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Covalent CEO: There’s an ‘unresolved backlog’ of unfilled Web3 data roles

The demand for on-chain analysts is set to further increase with Web3 data outgrowing Web2 data over the next 20-30 years, says Covalent’s Ganesh Swami.

Ganesh Swami, CEO of blockchain data aggregator Covalent says there continues to be an “intense demand” for on-chain data analysts, that is yet to be satisfied. 

Speaking to Cointelegraph, Swami said that analysts are in “intense demand” as there’s a “real need” for data experts to “make sense” of on-chain data, explaining:

“There is an unresolved backlog of unfilled data-driven roles. This demand is a testament to how eager blockchain and non-blockchain companies alike are to make sense of their own and competitors’ on-chain data.”

Swami explained that while the demand for on-chain data analysts has yet to eclipse their Web2 counterpart, the growth of stablecoin usage, lending, and decentralized finance (DeFi) products over the last 18 months has led to increasing demand for the job title.

Swami said similar to data analysts in traditional industries, on-chain data analysts can expect to analyze a company’s “reach, retention and revenue” metrics, except, in this case, the intelligence would be found on-chain data across multiple blockchains.

For example, in the case of an NFT project, Swami explained that “reach” would look into “how many people mint your tokens” and “retention” would relate to “what is the average holding period for these tokens” which is important to know whether investors are using these for “quick flips” or “holding on to them” long term.

“Revenue” is about sales — with blockchain analysts able to determine whether the sales are “concentrated through a handful of sales or distributed across multiple collections,” he explained. 

But the role doesn’t e there. Swami said that “to make better protocols and better serve users,” on-chain analysts can “cross-target users for marketing purposes or for user acquisition purposes” by reviewing what’s happened on competitor protocols, as the blockchain leaves what Swami likes to call “historical breadcrumbs.”

Swami also predicted that “Web3 data will exceed Web2 data” at some point in the next 20-30 years, and that Web3 data analysis “will be much, much bigger than the current business intelligence market, which is currently worth hundreds of billions of dollars.”

Addressing the current deficit of on-chain analysts, Covalent is set to launch a four-week “Data Alchemist Boot-Camp” on Oct. 19, which aims to train over 1,000 individuals in on-chain analytics.

“The only prerequisite to joining our Data Alchemist Boot-Camp is a desire to learn about Web3; come with that, and we’ll pay you to learn,” said Swami.

Related: Six helpful tips for Web3 companies searching for top data analysts

Over the near term, however, Swami said on-chain analysts will likely find more job opportunities in Web2 companies which are entering Web3, rather than Web3 native projects themselves:

“It will be faster and better for a Web2 company with their hundreds of millions of players or users to add over Web3 experiences, and what we can see, immediately what we have a line of sight to is Web2 businesses, adding a Web3 experience.”

“Companies such as Adidas and Samsung also now have departments of metaverse data scientists and analysts to serve the dashboards and metrics management,” he added.

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How Crypto Twitter reacted to Kim Kardashian’s $1.26M SEC fine

Some pointed out the regulator’s supposed hypocrisy, others told crypto-influencers to lawyer up, whilst a few poked fun at the reality TV star.

The crypto community reacted with a mix of disbelief and amusement after reality star Kim Kardashian was fined for promoting the cryptocurrency EthereumMax (EMAX). 

The United States Securities and Exchange Commission (SEC) fined Kardashian $1.26 million on Oct. 3, for “touting on social media” about the EMAX without disclosing she was paid $250,000 to post about it.

Kardashian has neither admitted to nor denied the SEC’s allegations, but settled the charges and agreed to not promote any cryptocurrency assets until 2025.

SEC chairman Gary Gensler tweeted the fine was a reminder that celebrity endorsement of investment opportunities doesn’t “mean those investment products are right for all investors.”

Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.

This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.

— Gary Gensler (@GaryGensler) October 3, 2022

Following Gensler’s tweet, the online crypto community expressed their thoughts on the fine, with some calling out the SEC for its inconsistent enforcement decisions. 

