Crypto.com Admits $400 Million ‘Error’ Transfer, Ethereum Holding Support And Outperforming Bitcoin

Last Updated on 14 November 2022 by CryptoTips.eu


Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]

With all the doom and gloom surrounding multiple crypto bankruptcies (we now have Luna and FTT going under) this year, with Bitcoin breaking under 20,000 level, we may forget that there’s still a coin out there which is having a pretty good year.

Ethereum has shifted from proof-of-work to proof-of-stake whilst the world is faced with an energy crisis and can apparently still count on that $1,000 support line.

Meanwhile, another platform is (perhaps) in trouble. A story that first circulated on Twitter was then corroborated by the CEO of Crypto.com (and in the Wall Street Journal). Three weeks ago, Crypto.com erroneously transferred $400 million in Ethereum to a rival platform. Oops. Luckily they got the funds back quickly.

Key support

With stock markets reacting positively to the latest inflation figures from the US (October’s CPI report indicated that US inflation may finally be starting to cool off), it was apparent to see that Bitcoin did not move higher immediately alongside tech stocks.

This is mostly because there is a fear in the crypto market that the FTX scandal could have affected other companies as well. The vultures seem to be swirling around Solana, although so far nothing has been confirmed.

However, there does seem to be a bright spot, namely Ethereum, which needs to hold that support level of $1,000. If it crumbles, the second-largest crypto asset could hypothetically fall to a two-year low of around $500.

Key pivot

Mike McGlone, Bloomberg’s crypto specialist, explained that:

Representing more of the financial-markets revolution that’s happening in cryptos akin to the advent of futures and exchange-traded funds, Ethereum support around $1,000 may be the key pivot. Our graphic shows the enduring upward performance trajectory of the No. 2 crypto vs. Bitcoin and lack of support until about $500 if $1,000 is breached.

According to McGlone confirmed that Ethereum’s switch to proof of stake might be the reason why it is still outperforming Bitcoin this year. He explained:

Shifting to proof of stake amid the energy crisis, Ethereum as the leading platform for crypto dollars has provided some relative buoyancy.