What is wrapped Ethereum (wETH) and how does it work?

What is wrapped Ethereum (wETH) and how does it work?

Traders who use the Ethereum network are familiar with the ERC-20 technical standard and have most likely traded and invested in tokens that utilize it. After all, its practicality, transparency and flexibility have made it the industry norm for Ethereum-based projects.

As such, many decentralized applications (DApps), crypto wallets and exchanges natively support ERC-20 tokens. However, there’s one problem: Ether (ETH) and ERC-20 do not exactly follow the same rules, as Ether was created way before ERC-20 was implemented as a technical standard.

So, why does wrapped ETH matter? Briefly put, ERC-20 tokens can only be traded with other ERC-20 tokens, not Ether. In order to bridge this gap and enable the exchange of Ether for ERC-20 tokens (and vice versa), the Ethereum network introduced wrapped Ethereum (wETH). That said, wETH is the ERC-20 tradable version of ETH.

What is wrapped Ether (wETH)?

As mentioned, wETH is the wrapped version of Ether, and it’s named as such because wETH is essentially Ether “wrapped” with ERC-20 token standards. Wrapped coins and tokens virtually have the same value as their underlying assets. 

So, is wrapped Ethereum safe to trade and invest in? The answer is yes, as far as Ethereum is concerned. wETH is pegged to the price of ETH at a 1:1 ratio, so they’re basically the same. The only difference between wrapped tokens and their underlying assets is their use cases, especially for older coins like Bitcoin (BTC) and Ether.

Wrapped tokens are like stablecoins, to a certain degree. Come to think of it, stablecoins can also be considered “wrapped USD,” since they have the same value as their underlying asset, the United States dollar. They can also be redeemed for fiat currencies at any time.

Bitcoin also has a wrapped version called Wrapped Bitcoin, which has the same value as Bitcoin. The same goes for other blockchains like Fantom and Avalanche.

Wrapped Ethereum tokens can be unwrapped after they’ve been wrapped, and the process is simple: Users just have to send their wETH tokens to a smart contract on the Ethereum network, which will then return an equal amount of ETH. 

Wrapped tokens solve interoperability issues that most blockchains have and allow for the easy exchange of one token for another. For example, users cannot normally utilize Ether on the Bitcoin blockchain or Avalanche on the Ethereum blockchain. Through wrapping, underlying coins are tokenized and wrapped with a certain blockchain’s token standards, thus allowing for their use on that network.

How does wrapped Ethereum (wETH) work?

Unlike Ether, wETH cannot be used to pay gas fees on the network. Because it is ERC-20 compatible, however,  it can be used to provide more investment and staking opportunities on DApps. wETH can also be used on platforms like OpenSea to buy and sell through auctions.

Wrapping Ether tokens involves sending ETH to a smart contract. The smart contract will generate wETH in return. Meanwhile, ETH is locked to ensure that the wETH is backed by a reserve. 

Whenever wETH is exchanged back into ETH, the exchanged wETH is burned or removed from circulation. This is done to ensure that wETH remains pegged to the value of ETH at all times. wETH can also be acquired by swapping other tokens for it on a crypto exchange, such as SushiSwap or Uniswap.

So, what is the point of wrapped Ethereum? According to WETH.io, the ultimate goal is to update Ethereum’s codebase and make it ERC-20 compliant in itself, eventually eliminating the need to wrap Ether for the purpose of interoperability. But, until then, wETH continues to remain useful in providing liquidity to liquidity pools, as well as for crypto lending and NFT trading, among others. 

In short, it’s not really a matter of ETH vs. wETH since wrapping Ethereum is more of a workaround than a permanent solution. With the number of upgrades slated to happen on the Ethereum network over the years, Ethereum seems to be moving closer toward better interoperability by the day.

How to wrap Ether (ETH)?

There are several ways to wrap Ether. As mentioned, one of the most common ways to do so is by sending ETH to a smart contract. Another method is swapping wETH for another token via a crypto exchange.

