Bitcoin, crypto rise as fear of FTX contagion with ease

Bitcoin gained over US$16,000 in morning trade on Wednesday as it rose alongside Ether and the rest of the top 10 cryptocurrencies by market capitalization, excluding stablecoins, as the market shrugged off doubts which was exacerbated by earlier in the week of further infections from the now bankrupt. FTX encrypted exchange.

See related article: Cathie Woods buys dip as Ark Invest acquires Coinbase shares, GBTC: Bloomberg

Fast facts

  • Bitcoin rose 2.6% to US$16,198 in the 24 hours to 8 am in Hong Kong, while Ether gained 2.5% to change hands at US$1,135, according to CoinMarketCap. Leading memecoin Dogecoin rose 5.1% to US$0.07 and Polygon gained 6.8% to US$0.85.

  • Litecoin posted the biggest gains on that list, rising 13.7% to US$70.09, representing a 20.76% rise over the past seven days as it climbed several positions on the CoinMarketCap list. Despite the downturn in the broader market, the blockchain recently reached its all-time high mining difficulty on November 18, and CryptoSlate recently wrote:[Litecoin’s] The uprising is likely a sign of crypto users seeking stability in a chaotic market.”

  • Although it gained 5% to US$12.44 on Wednesday morning, Solana continued to slide down the CoinMarketCap rankings, which began when Alameda Research began selling a large portion of its holdings in a sign amid the collapse of the FTX joint venture.

  • Markets were rattled on Tuesday as brokerage firm Genesis Global Capital paused withdrawals amid heightened trading activity, worrying parent venture capital firm Digital Currency Group (DCG), which revealed that Genesis was owed US$575 million. Despite this, DCG indicated in a letter to shareholders that the loans are not due until May 2023, and the company aims to emerge “stronger” after Crypto Winter, according to a Tuesday report from the Wall Street Journal.

  • “The fall of FTX is a story of a company that chose to operate outside of current regulation while demonstrating that they are regulated. In Australia, the FTX disaster highlighted the issue that crypto exchanges do not and cannot provide full legal ownership of the asset to their customers, as they are unregulated,” said Jeff Yew, chief executive officer of Monochrome Asset Management, Australia. Forecast by email.

  • “This is even more important for holdings that have specific legal requirements such as s [self-managed superannuation (retirement) fund]. “Storing cryptocurrency on crypto trading platforms may jeopardize the trustees’ obligation to ensure full title to the asset,” he said.

  • US equities closed higher on Tuesday. The Dow Jones Industrial Average rose 1.2%, while the S&P 500 Index and the Nasdaq Composite Index both gained 1.4%.

  • US investors are eagerly awaiting the release of the minutes of the Federal Reserve’s November meeting on Wednesday for insight into how the Fed views current economic conditions and its plans for likely interest rate hikes as it continues to fight with inflation almost 40 years.

  • The Fed has been raising interest rates since March this year to try to moderate inflation, raising them from near zero to a 15-year high of 3.75% to 4%. The Fed has indicated that it will continue to raise rates until inflation reaches a target range of 2%.

See related article: SBF parents, FTX executives buy Bahamas property worth US$121 million: Reuters

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