Crypto Flipsider News – Crypto Market Crash; ETH Falls 10%; Ripple CBDC News; Kyber Hack Update; Brazil Crypto Investors

Read in the Digest:

  • Crypto market crash: Bitcoin (BTC) falls below $19k as dominance hits ATL.
  • Ethereum falls after 10% Bellatrix upgrade – ETH staking ratio relatively low.
  • Ripple’s advisor confirms more CBDC announcements for the coming weeks.
  • Kyber hack update: vector removed – affected wallet fully compensated.
  • Brazilian Tax Authority (RFB) reports over one million crypto investors.

Crypto Market Crash: Bitcoin (BTC) Falls Below $19k as Dominance Hits ATL

The crypto market is experiencing a steep price decline as the strengthening U.S. dollar sends global equity and currency markets into decline. The market crash is being led by Bitcoin, which fell below a key support level as a result.

Over the last 24 hours, the price of Bitcoin (BTC) has nosedived by 5.5% to trade at as low as $18,650. The sharp plunge has left Bitcoin well below the $20k support zone, and is now held by the important psychological level of $18k.

BTC graph coinmarketcap bitcoin crypto token

The 24 hour price chart for Bitcoin (BTC). Source: CoinMarketCap

With Bitcoin’s price ailing, its dominance over the crypto market also took a severe hit. The percentage that Bitcoin contributes to the global crypto market cap has now dropped to 38.2%—levels not seen since 2018.

Fourther contributing to the lowered dominance of BTC following its price drop, anticipation for the upcoming Ethereum Merge has sparked a rally, seeing ETH steadily close the dominance gap over the last few weeks. Moreover, mid-capped cryptos have gained 7% in comparison to Bitcoin’s 1% in September.

Flipsider:

  • Despite BTC’s free fall, the Bitcoin ‘Fear and Greed Index’ has remained above the extreme fear region at 24.
Fear and greed index

Ethereum Falls 10% After Bellatrix – ETH Staking Ratio Relatively Low

On Tuesday, September 6th, Ethereum core developers announced the successful launch of the Bellatrix upgrade, marking the beginning of Ethereum’s transition from Proof of Work (PoW) to a Proof of Stake (PoS) model.

Despite the monumental milestone, the price of Ethereum (ETH) is in free fall in tandem with the broader crypto market. Over the last 24 hours, the price of ETH has fallen by 10%, from a high of $1,670 down to $1,510.

ETH graph coinmarketcap ethereum crypto

The 24 hour price chart for Ethereum (ETH). Source: CoinMarketCap

Despite a PoS Ethereum being just days away, on-chain data shows that the number of ETH tokens staked is at a relative low compared to other PoS chains such as Binance, Solana, Cardano, Polkadot, and Avalanche.

While just 11% of ETH’s circulating supply has been staked, 85% of the total BNB supply is currently staked; 77% of all SOL is currently staked on Solana; and Cardano follows closely in third with 71% of all ADA coins staked.

Ethereum ETH

Flipsider:

  • After Ethereum becomes a fully PoS chain via the Merge and Shanghai upgrade, the ratio of staked ETH should be similar to other PoS chains.

Why You Should Care

The entry barrier (set at a minimum of 32 ETH) could perhaps be the reason why the level of staked ETH is so low in comparison with other PoS chains.

Ripple’s Senior Advisor Confirms More CBDC Announcements for the Coming Weeks

A senior advisor for leading Fintech blockchain company Ripple disclosed on Twitter that, in the coming weeks, Ripple will have more announcements on the positive developments in its central bank digital currency (CBDC) projects.

The announcement follows a September 6th tweet by valued XRP community member “Sentosumosaba”, who referenced several of Ripple’s ongoing CBDC pilot programs, such as the Royal Monetary Authority (RMA) in Bhutan, and Palau Antony.

In response to the tweet, the head of CBDC Europe and Global Partnerships, Welfare, stated that the Ripple community should anticipate more CBDC announcements in the weeks to come.

Since the launch of a private version of the XRP Ledger (XRPL) in March 2021, designed for payments and issuing currencies, Ripple has been diving deep into the CBDC space. The platform aims to provide central banks with a secure space to issue CBDCs.

Flipsider:

  • Due to a change of administration in Colombia, Ripple’s plans to tokenize Colombian land has been put on hold.

Why You Should Care

Given the importance of the initiative to the crypto asset, the news has left XRP holders thrilled.

Kyber Hack Update: Vector Removed – Affected Wallet Fully Compensated

The Kyber Network has provided an update on last week’s exploit, which saw hackers steal approximately $265,000 from its front end. According to Kyber, the attack vector responsible for the hack has been successfully identified and removed.

In its latest blog post, the Kyber Network announced that one of the two impacted wallets has been fully compensated, informing the comminity tha the second wallet “provided approvals to the malicious script, and successfully revoked his approval before losing any funds.”

According to Kyber, its KyberSwap website and UI are once again safe to use. Kyber is currently engaged with industry partners, top security experts, and law enforcement to identify the hackers and retrieve the stolen funds. 

Kyber also stated that its team is working on an advanced monitoring system, and affirmed that further details on the hack and its root causes would be provided later this month.

Flipsider:

  • The Kyber Network also reached out to the hacker, offering 15% of the funds from the $265,000 exploit as a bug bounty.

Why You Should Care

Following the hack, Binance identified two suspects, informing KyberSwap as well as concerned law enforcement agencies.

Brazilian Tax Authority (RFB) Reports Over One Million Crypto Investors

According to reports from the Brazilian tax authority (RBF) over one million citizens turned in their crypto information in July. The RBF reported a figure of 1,336,715 citizens, which is the highest recorded number since reporting became mandatory.

On March 3rd, 2019, Brazil’s Federal Revenue imposed legal guidelines upon the country’s crypto industry, requiring all cryptocurrency holders to report their information to the regulatory body, whether or not they trade using centralized exchanges.

In May 2022, the RFB reported recording the cryptocurrency holdings and transactions of just 365,000 citizens. In June a further 435,000 citizens came forward with their funds, while in July the total figure jumped by more than 50%.

Ministerio de economia

The statistics revealed an increased number of female participants in the use of crypto, marking a 4% rise in the number of crypto transactions made by women, which contributed to nearly 20% of the entirety of July’s reported crypto transactions.

Flipsider:

  • On Monday, Brazil’s Securities and Exchange Commission (CVM) banned Singapore-based cryptocurrency exchange Bybit from brokering securities within the country.

Why You Should Care

Brazil, like most countries in South America, is becoming increasingly involved with cryptocurrencies as alternatives for their ailing currencies.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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