Let’s look at three ways to generate wETH in the sections below:

Using the wETH smart contract on OpenSea

In this example, we’ll be using the OpenSea platform to convert ETH to wETH using the wETH smart contract.

First, click on “Wallet,” located at the top-right corner of OpenSea. Then, click on the three dots next to Ethereum and select “Wrap.”

Next, enter the value for the amount of ETH to be converted to wETH. Then, click “Wrap ETH.” This will call the wETH smart contract to convert ETH into wETH.

Step 2: Enter the amount of ETH that you want to convert to WETH

A MetaMask pop-up will appear, prompting the user to sign the transaction. 

Step 3: Confirm the transaction

A confirmation message will then appear once the wrap is complete.

Step 4: Confirmation of conversion of tokens

The converted wETH will show up in the wallet portion of the user’s OpenSea account. The wETH will bear a pink Ethereum diamond as its logo, distinguishing it from ETH.

Generating wETH via Uniswap

When using Uniswap, a user first has to connect their wallet and ensure the Ethereum network is selected.

Step 1: Connect your wallet and select the Ethereum network on Uniswap

Then, click “Select Token,” located at the bottom field, and select wETH from the list of options. 

Step 2: Select

Now, input the amount of ETH to be converted to wETH and click “Wrap.”

Step 3: Enter the amount of ETH that you want to convert to WETH and click

The transaction will then need to be confirmed from the user’s crypto wallet. Gas fees in ETH will also need to be paid at this stage. Once all the details are in order and the transaction has been confirmed from the user’s end, all that’s left to do is to wait for the transaction to be confirmed in the blockchain.

Generating wETH with MetaMask

Upon opening the MetaMask wallet, begin by ensuring that the selected network is “Ethereum Mainnet.” Then, click “Swap.”

Step 1: Select

Then, select wETH from the “Swap to” field.

Step 2: Select WETH from the “Swap to” field

Next, input the amount of ETH to be swapped. Then, click “Review Swap.”

Enter the amount of ETH you want to swap and click Review Swap

A window displaying a quote of the conversion rate will appear. Since it involves the conversion of ETH to wETH, the rate should be 1:1. To finalize the transaction, click “Swap.”

Step 4: Click

How to unwrap Ether (ETH)?

Unwrapping Ether can also be done manually, such as by interacting with a smart contract. For instance, ETH can also be unwrapped in the same way that it can be wrapped via the wETH smart contract on OpenSea. The only difference is that instead of clicking “Wrap ETH,” the user has to click “Unwrap wETH.”

The same goes for swapping wETH back to ETH, which can be done by using Uniswap or MetaMask. The process for unwrapping is essentially the same as the process outlined above for wrapping ETH on both platforms. The only difference is that the values should be changed (from wETH to ETH).

What are the risks of using wrapped tokens?

Ethereum co-creator Vitalik Buterin himself pinpointed one of the main disadvantages of wrapped assets. According to Buterin, the main problem with many of these wrapped assets is their sensitivity to centralization. 

Currently, wrapping assets are not Turing-complete and cannot be automated via the Ethereum blockchain. As discussed, wrapping is usually only carried out using central programs, thus the concern for possible manipulation and abuse.

Issued wrapped tokens depend on the third-party platforms that issue them, inevitably subjecting decisions pertaining to wrapped assets to central entities. Buterin voiced his concerns about the possibility of such a mechanism undermining the core principles of decentralization and transparency that the blockchain industry stands for.

Future of wrapped tokens

Currently, wrapped tokens make it possible for blockchains to interact with one another. This allows for a much more decentralized ecosystem, where tokens can be easily traded or exchanged between different platforms.

Better interoperability solutions are on the horizon, such as updating blockchains’ codebases to be compatible with each other or using bridge chains. For Ethereum, at least, the plan is to eventually phase out the use of wrapped tokens like wETH alongside network developments.

This does not mean that wrapped tokens are going away anytime soon. They will continue to play an important role, providing valuable service to those who need it. For one, wrapped tokens can serve as a stabilizing force between different blockchains, as they help maintain consistent prices between them.

