Plus, FTX has $1.2 billion in cash reserves, far less than the $3.1 billion it owes its largest creditors.
The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Tuesday. Here's what you need to know in crypto. |
- Bitcoin hits new lows as FTX fallout ensnares Genesis.
- FTX has $1.2 billion in cash reserves.
- Coinbase's shares sink to an all-time low.
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Click here to take the survey! Talk of a Genesis bankruptcy has sent bitcoin to fresh new lows. The troubled investment bank sought funding from Binance and Apollo Global Management, according to the Wall Street Journal. Binance, the world's largest crypto exchange, declined to invest, citing potential conflicts of interest. A Genesis representative, however, told Bloomberg that "we have no plans to file bankruptcy imminently." The initial news sent bitcoin to a fresh two-year low of $15,480. Since then, the price has remained at about $15,650. (Genesis and CoinDesk share the same parent company, Digital Currency Group.) |
Genesis Trading, modified by CoinDesk |
Sam Bankman-Fried's crumbling FTX empire held $1.2 billion in cash reserves as of Sunday, court documents show. That is far below the $3.1 billion it owes to its top 50 creditors. About $751 million of that is held in debtor entities, and the rest, $488 million, is in non-debtor entities, according to the document, which was filed on Monday. About $514 million is unrestricted cash, $260 million is custodial, and $465 million is restricted cash that is earmarked for specific purposes like loan repayments and can't be used for general business purposes. Coinbase shares have sunk to an all-time low. The U.S. crypto exchange went public in April 2021, and its shares have lost nearly 90% over the past year, with the FTX contagion causing the latest leg down. The stock dropped 10% to $40.62 on Monday, and it is down 39% in November. Coinbase's shares traded at slightly over $400 last year on the day the company went public on Nasdaq. |
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Market Insight: Bitcoin's the Pick for Now |
As bitcoin and ether look south amid lingering FTX contagion fears, one chart analyst expects BTC to stay relatively resilient. "We expect bitcoin to outperform in the coming months," Katie Stockton, founder and managing partner at Fairlead Strategies, said in a note to clients after considering the bitcoin-ether ratio's recent move above the 50-day simple moving average. Stockton's forecast is at odds with several fundamental analysts who expect ether to outperform bitcoin in the wake of ETH's newfound deflationary cryptocurrency appeal. The bitcoin-ether ratio crossed above the 50-day moving average on Sunday and stood at 14.50 at press time. |
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- The chart above shows an increase in the volume of on-chain transfers of bitcoin that have been inactive for at least six months, a sign of long-term holders losing conviction, according to Glassnode.
- A total of 254,000 BTC older than six months appear to have changed hands since the collapse of FTX.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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