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 Friday! Here's what's happening in crypto today: |
- The SEC alleges Gemini and Genesis sold unregistered securities.
- Crypto.com is the latest crypto firm to announce layoffs.
- Cathie Wood buys more Coinbase shares.
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Want our 5 p.m. ET market update? |
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CoinDesk Market Index (CMI): 911 +2.9%
Bitcoin (BTC): $18,883 +3.6%
Ether (ETC): $1,407 +0.9%
S&P 500 futures: 3,983.00 −0.5%
FTSE 100: 7,831.79 +0.5%
Treasury Yield 10 Years: 3.45% −0.1 |
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The U.S. Securities and Exchange Commission alleged crypto exchange Gemini and crypto lender Genesis Global Capital sold unregistered securities in a lawsuit filed late Thursday. The regulator took aim at Gemini Earn, the troubled interest-bearing product that hundreds of thousands of U.S. investors entrusted with their crypto. Gemini generated yield on billions of dollars in crypto by loaning deposits to Genesis, which loaned them out again. (Genesis is owned by Digital Currency Group, which also owns CoinDesk.) |
Gemini founders Tyler and Cameron Winklevoss (TechCrunch/Wikimedia) |
Crypto.com is cutting its workforce by around 20% as the industry continues to reel from the effects of the crypto winter. The firm cited the economic headwinds from the downturn in the crypto market and the implosion of crypto exchange FTX. "We grew ambitiously at the start of 2022, building on our incredible momentum and aligning with the trajectory of the broader industry. That trajectory changed rapidly with a confluence of negative economic developments," Kris Marszalek, co-founder and CEO, wrote in a post. Noted growth investor Cathie Wood isn't backing away from her crypto conviction as her firm, ARK Invest, purchased more shares of crypto exchange Coinbase (COIN) on Thursday. Coinbase is now the 12th-largest holding for the ARK Innovation ETF (ARKK), making up 3.87% of the fund's weight. Overall, the fund has a cost average of $254.65 for the shares, which closed at $47.55, up 8.6%, on Thursday. Analysts on average have a price target of $61.46, according to data compiled by FactSet. |
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Market Insight: Bitcoin Cash Surges
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Bitcoin cash (BCH) surged nearly 10% in the past 24 hours as traders shed light on potential network changes ahead of the protocol's hard fork in May. BCH broke above resistance levels of $108 to as much as $125 on Friday, price charts data shows. Buying interest could fuel a movement to at least $150, where the next resistance level lies. A hard fork refers to an upgrade in any blockchain network. Bitcoin Cash's hard fork is set to bring added security and privacy to the fledgling network, with plans for "CashTokens" – which would enable decentralized applications directly on Bitcoin Cash, accrding to developers. |
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- The chart shows the daily dollar value of short bets in the bitcoin futures market liquidated since August.
- On Thursday, centralized exchanges liquidated short positions worth $61.8 million, the highest since Sept. 9, taking out overleveraged bears from the market as bitcoin jumped to a two-month high of $19,097.
- Liquidations happen when traders cannot fulfill margin requirements for holding long/short positions and often exacerbate bullish/bearish moves.
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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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