They can also help facilitate cross-chain atomic swaps, which are becoming increasingly popular. In the long run, however, wrapped tokens will likely become less and less necessary as blockchains become more interoperable.

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CME Group to Face off With FTX After Filing for Futures Commission Merchant Status – Finance Bitcoin News

CME Group to Face off With FTX After Filing for Futures Commission Merchant Status – Finance Bitcoin News

According to a recent report, the world’s largest derivatives exchange CME Group is looking to register as a direct futures commission merchant (FCM). CME Group’s decision follows the digital currency exchange FTX, as the crypto company applied to become a derivative clearing organization and awaits approval from the U.S. Commodity Futures Trading Commission (CFTC). If CME Group is approved to be an FCM, the company can bypass third-party brokers and offer futures directly on the CME platform.

Derivatives Exchange CME Group Registers for FCM While FTX Awaits CFTC Approval

The world’s largest financial derivatives exchange, CME Group, has reportedly filed paperwork to become a futures commission merchant (FCM), according to a report published by the Wall Street Journal (WSJ). WSJ author Alexander Osipovich explained CME filed the registration in August and Osipovich opines that the company is “taking cue from [the] crypto rival FTX.”

If CME Group’s FCM registration is approved, CME will be able to offer derivatives directly without the need for brokerage houses like TDAmeritrade, Saxo Bank Interactive Brokers, Robomarkets, and Grandcapital. FTX is awaiting approval from the CFTC to become a derivatives clearing organization. Last March, the CFTC opened public comments so it could get insight into FTX’s proposal. In mid-May, CME Group chair and chief executive officer Terry Duffy wrote that the move by FTX could present “market risk.”

“FTX’s proposal is glaringly deficient and poses [a] significant risk to market stability and market participants,” Duffy opined at the time. “FTX proposes to implement a ‘risk management light’ clearing regime that would significantly increase market risks by potentially removing up to $170 billion of loss-absorbing capital from the cleared derivatives market, eliminating standard credit checks, and destroying risk management incentives by limiting capital requirements and mutualized risk.”

The report written by Osipovich details that the chairman and chief executive of Advantage Futures, Joseph Guinan, says the move could be very dramatic. “I would not expect the CME to go down the path where they compete directly with FCMs for clients,” Guinan remarked. “However, if they did go down this path, that would be a game-changer for the FCM industry and a dramatic concern for every FCM.”

While the CFTC weighs in on the FTX proposal, Osipovich cited Craig Pirrong, a finance professor at the University of Houston when he said that CME’s FCM decision was a response to the FTX plan. “From a philosophical perspective, they would prefer not to do this,” Pirrong said on September 30. “But in the event that the CFTC does approve the FTX model, from a competitive perspective, they may feel that they have to do this.”

Osipovich also published commentary from a CME Group spokesperson who commented on CME’s FCM August filing. “Our commitment to the FCM model and the significant risk management benefits it provides to all industry participants remains unwavering,” the CME Group representative said. In terms of bitcoin (BTC) futures volume, FTX and CME Group have relatively the same amount of bitcoin futures open interest and BTC futures trade volume as well.

Tags in this story
bitcoin futures, CME Group, CME Group CEO, CME Group chair, Craig Pirrong, derivatives, derivatives exchange, derivatives markets, ftx, FTX Exchange, Futures, futures exchange, Grandcapital, Joseph Guinan, Options Exchange, Robomarkets, Saxo Bank Interactive Brokers, TDAmeritrade, Terry Duffy, trading

What do you think about CME Group going face to face with FTX by applying for a futures commission merchant status? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Bullish Signal: Exchange Outflows Spike Up

Bitcoin Bullish Signal: Exchange Outflows Spike Up

On-chain data shows the Bitcoin exchange outflows have spiked up recently, a sign that could prove to be bullish for the crypto’s price.

Bitcoin Exchange Netflow Has Observed Deep Red Values In Recent Days

As pointed out by an analyst in a CryptoQuant post, investors have withdrawn more than 60k BTC from exchanges recently.

The relevant indicator here is the “all exchanges netflow,” which measures the net amount of Bitcoin entering or exiting wallets of all centralized exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows.