Economist Peter Schiff, known for his anti-Bitcoin (BTC) stance, pointed out what he perceived was an unfair targeting of Kardashian as the SEC hasn’t fined MicroStrategy co-founder Michael Saylor who he believes has “more to gain pumping crypto.”

The SEC is fining @KimKardashian $1.2 million for pumping #crypto. What about the real pumpers? @Saylor had much more to gain pumping crypto than Kim. Or @CNBC paid millions for ads by crypto companies, then pumping #Bitcoin non-stop while providing industry pumpers with airtime?

— Peter Schiff (@PeterSchiff) October 3, 2022

Saylor responded saying Bitcoin isn’t a security but a commodity and its promotion would be “similar to promoting steel…or granite” and the coin’s open protocol offers “utilitarian beliefs similar to roads.”

Crypto-personality and author Layah Heilpern shared she believed “the SEC has bigger issues closer to home it should probably focus on…” likely inferring the widely held belief in the community that certain U.S. politicians have inside traded.

The SEC will go after Kim Kardashian for shilling a crypto but not Nancy Pelosi for insider trading her way to a hundred million dollars https://t.co/i0bZKjaxjJ

— Dr. Parik Patel, BA, CFA, ACCA Esq. (@ParikPatelCFA) October 3, 2022

Pseudonymous developer 0xBender noted a contrast between the SEC’s heavy-handed treatment of crypto promotions from celebrities, while crypto-centric influencers “have been out here shilling you garbage for 0.2 ETH (Ethereum) a tweet.”

The SEC is charging Kim Kardashian with unlawfully promoting a crypto security while influencers have been out here shilling you garbage for 0.2 ETH a tweet

— bender (@0xBender) October 3, 2022

Others such as former federal prosecutor Renato Mariotti said influencers thinking to endorse cryptocurrencies should “take note” as the regulator is showing it will “aggressively pursue enforcement actions” and those who promote crypto without considering the laws will “need to find a good lawyer.”

Kim Kardashian presented a very tempting target for the SEC.

Because of this case, millions of people who didn’t know much about the SEC now know about it.

As an aspiring lawyer, she had every incentive to cooperate. Other celebrity crypto endorsers should take note. https://t.co/3mvMNQOxvg

— Renato Mariotti (@renato_mariotti) October 3, 2022

Meanwhile, Ethereum educator and investor Anthony Sassano told his followers he believes the SEC targeted Kardashian because it creates the illusion the regulator is “doing something” about crypto scams, and suggested it should’ve targeted the creators of EMAX instead.

They went after Kim Kardashian because she makes a good headline and it shows the public that the SEC is “doing something” about crypto scams

In reality, the fine she paid is dust to her, the creators of Ethereum Max haven’t been fined (yet?), and the victims are all still rekt

— sassal.eth (@sassal0x) October 3, 2022

Related: The SEC is bullying Kim Kardashian, and it could chill the influencer economy

Still, some saw the lighter side of investing in a tumultuous and highly speculative crypto token, with journalist Tyler Conway saying the star “got the full crypto experience” by losing more money than she’d been paid.

Self-described hacker and tech content creator Marcus Hutchins said Kardashian “would have gotten better returns” in EthereumMax as it’s down 97% since her post, compared to the -80% the promotion returned for her.

Kim Kardashian got paid $250k to promote Ethereum Max then lost $1.3m of that to an SEC fine. Would have gotten better returns just investing in Ethereum MAX, which is down 97% since her post.

— Marcus Hutchins (@MalwareTechBlog) October 3, 2022

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The SEC is bullying Kim Kardashian, and it could chill the influencer economy

The feds should have tried to work with Kardashian to establish more transparent norms for influencers rather than slapping her with a $1.26 million fine for promoting EthereumMax.

The Securities and Exchange Commission announced on Oct. 3 that Kim Kardashian settled an allegation that she promoted “a crypto asset security offered and sold by EthereumMax without disclosing the payment [of $250,000] she received for the promotion.” While she cooperated and closed the case with $1.26 million in penalties, the charge highlights the liability that “influencers” increasingly face as a result of an activist SEC that has failed to establish regulatory clarity.

