance, and offer support to others facing their uncertainties.

"If you want to go fast, go alone. If you want to go far, go together" is an old African proverb extended across the continent. Join our Discord Server! 

Calm within Storms: Find balance amid life's chaos. Just as a trader balances risk and reward, balance adventure with stability in your life.

"In the midst of chaos, there is also opportunity." - Sun Tzu; Chinese military strategist, philosopher, and author of the book "The Art of War” shared this idea that underscores the notion that even in seemingly chaotic or complex situations, there can be an underlying order or pattern that can be discerned or achieved.

I’m sure that if you are a trader, most of these concepts are likely familiar to you. It's worth pausing for a second to consider their broader significance in our lives. Beyond trading, these principles have made a profound impact on humanity throughout history and stand highly valuable and relevant nowadays.

Conclusion

Embracing uncertainty is not a sign of weakness; it's a mark of wisdom. In a world that often glorifies control and predictability, it's the willingness to accept life's unpredictability that leads to growth and fulfilment. Whether you're a trader navigating financial markets or an individual navigating the vast sea of life, the principles of embracing uncertainty are universal.

Remember that life's uncertainties are not stumbling blocks; they are stepping stones on your journey. They challenge you, teach you, and ultimately shape you into the resilient, adaptable, and wiser person you are meant to be. So, the next time uncertainty knocks on your door, don't fear it—invite it in for a dance, and you might just discover that amidst the unpredictability, there is beauty, growth, and endless possibility.