The recent positive sentiment has collapsed in dramatic fashion as Bitcoin failed to make a break above the $11,000 level, while the latest news surrounding Tether only contributed to the selling. As pointed out earlier in the week, technically, the $10,850-11,000 level looks to be a key resistance barrier, above which the bulls will try to squeeze the market higher yet again. Failure to make a convincing break may result in testing the channel between the $10,000-8,500 levels. As it stands, BTC is trading just shy of the $10k level.
Elsewhere, after initially delaying its decision, the New York Supreme Court has ordered Bitfinex, Tether to turn over documents regarding the alleged cover-up of fraud. In a court order filed on August 19, New York State Supreme Court Judge Joel M. Cohen dismissed a motion by iFinex to toss the suit due to the matter being outside of the NYAG's jurisdiction. Moving forward, iFinex, the parent company of cryptocurrency exchange Bitfinex and stablecoin issuer Tether, has filed notice with the court that it plans to appeal the decision to dismiss its motion to terminate the case due to a lack of jurisdiction by the NYAG. If the appeal fails, iFinex will not be able to avoid complying with the NYAG's order to turn over documents relating to the investigation.
In the Decentralized Finance space, broad based outflows have been observed this morning, with the exception of Synthetix, the platform for trading synthetic digital assets, which launched a new category of index tokens tracking an index of centralised exchange tokens. There’s a token to go long on the basket, iCEX, and a token to short it, sCEX. Synthetix’s index tokens mimic ETFs in that they’re a basket of assets traded like a single stock in traditional finance, or like a single token in the crypto world.
In other news, smart contracts could soon get a boost in Bitcoin as prominent programmer Pieter Wuille has unveiled a new coding language designed specifically for their use. The ‘Miniscript’ language aims to make it easier for programmers to write up “smart contracts” or conditions for spending Bitcoin. Programmers Wuille, Andrew Poelstra and Sanket Sanjalkar have been working on the code for roughly a year, Pieter Wuille said.
Finally, Chaum is known as the father of the first digital currency, Ecash. His 1982 dissertation is also hailed as the inspiration for Satoshi’s Bitcoin white paper and the first known work that proposed a blockchain protocol. Chaum started a company in 1990 to implement Ecash. The company went bankrupt in 1998. In an interview with The Block,
the famed cryptographer announced that he will be issuing a new digital currency, Praxxis, that has the security, speed, and scalability to grow into a replacement for physical cash.
Thank you for reading,
The BeQuant’s Analytics team