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 Thursday! Here's what's happening in crypto today: |
- Genesis Global Capital is reportedly laying the groundwork for a bankruptcy filing.
- Binance was named as a counterparty in an order against Bitzlato.
- Bitcoin tumbles and Hadera Hashgraph posts gains.
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Want our 5 p.m. ET market update? |
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CoinDesk Market Index (CMI): 986 −3.2%
Bitcoin (BTC): $20,744 −2.3%
Ether (ETC): $1,521 −3.6%
S&P 500 futures: 3,914.50 −0.8%
FTSE 100: 7,746.75 −1.1%
Treasury Yield 10 Years: 3.38% −0.2 |
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Genesis Global Capital, the institutional crypto brokerage, is laying the groundwork for a bankruptcy filing, according to several media reports. Genesis is in confidential negotiations with various creditor groups, with the company warning it could seek bankruptcy protection if it fails to raise capital, a Bloomberg report said. Since the collapse and bankruptcy of crypto exchange FTX in November, Genesis has been scrambling to raise fresh capital or reach a deal with creditors. Digital Currency Group owns both Genesis and CoinDesk. |
(Genesis Trading, modified by CoinDesk) |
Binance was named as a counterparty in an order against the little-known Hong Kong-based cryptocurrency exchange, Bitzlato. The exchange was accused of laundering $700 million by U.S. authorities on Wednesday. Binance was named as the top three receiving and sending counterparties associated with Bitzlato, according to the order from the Treasury's Financial Crimes Enforcement Network (FinCEN). "Approximately two-thirds of Bitzlato's top receiving and sending counterparties are associated with darknet markets or scams," the order said. "For example, Bitzlato's top receiving counterparty, by total amount of BTC received between May 2018 and September 2022 was Binance." Bitcoin was trading down on the day following news of a pending U.S. Justice Department announcement of a major international cryptocurrency enforcement action on Wednesday. The world's largest cryptocurrency by market cap reached lows of $20,400 over the last 24 hours, after reaching its highest price point since mid-September of around $21,602. Ether also lost ground on Thursday, down around 4%. Hadera Hashgraph's HBAR token and layer-1 Aptos' token both posted gains and Shiba Inu lost 10%. |
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Market Insight: Bridged BTC on Avalanche |
(@gfkacid via Dune Analytics) |
The number of bitcoin (BTC) bridged or ported from the Bitcoin blockchain to the Avalanche smart contract blockchain has surpassed the tally of coins held in the Lightning Network, a second-layer solution for Bitcoin's scalability problems. On Tuesday, the total circulating supply of bridged BTC, or BTC.b, on Avalanche rose to a record 5,700 BTC ($118.6 million), according to data sourced from Dune Analytics. Meanwhile, the number of bitcoin locked in the Lightning Network stood at 4,929 BTC ($100 million). The flippening has brought cheer to the Avalanche community and developers behind the project. |
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- The chart compares bitcoin's price with its 14-day relative strength index (RSI), a technical analysis tool used to gauge momentum, going back to 2016.
- The RSI recently rose past 80 to its highest since 2019 as bitcoin rallied to a two-month high.
- A reading above-80 indicates an asset is overbought. However, that's not always the case.
- "The relative strength index, a momentum indicator, ripped higher throughout the last week and pushed toward 2019 highs. This supports that the rally is extended in the short term. However, it also represents the first proper signal of strengthening momentum in BTC since the bull market of 2021," Arcane Research's weekly note said.
- "The current recovery resembles BTC's initial recovery from the depths of the 2018 bear market. After RSI pushed above 80 in April 2019 following a relative volatility compression in March, BTC stayed rangebound for 40 days. Now, BTC has recovered to its Q3 range, the RSI is extended, and shorts are cautious, increasing the likelihood of near-term stability," Arcane Research added.
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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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