Pushing influencers to leave the United States

Addressing the agency’s action against Kardashian, Jacob Robinson, a legal scholar and host of the Law and Code podcast, noted that “The net-positive is [that] this probably leads to less shilling by celebs who have zero knowledge of the underlying project & are just receiving a big payday.”

Thanks to the proliferation of social media platforms, content creators and influencers have emerged and are working with brands to promote products and services. Sadly, the “creator economy” has also had downsides. In particular, influencers have often sold products and services that may not serve everyone’s interests, accepting payment from companies in exchange for their support.

While that privilege can be, and often is, abused, influencers are not doing anything systematically different than what corporations do when they take out paid advertisements in the media and on television, or even when board members join and take on a retainer to share their network and promote an organization. When a corporation takes out an ad in a large paper or magazine, such as The New York Times or Vogue, are the media outlets equally liable for not disclosing their acceptance of payment to all the readers? Clearly not, and the media’s business model would quickly crumble if they were unable to accept such paid advertising opportunities.

Related: Biden’s anemic crypto framework offered nothing new

So, why are influencers treated so differently, and why can they personally be liable and targeted by a federal agency? Consider the car market: If a used car salesperson sells a customer a car that is later recalled or turns out to have some other flaw, are they singled out by a regulatory agency? The car company might be — as we have seen with Volkswagen, Toyota and others over the years — but the individual employee is generally free from such liability.

The SEC’s action against Kardashian risks alienating and stifling other members of the creator economy. While she can “afford” the $1.26 million fine — a little more than $1 million in excess of what she earned — many content creators are not making six-figure-plus salaries each year. The action also threatens to push many content creators outside the United States to countries that have more favorable policies.

Defining securities and liability

The SEC has adhered to an old Supreme Court ruling from 1946, SEC v. W. J. Howey Co., which led to what is now known as the “Howey test.” The Howey test defines an “investment contract” if the following conditions are met: 1) an investment of money 2) in a common enterprise 3) with the expectation of profit 4) derived from the efforts of others.

The test, however, was introduced in an entirely different economy than the one we have today. To be sure, many projects that involve the release of fungible tokens easily fall into the category of a security regardless of how liberal one wants to be with the definition. But other projects, especially nonfungible token projects, are in a much grayer area. Many NFT projects do not convey any expectation of profit to their potential holders but rather emphasize perks and exclusive access to events, classes or deals.

Related: Get ready for the feds to start indicting NFT traders

Admittedly, the SEC’s recent regulatory action went after Kardashian for her promotion of EthereumMax (EMAX) without disclosing that she had received payment rather than for EthereumMax being a security, as it was arguably an easier, more clear-cut case. But the case highlights a major challenge influencers will inevitably face in the Web3 economy if they have to worry about regulatory risk against themselves for promoting different projects, even if they just make a social media post.

Other countries are taking a vastly different approach toward Web3. For example, the United Arab Emirates has gone on record saying that it wants its economic success to be measured according to its “gross metaverse product” rather than the conventional gross domestic product that has become the norm for cross-country comparisons in productivity. The UAE, among others (such as Singapore), has become a hub for entrepreneurs and startups.

What happened to Kardashian could happen to others

If the regulatory concern is that influencers are abusing their authority by promoting products and services without disclosing receipt of compensation, then Web3 lends itself perfectly through greater transparency and accountability on the blockchain. In particular, influencers could have their digital wallets open for viewing so that their remuneration is open and their own purchases visible. (There is still a need for privacy-preserving blockchains since everything in everyone’s lives should not be on full display, but with the blockchain, there is much more potential for transparency and accountability where it matters.)

Web3 also allows content creators to receive payment for their creative content without having to rely as much on centralized entities for brand deals and partnerships. NFTs, for instance, allow artists to transform audiences into communities that engage with their content directly.

What happened to Kardashian could have happened to several influencers. While regulatory actions without penalties admittedly do not have much bite — and often, such penalties are needed to signal that an agency is serious — an alternative strategy would have been to reach out to Kardashian and galvanize support among a body of influencers to establish stronger, more transparent norms around the promotions of products and services, particularly crypto projects that could be classified as securities. Such an approach is more collaborative and would contribute to establishing shared norms and best practices among crypto enthusiasts.

