Riding The Wave Weekly Outlook #48

Contagion, Bankruptcy, and the Bahamas behind the FTX "hack"

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Table of Contents

1. Tweets

2. What’s Happening Now?

3. What Might Happen Next?

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Tweets

Dylan LeClair 🟠 @DylanLeClair_

I think people are missing how big the Genesis news is; one of the biggest lending desks in the space. Not only does the withdrawal halt lead to more balance sheet impairment, but the lack of new loan origination going forward will lead to a financing crunch for debtors.

DonAlt @CryptoDonAlt

Seems reasonable Willing to lose the investment to gain more than a 5x Think the 5x is actually more likely than losing it all Still not finished buying and can buy more lower if need be but that's the idea

Stockmoney Lizards ⚡️ @StockmoneyL

#Bitcoin is game over (again)

Watcher.Guru @WatcherGuru

JUST IN: Crypto lender BlockFi is preparing for imminent bankruptcy, citing FTX collapse.

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

JUST IN: Binance preparing to buy crypto-lender Voyager - Coindesk

kadhim (＾ｰ^)ノ @kadhim

THE FTX FIRST DAY DECLARATION New CEO John Ray is scathing about Sam Bankman-Fried's management. "Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information." pacer-documents.s3.amazonaws.com/33/188450/0420…

jonwu.eth @jonwu_

I just read FTX's Chapter 11 First Day Affidavit. In it, the appointed restructuring CEO John Jay Ray III, who oversaw Enron's bankruptcy proceedings, calls FTX's case the worst of his career. Its contents are shocking. Here are the highlights: 👇

Croesus 🔴 @Croesus_BTC

Quick math: -330k BTC mined / year this halving era -FTX has -$1.4B in BTC on books, meaning 80k BTC -Assuming incurred this year, means FTX "increased" BTC supply issuance 25% this year -Others likely did same No wonder we're under prior cycle highs. Halving math interference.

The Kobeissi Letter @KobeissiLetter

You cannot make this up: Last Friday, FTX was mysteriously hacked on a Friday night for over $600 million in customer funds. Just now, it was revealed that the Bahamas government ordered SBF to hack FTX and transfer them the funds. This is fraud is so bad it almost seems fake.

Root 🥕 @therationalroot

Considering how far we've historically dropped below Realized Price: -current range very much in line. -10k seems improbable. #Bitcoin

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What’s Happening Now?

Bitcoin(BTC)

Bitcoin is still down due to the collapse of FTX, but it appears to have found support for now.

Weekly Timeframe Bitcoin

We are finding support in the bottom of the second resistance area on the daily time frame after we bounced off of the downtrend that previously pushed us lower in price.

Daily Timeframe Bitcoin. Red/blue boxes are potential area support/resistance, blue line represents the downtrend we were previously following

Ethereum(Eth)

Ethereum is still below its SMA’s.

Weekly Timeframe Ethereum

On the daily time frame, Ethereum is still fighting resistance when trying to move into the 7th resistance area.

Daily Timeframe Ethereum. Red boxes are potential areas of support/resistance, the blue line represents the downtrend we seem to be following

Cardano(Ada)

Cardano is also holding at its new lowest price post-All-Time High peak price.

Weekly Timeframe Cardano

On the daily time frame, we are continuing below the downtrend from April.

Daily Timeframe Cardano. Red boxes are potential areas of support/resistance, the blue line represents the downtrend we seem to be following.

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What Might Happen Next?