|Episode Title:||Should you be buying BTC at 7K? Top Bitfinex trader's massive loss, EU's 5AMLD, Binance censorship!||Date:||12/19/19||Unedited YouTube Time Stamp||Trimmed||Clip Social Post Title / |
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|TEASE 👇||Episode Page:||https://crackingcryptocurrency.com/should-you-be-buying-btc-at-7k-top-bitfinex-traders-massive-loss-eus-5amld-binance-censorship/|
|JW||Well, here we are back at 7,000. If you would have to tuned out just a few days ago and came back, very similar to what we've seen many times in the charts, it's as if Bitcoin hasn't even moved. But here we are and many are asking themselves if the further trade is to the upside, or if as we've seen time and time again in this market over the past four or five months every pump is an opportunity to short. We're going to break that down, take a look at the monthly analysis, talk about Bitfinex's top Trader and is 26 million-dollar drawdown. You thought you had drawdown! We'll also be talking about the implications that the European Union's new 5AMLD new anti money-laundering legislation AND what affects its going to have on massive exchanges and the entire European cryptocurrency zone, including Binance and OKEX, major Exchanges over there. We're going to top it off with a little special story about censorship in today's exciting episode of Breaking Bitcoin stay tuned!||0:01:58||0:00:00|
|JW||Welcome to Breaking Bitcoin, recorded live Thursday, December 19th, 2019. Your daily source for market updates, sentiment, and news for traders.|
I am your host Justin Wise, Lead Analyst & Senior Mentor at CrackingCryptocurrency.com - Hope you're all doing well!
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|JW||Question of The Day|
|--Today's Comment Giveaway Winner:||Benjai||0:07:05||0:05:07|
|Bitcoin Analysis and Trading||0:10:54||0:08:56||Big pull back from yesterday's pump, was shorting the right move or should we be looking to go long?|
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|JW||You can watch or listen to this discussion and more on Breaking Bitcoin, episode number ### at CrackingCryptocurrency.com. And remember to subscribe to our podcasts. Thanks for listening. We'll see you next time.|
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|News 01||Do your trading loses sting? Imagine a $25m write down||https://coinrivet.com/trader-loses-26-million-in-one-week-as-bitcoin-slumps-to-6500/||During this weeks slide into the $6K terror region for BTC, one Bitfinex trader lost as much as $26 million USD, perhaps putting into perspective just how bad trading can get for some.|
According to the Bitfinex exchange’s leaderboards, a trader who goes by the username JOE007 has lost a grand total of $26,136,000 by trying to long Bitcoin while it’s in a months long downtrend.
This trader’s losses correlate with the steady rise in the amount of Bitcoin being locked in long positions on Bitfinex, with the amount rising to 47,157 BTC from 26,660 BTC on November 22.
With long positions stacking to all-time high levels, a long squeeze seems to be on the cards, although losses among market particpants trying to long this bottom will only be realized if the they decide to cut their losses and close their positions at a loss, or get liquidated with the next stab down.
JOE007, who is currently in a massive drawdown, and facing a crippling loss, happens to be the same trader who was at the top of the bitfinex leaderboard during September, when he had an unrealised profit of $14.2 million.
Bitcoin has now been in a downtrend since June’s $14,000 high, with four lower highs marking the initial signs of a gruelling bear market.
The 2018 bear market saw Bitcoin drop from $20,000 to $3,150 with price action that looks eerily similar to this year.
While BTC has seen a small relief rally, a further drop to test $5k levels could leave JOE007 and other bullish traders counter trading the prevailing trend completely bust.
|0:35:25||0:33:27||If you thought your #Bitcoin losses were bad, imagine a $26 Million dollar dradown like @bitfinex top trader JOE007.|
|News 02||What is the EU's 5AMLD?||https://beincrypto.com/how-the-new-european-aml-regulations-look-set-to-impact-cryptocurrency/||The EU's updated anti-money laundering (AML) regulations are coming into effect by January 10 in Europe. |
Known as 5AMLD, or, the Fifth Anti-Money Laundering Directive, the new rules directly address cryptocurrency companies for the first time, and it look set to have a large impact on our industry.
It was first detailed in May of last year, and EU member states are required to implement the amended rules in their national laws in less than a month, and the crypto space is buzzing with the implications of what's inside.
The rules, for the first time, define what is meant by the term virtual currency:
”… a digital representation of value that is not issued or guaranteed by a central bank or a public authority.”
The incoming regulations will require those offering custodial services for virtual currencies to abide by the AML regulations laid down under the preceding 4AMLD. Meaning, they will now share the same requirements as traditional financial institutions in regards to performing customer due diligence as well as submitting suspicious activity reports to regulators.
This will mean that exchange platforms offering services within the European Union will need to submit information about customers to relevant authorities and to perform due diligence checks on user activity deemed suspicious.
