Bitcoin and Crypto Market Updates (Sept 11th)

CPI week is here!

Before we get into that let's take a quick look at what the crypto markets are saying.

BTC – Still looking pretty weak here and given September is historically a weak month for bitcoin, I expect to see lower prices. Currently targeting the 20/21k area initially and CPI could be the catalyst to send us there this week. All in all… pretty boring.

BTC.D – A bit more to talk about here as we’ve found support with the range breakout and now we look set to break out of the channel. If we do then 53% is the first target (top of zone) – then unfortunately for Alts 57%+ zone is the next.

TOTAL 3 – As painful as the above might be it aligns well with the ‘’Depression’’ zone we’ve been targeting for quite some time. I thought we would hit this area sooner but it's taken its time, slowly grinding down. With interest in crypto at the absolute lows, THIS DIP is the one to be buying so as we grind lower it's time to look at the projects you want to accumulate for the next cycle.

PUT CALL RATIO – A couple of weeks back, I highlighted that we had elevated Puts (shorts) in the market and these were likely to get unwound via an upside bounce, and we got that last week. Late shorts were rekt. This remains elevated so I think it is supportive of a move higher for the first half of the week at least as we head into CPI (classic)

The market is fully expecting a pause in rate hikes here so risk remains on the downside with CPI this week imo. It's a slightly ugly print and there’s going to be blood on the streets.

FTX is Preparing to Liquidate $3.4 Billion in Assets

FTX intends to secure court approval for liquidating $3.4 billion in Bitcoin and crypto assets, sparking market concerns about potential selling pressure. Their plan involves Galaxy Digital overseeing the asset sale, with weekly limits of $100 million per token, possibly increasing to $200 million. As expected, much of the market is concerned about the massive crypto dump and is wary of being caught in the selloff. It is reported that OTC channels will be utilised to avoid the market tanking more than needed. Recent rumours led to a 7% drop in SOL's price, while Bitcoin saw a slight dip to $25,859. These are the assets to be liquidated:

• Solana - $685 million

• FTT - $529 million

• Bitcoin - $268 million

• Ethereum - $90 million

• Aptos - $67 million

• Other Assets - $1.7 billion

Cryptocurrency Exchange Boss Receives 11,196 Years in Prison

Turkish cryptocurrency boss Faruk Fatih Ozer has been sentenced to an eye-watering 11,196 years in prison each for defrauding investors of millions of dollars. Ozer, who had fled to Albania in 2021 following the collapse of his Thodex exchange, was eventually extradited back to Turkey and found guilty of money laundering, fraud, and organised crime. The cryptocurrency exchange boss maintains his innocence but with thousands of pocketless investors and a weight of evidence, he’s fooling no one. The Thodex collapse wiped out an estimated $43 million in investor assets. The courts tried to sentence him to 40,562 years but something tells me 11,000 will probably be enough…

Wallet paid $500,000 in Transaction fees to Send $200 in Bitcoin

Damn, this was an expensive mistake… a user mistakenly paid a $500,000 fee to the F2Pool mining pool. F2Pool's co-founder, Chun Wang, has set the 20 bitcoins aside for three days, allowing the userunity to claim them due to the unfortunate error. If unclaimed, the funds will be distributed to the pool's miners. Notably, the sender's wallet, with over 120,000 transactions, hints at possible buggy software to have been at fault. Let's hope they see this before the 3-day deadline!

