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Man's $220M Bitcoin Nightmare!
Bitcoin & Ether Markets in Liquidity Crisis
OpenSea Hints at IPO Launch, No Tokens Yet
Man's $220M Bitcoin nightmare: 2 password attempts left!
Have you ever heard the saying "safe and secure like a hard drive"? Well, Stefan Thomas' story might just make you rethink that analogy.
Thomas, a programmer based in San Francisco, earned a sum of 7,002 Bitcoin back in 2013, which is now worth a whopping $220 million. He saved his fortune on an IronKey hard drive, which he thought was secure enough to protect his investment. But fast forward to 2021, and Thomas is left with only two attempts to access his Bitcoin before it's locked away forever.
You see, Thomas lost the password to his IronKey hard drive, and despite several unsuccessful attempts to recover it, he now faces the possibility of losing all access to his Bitcoin. And to make matters worse, he did write down his password, but he misplaced it. It's like finding the key to your treasure chest, but then losing it right before you can open it.
Thomas' story is not unique in the world of cryptocurrency. There have been several instances where people have lost access to their cryptocurrency wallets due to lost passwords or misplaced hard drives, just like the case of James Howells, who accidentally threw away a hard drive containing 7,500 Bitcoin back in 2013.
These cautionary tales serve as a reminder to all investors in the world of cryptocurrency. While the potential rewards of investing in crypto can be great, the risks are also very real. It's important to take the necessary precautions to ensure that passwords are secure and accessible, just like how you would safeguard your treasure chest key.
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Bitcoin and Ether Markets Face Alarming Liquidity Crisis.
If you've been keeping an eye on the Bitcoin and Ether markets, you might have noticed something strange going on. The liquidity conditions in these markets are at their worst levels since the collapse of Terra in May 2022. That's right, the situation is more alarming than it was three months ago, and it has traders worried about abrupt price swings in the crypto market. But what does liquidity mean in the first place? Well, it's the ability of the market to absorb large buy and sell orders at stable prices.
To put it simply, the less liquid an asset is, the more drastic its moves can be. And that's exactly what we're seeing in the Bitcoin and Ether markets right now. According to Paris-based crypto data provider Kaiko, Bitcoin's 2% market depth for USDT pairs aggregated from 15 centralized exchanges has slipped to 6,800 BTC, the lowest since May 2022, and below the level that followed the demise of crypto exchange FTX. Ether's 2% market depth has more than halved to 57,000 ETH since October, led by Binance.
So, what does all of this mean for you? Well, if you're a trader looking to trade size, you might have to TWAP over longer periods to minimize the impact on the market and reduce slippage. TWAP, or time-weighted average price, is an algorithmic strategy focused on achieving an average trade execution price close to the time-weighted average price of the asset.
But realistically speaking, dwindling market depth has also meant that most large funds have not been participating at the same level as before due to the amount of slippage associated. So, any large institution that offloads coins now is going to have a deeper effect on the market.
In short, liquidity is thinning, and traders are worried about the impact this might have on the crypto market. So, keep a close eye on the situation, and if you're a trader, make sure to take measures to minimize slippage.
⚡️ Daily Buzz: Must-Know Topics for Today
Move over ChatGPT, Tencent forms team for its own chatty competitor!
SG investor closes $75m blockchain fund, looks like someone's hitting the crypto jackpot.
Bridgewater's new strategy to increase profit margins: lay off 8% of employees and cap flagship funds. Ray Dalio's hedge fund is starting to feel the heat.
OpenSea hints at possible IPO launch, but no tokens yet. Watch out, Coinbase.
Coinbase takes down #Binance's $BUSD stablecoin for lack of liquidity, CEO claims. Looks like the crypto market is getting pretty competitive.
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