When the value of this indicator is greater than zero, it means there are more inflows taking place in the market than outflows. Such a trend, when prolonged, can be bearish for the price of the crypto as it may be a sign of dumping from investors.

On the other hand, negative values of the netflow suggest investors are taking out a net number of coins right now. This kind of trend can indicate buying pressure in the market, and hence could be bullish for BTC’s value.

Now, here is a chart that shows the trend in the Bitcoin all exchanges netflow over the last month:

The value of the metric seems to have been below zero in recent days | Source: CryptoQuant

As you can see in the above graph, the Bitcoin all exchanges netflow has observed some negative spikes during the last three days.

These downward surges in the indicator’s value have amounted to more than 61k BTC leaving exchange wallets, the largest stack of withdrawals in months.

The crypto’s price has been struggling hard for many months now, so this kind of fresh demand could be constructive for the coin, and help it turn things around, at least temporarily.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.1k, up 1% in the last seven days. Over the past month, the crypto has lost 5% in value.

Below is a chart that shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

Looks like the value of the crypto has been mostly trending sideways during the last few days | Source: BTCUSD on TradingView

Bitcoin hasn’t seen much price activity at all recently as the value of the crypto has been painting a flat curve. One exception was the surge to $20k a couple of days back, but it wasn’t long before the spike died down and BTC returned to its trend of consolidation.

Featured image from Dylan Leagh on unsplash.com, charts from TradingView.com, CryptoQuant.com



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Transit Swap loses over $21M due to code bug exploit, issues apology

Transit Swap loses over $21M due to code bug exploit, issues apology

Transit Swap, a multichain decentralized exchange aggregator, lost roughly $21 million after a hacker exploited an internal bug on a swap contract. Following the revelation, Transit Swap issued an apology to users with efforts to track down and recover the stolen funds currently underway.

“We are deeply sorry,” stated Transit Swap while revealing that a bug in the code allowed a hacker to make away with an estimated $21 million. Blockchain security firm PeckShield narrowed down the attack to a compatibility issue or misplaced trust in the swap contract.

Peckshield, along with other investigators, including SlowMist, Bitrace and TokenPocket joined in on the pursuit to track down the hacker. Transit Swap stated:

“We now have a lot of valid information such as the hacker’s IP, email address, and associated on-chain addresses. We will try our best to track the hacker and try to communicate with the hacker and help everyone recover their losses.”

The flowchart below depicts the flow of the stolen assets, as shared by PeckShield.

The ongoing investigation hinted that the hacker may have performed earlier withdrawals from known exchanges. Transit Swap has promised to share more details with the community in due time, adding, “Thank you for your understanding and trust.”

Transit Swap has not yet responded to Cointelegraph’s request for comment.

Related: Amber Group uses simple hardware to show just how fast, easy the Wintermute hack was

Reciprocating the updated security measures implemented by crypto businesses, hackers continue to evolve their methods to dupe investors.

Recently, a hacker used an Ether (ETH) arbitrage trading bot to exploit a “bad code” vulnerability, draining 1,101 ETH, which was around $1.41 million at the time of writing.



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S&P Global Report Says EU and UK Are in a Recession, Putin Thinks the West Is Greedy – Economics Bitcoin News

S&P Global Report Says EU and UK Are in a Recession, Putin Thinks the West Is Greedy – Economics Bitcoin News

Today’s blustery global economy has everyone on edge as inflation has wreaked havoc on the wallets of ordinary people and energy prices continue to soar worldwide. According to Credit Suisse, “the worst is yet to come,” as the global investment bank’s analysts believe the European Union (EU) and the U.K. are already dealing with a recession. S&P Global has a similar hypothesis as a report published by the Manhattan corporation explains that the U.K. is currently contending with a full-year recession.

