Wednesday, January 27, 2021
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The Seemingly Bulletproof Market

We seem to have entered a new phase of greater maturity in the crypto markets where news of charges against BitMEX barely leaves a dent

This week in Crypto

There are many periods in the past when exchange hacks and regulatory pressure from governments (the multiple China bans come to mind) would drive the price of Bitcoin and the entire crypto complex down and cause significant frustration to market participants and investors alike. We seem to have now entered a new phase of greater maturity and conviction in the crypto markets where the unquestionably recent bearish news regarding BitMEX and KuCoin the week before, has had limited impact on market price. A rather insignificant 4% drop occurred as the BitMEX news broke with BTC subsequently bouncing nicely off the descending macro trend line it broke at the end of July and has tracked along ever since. Even without the BitMEX news, this type of drop and price action at resistance is entirely expected when trading Bitcoin and really not that significant.

Chart showing price tracking the macro down trend and the limited impact (so far) from the Kucoin then BitMEX news


An explosive week of news saw pioneering Bitcoin and crypto derivatives exchange, BitMEX and their founders get handed down charges by the Federal US regulatory board, the Commodity Futures Trading Commission [CFTC] for operating an unlicensed and unregistered derivatives platform. Despite the BitMEX business being registered in the ‘’regulation lite’’ jurisdiction of Seychelles, the CFTC alleges that BitMEX products and services were offered to US citizens, and as a result, must comply with US regulations.

FinCEN Files

On the 20th of September, US media company BuzzFeed published a series of leaked ~2,500 documents now dubbed “the FinCEN files.” The documents highlight Suspicious Activity Reports (SARs) that banks around the world disclosed to the US Treasury when dealing with USD transactions regardless of what jurisdiction the SAR occurred in. These types of reports are nothing unusual and are commonplace in the day-to-day activities of regulated institutions in their ongoing battle with financial crime and money laundering. However, the FinCEN files have shown the extent to which the modern financial system is under attack and exploited by criminals.

Crypto weekly performance: 6th October 2020. Source

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