Crypto Flipsider News – BTC Reclaims $19k; ETH Rallies; Buterin On Layer 3; Voyager Loan Returned; WazirX Delists Stablecoins By DailyCoin

© Reuters. Crypto Flipsider News – BTC Reclaims $19k; ETH Rallies; Buterin On Layer 3; Voyager Loan Returned; WazirX Delists Stablecoins

Read in the Digest:

  • (BTC) reclaims $19k as miners and holders double down on BTC.
  • (ETH) rallies despite the SEC claiming jurisdiction on ETH transaction.
  • Vitalik Buterin shares his vision on what Layer-3 solutions could look like.
  • Alameda Research and Voyager reach an agreement on the return of $200m loan.
  • India’s largest exchange, WazirX, delists stablecoins to boost Binance’s BUSD.

Bitcoin (BTC) Reclaims $19k as Miners and Holders Double Down on BTC

Bitcoin (BTC) has bounced back from the critical $18k support zone to shoot past $19,000. The price of BTC had fallen as low as $18,688 on Monday, September 20th, as fears arose around the crypto market in anticipation of the worst interest rates hike in 40 years.

Shooting up from its low of $18,420, BTC has gained 4.2% in value over the last 24 hours, rallying to an inter-day high of $19,639. Bitcoin, the world’s largest cryptocurrency, now trades at $19,250, having yet been unable to breach the $20k resistance zone.

The 24 hour price chart for Bitcoin (BTC). Source: CoinMarketCap

The Bitcoin relief rally coincides with the recently expressed resolve of miners and BTC HODLers to see the leading asset through the crypto winter. In furtherance of this goal, mining companies BitFarms and Marathon Digital are both working to increase their capacity by the end of the year.

Bitcoin’s long-term dormant balance recently soared to a new all-time high. Bitcoin permabull Michael Saylor, though affected by the crypto winter, has said that his company, MicroStrategy, will continue to purchase Bitcoin.


  • With a Fed interest rate hike expected to be announced in the coming days, the Bitcoin Fear and Greed Index has taken extended residence in extreme fear territory.

Why You Should Care

The rise in the number of HODLers doubling down on Bitcoin is a sign that investors believe Bitcoin will break out of the winter.

Ethereum (ETH) Rallies Despite the SEC Claiming Jurisdiction over ETH Transactions

In a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against crypto influencer Ian Balina, the regulatory agency claimed jurisdiction over transactions involving Ethereum (ETH).

The lawsuit was filed against Balina for his failure to register his crypto as a security before launching a 2018 initial coin offering (ICO). Of significant interest to the larger crypto community is a section of the SEC’s document, which claims that the U.S. government has jurisdiction over all ETH transactions.

According to the filing, the government has authority in the case because the ETH sent to Balina was “validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country.”

Despite the SEC’s stance, the price of ETH has experienced a reprieve, rallying over the last 24 hours to gain more than 5%, and trading at an inter-day high of $1,388. ETH currently exchanges at a rate of $1,360.

The 24 hour price chart for Ethereum (ETH). Source: CoinMarketCap


  • At a hearing of the Senate Agriculture Committee, CFTC chairperson Rostin Behnam stated that his agency is the “right regulator” to oversee digital assets trading.

Why You Should Care

The statement on ETH found in the filing aligns with recent calls from the SEC to be granted greater regulatory oversight of the crypto market.

Vitalik Buterin Shares His Vision of What Layer-3 Solutions Could Look Like

In a blog post titled “What kind of layer 3s make sense?” Ethereum Co-Founder Vitalik Buterin shared his thoughts on what Layer-3 could look like, outlining his belief that Layer-3 will not involve scaling like current Layer-2 solutions.

Buterin suggested that a third layer on the blockchain should rather serve a different purpose from Layer-2s, the major use of which is to increase the scaling of Layer-1 blockchains via zero-knowledge (zk) rollup technology.

Buterin believes Layer-3 solutions will be able to provide customized functionality to assist infant Layer-2 platforms focused on hyperscaling the network. The Ethereum Co-founder describes the first potential use case of Layer-3s as “customized functionality.”

A second possible use case, according to the crypto mogul, would be “customized scaling” for specialized applications, to be used in place of the Ethereum Virtual Machine (EVM), to do computation. Finally, he lists “weakly-trusted” scaling through zk-proof technology, Validiums.


  • When it comes to building customized applications on Ethereum, Buterin is unsure if the current Layer-2 model would be less efficient than Layer-3 structures.

Why You Should Care

The development of Layer-3 solutions could allow sub-ecosystems to evolve within Layer-2s, further increasing the performance of their base Layer-1 chains.

Alameda Research and Voyager Reach Agreement on the Return of $200M Loan

On Monday, September 19th, bankrupt cryptocurrency lender Voyager Digital asked the New York bankruptcy court, via a filing for cryptocurrency trading firm Alameda Research, for approval to repay a loan worth $200 million.

The loan, which was initiated in September 2021, would be repaid as 6,553 BTC (worth approximately $128 million at today’s prices), 51,204 ETH (approximately $70 million), and various other crypto tokens like USDC, DOGE, VGX, LINK, LTC, LUNC, etc, on, or before September 30th.

Under the filing, Alameda Research would see the return of the $160 million in tokens pledged as collateral once the loan is fully repaid. Voyager Digital, on the other hand, will return Altcoins valued at approximately $160 million at the time of publication.

Alameda was once Voyager’s largest stakeholder, with an 11.56% stake, worth over $110 million. Both parties have now reached an agreement, with Alameda Research saying it was “happy” to repay the loan.


  • Voyager petitioned the court to redact information on Alameda’s crypto wallet, due to the fact its disclosure would likely cause “unwarranted speculation and attention surrounding any account activity.”

Why You Should Care

The return of the $200 million sum could possibly ease the financial burden faced by Voyager as it advances with its bankruptcy proceedings.

India’s Largest Exchange, WazirX, Delists Stablecoins to Boost Binance’s BUSD

In an announcement mirroring Binance’s move two weeks ago, India’s largest crypto exchange, WazirX has revealed plans to delist three top stablecoins.

In a blog post dated Monday, September 19th, WazirX revealed that it has terminated deposit operations for the (USDC), Pax Dollar (USDP), and TrueUSD (TUSD) stablecoins as part of its plans to boost the utility of Binance’s BUSD stablecoin.

WazirX also revealed that its users will have until Friday, September 23rd, to withdraw their balances in the three stablecoins. By October 5th, any remaining stablecoin balances will be automatically converted into BUSD at a 1:1 ratio.


  • The recent tussle between WazirX and Binance on Twitter (NYSE:) led to Binance CEO Changpeng Zhao revealing that Binance’s acquisition of WazirX was never completed.

Why You Should Care

WazirX explained that the decision was made “to enhance liquidity and capital efficiency for users”, and could boost the value of BUSD as it looks to climb the stablecoin rankings.

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