Meanwhile, the US markets have closed again. We look at the live Bitcoin (BTC) price and the prices of the top 25 crypto. Then we look at how the SEC for the first time makes concrete statements about crypto that they believe are securities. We also look at the expiration price of Bitcoin (BTC) options. Finally, we share a crypto fraud alert from the FBI.
We begin, of course, with the live Bitcoin (BTC) price and the prices of the top 25 crypto.
Live bitcoin (BTC) price and prices top 25 crypto exchange
At the time of writing, the live Bitcoin (BTC) price is quoting EUR 22,970.05 ($23,155.32). This is 0.82% lower than during our crypto update last night.
The prices of the other most other crypto from the top 25 are positive. Only the stable coins are writing red numbers. The biggest gain is currently for Polygon (MATIC), which is trading +7.42%. On the site of Tradeincrypto.com you can analyze all live crypto prices.
Bulls and bears fight over Bitcoin (BTC) price crypto options expiring
Tomorrow (Friday) at 10 am Dutch time, weekly options of Bitcoin (BTC) and other crypto expire. The price at that time will determine whether the bulls or bears win and how much money this makes. In the past period, it was often a runaway race for the bears, but now that is different. Based on the Bitcoin (BTC) price at 10 a.m., these are the expected winners and results:
BTC price between $20,000.00 and $21,000.00: 900 calls vs. 3,000 puts. The net result for the bears is then $ 60 million.
Bitcoin price between $21,000.00 and $22,000.00: 2,400 calls vs. 3,000 puts. The net result is equally divided between bears and bulls.
BTC price between $22,000.00 and $24,000.00: 6,600 calls vs. 500 puts. The net result is $140 million for the bulls.
Bitcoin price between $24,000 and $26,000: 9,400 calls vs. 0 puts. Full control by the bulls yields $235 million.
While the expiration of options often does not result in an immediate price swing, it is an important indicator of market sentiment. In doing so, we see that it is attractive for the bulls to attempt to pump up the price to $24,000.00 (a price increase of 3.65% does not seem unrealistic). In that respect, it is also important that the price is back above $23,000.00 after this afternoon, if only to keep the bullish trend going.
SEC names crypto securities for the first time
There is concern in the crypto world that the SEC will designate many crypto as securities, putting them at risk of sanctions from financial regulators. Those penalties could also hit exchanges if they are sued for facilitating unlicensed securities trading. Problem for the market is that the SEC does not provide clear criteria on what definition they use to answer the question of whether a crypto is a security. That changed tonight.
Indeed, the SEC formulated an insider trading charge against a former employee of crypto exchange Coinbase. This Isham Wahi would have tipped off his brother and a friend about upcoming listings. The brother and friend then bought this crypto before the listing and sold it again once the price rose sharply after the listing.
The indictment states that the SEC accuses them of having done this to at least 25 crypto coins, of which they consider 9 to be security. These 9 are: AMP (AMP), Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX), Powerledger (POWR), DFX Finance (DFX) and Kromatika (KROM).
This is fodder for analysts, because if there is a pattern to be discovered in what criteria these 9 crypto are so different from the other 14 in which Wahi and co traded then a guideline can be derived from this as to how the SEC assesses whether a coin is a security. This is perhaps even more important than the fact that the SEC is apparently cracking down on insider crypto trading. The entire indictment of the SEC can be read here.
FBI warns of crypto fraud with apps
The FBI warns that cryptocriminals have managed to steal $42 million in one year through crypto apps. They do this by creating a fake app which, through the use of logos and names, resembles apps from existing crypto companies.
Depositing money to buy crypto goes without a hitch, of course. When the unsuspecting investor wants to withdraw his money he gets a neat payout screen with a request to pay crypto tax first. When the owner of the crypto actually pays, there are then just as many glitches until the app user realizes that he has paid taxes to scammers as a thank you for also stealing his crypto. By then, the criminals are often long gone.
The FBI therefore warns to always check that you know the app providers, that the identity of the app creators can be verified and matches the name and logos they carry, and to test that the app is fully functional before you transfer money.
Of course, there are more ways cybercriminals try to steal your crypto. Our colleagues at Tradeincrypto.com give you some clear tips on how to guard against these practices.
Want to stay up to date with the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”