The major cryptocurrency is losing ground today on a wave of declines in major stock market indices, which have been dominated by the Fed's unyielding hawkish stance and concerns about an economic slowdown. As a result of rising interest rates and uncertainty around the Fed's benchmark rate target, debt-financed companies and risk industries that depend on capital flows from venture capital and private equity funds came under pressure again. Bitcoin has retreated to the area of $16,500, and Ethereum is trading around $1,170 per token.
- Binance announced that it had repurchased the assets of the bankrupt Voyager fund for $1.022 billion. The exchange also announced that it is willing to acquire more industry players looking for investment opportunities and market consolidation by acquiring 'distressed' assets at discount prices. Despite the reprocessing of a huge amount of withdrawals due to increased concerns about the exchange's financial health, Binance continues to maintain liquidity:
The volume of stablecoin withdrawals from Binance between December 10 and December 17 totaled nearly $10 billion. On December 13, the exchange seamlessly processed nearly $6 billion in withdrawals. Source: CryptoQuant
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Create account Try a demo Download mobile app Download mobile app- The parent company of lending cryptocurrency platform Genesis, Digital Currency Group may be responsible for declines in the valuations of some cryptocurrencies, including Filecoin, of which it was one of the largest holders according to information held by Will Clemente, of Reflexivity Research. According to speculation, the company is selling off its assets in search of liquidity;
- One of Digital Currency Group's main vehicles, the Grayscale Capital fund faces the prospect of new problems after New York-based Fir Tree Capital Management filed a lawsuit against DCG, accusing it of "potential mismanagement and conflicts of interest." The fund is trading at a nearly 50% discount to the market value of Bitcoin, which the fund purchases on behalf of investors.
- Cryptocurrency exchange Bitvavo still has frozen funds in the Genesis lending platform. The funds are worth about €280 million. The spotlight of the cryptocurrency world is on the empire of Barry Silbert, who heads Digital Currency Group. According to estimates, the Genesis platform owes the Gemini exchange nearly $900 million. According to Silbert, DCG owes Genesis $575 million. The Financial Times, however, reported that the amount is more than $1.7 billion;
- A CNBC survey found that 60% of US citizens surveyed consider investing in cryptocurrencies to be highly risky, compared to August 2021. 26% believe that virtual currencies in the form of Bitcoin and smaller cryptocurrencies represent 'moderate risk,' while according to 5% they are completely safe assets. About 10% of respondents said they were HODLers. 15 of the American 'millennial' generation owns cryptocurrencies. Generation Z and Generation X, despite their younger age and therefore lower financial capacity, are right behind them, at 12% each. According to a Bank of America survey, 75% of U.S. residents between the ages of 21 and 42 believe it is impossible to achieve above-average investment returns based on traditional assets alone.
Energy consumption in the Ethereum blockchain dropped by almost 99.9% after 'The Merge,' as predicted by developers. Source: EthereumEnergyConsumption
The sentiment of the cryptocurrency market indicates a lingering fear. Paradoxically, despite Bitcoin's deepening sell-off, the index rose almost 300% against the record panic levels of June and July, when it oscillated around 12 points so it's still not perfect indicator of the real market timing during crypto bear market. Source: alternative.me
Bitcoin's price fell on Monday, after buyers were unable to break above the 200 SMA (red line) last week. Bitcoin is currently testing important support at $16520, which is marked by previous price reactions and the 61.8% Fibonacci retracement of the last upward wave. In the event of a downward breakout, the downward movement could deepen towards the next support at $16025 or even $15400, where the November 2022 lows are located. Source: xStation5
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