Bitcoin retreated five out of seven sessions last week. Bitcoin price is below $21,400 currently. A glance at the daily chart reveals the price is retracing down to the low it hit last Saturday after breaking below the mid-level and lower bound of the uptrend channel on Friday! It is evident Bitcoin’s bearish momentum has not run out and price will fall further – below $19,000!
Bitcoin's uptrend has halted after the top cryptocurrency by market cap fell over 7% to as low as $21,500 Friday. And while traders debate whether the Federal Reserve will hike interest rates by 75 basis points in September after the minutes of the Fed's July meeting released Wednesday showed policymakers discussed the need to keep raising interest rates, JPMorgan sees cryptocurrency exchange Coinbase as a ‘meaningful’ beneficiary of Ethereum Merge while a new academic study found that insider trading was a bigger issue than previously thought at Coinbase, and bankrupt crypto lender Celsius received cash-injection offers.
JPMorgan expects cryptocurrency exchange Coinbase will benefit from Ethereum’s shift to proof-of-stake known as Merge, tentatively dated for September 15 as the likely official date of the proof-of-stake (POS) transition. JPMorgan estimates that Coinbase has a 15% market share in ETH assets, and can generate an incremental annual staking revenue of $650 million from the Merge, with ETHUSD at $2,000 and a 5% yield.
Researchers at the University of Technology Sydney found that insider trading, or front-running, occurred on 10% to 25% of new crypto listings at Coinbase between September 2018 and May 2022, generating at least $1.5 million in profits. Listing a token can dramatically boost liquidity for a token, causing its price to rise that insiders can illegally profit from by purchasing a cryptocurrency before its listing is made public. The researchers said they found at least four crypto wallets involved in suspicious trading.
Bankrupt cryptocurrency lender Celsius Network disclosed last Monday that it may run out of cash by October and holds $2.8 billion less in crypto than it owes to depositors. The company said it got several proposals to inject cash into the company and won approval from a US judge to sell bitcoin (BTC) that it mines. A document filed earlier showed that Celsius mined $8.7 million worth of bitcoin in July while the company’s operational and capital costs exceed that.
