MCS Crypto News - Issue #15

Crypto News Made Simple - Straight to your inbox, every Monday and Thursday

Sam Bankman-Fried is in some big trouble. His trial is not going well. The once-celebrated founder of FTX, who once stood atop the crypto world, now finds himself navigating a maze of legal challenges. As testimonies unravel and evidence mounts, the courtroom atmosphere grows tense. Sam recently made a decision that to many seems like desparation. SBF is about to throw his last chance, hail mary pass.

💡 Quick Refresher

Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, is currently facing a criminal trial. He's been charged with seven counts of fraud and conspiracy. The allegations suggest that he and other FTX executives misused billions of dollars in customer assets for their personal investments and political contributions, leading to FTX's bankruptcy in late 2022.

🔍 Key Developments:

•  Testimony Announcement: Sam Bankman-Fried has decided to testify in his defense during the trial. This move comes after much speculation and anticipation. His testimony is expected to be a pivotal moment in the trial, shedding light on his side of the story. This is not common, and it seems desperate, his last chance hail mary effort to sway the jury

•  Legal Proceedings: Federal prosecutors are nearing the end of their case, with the defense soon to present their narrative of FTX's downfall. Bankman-Fried's testimony will follow presentations from three other defense witnesses.

•  Potential Risks: While his testimony could persuade the jury of his innocence, it also exposes him to potential pitfalls. Federal prosecutors will have the chance to present evidence to challenge his credibility, and he could face intense scrutiny during cross-examination.

•  Public Statements: Bankman-Fried has been vocal about the FTX collapse, even embarking on a self-directed media tour and posting extensive Twitter threads on the subject. However, his frequent tweeting led to a brief separation from his legal team.

📣 Insider Testimonies:

•  Gary Wang: FTX co-founder Gary Wang confessed to committing wire, securities, and commodities fraud alongside Bankman-Fried. He disclosed that they illegally withdrew a staggering $8 billion from FTX funds through Alameda Research, another company they co-founded.

•  Caroline Ellison: A former top deputy and romantic partner of Bankman-Fried, Ellison claimed that Bankman-Fried directed her to misappropriate billions from FTX customers. She also admitted to manipulating financial data to benefit Alameda Research.

•  Adam Yedidia: A former FTX software developer, Yedidia testified about his concerns regarding Alameda's significant debt to FTX and its misuse of investor funds.

🔮 What's Next?

The trial continues to unfold, with the defense soon to present their side. The crypto community and the world at large await Bankman-Fried's testimony. No matter what happens, it’s sure to make good TV.

It’s been a long journey… but the bull market may, in fact, be back. After a LONG period of decline, Bitcoin's price has shown signs of resurgence, sparking discussions about the return of a bull market.

🔍 Key Developments:

• 📈 Golden Cross Formation: Bitcoin is on the verge of forming a 'Golden Cross', a bullish technical indicator where the 50-day simple moving average (SMA) surpasses the 200-day SMA in an upward trajectory. Historically, this pattern has signaled the strengthening of bullish momentum. Bitcoin's price has surged by 30% in the past two weeks, reaching levels above $35,000, a price not seen since May 2022.

• 📉 Stocks vs. Bitcoin: While Bitcoin has been rallying, traditional stocks on Wall Street have shown a tepid performance. The S&P 500 and the Nasdaq Composite have dropped by 2.5% and 3.3% respectively over the past five trading days. This divergence has led analysts to believe that the hype around a potential Bitcoin ETF (Exchange Traded Fund) is driving the cryptocurrency's price up.

• 🤔 Correlation Shift: Bitcoin's correlation with traditional equities has been decreasing over the past year. While both stocks and crypto faced pressures from increased borrowing costs in 2022, their reasons for decline were different. With the Federal Reserve's potential rate cuts on the horizon, Bitcoin might further decouple from traditional equities.

📣 Analyst Insights:

• Bitcoin ETF: An ETF is a publicly traded investment vehicle that tracks the price of an underlying asset. This is a spot ETF, meaning that for every share of the fund that gets bought, the fund provider must hold physical bitcoin as collateral. These ETFs will make it easier for institutions and retail investors to gain exposure to the cryptocurrency. Increased demand will dribe up the price of Bitcoin.

• Rate Cuts and Bitcoin: If the Federal Reserve signals rate cuts soon, Bitcoin's divergence from equities might intensify. While equities might respond negatively to rate cuts, viewing them as an admission of an impending recession, Bitcoin could benefit from such a scenario.

🔮 What's Next?

The crypto community is closely watching Bitcoin's price movements and the potential approval of a Bitcoin ETF. Remember, there are only 21 million $BTC. Grab some before they’re gone.

That’s all for today. We’ll see you tomorrow for MCS Crypto 101.

Thank you so much for subscribing to Make Crypto Simple.

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}