Week in crypto: BitMEX and Donald Trump caused tension in the markets
By: Date: 11. Oktober 2020 Categories: Bitcoin

Once again we have a hectic week where two news items have threatened the stability of the crypto market and Bitcoin.

What a week the crypto market has had! This 2020 has been quite busy, crypto markets are not exempt from it, not even Bitcoin. Today we bring you the week’s highlights so that nothing takes you unawares.

Highlights of the week

It’s been such a busy week that we can’t believe it’s finally over. Today we summarize everything that has caused the charges against BitMEX and the news related to the president of the United States, Donald Trump, in the crypto market.

BitMEX: Is Bitcoin shaking?

We will start with the BitMEX news because it generated a lot of controversy in the crypto social networks. Mainly because of concerns about the impact the news would have on Bitcoin.

On October 1 we reported in Crypt Trend that the U.S. Commodity Futures Trading Commission (CFTC) filed charges against BitMEX for operating illegally in the country and failing to comply with anti-money laundering standards.

However, it does not end there. BitMEX was also charged the same day by the Federal Prosecutor for the District of New York, who filed criminal charges against the owners of the crypto exchange; Arthur Hayes, Ben Delo and Samuel Reed, for conspiracy and violation of the Bank Secrecy Act.

The news, as expected, led to a relatively slight drop in the price of Bitcoin. In this regard, the crypto community on Twitter noted that Bitcoin was proving resilient.

Still, there was concern. In fact, Nic Carter, co-founder of Coin Metrics, pointed out at the time that BitMEX had around $2 billion in BTC crypto.

The concern at the time was that there would be problems with withdrawing the funds. However, BitMEX began to process withdrawals in order to prove that the funds were safe.

But the withdrawals were such that within hours BitMEX had already experienced an exodus of over 40,000 Bitcoin reported Glassnode.

Added to this, according to BitInfoCharts data, Bitcoin’s average transaction fees doubled last week. Thus, the average rate for yesterday was $2.44; on September 27 it was $1.55.

Trump, a debate, COVID-19 and the crypto market

This week saw the Donald Trump v. Joe Biden presidential debate, which was described by many as the worst debate they had ever seen.

Clearly, the immediate question that emerged on the social networks after the debate: Do we have to choose between these two options? Was one of them the winner of the debate?

Not to mention that Donald Trump later tweeted that he had been a clear winner. Of course, many questioned this.

Media such as El País carried out their own analysis and in the case of the latter, their prediction is that Joe Biden is the favourite to win the elections.

But, we in the crypto community, can also look to predictive markets such as FTX and Augur. During and after the debate these markets saw significant movement; most pointed to Trump as a clear loser.

However, also this week, the US President announced that he had tested positive for COVID-19; which changed everything.

Crypto forecasting markets such as Augur have Joe Biden as their favourite, but some point out that COVID’s diagnosis could help Trump quite a bit.

In fact after the news, Biden’s chances of winning the election fell by over 5%, according to FTX election prediction contract data.

However, the global markets did not react very well to the news and were stained red on Thursday afternoon. Primarily because the news came when they failed to approve the $2.2 billion aid package.

Crypto healthy market, especially Bitcoin

A few years ago the two previous news stories would have rocked the crypto market and probably brought down the price of Bitcoin (BTC). Nevertheless, crypto managed to hold on.

Thus we begin the month with an upward trend. At the start of this week, Bitcoin Review was valued at $10,900. On Thursday it fell around $400, to recover a little before falling another $200 on Friday.

However, the leading crypto is currently valued at $10,640 according to the CryptoTrend tool, Crypto Online. So we can see some maturity in the market.

Crypto Research: Do Ethereum miners manipulate the blocks?

This week we reported in Crypto Trend that, according to a report carried out by researcher Frank Topbottom, Ethereum miners manipulate the blocks.

The question to be answered is: For what purpose? Well, basically they are doing it to take advantage of the DeFi boom and, believe it or not, it is not an illegal action under the rules of the network.

50 BTCs from the Satoshi crypto era appear

One of the perhaps most curious news items this week is that 50 Bitcoins from the Satoshi era were moved to a Bitfinex wallet.

Yes, those Bitcoins were extracted in May 2010, before Satoshi Nakamoto disappeared. So it caused a lot of speculation in the crypto community, especially on Twitter.

The news came just as the Bitcoin balance on the crypto exchanges fell to a low of 23 months.

Two obsolete blocks in the Bitcoin Blockchain!

Yes, this week two obsolete blocks were found in the Bitcoin Blockchain. No, this is not the first time.

The obsolete blocks indicate a bad propagation of the network. They result in wasted work, less test work, which can make the network easier to attack.