Bitcoin still under pressure 📉 Crypto face off liquidity crisis

Cryptocurrencies are clearly struggling to recover from recent declines, raising fears of another wave of sell-offs. Bitcoins are being withdrawn en masse from U.S. cryptocurrency exchanges, which registered $1.5 billion in BTC withdrawals during the week. Investors are primarily moving their reserves to so-called cold wallets, which are not deposits:

Bitcoin's price remains around $16,500 and is moving in a sideways trend despite reports of further internal problems in the industry:

• Users have clearly been spooked by regulator intervention and further threats to the cryptocurrency industry following the FTX bankruptcy, which is already being investigated by the US Department of Justice, the Federal Trade Commission (CFTC) and the Securities and Exchange Commission (SEC);
• Data on orders of so-called hardware wallets for self-storage of cryptocurrencies are climbing to historic peaks. The total value of moved cryptocurrencies out of exchanges is already $3 billion;
•  Net withdrawals from exchanges far exceed deposit amounts. In the states, record withdrawals were recorded by the Gemini exchange, from which nearly 30,000 BTC disappeared. It is followed closely by Kraken, Binance US and Coinbase. Total withdrawals from the world's crypto exchanges already amount to roughly 134,000 BTC, worth $2.2 billion, with as much as $1.5 billion coming from platforms in the US;
• Since the FTX bankruptcy, another slew of entities are pointing to the risk of bankruptcy, including BlockFi, Genesis, Salt and another, smaller cryptocurrency exchange AAX, among others.

Bitcoins are disappearing from cryptocurrency exchanges en masse, raising concerns around declining liquidity, which historically has often heralded significant, rapid price movements for the major cryptocurrency. Source: CoinglassOn average, long-term investors in Bitcoin (Long Term Holders, LTH) who have held the tokens for a minimum of 155 days currently have an average unrealized loss of about 33%, raising concerns around the potential capitulation of the group with the highest level of conviction among all investors. LTH's unrealized loss level is approaching historical lows from the 2018 bull market, when long-term addresses averaged 36% declines during the bottom of the declines. Current valuations could still represent a potential opportunity for contrarian investors although BTC's reaction to FTX-induced declines has not been optimistic. The increases have failed to return towards $20,000 and the volume of buyers is still smaller than the supply side. Source: Glassnode

News:

• A British parliamentary committee investigating the crisis that led to the collapse of FTX has indicated that the evidence given to it by Binance "is unacceptable." A British parliamentary committee is investigating the events that led to the FTX crisis and the eventual collapse of the exchange. Binance provided it with documents intended to support its position that the exchange did not sell its shares in the exchange's tokens out of bad intentions to eliminate competition. The evidence sent by the largest exchange in terms of daily trading volume of FTX tokens is unsatisfactory, according to Alison Thewliss, attending the UK commission. The commission is expected to ask more questions.
• Bloomberg indicates that the commission is waiting to uncover the inner workings behind Chanpeng Zhao's much-publicized intention to sell FTX tokens, which ultimately 'drove the nail in the coffin' of the collapsed exchange and led to losses for millions of users. Daniel Trinder, Binance's vice president of government affairs in Europe, made public a document from Binance listing new articles giving a chronology of the events leading up to FTX's collapse.
• JP Morgan analysts point out that a significant number of investors are fleeing the cryptocurrency market, as evidenced by the declining capitalization of stablecoins, i.e. cryptocurrencies that mimic, among other things, the exchange rate of the US dollar, which had been a 'safe haven' until now;
• Cardano's blockchain-building organization, Input Output Global has received a $4.5 million research grant from the University of Edinburgh, the amount will be used for further research into blockchain technology.

Bitcoin chart, M30 interval. The major cryptocurrency has recently been falling despite euphoric sentiment on Wall Street. Today's declines in US index futures could potentially provide an additional 'downward' catalyst for cryptocurrencies. The price of BTC has again found itself below the SMA200 and SMA50, which raises concerns around deepening declines if short-term investors, who are currently the most active buying group, fail to stop the sellers. Source: xStation5