Nord Stream Pipeline Rupture Heightens Tensions Between Russia and the West — Putin Claims the ‘End of Western Hegemony Is Inevitable’

The world’s economy looks even worse following the Nord Stream pipeline rupture as many people believe the conflict between the West and Russia has heightened a great deal. The United Nations details that the destruction might have been the largest methane release ever recorded in history. Furthermore, the Nord Stream pipeline issue means Europe will have a tougher time accessing natural gas this winter. The price of natural gas in the EU has skyrocketed to a lifetime high alongside a myriad of European energy sources.

S&P Global Report Says EU and UK Are in a Recession, Putin Thinks the West Is Greedy
The Nord Stream pipeline rupture has caused tensions to elevate and many believe the world is spiraling toward World War III.

Moreover, both sides are blaming each other for the Nord Stream pipeline rupture as Vladimir Putin declared the act an “unprecedented sabotage” and an “act of international terrorism.” Meanwhile, U.S. president Joe Biden said the Nord Stream leak was a “deliberate act of sabotage” as well, and he further noted that the Kremlin blaming the U.S. for the rupture was simply untrue. Putin also noted during a recent speech that “the end of Western hegemony is inevitable.” The speech translated by Konstantin Kisin on September 30 explains that Putin thinks the West is greedy and seeks to enslave nations like Russia.

Kisin’s translation further says that Putin remarked that the West leverages finance and technology to bring other nations to submission. The West collects a “hegemon’s tax,” according to the Russian president. “They do not want us to be free, they want Russians to be a mob of soulless slaves,” Putin told the attendees at the event.

There was a strong reaction from the attendees and one individual says:

We’ll beat them all, we’ll kill them all, we’ll plunder all their stuff. It’s going to be what we love to do.

Credit Suisse and S&P Global Reports Note Europe and the UK Are Already Dealing With a Recession — ‘Europe Faces a Difficult and Uncertain Geopolitical and Economic Outlook’

Amid the heightened tension, a Credit Suisse report says the U.K. and Europe are already in a recession and the U.S. is “flirting” with one. The global investment bank’s analyst explained that some of the weight stemmed from central banks raising interest rates. “Higher rates combined with ongoing shocks lead us to cut GDP forecasts,” the Credit Suisse report details. “The euro area and the U.K. are in recession, China is in a growth recession, and the U.S. is flirting with recession.”

The Credit Suisse report adds:

Crucially, the rising share of price categories above central bank inflation target levels shows inflation is broadening out from a limited group of supply shock related drivers to more general inflation. This broadening requires tighter policy and weaker economies because it increasingly reflects tight labor markets.

The report from Credit Suisse follows the recent statements Citadel CEO Ken Griffin made last Wednesday at a conference. Griffin explained that Citadel is “very focused on the possibility of a recession.” Further, analysts in a report published by S&P Global explain that the U.K. and Europe are already in a recession and the Ukraine-Russia war is exacerbating the region’s gloomy economy. S&P Global’s regional credit conditions chairman, Paul Watters, says the EU has a tough winter ahead, and the European economy faces heightened credit risks.

S&P Global Report Says EU and UK Are in a Recession, Putin Thinks the West Is Greedy

Watters believes the EU’s measures to put price caps on energy will protect Europeans this winter from the inflationary pressures. “Fiscal support measures deployed by the government, notably the upper limit set on typical household energy bills, will significantly protect household budgets from an even greater inflation squeeze over the winter,” Watters claims. “This, along with ongoing resilience of the labor market, are the main reasons we do not expect the U.K. economy to perform worse.”

S&P Global’s report continues:

Europe faces a difficult and uncertain geopolitical and economic outlook as Russia’s political risk appetite appears to increase after losses of territory in Ukraine, and exorbitant energy prices fuel inflation, triggering interventions to support consumers and businesses, with central banks recalibrating interest levels in quick order.

Meanwhile, the U.S. Dollar Index (DXY) has dropped from the recent highs recorded nine days ago, and a myriad of fiat currencies worldwide have rebounded against the greenback. The euro has managed to rebound by 2.15% during the past seven days against the U.S. dollar, and the U.K.’s pound has increased 3.95% this week. However, the pound is down 14.98% during the last six months, and the euro has shed 11.25% against the greenback. Russia’s ruble, on the other hand, has increased 42.44% against the U.S. dollar during the last six months.

