CoinMarketCap News, Jan 9: Two Key Levels to Watch in Bitcoin's Price Revealed

The crypto markets have started the week with a modest surge upwards — helping Bitcoin break through $17,000 for the first time since mid-December. CoinMarketCap data shows the best performers among the 20 biggest cryptocurrencies were Solana and Cardano — up 20% and 15% respectively on a 24-hour timeframe. While this sea of green may offer some welcome respite for crypto investors, it's shaping up to be quite a turbulent week — and that means these gains may end up being short-lived. CryptoQuant analyst VentureFounder has warned a definitive break of $16,000 could cause Bitcoin to slump to $13,000 — while breaching support at $18,000 could spur a further rally to $22,500.

After weeks of bickering, teams in the U.S. and The Bahamas have agreed to cooperate in bankruptcy proceedings against FTX. The cooperation agreement means that both parties will "work together to share information, secure and return property to their estates, coordinate litigation against third parties and explore strategic alternatives for maximizing stakeholder recoveries." Indicating that there may be a couple of things that they disagree on, FTX's new CEO John Ray said: "There are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest." The cooperation agreement will need to be given the green light by courts in both countries.

As ever, multiple strands to this story are unraveling simultaneously. Former FTX US president Brett Harrison, who stepped down weeks before the bankruptcy, has said he will "share in time" what he knew about the stricken exchange — but stopped short of confirming whether he's working with regulators and prosecutors. Elsewhere, prosecutors have set up a dedicated website for those who believe they were "a victim of fraud" by SBF. And FTX's new management is trying to recoup charitable donations made while Bankman-Fried was at the helm… even though some of the cash may have already been spent. Nonprofits are being warned action will be taken in bankruptcy court, with a view to forcing repayments plus interest.

A crypto payments platform has announced that it's limiting withdrawals at 90%, amid reports that a shutdown is imminent. In an update posted over the weekend, Wyre said the amended policy would be subject to daily withdrawal limits — leaving users rushing to gradually pull most of their funds from the site. All of this comes after a since-deleted LinkedIn post from one of its technical engineers suggested that "Wyre won't continue as a profitable business." A leaked email obtained by Axios suggests Wyre's CEO warned staff "to brace themselves for the fact that we will need to unwind the business over the next couple of weeks." All of this comes just four months after Bolt abandoned plans to buy Wyre for about $1.5 billion.

Getting photographed in a bathtub full of cash isn't usually a smart move. And it wasn't for Gary Harmon, who has now pleaded guilty to stealing 712 BTC. The circumstances surrounding the theft were pretty interesting. The Bitcoin was in the process of being confiscated from his brother Larry, who has since been convicted of operating the money laundering service Helix. A hardware wallet was seized by detectives at the time of his arrest, but security features meant they were unable to access the funds. It later emerged that Gary Harmon had used his brother's credentials to recreate the Bitcoin wallets stored on the device, and transfer the digital assets to his own wallets. The stash is worth over $12 million at the time of writing.

Digital Currency Group is being scrutinized by federal prosecutors in the U.S., according to a Bloomberg report. Anonymous sources told the news outlet that investigators are examining transfers between DCG and Genesis, its embattled crypto lending arm. Particular documents and interviews are now reportedly being requested — and the SEC is also said to have launched an investigation. However, the Bloomberg report stressed that Genesis, DCG and its CEO, Barry Silbert, have not been accused of wrongdoing. A statement said: "DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG."

Layoffs in the crypto industry are showing no sign of slowing down as we enter 2023. The NFT marketplace SuperRare has become the latest to confirm that it's making painful cutbacks — and 30% of its staff are being let go. On Twitter, CEO John Crain admitted: "During the bull run, we grew in tandem with the market. In recent months, it's become clear that this aggressive growth was unsustainable: we overhired, and I take full ownership of this mistake." While he admitted the industry is "facing headwinds," the entrepreneur said he was bullish about the opportunities presented by Web3, NFTs and digital art. Yet another round of redundancies will contribute to growing unease for those working in the crypto space.

Logan Paul has apparently abandoned plans to take legal action against a crypto YouTuber. The influencer faced some unwelcome scrutiny after Coffeezilla released a three-part investigation into CryptoZoo, his as-yet-unlaunched NFT game. All of this led Logan Paul to release a foul-tempered video where he told Coffeezilla to "get a good lawyer, because you're gonna need it." On Twitter, Coffeezilla claimed he's since received a call from Paul, who confirmed that threats of a defamation lawsuit are now being dropped. In a message on Discord, Paul appeared to say that his response to Coffeezilla's series was "rash and misaligned with the true issue at hand." He's apologized and has vowed to make things right for CryptoZoo investors.