Bitcoin Holds Over $16K After Tracking Stocks To The Upside

Good morning. Here’s what’s happening:

Prices: Bitcoin has regained its grip on 16K after falling to a two-year low earlier in the week.

Insights: Changpeng Zhao and Elon Musk have been mentioned in recent comments on FTX and the rapidly growing fallout. Have they gone too far?

Prices

CoinDesk Market Index (CMI)

814.88

+15.8 2.0%

BTC (BTC)

$16,187

+399.0 2.5%

Ethereum (ETH)

$1,129

+28.9 2.6%

S&P 500 daily close

4,003.58

+53.6 1.4%

Gold

$1,741

+3.2 0.2%

Treasury yield 10 years

3.76%

0.1

BTC/ETH Prices for CoinDesk Indices; gold is the COMEX spot price. Prices starting around 4pm ET

Bitcoin has recovered from its Monday slumber

By James Rubino

Bitcoin has awakened from an early week slumber to rest comfortably above its previous support of $16,000.

The largest cryptocurrency by market capitalization recently traded at around $16,200, up 2.5% as cryptocurrency markets returned to tracking stocks, which rose on renewed hopes that the The US central bank was taming inflation and would soon be able to scale back from its recent diet of 75 basis point interest rate hikes.

“Wall Street is mostly green today and this has provided a little boost to cryptocurrencies,” wrote Edward Moya, senior market analyst for foreign exchange market maker Oanda.

BTC fell to a two-year low on Monday amid fears for the fate of Genesis Global, the once-powerful cryptocurrency trading and lending firm, which is reportedly in talks to raise fresh capital after halting customer withdrawals last week. week. Genesis is the latest victim of the aftermath of Sam Bankman-Fried’s FTX exchange crash, and despite Tuesday’s recovery in bitcoin, investors remained jittery.

“Bitcoin is back above the $16,000 level but still remains in the danger zone as everyone waits for the next crypto domino to fall,” Moya wrote. “It appears that crypto traders are already pricing in bankruptcy for crypto lender Genesis. FTX contagion will impact many, but a new catalyst appears to be needed for sellers to take control.”

Ether was recently changing hands at around $1,120, up more than 2%. Other major cryptocurrencies were largely in the green with LINK gaining almost 7%. The CoinDesk Market Index (CDI), an index that measures the performance of cryptocurrencies, was roughly flat.

The Nasdaq, the S&P 500 and the tech-heavy Dow Jones Industrial Average (DJIA) each rose more than a percentage point after Cleveland Federal Reserve Chair Loretta Mester said the Fed was getting into “a politics”.

At that point, I think it makes sense to slow the pace of hikes a bit,” he said. “We’re still raising the funds rate, but now we’re at a reasonable point where we can be very deliberate in setting monetary policy.”

Meanwhile, in crypto news, a well-known crypto trader linked to last month’s $114 million Mango Markets exploit has failed in his attempt to find a similar vulnerability. The trader, identified on Twitter and tagged by blockchain analysts as Avraham Eisenberg, borrowed 40 million curve (CRV) tokens (worth $20 million at the time) using decentralized lending platform Aave, then traded them transferred to the OKEx cryptocurrency exchange.

But after a series of wild swings in the price of CRV, Eisenberg’s position appears to have been liquidated. According to blockchain analytics firm Arkham, Eisenberg borrowed most of the CRV tokens on Aave by pledging $40 million in USDC stablecoins as collateral. Blockchain investigators on Twitter speculated that it appeared to be build a short position on CRV – that is, to profit from a drop in prices.

Oanda’s Moya has been less than optimistic about cryptocurrency prices in the weeks ahead. “Bitcoin has support above the $15,500 level, but if that doesn’t hold, technical selling could send prices towards the $13,500 region,” he wrote.

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Insights

Have Changpeng Zhao and Elon gone too far?

By James Rubino

What are billionaires and multi-millionaires saying about cryptocurrencies?

Anything they want.