Christos Makridis is an entrepreneur, economist and professor. He serves as chief operating officer and chief technology officer at Living Opera, a Web3 multimedia startup, and holds academic appointments at Columbia Business School and Stanford University. Christos also holds doctorates in economics and management science from Stanford University.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. The author was not compensated by any of the projects cited in this piece.

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US Treasury recommends lawmakers decide which regulators will oversee crypto spot market

“The report recommends the passage of legislation in providing a rulemaking authority for federal financial regulators over this market,” said economist Jonathan Rose.

Officials with the United States Financial Stability Oversight Council, or FSOC, have recommended U.S. lawmakers pass legislation to determine which “rulemaking authority” will be responsible for regulating parts of the crypto spot market.

In an Oct. 3 meeting of the FSOC, Jonathan Rose, a senior economist at the Federal Reserve Bank of Chicago, said the FSOC had released a report in accordance with President Joe Biden’s executive order on crypto, detailing potential financial stability risks of digital assets and regulatory gaps. The report identified regulatory gaps including the spot market for cryptoassets that were not securities subject to “limited direct federal regulatory” — hinting at lawmakers stepping in to prevent possible market manipulation and conflicts of interest.

“While some firms in the crypto asset ecosystem have attempted to avoid regulation, other firms have engaged with the existing regulatory system by obtaining trust charters or special state-level cryptoasset-specific charters or licenses,” said Rose. “The report recommends the passage of legislation in providing a rulemaking authority for federal financial regulators over this [spot] market.”

According to Rose, cryptocurrencies could present financial stability risks to the U.S. economy “under certain conditions” — including growth without corresponding regulatory checks and balances. He also mentioned crypto firms operating through affiliates or subsidiaries, seemingly obfuscating offerings in the eyes of regulators, and whether companies should be allowed to offer services through intermediaries, including “broker dealers and futures commission merchants.”

In a prepared statement for the council meeting, Treasury Secretary Janet Yellen said:

“These reports provide a strong foundation for policymakers as we work to mitigate the risks of digital assets while realizing the potential benefits. They also provide a valuable addition to the public’s understanding of digital assets.”

The council’s recommendations seemed to suggest that the Commodity Futures Trading Commission, or CFTC, could be one of the regulators given authority over the crypto spot market. U.S. lawmakers have already introduced bills aimed at clarifying the roles of the Securities and Exchange Commission and CFTC over crypto. Many in the space have also criticized the two bodies for taking a “regulation by enforcement” approach to digital assets, seemingly in an attempt to gain regulatory control over the market without legislation going through Congress.

Related: Blockchain Association calls White House’s crypto framework a ‘missed opportunity’

On Oct. 3, the SEC announced it had charged celebrity Kim Kardashian $1.26 million for “touting on social media a crypto asset security offered and sold by EthereumMax” without disclosing any payment she had received for the promotion. In May, a federal court ordered the three co-founders of crypto derivatives exchange BitMEX to pay $30 million in civil monetary penalties as part of a CFTC case in which the regulator said the individuals violated aspects of the Commodity Exchange Act.

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a16z leads $40M raise for decentralized knowledge protocol

Golden, which has now raised roughly $60 million in cumulative funding, also receives a16z general partner Ali Yahya to its board.

Decentralized knowledge protocol Golden has closed a $40 million funding round led by venture firm Andreessen Horowitz, or a16z, with additional participation from Protocol Labs, OpenSea Ventures and the founders of Solana, Dropbox, Postmates and Twitch, among others. 

In addition to leading the Series B funding round, Andreessen Horowitz’s general partner Ali Yahya will join Golden’s board alongside a16z cofounder Marc Andreessen. The funding gives Golden additional resources to continue building its protocol, which is designed to standardize the discovery and verification of knowledge in the era of Web3.

Specifically, Golden is developing a decentralized interface that incentivizes collecting and verifying canonical data. The company claims that over 35,000 users participated in early testnet phases of the protocol.