Tags in this story
Citadel CEO Ken Griffin, credit suisse, Credit Suisse report, Dollar Index, DXY, economics, Energy crisis, EU euro, Europe, hegemon’s tax, inflation, Joe Biden, Konstantin Kisin, kremlin, Methane Leak, natural gas, Nord Stream, Nord Stream pipeline, OIL, Paul Watters, Recession, Russia, Russian president, russian ruble, S&P Global, S&P Global report, The West, UK pound, UK pound sterling, US President, Vladimir Putin

What do you think about the reports that say Europe and the U.K. are already in a recession? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Price Is Sitting On A Gun Powder, Will It Explode?

Bitcoin Price Is Sitting On A Gun Powder, Will It Explode?

  • BTC price trades below key resistance as prices get rejected under daily EMA.
  • BTC’s monthly candle closes with so many mixed feelings ahead of October. 
  • The price of BTC must close above $21,500 to renew bullish sentiments.

The price action of Bitcoin (BTC) continues to toil with the emotions of traders and investors as it moves in an indecisive and uncertain fashion. Traders continue to speculate about what Bitcoin (BTC) holds for this new month of October. The price action and movements of Bitcoin (BTC) continue in its choppy, leaving most traders at loose ends due to an unstructured Bitcoin (BTC) price movement. (Data from Binance)

Bitcoin (BTC) Price Analysis On The Weekly Chart

Weekly BTC Price Chart | Source: BTCUSDT On Tradingview.com

Despite showing some fake movement of a bounce ahead of the monthly close, the price has found some rejection around $19,500 as the price struggles to break above.

The price of BTC retraced to a region of $18,700 but swiftly bounced from this region as price rallied to $19,300 but was faced with resistance to breaking above. BTC’s price needs to break and hold above $20,500 before it can resume bullish sentiment as the price trades at a key level.

BTC’s price needs to trade away from this region of $19,000 as a break below $18,100 could mean the price going to a low of $17,500 and even a low of $16,000.

Ahead of the weekly close, the price for BTC needs to close above $19,500 for a little bit of haven; a close below this range indicates exposure to more risk to go higher.  

Weekly resistance for the price of BTC – $19,500.

Weekly support for the price of BTC – $18,100.

Price Analysis Of BTC On The Daily (1D) Chart

Daily BTC Price Chart | Source: BTCUSDT On Tradingview.com

On the daily timeframe, the price of BTC remains below key resistance as it attempts to break above higher levels, with the price being rejected on several occasions.

The price of BTC has shown strength, rallying from a low of $18,700, with the price attempting to break above the $20,500 daily price range but facing rejection as the price trades between $18,800-$19,500.

The price of BTC trades at $19,100 below the 50 and 200 Exponential Moving Average (EMA). The prices of $20,400 and $27,000 correspond to the prices at 50 and 200 EMA for BTC on the daily timeframe.

A break and close above $20,500 could see the price of BTC assume some bullish sentiment in October as many traders and investors anticipate a green October, which could spell a rally to a region of $24,000 or higher.

Daily resistance for the BTC price – $20,500.

Daily support for the BTC price – $18,100.

Featured Image From zipmex, Charts From Tradingview 



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Bitcoin price starts ‘Uptober’ down 0.7% amid hope for final $20K push

Bitcoin price starts ‘Uptober’ down 0.7% amid hope for final $20K push

Bitcoin (BTC) failed to hold $20,000 into the September monthly close as one trader eyed a final comeback before fresh downside.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader’s $20,500 upside target remains

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying lower after finishing the month at around $19,400.

Capping 3% losses, the monthly chart failed to rally on Oct. 1, with BTC/USD down another 0.7% in “Uptober” so far, according to data from on-chain data resource Coinglass.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

Dismal financial data from macro markets contributed to the lack of appetite for risk assets, and among crypto traders, the outlook remained gloomy.

For popular Twitter account Il Capo of Crypto, a return above the $20,000 mark was still possible on the day, this still to be followed by a dive much lower.

