Bitcoin, Crypto Rise as FTX Contagion Fears Convenience

Bitcoin rebounded above US$16,000 in Wednesday morning trading as it surged along with Ether and the rest of the crypto top 10 by market cap, excluding stablecoins, as the market cleared lingering doubts from earlier in the week of further contagion. shaken off by the now bankrupt company. crypto exchange FTX.

See related article: Cathie Woods Buys the Dip While Ark Invest Coinbase, GBTC Shares Brag: Bloomberg

Quick Facts

  • Bitcoin rose 2.6% to US$16,198 in the 24 hours to 8am in Hong Kong, while Ether gained 2.5% by switching 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 made the biggest gain in that list, rising 13.7% to US$70.09, representing a 20.76% increase in the last seven days as it surged several positions on the CoinMarketCap list . Despite the broader market downturn, the blockchain recently reached its highest mining difficulty on November 18, with CryptoSlate recently writing that “[Litecoin’s] resurgence is likely a symptom of crypto users seeking stability in a chaotic market.”

  • Although it had gained 5% to US$12.44 by Wednesday morning, Solana continued its decline in CoinMarketCap’s rankings, which began when Alameda Research began selling large amounts of its holdings in the token amid the collapse of sister company FTX.

  • Markets were in turmoil on Tuesday as brokerage firm Genesis Global Capital halted withdrawals amid heightened trading activity, raising concern for parent company Digital Currency Group (DCG), which revealed it owed Genesis $575 million. Despite this, DCG revealed in a letter to shareholders that the loans don’t mature until May 2023, and the company is aiming to come out “stronger” after Crypto Winter, according to a report Tuesday by the Wall Street Journal.

  • “The collapse of FTX is a story of a company that chose to operate outside of existing regulations while portraying themselves as regulated. In Australia, the collapse of the FTX has highlighted the problem that crypto exchanges cannot and cannot give their clients full legal ownership of the asset because they are not regulated,” said Jeff Yew, CEO of Monochrome Asset Management in Australia. Fork via email.

  • “This is all the more important for companies that have specific legal requirements, such as a [self-managed superannuation (retirement) fund]. Storing cryptocurrency on crypto trading platforms could jeopardize the trustees’ obligation to ensure absolute title to the asset,” he added.

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

  • US investors eagerly await the release of minutes from Wednesday’s November meeting for insight into how the Fed views current economic conditions and its plans for likely further rate hikes as it continues to battle nearly 40 years of high inflation.

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

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

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