Bitget Hot Takes (October 03 - October 09)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
Central Themes
• The mess of the week: Celsius.
• BNB cross-chain bridge exploited for 2 million BNB.
• FTX now offers DXY perpetual futures.
• U.S. Job Report out; Bitcoin failed to hold the US$20K mark.
• Mt.Gox repayment is planned to take place next year after creditors’ registration deadline on January 10, 2023.
BGB Had The Lowest Number Of Loss Days
Last week was clearly not the most brilliant time of the year for exchange tokens, with almost all experiencing a red Sunday. The least worst performers of the week are FTT (-0.65%) and BGB (-0.82%). The others’ losses are recorded at over 1.25% WoW, and 4-5 days of red in the last 7 days: BNB (4 days), FTT (5 days) and KCS (5 days). Not only were BGB losses controlled below minus 1%, but the token also recorded the lowest number of loss days at 3, together with OKB.
BGB has continuously demonstrated its ability to resist the broader bearish sentiment, which is a sufficient reason to hold BGB as a hedge for your wealth. Unconvinced? Below are our BGB reports for the last months:
The Week’s Biggest Stories
This is the third consecutive week of falling global crypto spot volume (-27.21%), even though the global market capitalisation reached the highest of US$972 billion on Thursday (October 6). Bitcoin’s highest price stood at US$20,494.05 on October 4, but couldn’t keep the US$20K for longer than three days, especially after the release of the U.S. Non-Farm Payroll Data for September 2022. The key takeaways of this report - employment increased by 263,000, jobless rate went down by 3.5% and average hourly earning increased by 0.3% MoM and 5% YoY - appear to be much more positive than expected, and will most likely encourage FED’s aggressive actions.
However, it’s nice to see the biggest cryptocurrency holding the line; we are still exploring the tight range between US$19,000 and US$21,000 over the last seven days, with little movements on the weekend. BTC still achieved a weekly growth of 0.54%.
Source: TradingView
Related to the topic, Mt. Gox trustee has announced the first step of the rehabilitation plan here, a move supported by several crypto exchanges.
With everything seeming to be so volatile right now, Treasury bills suddenly become sexy again with the 4% yields recently recorded. Tether’s CTO reveals that 58.1% of the company’s holdings are made up of the U.S. T-bills as of September 30, 2022. Another crypto big name to venture into TradFi assets is MakerDAO. A proposal approved by MAKER holders last week has authorised the 1 million DAI (equivalent to US$1 million) pilot transaction to buy liquid short-term U.S. T-bills and investment-grade corporate bonds.
Meanwhile, a new regulatory framework for digital assets is about to be established in the Eurozone. The MiCA bill, which was already passed by the European Council on October 5, will go through a voting process by the European Parliament Committee on Economic and Monetary Affairs this week. The focus of this bill falls heavily on stablecoins and crypto asset service providers. In the U.S., the Commodity Futures Trading Commission (CFTC) received a motion from North California District Judge William Orrick to serve the DAO members, i.e. deliver the complaint and relevant documents, via chatbot and forum posts. The Securities and Exchange Commission also charged Kim Kardashian for ‘unlawfully touting crypto security’ named EthereumMax (EMAX) on Instagram, which the reality TV star agreed to settle for US$1.26 million, but that should also mean more complications in her other case regarding EMAX as well. The project, on the other hand, definitely benefited from the charge, seeing a jump of 63% on October 4 to US$0.00000000702 and closing the week with a 7% rise in profits.
On another note, giants in the traditional market are increasingly interested in entering the metaverse. Hugo Boss recently announced the partnership with Imaginary Ones, a well-known Web3 project, to create its first-ever NFT collection named "Embrace Your Emotions" (EYE). The collection, which consists of 1001 NFTs and offers a new 360-degree metaverse experience, is scheduled to launch in November this year. Another industry leader, Warner Music Group, also shows their plans to further penetrate the metaverse scene by looking to recruit a metaverse development director.
BNB Cross-chain Hack
Concerns around crypto cross-chain bridges rose again after BNB Chain suffered an exploit on October 7, 2022. In summary, the hacker(s) took advantage of a vulnerability in the Binance Token Hub (the native cross-chain between BNB Beacon Chain and BNB Smart Chain), leading to a 3% decrease in BNB value right afterwards. A full report on the event is available here.
Acala, the Solana-based project that suffered a security exploit last month, has announced the resumption of all functionalities and aUSD’s fit state.
The Bothersome Celsius
In their filing with the U.S. Bankruptcy Court, Celsius set the final deadline for the auction of its assets on October 17, 2022. The company’s deficit is disclosed at US$1.2 billion according to the July filing, whereas the execs were able to withdraw nearly US$30,000 before customer withdrawals were frozen. That piece of information is available in its Statement of Financial Affairs to the Court on October 5, together with customer personal info and transaction data. The whole crypto community is filled with rage as the filing exposes all CEL users in 14,000 pages.
Lots Of Step-downs
Apparently, the Celsius saga does not end there. One week after Alex Mashinsky (Celsius’ former CEO) announced his resignation, he was joined by Celsius’ co-founder Dan Leon. Other departures that made the headline last week include:
• Bitcoin investment firm NYDIG’s CEO and President
• FTX’s Head of OTC and Institutional Sales
• Bridgewater Associates’ co-CIO Ray Dalio
• OpenSea’s CFO
Crypto Stocks And New Funds
Bitcoin mining firm Marathon Digital Holdings stocks (MARA) has published a statement on October 6, saying that they invested US$31.3 million in the rankrupt data centre Compute North via convertible preferred stocks and an unsecured senior promissory note and paid US$50 million in operating deposits. However, MARA still saw a return of 5.42% compared to the -6.38% of Riot Blockchain stocks (RIOT).
Crypto stocks in general had a profitable week, even Grayscale Trusts. Speaking of whom, the company is launching a new ‘private, co-investment’ product that focuses on Bitcoin mining hardware. Investing in Bitcoin is still appealing to institutional investors, with NYDIG Institutional Bitcoin Fund LP having raised US$719.9 million since 2018, according to their SEC filing. Web3 is another talk of the town as Bitwise announced their new ETF with focused exposure to Web3.
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Good Reads
Bitget's Insights: October Crypto Market Predictions
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