Related: Microsoft, Avalanche, Polygon join $20M funding of Web3 automation startup

While venture financing for the crypto industry has slowed recently, 2022 has seen record inflows for blockchain-focused startups. Recently, hedge fund Pantera Capital upped the ante by disclosing plans to raise $1.25 billion for its second blockchain fund. Projects specializing in Web3, which refers to some future iteration of the internet, have attracted outsized interest from the venture capital community.

In describing its product, Golden said that incorporating Web3 technologies is “well suited to solve the core problems” of incentivization. Golden plans to use native tokens for rewarding ‘good actors” but also specified that the final product is “not simply ‘Web3 Wikipedia’.” The mainnet is scheduled for release in the second quarter of 2023.

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A crumbling stock market could create profitable opportunities for Bitcoin traders

U.S. tech giants are set to report their second quarter earnings throughout October, presenting a scenario that could possibly benefit Bitcoin.

Some of the biggest companies in the world are expected to report their 2Q earnings in October, including electric automaker Tesla on Oct. 18, tech giants Meta and Microsoft on Oct. 24, Apple and Amazon on Oct. 26 and Google on Oct. 30. Currently, the possibility of an even more severe global economic slowdown is in the cards and lackluster profits could further add to the uncertainty.

Given the unprecedented nature of the United State Federal Reserve tightening and mounting macroeconomic uncertainties, investors are afraid that corporate profitability will start to deteriorate. In addition, persistent inflation continues to force businesses to cut back on hiring and adopt cost-cutting measures.

Strengthening the dollar is particularly punitive for U.S. listed companies because their products become more expensive in other countries and the reduced revenue brought in from overseas negatively impacts the bottom line. Google, for instance, is expected to grow revenues by less than 10%, down from a 40% growth in 2021.

The companies that comprise the S&P 500 account for an aggregate $32.9 trillion in value and crypto investors expect some of those bets to enter Bitcoin (BTC) if earnings season fails to sustain a modest growth — signaling the stock market should continue to underperform.

From one side, traders face the pressure from Bitcoin’s correlation to equities, but on the other hand, BTC’s scarcity might shine as inflation concerns arise. This possibly creates an immense opportunity for those betting on a BTC price rally, but extreme caution would also be needed for those opening positions.

Risk averse traders could use futures contracts to leverage their long positions but they also risk being liquidated if a sudden negative price move occurs ahead of the corporate earnings calendar. Consequently, pro traders are more likely to opt for options trading strategies such as the “long butterfly.”

By trading multiple call (buy) options for the same expiry date, traders can achieve gains thre times higher than the potential loss. This options strategy allows a trader to profit from the upside while limiting losses.

It is important to remember that all options have a set expiry date, so the asset’s price appreciation must happen during the defined period.

A cautionary approach to using call options

Below are the expected returns using Bitcoin options for the Oct. 28 expiry, but this methodology can also be applied using different time frames. While the costs will vary, the general efficiency will not be affected.

Profit / Loss estimate. Source: Deribit Position Builder

This call option gives the buyer the right to acquire an asset, but the contract seller receives (potential) negative exposure. The “long butterfly” strategy requires a short position using a call option, but the trade is hedged on both sides — limiting the exposure.

To initiate the execution, the investor buys 13 Bitcoin call options with a $20,000 strike and sells 24 contracts of the $23,000 call. To finalize the trade, one would buy 10.5 BTC contracts of the $26,000 call options to avoid losses above such a level.

Derivatives exchanges price contracts in BTC terms, and $19,222 was the price when this strategy was quoted.

Using this strategy, any outcome between $20,690 (up 7.6%) and $26,000 (up 35.3%) yields a net profit — for example, the optimal 20% price increase to $23,000 results in a 1.36 BTC net gain, or $24,782 at current levels. Meanwhile, the maximum loss is 0.46 BTC or $8,382 if the price on Oct. 28 expiry happens below $20,000.

The “long butterfly” strategy provides a potential gain that is three times larger than the maximum loss.

Overall, the trade yields a better risk-to-reward outcome than leveraged futures trading, especially considering the limited downside. It certainly looks attractive for those expecting deteriorating business conditions for listed companies.