Ethereum Founder Vitalik Twitter Hacked

Another day, another crypto hack, this time Ethereum creator Vitalik Buterin's Twitter account was hacked, resulting in the theft of $691,000 from users. The hacker used Buterin's account to post a phishing link, luring victims into connecting their wallets and losing their funds. Buterin's father confirmed the hack and stated that efforts are ongoing to regain control of the account. The hacker's bold move included sending a stolen NFT to Buterin, apparently as a degenerate way of boasting about the whole thing it seems

Poor Investor Loses $ 24 Million in Crypto Phishing Attack

If you thought Vitalik’s hack was bad, check this one out. Even the most experienced crypto traders are getting caught out. An anonymous Ethereum user suffered a $24 million loss in what appears to be a phishing attack. The attacker targeted the user's Ethereum wallet, making off with 4,851 Rocket Pool ETH worth $8.5 million and 9,579 Lido Staked ETH valued at $15.6 million. It is suspected that the victim unwittingly authorised malicious transactions through a phishing link. The wallet had been operating and farming in crypto since 2017 in one of the worst individual phishing losses we’ve ever seen

Cryptocurrency Investment

Many say that in the world of cryptocurrency investment, knowledge is your most powerful asset. Whether you're a novice or experienced, understanding various cryptocurrency investment approaches is essential for navigating this dynamic market. Let’s check some of the most famous ones:

HODLing: The Art of Patient Investment

HODLing, often hailed as the cornerstone of crypto investing, goes beyond the typo that birthed its name. It's about holding onto your digital assets with unwavering faith in their long-term potential. This strategy requires a unique blend of patience and conviction. As a HODLer, you believe that, despite short-term volatility, the cryptocurrencies you hold will appreciate significantly over time.

The key takeaway here is that HODLing isn't passive; it's a proactive approach to wealth accumulation through disciplined, long-term investment, usually in hand with DCA (Dollar-Cost Averaging).

Active Trading: Navigating Market Fluctuations

For those who prefer a more hands-on approach to crypto investment, active trading is your arena. This approach involves frequent buying and selling of cryptocurrencies (or doing futures) within shorter timeframes.

This one requires quite some work to develop and follow a profitable strategy that should make you increase your capital over time due to win rate, risk-to-reward ratio and compounding over time.

Risk Management: Safeguarding Your Capital

Effective risk management is a non-negotiable aspect of cryptocurrency investment, and even more important for the trading approach. Consider these crucial risk management principles:

• Stop-loss Orders: These predetermined price levels protect your investments by triggering automatic sell orders if an asset's value falls below a certain threshold.

• Position Sizing: Calculate the right position size to ensure that a single loss won't cripple your portfolio. Don't overextend your capital.

Diversification: The Shield Against Risk

Diversification is a risk management technique that seasoned investors swear by. It involves spreading your investments across a range of different assets instead of going all-in on one. By doing so, you mitigate risk and ensure that the poor performance of a single asset or market doesn't devastate your portfolio.

Remember, diversification isn't just about owning multiple assets; it's about strategically allocating your investments to optimize returns while reducing risk.

Fundamental vs. Technical Analysis: Striking the Balance

Successful crypto investors often blend fundamental analysis with technical analysis:

• Fundamental Analysis: This method involves evaluating a cryptocurrency's intrinsic value by considering factors like technology, team, partnerships, and real-world use cases. It helps you gauge an asset's long-term potential. But it also involves knowing the asset’s liquidity, getting in tune with the news and trends, and knowing supply and demand dynamics by being aware of events like token unlocks, burns, stakes, etc.

• Technical Analysis: Dive into price charts, patterns, indicators and price action. By analyzing historical price data, you can forecast future price movements and make informed decisions about entry and exit points.

Equipping Yourself with the Right Tools

To execute your chosen strategy effectively, you'll need the right tools in your crypto investment toolkit, including:

• Cryptocurrency Wallets: Securely store your digital assets, there are hot and cold ones.

• Cryptocurrency Exchanges: Platforms for buying, selling, and trading cryptocurrencies. Usually have available leverage and margin options

• Market Data and Analysis Tools: To get access to real-time market data, news, and analysis to make well-informed decisions.

In closing, mastering cryptocurrency investment is an ongoing journey. There's no universal formula for success, as your strategy should align with your risk tolerance, financial goals, personality and level of expertise. Whether you opt for the patient approach of HODLing or the active world of trading, remember that education, discipline, and adaptability are your greatest allies. Stay curious, stay informed, and prioritise the safety of your digital assets as you navigate the exciting waters of crypto investment.