Weekly Market Wrap: Bitcoin Surpasses Resistance Zone, Hits $32,400

Weekly Market Wrap: Bitcoin Surpasses Resistance Zone, Hits $32,400

Bitcoin’s (BTC) surge past the $32,400 level on October 23 suggests the possibility of the ongoing bullish trend persisting, while market optimism is driven by expectations of a Bitcoin spot exchange-traded fund (ETF) approval, although there's uncertainty regarding whether the current upward momentum can be sustained. The optimism was largely driven by BlackRock's (BLK) listing of the spot Bitcoin ETF ticker, IBTC, on the Depository Trust & Clearing Corporation's (DTCC) website. On Tuesday, as IBTC was removed, Bitcoin saw a swift 3% drop from its position near $35,000.

The anticipation of a spot Bitcoin ETF approval has led to a rush in Bitcoin purchases, with analysts predicting a potential price surge post-approval. Charles Yu, a research associate at Galaxy Digital, stated in a blog post that Bitcoin's price could increase by 74.1% in the first year following the launch of a US-based ETF.

In the altcoin market, several cryptocurrencies are seeing gains, with Ether ((ETH) leading by surging 4.4% to $1,850. Other altcoins like Binance Coin, Ripple, Tron, Toncoin, Chainlink, and Litecoin have also increased by 3-4%. Notably, meme coins Dogecoin and Shiba Inu, as well as Avalanche's native token, have gained the most, rising by 10-11%. The total cryptocurrency market capitalization has increased by approximately $20 billion overnight, reaching nearly $1.3 trillion.

Crypto Mogul Sam Bankman-Fried to Testify in Fraud Trial Amid Accusations

Former crypto mogul Sam Bankman-Fried is set to take the stand to defend himself against accusations of orchestrating a scheme to defraud FTX customers and investors. After facing damaging testimony from former colleagues, including Alameda Chief Executive Officer Caroline Ellison, FTX's former head of engineering Nishad Singh, and crypto exchange co-founder Gary Wang, Bankman-Fried's lawyers have confirmed that he will testify in his defense, facing the possibility of decades in prison. Bankman-Fried's testimony comes after a series of guilty pleas and cooperation from his inner circle, who have pointed to him as the mastermind behind the misused customer funds and could prove to be one of his final defense options in the case.

Prosecutors are expected to call one more witness on Thursday, an FBI agent, who will summarize deleted chats relevant to the case. Closing arguments are set for early next week, with the jury beginning deliberations afterward. Bankman-Fried's testimony will be his first public statement in months, following his arrest and bail revocation over accusations of witness tampering.

Bipartisan PROOF Act Aims to Boost Crypto Safety

U.S. Senators Thom Tillis and John Hickenlooper have introduced the "Proving Reserves of Others Funds (PROOF) Act," a bipartisan effort to bolster crypto safeguards and ensure ethical treatment of customer funds on digital exchanges. The bill mandates monthly proof-of-reserves reports from third-party auditors and sets baseline standards for protecting customer funds. It also demands verification of cryptographic proof of reserves and liability disclosure while outlining civil penalties for non-compliance. While the legislation's passage remains uncertain, it aligns with the interests of Democratic lawmakers concerned about the crypto industry's oversight. The bill's introduction follows the FTX exchange collapse, underscoring the importance of proof-of-reserves in enhancing transparency and security within the crypto sector.

XBO Featured Coin of the Week

Chainlink serves as the native cryptocurrency of the decentralized oracle network Chainlink, founded by Sergey Nazarov and Steve Ellis in 2017. Its primary purpose is to bridge the gap between blockchain-based smart contracts and real-world data. Node operators are rewarded in LINK for their role in retrieving off-chain data and transmitting it to the blockchain, ensuring that smart contracts only activate under specific real-world conditions.

Originally, LINK was an ERC-20 token on the Ethereum blockchain, but it migrated to its independent blockchain, Chainlink Network, in May 2021, with enhanced scalability and security features. As of now, around 556,849,970 LINK tokens are in circulation, out of a maximum supply of 1.1 billion LINK. These tokens are distributed through a combination of mining and staking, with the Chainlink Foundation holding the majority to support development and ecosystem growth.

Recent price action for Chainlink shows a breakout from a multi-month consolidation phase, with buyers successfully pushing LINK above the resistance at $9.50 on October 22. Sellers attempted to reverse this breakout on October 24 but faced strong buying interest, reflected in a long candlestick tail. The buying momentum continued on October 25, indicating the potential for further upward movement. The breakout's pattern target is $13.50, and a breach of this level could see the pair reaching $15. Nevertheless, overbought conditions on the RSI suggest the possibility of a minor correction or consolidation in the near future. Bears will aim to push the price below $9.50 to impede the bullish trend.

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Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.