The founder of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, added his voice to the chorus of crypto watchers on Tuesday who doubted that Grayscale, operator of the largest bitcoin trust, holds as many BTC as it says, but then withdraw quickly.

Zhao initially tweeted numbers that, if true, would undermine a position by Grayscale and its partner, cryptocurrency exchange Coinbase, that such concerns were unwarranted. But she deleted her tweet after Coinbase CEO Brian Armstrong appeared to reply on Twitter soon after.

“If you see FUD out there, remember, our financials are public (we are a public company),” Armstrong wrote, referring to the crypto jargon out of fear, uncertainty and doubt. (Binance is a private company that does not disclose financial information.)

Zhao appeared contrite: “Brian Armstrong just told me the ‘numbers’ are wrong,” he wrote, adding, “Let’s work together to improve transparency in the industry.”

The Twitter interaction between CZ and Armstrong preceded a story by Semafor, a recent publication founded by Bloomberg and New York Times veterans, that Elon Musk wasn’t always so down on the disgraced founder of the troubled cryptocurrency exchange FTX, Sam Bankman-Fried as he has been in recent comments.

On Nov. 12, a day after FTX filed for Chapter 11 bankruptcy protection, Musk told a Twitter Spaces event, “To be honest, I’ve never heard of that,” Musk said. “But then I had a lot of people tell me that [that] he has, you know, huge sums of money that he wants to invest in the Twitter deal. And I talked to him for about half an hour. And I know my bulls**t counter was in the red. He was like, this dude is a taurus**t-that was my impression.

But shortly after announcing his $44 billion purchase of social media platform Twitter, Musk called on Bankman-Fried to sink a $100 million stake he owned in the previously publicly traded company. And as Semafor reported, the two even had a late spring call, weeks before the deal closed, about Bankman-Fried possibly joining a bid for Twitter. Bankman-Fried opted not to participate, but contributed his $100 million in stock to a now privately owned company. An FTX balance sheet prepared after Musk closed his deal and released to investors earlier this month listed Twitter’s stock as an “illiquid” asset.

“The best pitchers have short-term memory and bulletproof safety,” Major League Baseball Hall of Fame pitcher Greg Maddux once said.

Important events.

16:30 HKT/SGT(8:30 UTC) Europe S&P Global Composite PMI (Nov)

21:30 HKT/SGT (13:30 UTC) US Durable Goods Orders (October)

3am HKT/SGT(7pm UTC) Minutes of the Federal Open Market Committee

Coin Desk TV

In case you missed it, here is the most recent episode of “First Mover” on CoinDesk TV:

Bitcoin flirts with $16K amid renewed fears of cryptocurrency contagion

Bitcoin is flirting with $16,000 as crypto traders speculate on the future of Genesis Global, a victim of the fallout from the recent crash of Sam Bankman-Fried’s FTX exchange. CoinFund President Chris Perkins and Nansen Research analyst Niklas Polk shared their views. Additionally, CoinDesk’s Jodie Gunzberg analyzed the performance of the cryptocurrency market by industry sector.

Titles

On-chain data shows that close ties between FTX and Alameda were there from the start, Nansen reports: Niklas Polk, a research analyst at the analytics firm, discusses its latest report and what on-chain data reveals about the wallets used by FTX and Alameda.

Lawyers detail FTX’s “abrupt and difficult” collapse in first bankruptcy hearing: FTX lawyers say former CEO Sam Bankman-Fried ran the exchange as his “personal fiefdom,” allowing executives to use client funds to buy luxury real estate.

Saudi Arabia’s NFT collection soars after unexpected soccer win against Argentina: Argentina’s fan token, on the other hand, slipped 21% after the team’s loss on Monday.

Tornado Cash developer Alexey Pertsev will remain in jail until at least the end of February: Pertsev, a Russian citizen living in the Netherlands, has been accused of facilitating money laundering by developing the now-sanctioned app

Curve’s CRV Token Goes Volatile as Exchange Balance Hits Record Highs: The token fell to a two-year low of 40 cents early Tuesday before quickly returning to 53 cents.

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