An additional post noted steady buy-ins worth $192,000 on exchange FTX, something which he argued could contribute to the short-term upside.

While still at the time of writing, BTC/USD looked apt for volatility into the weekly close, as suggested by the tightening Bollinger Bands on lower timeframes.

BTC/USD 1-hour candle chart (Bitstamp) with Bollinger Bands. Source: TradingView

The September close nonetheless continued a losing streak for Bitcoin which now rivaled the 2018 bear market, as highlighted by Caleb Franzen, senior market analyst at Cubic Analytics.

“Bitcoin has officially produced 10 consecutive red monthly Heikin Ashi candles, with the September close,” he revealed.

“This is the longest such streak since the 2018 bear market, which produced 14 red candles from Feb.’18 to Mar.’19. Each bear market streak has been longer than the last…”

BTC/USD 1-month Heikin Ashi candle chart (Bitstamp). Source: TradingView

Major banks sound alarm bells among analysts

The macro story of the moment revolved around major global banks, headlined by worrying signs coming out of Credit Suisse.

Related: Bitcoin 2021 bull market buyers ‘capitulate’ as data shows 50% losses

The Swiss lender’s share price, having all but collapsed since 2021, now had concern spreading to institutions such as Deutsche Bank, UniCredit and even Bank of China.

“Credit Suisse is not the only major bank whose price-to-book is flashing warning signals.The list below is of all G-SIBs with PtBs of under 40%,” Alistair Macleod, head of research at Goldmoney, responded, uploading a comparative chart of various banks’ price to book ratios.

“A failure of one of them is likely to call the survival of the others into question.”

In a memo quoted by Reuters on Oct. 2, Credit Suisse CEO, Ulrich Koerner, cautioned investors against “confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank.”

The events follow the Bank of England returning to quantitative easing (QE) last week in an unprecedented U-turn with inflation at forty-year highs.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



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Crypto Firms Undeterred by Strict Regulation — ‘They Know We Have a Good System’ – Regulation Bitcoin News

Crypto Firms Undeterred by Strict Regulation — ‘They Know We Have a Good System’ – Regulation Bitcoin News

The Financial Conduct Authority (FCA), Britain’s top financial regulator, has revealed that many crypto firms are still seeking licenses to operate in the U.K. despite failing to meet regulatory requirements the first time. “They know we have a good system of regulation and if they meet our standards that’s important for every jurisdiction that they seek to apply for around the world,” said the regulator.

FCA on Crypto Regulation

Financial Conduct Authority (FCA) executive director for competition and consumers, Sheldon Mills, talked about cryptocurrency regulation at a City & Financial conference Thursday.

British lawmakers and the crypto industry have criticized the country’s top financial regulator for being slow in processing license applications and for rejecting many applicants despite the government previously stating that it wants to make the U.K. a global hub for crypto assets.

Mills explained that crypto companies are not deterred by strict licensing requirements, noting that many of them are reapplying for a license to operate in the U.K. even after being rejected the first time. “It’s no surprise that I still see many crypto firms still seeking to get licenses here in the U.K. even though some have been denied those licenses at the first pass,” she said, elaborating:

They know we have a good system of regulation and if they meet our standards that’s important for every jurisdiction that they seek to apply for around the world.

“That is a benefit to the U.K. economy and U.K. financial service industry, and is good for competition, inward investment, and growth,” Mills added, noting that 95 people have been hired to join the FCA’s licensing team and the number of pending applications has fallen by 40%.

The FCA previously said that 90% of crypto firms seeking a license to operate in the U.K. have either withdrawn their applications or been refused because they could not meet the standards.

Mills emphasized:

Over time, we expect faster, better decisions will support us in bringing down the costs of the regulatory system.

Crypto regulation may be undergoing changes in the U.K. under the new prime minister, Liz Truss. Several key officials who previously worked on the country’s crypto policy resigned from government before she took office, including Former Chancellor of the Exchequer Rishi Sunak and Economic Secretary to the Treasury John Glen.

