This is a BIG DEAL for CRYPTO 💥💥💀

🚩 In 10 bullet points:

👇 1) When Binance halted USD transfers in January, Bitcoin prices dropped -10%. Obviously, Binance has a much bigger impact than other exchanges but also now ByBit will halt USD transfers from March 10 onwards. This action is now preventing SWIFT (international) and Wire transfers (national) to reach some crypto exchanges and is indeed a BIG deal.

👇 2) Last week, Silvergate Bank announced the discontinuation of the internal Silvergate Exchange Network (SEN) that was instrumental for counterparties to settle deposits with each other around the clock.

👇 3) Silvergate shares have now declined from $220 to $5 and for those who don’t know, it has/had around 1,600 crypto related corporate clients. This is also a very BIG deal.

👇 4) Three data points certainly make a trend that there is a deliberate attempt to cut off USD access for crypto exchanges and crypto firms.

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👇 5) In our book, “Crypto Titans" (available for pre-order on Amazon or link above), we analyzed all those banking, on-and-off ramp relationships and therefore we are aware of the impact this might have on the industry.

👇 6) So, we are already starting to observe very strange data abnormalities in the crypto markets that we need to monitor carefully to understand what they mean. Easy to explain is that the Bitcoin trading range has narrowed significantly.

👇 7) But what is very strange how Bitcoin and Ethereum volumes have declined (according to Coingecko and Messari real volumes have declined by -50%). This can set up the market to accidents - hence its time to be careful.

👇 8) The futures market for Bitcoin and Ethereum is also showing less bullish sentiment with the basis trading negatively.

👇 9) The volatility spread between Ethereum and Bitcoin has now compressed to below 1. This has only occasionally happened and the spread has traded above 1 in 93% of the observations during the last four years. In fact, the spread has averaged 1.39 over the years and offers great risk / reward potential here. The above vol spread is measured in the one month realized vol while the implied level has Ethereum trading at 52% while Bitcoin trades at 49% - close enough.

👇 10) Bitcoin Cash has reached a new shorter-term low. Previously, during similar occasions, Bitcoin Cash token had a median return of -15.7%, over the following 2 weeks based on 10 historical occasions with 10 of those showing negative returns (100% hit ratio). This sell signal for Bitcoin Cash received a high score of 8.7 (out of 10). This insight was generated on 2023-March-7 with last price of 120.28.