It is worth highlighting that the only up front fee required is 0.46 BTC, which is enough to cover the maximum loss.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Binance burns $1.8M in LUNC trading fees following community proposal

According to the crypto exchange, the burn was the equivalent of 1,863,213.47 USDT — roughly 5.5 million LUNC.

Cryptocurrency exchange Binance has announced it completed the first burn of Terra Classic tokens’ trading fees in response to a community proposal from September.

In an Oct. 3 update, Binance CEO Changpeng Zhao said the exchange had burned roughly $1.8 million worth of Terra Classic (LUNC) — formerly Terra (LUNA) — trading fees for LUNC/BUSD and LUNC/USDT spot and margin trading pairs. According to Binance, the burn included the equivalent of 1,863,213.47 Tether (USDT) — roughly 5.5 million LUNC.

First LUNC burn, $1.8 million ish.
https://t.co/b86RlCYqe3

— CZ Binance (@cz_binance) October 3, 2022

The exchange’s original announcement from Sept. 26 said the burns would be completed every Monday — making the next event on Oct. 10 — sending trading fees to a LUNC burn address. Many in the Terra community proposed the burn strategy as part of efforts to revive LUNC, whose price dropped to almost zero in May and briefly surging by more than 250% in September.

Related: Do Kwon shares LUNA burn address but warns ‘LUNAtics’ against using it

Terraform Labs co-founder Do Kwon, whom many in the crypto space want held to account for his role in Terra’s collapse, has been targeted by South Korean authorities for allegedly violating the country’s capital markets laws. A warrant has been issued for his arrest and Interpol added Kwon’s name to its Red Notice list, requesting local law enforcement — many have suggested he may be in Singapore — detain the Terra co-founder. At the time of publication, Kwon’s whereabouts are unknown, but he said on Twitter on Sept. 26 that he was “making zero effort to hide.”

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Cathie Wood’s ARK Invest to offer crypto strategies to investment advisors

In partnership with Eaglebrook, the strategies will be offered to registered investment advisors.

Cathie Wood’s investment firm, ARK Investment, is making its two actively managed crypto strategies available to registered investment advisors. The strategies will be available as separately managed accounts (SMA) through a collaboration with the digital asset platform Eaglebrook, the companies announced on October 3. 

The ARK Cryptocurrency Strategy aims to capitalize on the monetary revolution, said the companies in the statement, claiming that it “could serve as a strategic allocation in well-diversified portfolios.”

Cathie Wood, ARK’s founder and CEO, said:

“The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.”

This collaboration should allow Ark to expand its services beyond exchange-traded funds (ETFs). An SMA is a portfolio created by a financial advisor or investment firm for a single investor. On ETFs, investors own shares of the fund instead of the underlying securities. 

The top-tier fund at ARKs, the Ark Innovation ETF, seeks long-term growth of capital by investing in disruptive innovation companies, according to its official website. It has $7.946 billion under management and was down 60.11% as of Sept. 30, while the S&P 500 declined 23.87% and the BTC price dipped over 58% in 2022. Wood is known for being a big Bitcoin (BTC) believer, who predicted that BTC would hit $1 million by 2030.

Yassine Elmandjra, ARK’s cryptoasset analyst, said in the statement the “much of the speculative behavior has died down”. She added that the moment “presents an attractive entry point for investors.”

Ark sold over 1.4 million Coinbase (COIN) shares through three of its funds in July as regulators probed the firm for alleged insider trading. At that time, the firm was one of Coinbase’s largest shareholders.

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NYDIG raises $720M as Bitcoin balance hits all-time high

An SEC filing reveals NYDIG’s intent to raise $720 million while a recent press release shows the company’s commitment to HODLing.

The bear market has not deterred one of the biggest Bitcoin (BTC) bulls. The balances of the New York Digital Investment Group, or NYDIG, hit record highs in Q3 of this year. Plus, a United States Securities and Exchange (SEC) filing could reveal the group’s intent to add more Bitcoin to its balance sheet. 

