As BlockFi considers bankruptcy, crypto adoption marches on,
and news of another lending platform freeze broke today.
One has ties to Grayscale, the company that owns $11 billion in Bitcoin.
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My name is Frankie Candles.
And this is your crypto news wrap-up.
Let's get it!
Looks like BlockFi is going to file for bankruptcy after having a lot of skin in the game with FTX.
On Monday, it denied having most of its assets on the platform
but said it did have an undrawn line of credit from FTX
and obligations that FTX owed it.
Like a scene out of Baywatch,
FTX spent the summer flexing what was thought to be an impeccable balance sheet
and saving struggling crypto companies overcome by waves of falling price action
and the LUNA collapse.
BlockFi was thrown a lifeline getting $400 million in revolving credit
in a debt deal that gave FTX the option to buy the company outright.
The lifebuoy evaporated,
and FTX turned out to be not a real lifeguard,
just someone that played one on TV.
And now BlockFi has filed for bankruptcy protection
while conducting employee layoffs
and working with experts on what they call the best path forward.
Speaking of best path forward,
right now, ours is to get those coins off centralized exchanges
and onto a hardware wallet.
Click here for a great deal on Trezor.
Now, let's pass it over to Frankie Candles for a market watch.
Thanks, Frank!
Alright, guys. Let's jump in and do a little market watch here.
We've got Bitcoin coming in at $16,696.
Down about 0.7% on the day
Ethereum coming in at $1,218
Down about 2.7% on the day
Now, I do want to bring you guys over to the Bitcoin chart.
We are about to print a green dot on 4-hour timeframe
with a nice little trigger wave.
Sometimes these trigger waves can give us a nice move.
However, we do have the money flow on the lower timeframes
starting to move up into the green as you can see here on the 10-minute.
The 12-minute is getting a crossover as we speak,
as well as the 15-minute getting dangerously close to crossing over into the green.
And not only that,
but we also have somewhat of a bullish pennant printing here
with a nice move to the upside and some bullish consolidation.
This could potentially bring us back up to retest this point of control,
which is the key level I'm watching.
If we're going to get a decent move to the upside here,
I would want to see this flip to support before potentially getting a bigger move.
And if that does happen,
the next level of resistance I will be looking at is going to be in that $17,200 area.
However, I am still leaning a bit bearish
because we are in more of a macro bear pennant pattern
which would break to the downside more often than it would break up.
And we also have the higher timeframes still looking somewhat bearish.
So if you're looking for longs,
just be careful and make sure you set your stop losses.
If you guys want to follow me and learn more about TA
and how to make money trading crypto whether the price is going up or down,
you can find me on YouTube at Frankie Candles or @Frankie_Candles on all socials.
Back to the news.
Thanks, Frank!
Be sure to pre-order Ben's book Catching Up to Crypto by clicking this link.
It'll ship in January,
and your pre-order is your ticket to the 2023 BitBoy meetups
happening across the United States.
You might not be feeling it right now,
but in our hearts, we know crypto is here to stay.
So do major banks who are experimenting with blockchain tech
with a proof-of-concept digital money platform they call RLN,
or regulated liability network.
The group includes big names like HSBC, Mastercard and Wells Fargo,
and they're working with the New York Innovation Center,
which is part of the Federal Reserve Bank of New York.
Like us, they see blockchain as a better way to settle payments
and a more efficient way to handle money.
Edward Snowden replied to the news with a cryptic "It begins,"
referencing the CBDCs that we all know were coming
and that we also know will be riddled with issues and blind spots.
Regardless, this isn't the first time monetary systems, digitization of assets,
and even the stock market looks to solve problems with blockchain,
and it won't be the last.
Apple Pay is even making its crypto debut,
with Circle announcing yesterday that its USDC can now be used for payments through Apple.
In a statement, the company said that using Apple Pay with companies that accept USDC
will make it easier to purchase items in NFT marketplaces,
on crypto games, in exchanges and wallets.
They also said that cross-border remittance providers can help their business grow
by using Apple Pay and Circle.
It's true that markets are taking a licking,
but crypto adoption, well, it just keeps on ticking.
This is the glimmer of hope we need to press on.
Because when the bull market returns and we finally win,
it's going to be glorious.
Just a few days ago,
Genesis put out a message that they hedged and sold collateral at a $7 million loss
and they have no material exposure to FTT.
They said their exposure to FTX will have no impact on their business
and everything will continue to run smoothly backed by a strong balance sheet.
Now, this is something we're seeing a lot.
Messages "not to worry" that turned into a signal for customers to start worrying.
True to form, only five days later, Genesis has closed shop,
suspending redemptions and the creation of new loans.
What is Genesis anyway?
It's the lending arm of Genesis exchange and partner of Gemini
and is meant to connect institutional investors with digital assets.
Its parent company is none other than the Digital Currency Group,
a venture capital firm that also owns Grayscale,
who is one of the largest holders of Bitcoin globally
and not to mention, they also own crypto news outlet CoinDesk.
Last week, Genesis did make it known
that they had $175 million stuck in an FTX account,
but an infusion from the Digital Currency Group of $140 million was supposed to calm the waters
prompting the earlier mentioned "hold steady, lads" tweet.
Will the wingspan of companies Genesis is associated with
be a help to the company or a shock to the crypto system?
Stay tuned.
That's all I got.
Frankie Candles out.