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⚡Short Sellers' Nightmare😈

Croxroad

14 Feb 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

💨 Whirlwind of Losses

Bitcoin faced a substantial correction today after surpassing the coveted $50,000 mark. Despite a positive week with BTC climbing from $43,000 to over $48,000, Monday started with a minor retracement. However, bears swiftly intercepted the market movement, reversing its trajectory and propelling Bitcoin to a peak of just over $50,000 – its highest price in over two years.

Warnings of a potential rejection were present, indicating that investors might opt to take profits at this juncture. Such caution proved valid as Bitcoin plummeted by nearly $2,000 within an hour, and though it has recovered some ground, it remains below $49,000. The abrupt decline led to the liquidation of over 65,000 over-leveraged traders in the past day, resulting in total losses exceeding $210 million. Notably, the largest liquidated position, valued at $4.7 million, involved the ETH/USDT trading pair on Binance, according to CoinGlass data.

⚖️ CZ's Legal Saga Continues

The sentencing for Binance founder and former CEO Changpeng "CZ" Zhao has been rescheduled to April 30, according to a notice filed in a Seattle Federal Court on Feb. 12. Originally set for Feb. 23, Zhao faces up to 18 months in prison after pleading guilty to money laundering charges. However, a November 24 prosecution filing suggested he might face a harsher penalty, with a potential range up to ten years.

Despite claims by the defence that Zhao may only face a brief sentence, legal experts, including former SEC official John Reed Stark, suggest a 12–18 month sentence is possible. Zhao's legal team is expected to seek no jail time or an alternative sentence, potentially combining prison time with home detention and probation. Currently out on bail with a $175 million bond, Zhao, residing in the U.S., awaits his sentencing, and a federal court order on Dec. 29, 2023, barred him from travelling outside the U.S. due to concerns about being a flight risk. Zhao had pleaded guilty to failure in maintaining an effective Anti-Money Laundering program at Binance and settled for $4.3 billion, stepping down as CEO as part of the agreement.

⏩ Fast and Safe Transactions

Buying Bitcoin with a credit card offers almost instant transactions on major exchanges, providing a convenient option for quick market moves through mobile devices. This method contrasts with bank account transfers, which can take several days to process, leaving buyers susceptible to potential changes in the market and Bitcoin prices.

Credit card transactions on regulated exchanges typically involve high levels of encryption, and platforms often mandate KYC and Anti-Money Laundering (AML) checks for security and compliance. While many cryptocurrency buyers are unfazed by these checks, privacy-focused individuals in the crypto community may hesitate due to the extensive personal information required.

For new cryptocurrency investors accustomed to using credit cards for online transactions, purchasing Bitcoin through this method is beginner-friendly. There is some level of protection from the credit card company in case of issues, but it's essential to note that depending on the scenario, such as a fraudulent transaction where the buyer doesn't receive Bitcoin, the card company's investigation and the possibility of a chargeback are not guaranteed forms of protection.