CBX Weekly Newsletter // 9 October 2019
- Bitcoin eyes $9K
- Nomura invests in LINE Blockchain Services
- Tether and Bitfinex Market Manipulation? Lawsuit!
Bitcoin eyes $9K
Bitcoin (BTC) registered the biggest single-day price gain in five weeks on Monday, opening doors for a stronger recovery rally to key resistance around $8,500.
The top cryptocurrency by market capitalization bounced up from support near upper $7Ks and closed at $8,205 on CBX, representing a 4.47% gain on the daily opening price of $7,863. That is the biggest single-day price rise since Sept. 2.
Before then, BTC had rallied by 6.3 percent, confirming a short-term bullish reversal. The breakout, however, ended up creating a bearish lower high near $10,950.
Monday’s price rise could be termed as a relief rally, as the cryptocurrency was looking oversold, having dropped by more than $2,000 in the last week of September. Further, there were signs of seller exhaustion below $7,800, as discussed previously.
Many observers believe the recovery rally could be extended further to resistances lined up above $8,500 and near $8,600. For instance, market analyst Josh Rager tweeted earlier today that bitcoin price could now run up to $8,500.
Nomura invests in LINE Blockchain Services
Japan’s oldest brokerage has formed a blockchain-focused partnership with the operator of the country’s most popular messenger.
In an announcement dated Oct. 4, Nomura Holdings, the parent company of Nomura Securities, said it made an investment in LVC, a subsidiary of South Korean-controlled Line, following an agreement signed on Sept. 24.
Nomura said that the venture will be developing financial services utilizing blockchain technology. The partnership will make use of Line’s large user base — 81 million in Japan — and well-developed user experience and Nomura’s financial experience and expertise.
The release also mentions LVC’s Bitmax exchange, which went live on Sept. 17, less than two weeks after receiving approval from Japan’s Financial Services Agency (FSA).
Nomura has been on a tear for some time in terms of blockchain investment. In May 2018, it formed Komainu with Ledger and Global Advisors to develop digital custody solutions. In July this year, the company invested in San Francisco-based Quantstamp, a smart-contract security company, and in September this year, it set up Boostry with Nomura Research Institute. The venture is developing blockchain solutions for trading securities. Just last week, Nomura and five other brokerages formed a self-regulatory organization (SRO) for crypto offerings.
While Japanese regulators have been cautious due to the 2014 collapse of Mt Gox and the 2018 hack of Coincheck, recent signs suggest they are warming crypto. In addition to approving new exchanges, the FSA has issued a guideline on fund investment in crypto.
Tether and Bitfinex Market Manipulation? Lawsuit!
A new lawsuit claims crypto exchange Bitfinex and its sister company Tether manipulated the crypto market, harming traders and benefiting themselves.
Bitfinex and a number of affiliated entities engaged in deceptive, anti-competitive and market-manipulating practices, resulting in economic damages for the plaintiffs, according to a lawsuit filed Sunday in New York.
The lawsuit, filed by David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein, are represented by Vel Freedman and Kyle Roche — the lawyers who recently won a federal case against Craig Wright. Bitfinex, Tether, Digfinex and current executives; former chief strategy officer Philip Potter; and payment processor Crypto Capital are named as defendants in the case.
“The crimes committed by Tether, Bitfinex, Crypto Capital, and their executives include Bank Fraud, Money Laundering; Monetary Transactions Derived From Specified Unlawful Activities, Operating an Unlicensed Money Transmitting Business, and Wire Fraud,” the filing says.
In the complaint, the plaintiffs further claim Bitfinex and Tether “shared false information about USDT being backed 1:1 by U.S. dollars,” referring to an allegation made by the New York Attorney General’s office in April. It continues to allege the USDT was used to purchase bitcoin to inflate the crypto market, spurring the 2017–2018 bull market and subsequent bust.
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