The British government introduced the Economic Crime and Corporate Transparency Bill in the House of Commons last week. It “aims to strengthen the U.K.’s fight against economic crime,” the government detailed. In May, the U.K. government outlined its plans to support crypto adoption and confirmed its commitment to regulate stablecoins.

What do you think about the comments by the FCA executive director about crypto regulation? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Ethereum Merge spikes block creation with a faster average block time

Ethereum Merge spikes block creation with a faster average block time

The Merge upgrade for Ethereum (ETH), which primarily sought to transition the blockchain into a proof-of-stake (PoS) consensus mechanism, has been revealed to have a positive impact on the creation of new Ethereum blocks.

The Merge was considered one of the most significant upgrades for Ethereum. As a result of the hype, numerous misconceptions around cheaper gas fees and faster transactions plagued the crypto ecosystem, which was debunked by Cointelegraph. However, some of the evident improvements experienced by the blockchain post-Merge include a steep increase in daily block creation and a substantial decrease in average block time.

Ethereum blocks per day. Source: YCharts

On Sept. 15, Ethereum completed The Merge upgrade after successfully transitioning the network to PoS. On the same day, the number of blocks created daily (EBC) shot up by roughly 18% — from approximately 6,000 blocks to 7100 blocks per day.

Ethereum average block time (EBT). Source: YCharts

Complementing this move, the average block time — the time it takes the miners or validators within a network to verify transactions — for Ethereum dropped over 13%, as evidenced by data from YCharts.

The above findings showcase the positive impact of The Merge upgrade on the Ethereum blockchain.

Related: Ethereum Merge was ‘executed flawlessly,’ says Starkware co-founder

Following the Ethereum upgrade, GPU prices in China witnessed a significant drop as the blockchain moved away from the power-intensive proof-of-work (PoW) consensus mechanism.

As Cointelegraph reported, the Nvidia GeForce RTX 3080’s price dropped from $1118, or 8,000 yuan, to 5,000 yuan within three months, according to a Chinese merchant. The merchant further stated that no one (in China) is buying new computers, let alone new GPUs.



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US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s $12.3 Million Pre-Series A Funding Round – Fintech Bitcoin News

US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s $12.3 Million Pre-Series A Funding Round – Fintech Bitcoin News

The Uganda-based digital lending fintech startup, Numida, has said it will start offering its services to micro, small, and medium-sized enterprises in other African countries. Numida’s plans to offer its services to businesses beyond Uganda’s borders came shortly after it was announced that the startup had raised a total of $12.3 million in its pre-Series A funding round. Serena Ventures, a venture capital firm founded by American tennis player Serena Williams, led the funding round.

Unlocking the Potential of Small Businesses in Africa

Numida, the Uganda-based fintech, has said it plans to take its digital lending business outside the country, using part of the $12.3 million it raised via its pre-Series A equity-debt funding. The round was led by the U.S. tennis star Serena Williams’ venture capital firm Serena Ventures. Also participating in this funding round were Breega, 4Di Capital, Launch Africa, Soma Capital and Y Combinator.

In comments following Numida’s successful capital raise, co-founder and CEO Mina Shahid reportedly touted the impact of the financial products his company has been availing to small businesses in Uganda, and how this can be replicated in other African countries. Shahid said:

I’m most excited about continuing to build and provide financial products for these micro and small business owners …. There are so many of these businesses across the continent, we really do believe that we’ve proven a model in Uganda that can be Pan-African and unlock the potential of these businesses to grow and achieve great things.

Prioritizing Small and Medium-Sized Enterprises

As explained in a Techcrunch report, Numida has prioritized serving micro, small, and medium-sized enterprises (MSMEs) because they are continually marginalized by traditional financial institutions. Using the recently raised capital, Numida said it plans to increase its active client base to 40,000. The fintech startup plans to do this by expanding its operations in two countries, the report said.

According to the report, Numida, which raised $2.3 million in 2021, has so far granted $20 million in working capital to MSMEs. With the backing of Lendable Asset Management, which recently lent $5 million to the startup, Numida will increase the value of its loans and will at the same time remodel its products to ensure their affordability.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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