Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!
Top Stories This Week
Bitcoin volatility has fallen to a 16-month low, indicating that a sharp move is on the horizon.
Large fluctuations tend to follow prolonged periods of consolidation, and according to a Bitazu Capital founding partner, Mohit Sorout, BTC could reach its previous all-time high if it was to break out today.
There are other factors at play. The U.S. dollar has been weak recently, and traditionally, this leads to strength across other “safe haven” assets. Bitcoin exchange reserves have also continued to plummet, indicating there’s a shortage of sellers… or a lack of trust in centralized platforms.
Cointelegraph analyst Michaël van de Poppe says BTC must hold $11,000 for October’s rally to continue — paving the way for a retest of $12,000 in the short term. Meanwhile, a report by Stack Funds suggests BTC has support to climb all the way to $15,000 if historic trends repeat themselves this year.
But this optimism isn’t universal. JPMorgan Chase experts believe Bitcoin is slightly overvalued and think the asset could see selling pressure ahead.
OKEx, a major crypto exchange, spooked the markets this week by announcing that it had suspended withdrawals.
The company said one of its private key holders was “cooperating with a public security bureau” concerning ongoing “investigations.”
In the immediate aftermath of Friday’s statement, Bitcoin fell nearly 3%, while OKEx’s native token, OKB, crashed 15%.
According to Caixin, OKEx founder Mingxing Xu — also known as Star Xu — was the executive who was questioned by authorities. The Chinese news agency also reported that he was investigated “at least a week ago” and had been absent at work for some time.
Industry executives have expressed surprise at how events unfolded. The Bitcoin Association’s president, Leo Weese, wrote: “That one person sits in China holding the keys to an entire offshore cryptocurrency exchange is probably the most surprising thing about this industry I learned this year. That customers don’t demand transparency about key management comes in at a close second, though.”
Staff at Coinbase fear that the exchange’s leadership are watching their every move and monitoring their messages, it has been reported.
According to Motherboard, the exchange’s newfound “apolitical” stance has led to allegations of surveillance and censorship, but in a leaked recording of an ask me anything session, CEO Brian Armstrong said the “silent majority” supported the move.
Elsewhere, it was claimed that Coinbase’s management had “stunted internal discussion” and forced employees to delete political Slack messages. The exchange responded to Motherboard’s claims by describing the accusations as “quite extreme and absolutely false.”
During an AMA back in June, Armstrong had reportedly resisted the idea of making a public statement in support of Black Lives Matter following the killing of George Floyd by police. However, he later backtracked and posted a series of tweets in support of BLM.
Coinbase has been hemorrhaging employees of late, with at least 5% of its workforce opting to take an exit package if they were unwilling to avoid political and social issues at work.
It’s been a wild ride for the FIL token following Filecoin’s long-awaited launch.
FIL initially rocketed by 118% before plunging by 80% as the cryptocurrency was listed on major exchanges — three years after the project’s ICO was held.
Now, the blockchain-based data storage platform is hoping to right the ship through a weeklong digital conference that begins on Oct. 19.
“Filecoin Liftoff Week” is going to be centered on education, infrastructure, interoperability, and future plans, with each day focusing on a different theme.
Despite the recent plunge in FIL’s value, the Filecoin team remains optimistic about the project’s future prospects: “This is only the beginning for the Filecoin network.”
And we end our news roundup with a painful story courtesy of Ripple’s chief technology officer David Schwartz.
He revealed that he and his wife came up with a “derisking plan” for their crypto investments in 2012 — and missed out on millions of dollars in profit as a result.
Schwartz sold 40,000 ETH for $1 each at the time — a stash that would be…