According to a press release, NYDIG’s Bitcoin balances are “up almost 100% year-over-year, and revenue is up 130% through Q2, with another increase when the firm closes its books on Q3.” The company HODLs more Bitcoin than ever despite Bitcoin continuing to tread lower and lower over the course of 2022.

Furthermore, according to an amended SEC filing, the group has raised $720 million for its institutional Bitcoin fund. Fifty-nine investors contributed an average of more than $12 million each to the raise.

The filing states that the SEC has “not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.” 

NYDIG offers cold storage custody solutions to institutional investors and high-net-worth individuals. Describing itself as a “Bitcoin company,” the group has endured several exchange-traded fund rejections by the SEC.

Related: Institutional appetite continues to grow amid bear market — BitMEX CEO

The group continues to promote all aspects of Bitcoin adoption, recently allowing the employees of participating companies to receive salaries in Bitcoin. The recent press release highlighted a newfound emphasis on the Lightning Network, stating “Now it’s time for Lightning.”

NYDIG’s move to promote the Lightning Network development follows that of business intelligence firm MicroStrategy. Michael Saylor, the group’s executive chairman, recently announced job postings for LN developers.

A shakeup in NYDIG’s leadership accompanied the news. Tejas Shah and Nate Conrad take on the roles of CEO and president, respectively, as the departing CEO, Robert Gutmann, and outgoing president, Yan Zhao, step down but remain at Stone Ridge Holdings Group, the parent company to NYDIG.

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Bitcoin price sets October high with $20K in reach as US stocks rally

Traders say Bitcoin is overdue for a breakout, but are also keeping a lid on how optimistic they should be about a macro trend reversal.

Bitcoin (BTC) climbed to new October highs at the Oct. 3 Wall Street open as Credit Suisse concerns heightened. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Traders close in on rangebound BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD taking aim at $19,500 after starting the month flat.

The largest cryptocurrency reacted positively to lower than expected United States manufacturing data, while in Europe, market turmoil over Credit Suisse gathered pace despite executives’ reassurances.

“We are kicking off October trading in the same congested area we ended September,” on-chain analytics resource Material Indicators wrote in one of several updates on the day.

“The 21 DMA is behaving like a ceiling on BTC price, but expect it to be retested soon. Need it to do so for any shot at reclaiming the 20s.”

Material Indicators was referring to Bitcoin’s 21-day moving average (MA) at around $19,400, this now potentially coming in for a resistance/ support flip.

BTC/USD 1-day candle chart (Bitstamp) with 21MA. Source: TradingView

A further post revealed a proprietary trading indicator flashing “long” on daily timeframes, increasing hopes that bulls would be able to tackle the $20,000 mark.

Analyzing the behavior of derivatives traders, however, William Clemente, co-founder of digital asset research and trading firm Reflexivity Research, warned that long positions were too eager to confirm a trend change.

“Important to monitor the BTC derivatives market. For the time being, longs have been piling in on every move up in price,” he explained.

“This is not what we want to see for a full on trend reversal (similar to the end of July 2021). We want to see participants conditioned to ‘fade’ rallies.”

Order book data from Binance, the largest exchange by volume, meanwhile showed BTC/USD acting in a tight range bordered by sellers at $19,500 and bid interest around $19,150.

Below that, support lay at $18,800 at the time of writing.

BTC/USD order book data chart (Binance). Source: Material Indicators/ Twitter

U.S. stocks make up losses as dollar cools

Turning to the macro situation, U.S. Purchasing Managers Index (PMI) data coming in below expectations pressured bond yields.

Related: BTC price still not at ‘max pain’ — 5 things to know in Bitcoin this week

At the same time, oil and silver, in particular, gained, while on equity markets, the S&P 500 and Nasdaq Composite Index were 1.8% and 1.3%, respectively.

“Coming week more PMI data, unemployment and job openings will be coming in. The turn in markets? Seems like it,” Michaël van de Poppe, CEO and co-founder of trading firm Eight, responded as part of market commentary.

Van de Poppe additionally described Bitcoin’s current trading range as “ultra boring” while hoping that crypto would copy silver’s performance.

The U.S. dollar index (DXY), a classic headwind for crypto, slid below 112 points on the day.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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