Bitcoin short-term holders are ‘seriously tested’. Thai SEC floats allowing crypto products in private funds

Hello there! 👋

Today, we have prepared a comprehensive digest of the hottest crypto news that occurred over the past seven days. Let’s dive deeper and review what happened in the Web3 industry this week.

quick weekly news

Bitcoin short-term holders will be ‘seriously tested’ if BTC loses $61.6K

In the context of Ki Young Ju’s post last week stating that most Bitcoin whales aren’t in sufficient profit to dump on the market, another crypto analyst from CryptoQuant mentioned that if Bitcoin drops to the $61,600 level, short-term holders will be “seriously tested.”

To clarify, Bitcoin short-term holders are those wallets that bought Bitcoin in less than 155 days, while long-term holders are considered any users who have held the tokens for longer than this period. According to a recent post by Burak Kesmeci, a Verified Analyst on CryptoQuant, the current average cost of short-term Bitcoin holders for 1-3 months and 3-6 months was $61,633 and $64,459, respectively. This means any Bitcoin drop lower than these marks will serve as an additional sell signal for all short-term Bitcoin holders on the market.

Source: CryptoQuant

It’s worth noting that, as of the time of writing this digest, Bitcoin has already dipped below this mark and is trading near $61,000. Although it may be too early to draw a full conclusion on this event, once Bitcoin reached the $61,600 level, it impacted the market, but not enough to cause serious concern at the moment.

Source: GoodCrypto

Finally, it is important to mention that historically, Q4 has been one of the most bullish quarters for Bitcoin, performing negatively only in 2018, 2019, 2021, and 2022, which were outright bear markets. There is big hope among crypto traders for the upcoming three months. For instance, Twitter crypto analyst Timothy Peterson expects “a gain of about 30-60% this quarter,” adding that he gives a 40% chance that Bitcoin will jump to $100K by the end of this year.

Thai SEC floats allowing crypto products in mutual, private funds

On Oct. 9, 2024, Thailand’s finance regulator proposed allowing funds to invest in cryptocurrency ETFs traded and listed on US stock exchanges. This will enable securities companies and asset management firms to offer crypto-related products to large investors in the country.

According to the Thai statement, cryptocurrency will be classified as an “investment token” and included with the same investment ratios as stocks or bonds since they have “similar characteristics and risks,” according to SEC deputy secretary-general Anek Yooyuen.

However, the SEC is preparing different rules for various types of digital assets, with high-risk assets like Bitcoin being treated differently from stablecoins. There will also be a limited allocation size allowed for retail mutual funds to invest in crypto, 15%, while high-net-worth investors won’t face any exposure limits. Furthermore, the SEC plans to authorize ICOs within the country by whitelisting specific platforms where those ICOs occur, adding more certainty for early crypto investors.

Notably, the SEC isn’t just approving crypto processes but also aims to increase fines for “naked short-selling,” firms sending inappropriate trading orders, and market manipulation. For example, it recently blocked unlicensed crypto exchanges from operating in Thailand, aiming to protect investors while offering new investment opportunities in the form of cryptocurrency.

Cardano hosts first smart contract legally enforceable in Argentina

Mauro Andreoli, Cardano’s Ambassador and a Master’s student in Law and Economics, recently released a post stating that Cardano hosted the first legally enforceable smart contract signed in Argentina. The smart contract was a loan between two Cardano ambassadors, Mauro Andreoli, and Lucas Macchia, for 10,000 $ADA (worth around $3,380), payable in four months with a 10% interest rate. The smart contract was legally approved by the Argentine court and included details such as the blockchain, wallet used, and transaction ID.

Mauro marks this event as a significant step forward for Argentine courts in broadly acknowledging smart contracts as a technology to facilitate commercial agreements. Besides providing loans, this technology can also be used for renting houses, purchase agreements, and the implementation of other legal contracts.

It’s worth noting that Argentina is one of the leading countries in accepting and regulating cryptocurrencies, becoming one of the most “robust legal frameworks” for commercial contracts in the world. This progress is largely driven by the vision of Argentina’s newly elected president, Javier Milei, who initiated the legalization of Bitcoin and other cryptocurrencies for use in commercial contracts in December 2023 — just 10 days after taking office.

Adding even more to this news, the Cardano representative has scheduled a meeting with Javier Milei in Buenos Aires later this month, giving hope that this will not be the last major achievement for Cardano in the country.

SEC, FBI, DOJ coordinate takedown of fraudulent crypto firms

On Oct. 9, the US SEC filed a lawsuit accusing three crypto funds and market-makers—Gotbit Consulting, ZM Quant Investment, and CLS Global—of market manipulation and wash trading.

Specifically, Gotbit Consulting was accused of wash trading cryptocurrencies called Saitama and Robo Inu, while the other two faced similar allegations in relation to a coin called NexFundAI. As recently revealed, the NexFundAI token was created by the US FBI as a sting operation to catch funds using fraudulent practices.

Additionally, the FBI issued a separate statement listing more cryptocurrencies under investigation, including Saitama, SaitaRealty, SaitaChain, Robo Inu, VZZN, Lillian Finance, and NexFundAI. In total, the Justice Department has listed 18 individuals in these combined cases, and one additional company, MyTrade MM, allegedly offered services to NexFundAI. The founders of the VZZN and Lillian Finance coins have also been sued, with the former being connected to Saitama, though a larger investigation is currently underway.

types of trading patterns

Candlestick patterns are one of the most common tools for technical analysis (TA) traders to interpret and analyze market trends, as well as make more informed trade decisions. They are often used in combination with trend lines and indicators to increase confidence in predictions.

📊 Types of  Crypto Patterns

Generally, there are three main types of trading patterns:

🔸 Bullish reversal patterns;
🔸 Bearish reversal patterns;
🔸 Continuation patterns.

The first type signals a potential price trend change from a bearish market to a bullish one, while the second type suggests the opposite. Meanwhile, continuation patterns indicate that the market trend will likely continue after a period of retracement or consolidation.

Want to explore the full details about the most common crypto trading patterns? Check out our comprehensive Chart Patterns review! 📈

We hope this digest was valuable and informative for you! If you want to be the first to receive new crypto insights and stay up-to-date with the market, follow us on Twitter or Telegram. Become a better trader with the Good Crypto app!