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Bitcoin, crypto rise as FTX contagion fears ease

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

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

Fast facts

  • Bitcoin rose 2.6% to US$16,198 in the 24 hours to 8am 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 rose 6.8% to US$0.85.

  • Litecoin posted the biggest gains in that list, up 13.7% to US$70.09, representing a 20.76% rise in the past seven days, as it rose several positions on CoinMarketCap’s list. Despite the broader market downturn, the blockchain recently reached its all-time high mining difficulty on November 18, and CryptoSlate recently wrote that “[Litecoin’s] resurgence is likely a symptom of crypto users looking for stability in a chaotic market.

  • While it rose 5% to US$12.44 on Wednesday morning, Solana continued its slide down CoinMarketCap’s rankings, which began when Alameda Research began selling large amounts of its holdings in the token amid the collapse of sister firm FTX .

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

  • “The FTX collapse is a story of a company that chose to operate outside of existing regulation, while being portrayed as being regulated. In Australia, the FTX collapse highlighted the issue that crypto exchanges do not and cannot provide full legal ownership of the asset to their clients as they are unregulated,” said Jeff Yew, CEO of Australia ‘s Monochrome Asset Management, said. Throw away via e-mail.

  • “This is more critical for holdings that have specific legal requirements such as a [self-managed superannuation (retirement) fund]. Storing cryptocurrencies on crypto-trading platforms may 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 the Nasdaq Composite Index both rose 1.4%.

  • US investors are eagerly awaiting the release of the Federal Reserve’s November meeting minutes on Wednesday for insights into how the Fed views current economic conditions and its plans for likely further rate hikes as it continues to combat nearly 40-year high inflation.

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

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

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