5AMLD is also said to signficantly increase the power and authroity of the Financial Intelligence Unit. The FIU will have the mandate to obtain the addresses and identities of token holders. How this will be achieved isn’t explained and it is still unclear how it would be possible to do, nonetheless, the FIU is being granted expanded authrority to investigate the crypto space.
The impact on the industry could be dramatic, as Larry Cermak from the block pointed out in a twitter post, giants of the exchange industry such as Binance and OKEx, will suddenly have to comply with the new regulations or cease offering services within Europe.
Binance in particular, being one of the most popular crypto exchanges in the world thanks in part to its reasonly high withdrawal limits without requiring KYC,, would need to overhaul its own policies, directly effecting a large part of its user base.
Binance, which currently allows users to withdraw up to two BTC without any KYC checs, would not be compliant with EU's latest AML rules, so they will have to implment serious changes soon, or at least, faced with the prospect of withdrawing its platform from the EU entirely.
Binance faced with a similar dilemma earlier this year, saw the exchange pull out of the US market abruptly, before launching Binance US, a much less reduced but regulatory-compliant platform for American users.
Other crypto related businessses have already shut down as a result of the incoming 5AMLD changes.
BottlePay, for example, stated last week that the new regulations would make it impossible to continue offering its social media tipping service in a way consistent with its current operation.
Rather than compromise, the business announced that it would cease operating at the end of the year, via a press release. Other businesses, such as Simplecoin and Chopcoin, have also made similar announcements.
Although the incoming regulations will certainly shake up the way European cryptocurrency companies operate, some seem to be embracing the change. A representative of the EXMO digital asset trading platform, Valeriya Kolomiychenko, wrote in a Medium post that the new rules would provide greater certainty — something that many businesses serving the space have been eager for in recent years.
Similar to what we covered in our reporting on Monday, this is a question of whether or not greater regulation in this space will ultimately help the industry mature and boost adoption, particularly among institutional players.
|0:40:20||0:38:22||The European Union's #5AMLD is coming, and it will drastically change things for the #crypto space including @binance and @okex How will this impact your personal life? #bitcoin|
|News 03||Binance user reports trouble on wasabi withdrawl||https://twitter.com/bittlecat/status/1207621591820951552||According to a twitter post, a Binance user reported his withdrawal suspended when attempting to move funds off the exchange into this wasabi wallet. |
Wasabi is an open-source, non-custodial, privacy focused Bitcoin wallet, and what makes it unique relative to other wallet software is it's native implemention a CoinJoin technology called “Chaumian Coinjoin", which can be described as "trustless coin shuffling with mathematically provable anonymity”.
The Binance users concern in this case, besides the obvious fact the withdrawal was suspended, is that Binance was even able detect this as a transfer to a wasabi wallet. The only input to the transaction was a BC1 address destination, revealing that Binance likely utilizes more advanced tools designed to thwart anonyminity minded transfers, as well as to comply with ever more demanding AML / KYC regulations becoming increasingly burdensome in the crypto space.
While bitcoin on a protocol level remains largely censorship resistant, and is unlikely to ever be directly sabotaged by global regulatory regimes, it's where the space intersects with the traditional financial world, whether on a retail level, fiat on and off-ramps, and now, even crypto-exchanges based in foreign and regulatory friendly locations that will impose increasingly demanding AML rules on users.
Looking at the rules being laid down by the likes of 5AMLD, or the advanced chain anyltics tools coming from firms like CypherTrace designed for compliance and unprecedented tracking of users with identity decloaking features, it's clear all of these initiatives aim to collect an unprecedented insight into user onchain activity.
While crypto or BTC users may opt to protect their privacy using tools like mixers or wasabi wallet, the problem comes from associating your coins or addresses with mixing activity, which is progressively becoming subject to red flagging by industry oversight mechanisims.
Much of this development in the name of stopping crime and illicit activity we're seeing in our space now, is becoming antithetical to core prinicipals of decentralized, permissionless networks like BTC we are attempting to embrace. While an argument can be made that this type of regulation will be largely positive for growth and institutional adoption of our space, it's also becoming unsettling just how much influence government and financial authorities will exert on our transactions, with the prospect of global crypto blacklists becoming a genuine future threat.
|0:49:48||0:47:50||A troubling result of the coming #5AMLD, @binance freezing withdrawels to a users Wasabi Wallet. How did they know, and what are the implications?|
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|Ready Chart Requests|
|JW||Anything from yesterday you'd like to talk on today|
|[DLive: RickieT] What a joke...are they passing all theses rules to protect us? or just theater as Fiat is the 1 st choice for crime||1:06:50||0:58:02|
|[YouTube: Devin Salmon] I've been gone a while. Has backtesting shown a mynx to work better as a line cross vice a 0 line cross?||1:20:35||1:11:47|