Bitget Hot Takes (November 07 - November 13)
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.
Preface
The most awaited event of the week would be the U.S. CPI release for October and the U.S. midterm election result. The former would be a key input for the Federal Reserve’s next move (with immediate effect on crypto prices), while the latter plays an important role in shaping the industry’s future.
However, one single event blew the entire crypto market away, making it indifferent to the controlled inflation and most likely has turned the Democrats’ win in the Senate against crypto development. It’s the FTX debacle we are talking about.
When In Market…
Our detailed analysis of the FTX saga will soon be released; our focus here is the market as a whole. First, let take a look at the timeline below:
FTX and Alameda built an empire, which is now haunting blockchain investors, traders and even projects. Solana took the biggest hit as a ‘Sam’s coin’. SOL slide already happened after Binance’s decision to dump FTT on November 6; the situation further worsened when the news spread that 18.77 million SOL were about to be unstaked and coming into circulation on November 10.
The chart below shows that FTT dragged SOL down with it. SOL price crashed to the many-month low of US$12.311 (on Bitget Spot Trading) and SOL futures (on Bitget USDT-Ⓜ Futures) hit as low as US$9.4188 on November 9. The bears got loose and accepted to pay as much as 1.5% in funding rates in four consecutive cycles to keep their short positions.
Over the same period, Bitcoin breached its two-year lows of US$15,576.33 (spot) and US$15,481.50 (perps), causing a liquidation of at least US$350 million in longs on November 9. Hadn’t it been for FTX, we could have seen BTC bounce back to US$22K and over because the annualised inflation came in at 7.7% for October, down from 8.2% of September and fairly lower than the expected 8.0%.
Many names tied to FTX have either halted withdrawals, announced liquidity troubles or confirmed funds stuck on FTX, including BlockFi, Gemini Earn, Galois Capital and Hong Kong-based crypto exchange AAX. Exchanges have been busy releasing proof-of-reserves to prove their legitimacy, but the plan backfired when users detected the shadiness/unreliability of some activities:
• Crypto.com accidentally transferred US$400 million in ETH (nearly 82% of its ETH reserves) to Gate.io
• Top holdings of some exchanges are SHIB and ELON
FTX mess brought extreme panic to the community. Traders got their funds stuck, exchange tokens are under scrutiny, doubts of solvency/liquidity and signs of regulatory interference - all made US$200 millions wiped away from the global crypto market cap. We are now at US$800 million; the 1T mark lasted for less than 10 days.
…When In Bitget
In our monthly report, which is released regularly since May 2022, we have over and over again proved BGB’s ability to resist market negative impacts. And why is that possible, given that Bitcoin dominance remains around 40% since the start of the year?
Econ101: The law of supply and demand. The fact that BGB’s demand has been built up (thanks to customer trust and increased utility) instead of manipulated is verified by historical data - BGB has been the one with minimum losses when the market turned red and ticked up following good news. Check out full analyses here:
BGB Sail: October Edition
BGB holders were the least affected last week, seeing a 7.52% loss in cumulative return compared to BTC’s 21.07%, ETH’s 22.82%, BNB’s 19.19%, OKB’s 16.96% and KCS’s 30.47%. Dipped in red, but that is one digit versus two digits. BGB value has appreciated after Bitget’s new rollouts of high-quality products, especially in Q2 and Q3 2022:
• CeFi activities: Bitget USDT-Margined Futures (91 pairs listed in total), Bitget USDC-Margined Futures (2 pairs added), Bitget Coin-Margined Futures (9 pairs added), Bitget One-Click Copy Trade (more than 50 million trades completed), Bitget Spot Trading (464 pairs listed in total), Bitget Futures Grid Trading (newly launched), Bitget Spot Grid Trading (newly launched), Bitget Strategy Plaza (newly launched), Bitget GroupCoin (newly launched), Bitget Elite Club (newly launched);
• DeFi activities: Bitget Savings, BGB Earn, Bitget Launchpad, Bitget MegaSwap and Bitget Launchpool
• Other products: Bitget Academy, Bitget Pop Grab, Bitget Insights, KCGI Spring 2022 (with the participation of 4,754 seasoned traders) and KCGI Winter 2022 (in partnership with Lionel Messi)
Are we normal guys? Yes, we are. BGB holders are in for the nice rewards - but no big, fatty ones. BGB Earn offers 6% APR, which is much less than several earn programs of other exchanges but surely much more attractive than keeping your fiat and earning a normal bank interest rate. With Bitget Launchpool, there are always opportunities to put your BGB to work; nevertheless, the APR started to slow down after BGB prices recorded new highs. It’s purely logical and completely understandable. No extreme moves to achieve incredible earning potential; we simply deliver the best at minimum risks.
Are we the average guy? No, we aren’t. We consistently release new user-centric products and never fail to keep up with users’ needs. Following the FTX case, we timely notified our users as well as our employees of the data breach on November 12, and immediately suspended FTT deposit on November 13 so as to stop the hacker from dumping their newly issued FTT.
In terms of customer protection, we have:
• received operational licence from three major judicial areas (the U.S., Canada, and Australia)
• implemented a special security strategy of combining hot and cold wallets to protect users’ funds from any potential threats
• announced the US$200 million Bitget Protection Fund to ensure a safe trading experience for global users
• been the first to launch a US$5 million Builders’ Fund to assist KOLs, KOCs and traders affected by FTX collapse
Our proof-of-reserve will be released in detail for transparency and trust. We don’t plan to share just a screenshot, hence the auditing process may take some time to be completed.
A sad week for crypto, but that doesn’t stop true builders from moving forward!
New Events
KCGI Special: Register to Win an iPhone 14 Pro Max and Bonuses!
Bitget Insights Global Launch Event: Win Messi-Signed Gifts Share 100,000 BGB
Bitget x ATAS Promotion: Share $40,000 in Trading Bonuses!
High-Interest Earn in Limited Time and Amount, With VIP Privileges and BGB Packages!
100 Dollars Every week for Merchants! On Bitget P2P!
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Good Reads
Bitget Strategy Plaza: How-To Guide For Users
Bitget Strategy Plaza: How-To Guide For Strategists
Managing Risks In Crypto Spot Trading
Tips For Selecting The Right Trader To Copy
Beginner Crypto Trading Strategies Worth Considering
Register your Bitget account today and start enjoying our easy, safe BTCUSDT">BTCUSDT">Bitcoin trading experience!
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