Bitcoin crossed $23,000 before pulling back


Good morning. What is happening:

Prices: Bitcoin continued in 2023 and broke above $23,000 for the first time since August before pulling back to trade around $22,750.

Informations: Microsoft has effectively exited the metaverse. Will Apple succeed where other big tech firms are struggling in the space?

Prices

CoinDesk Market Index (CMI)

1,083.23

+7.3 0.7%

Bitcoin (BTC)

$22,757

-20.1 0.1%

Ethereum (ETH)

1639 dollars

+15.7 1.0%

The S&P 500 closes daily

3,972.61

+73.8 1.9%

Gold

1933 dollars

+6.6 0.3%

Treasury income 10 years

3.48%

0.1

BTC/ETH quotes for CoinDesk Indices; gold is the COMEX spot price. Prices as of 4:00 p.m

Over the weekend, bitcoin’s growth exceeded $23,000

by James Rubin

Bitcoin continued its recent rally over the weekend, crossing $23,000 at one point — the first time BTC has breached the threshold since early August — before retreating late Sunday.

The largest cryptocurrency by market capitalization recently traded above $22,750, roughly flat over the past 24 hours but up more than 8% over the past week. Bitcoin is up nearly 37% this year as investors shrug off various headwinds from the cryptocurrency industry, most recently Genesis Global Holdco LLC filing for Chapter 11 bankruptcy protection, though crypto fund manager BitBull Capital said in an email to CoinDesk CEO Joe DiPasquale noted the increase was typical of first quarters and “a long period of consolidation that saw shorts pile up.”

DiPasquale wrote, “The market has rallied, partially reinforcing the short-term squeeze,” adding cautiously that “Bitcoin and several altcoins are overheated and should correct. We wouldn’t be surprised to see Bitcoin test $20,000 in the coming days.”

“For the week ahead, market participants should consider downside risks and potentially seek to profit.”

Ether followed a similar weekend path and recently traded hands near $1,640, up nearly 1% from Saturday at the same time. The second-largest cryptocurrency by market cap is up about 4.5% in the past week, and up 35% since December 31.

While AXS, the token of the Axie Infinity Gaming platform, and YGG, the native crypto of the Axie Infinity gaming guild, Yield Guild Games rose more than 38%, most other major cryptocurrencies were in light green. 18% respectively. The CoinDesk Market Index (CMI), a measure of the market performance of leading cryptocurrencies, rose slightly.

Cryptos’ weekend rally followed a positive Friday for stock indexes, as the tech-heavy Nasdaq and S&P 500 rose 2.6% and 1.8%, respectively. Traditional asset markets were optimistic about growing evidence that inflation is easing without tipping the economy into a sharp recession, and hope that the US central bank will return the next rate hike to 25 basis points (bps) sooner rather than later. diet increases by 75 and 50 bps.

Signature Bank will not handle cryptocurrency transactions above $100,000, according to a statement from Bloomberg’s exchange giant Binance. In a statement to Bloomberg, Binance said Signature, which is seeking to reduce its exposure to cryptocurrency markets, “will no longer support any cryptocurrency clients with purchases and values ​​below $100,000 starting February 1, 2023.” Binance said this would be the case “for all Signature cryptocurrency customers,” noting that some users “may not be able to use SWIFT bank transfers to buy or sell USD/USD cryptocurrency.”

In recent weeks, Signature, among the most crypto-friendly banks, and other financial services firms have been reducing their exposure to cryptocurrencies as part of the broader fallout from the crypto FTX explosion. In December, Signature’s CEO said the bank would reduce its cryptocurrency-related deposits from $8 billion to $10 billion.

About a quarter, or about 23.5%, of the New York-based bank’s $103 billion in total deposits through September 2022 came from the cryptocurrency industry. % and potentially below 15%, Signature’s Joe DePaolo said at an investor conference hosted by investment bank Goldman Sachs.

Despite his cautious outlook for the week, BitBull’s DiPasquale was more sanguine about the “market’s risk appetite.”

“This is a positive sign for the eventual recovery, but we believe it may take longer and materialize by the end of the year,” he said.

Biggest Winners

The biggest losers

Concepts

Microsoft Is Exiting The Mixed Reality Space – At Least For Now

By Sam Reynolds

Big tech is downsizing significantly, and Microsoft is no exception. Although the layoffs are expected at the computing giant as they follow other peers, they have affected a certain segment of the company and this may affect what the future idea of ​​the metaverse will look like.

Microsoft has fired the entire mixed reality team behind virtual reality, augmented reality and HoloLens, the enterprise-focused augmented reality headset, Windows Central reported. This includes AltSpace VR, a social VR platform that competes with Microsoft’s Horizon Worlds.

Microsoft has called its augmented and virtual reality efforts “mixed reality,” and given the company’s size and scale, it probably has the best chance to make it a new computing paradigm. Microsoft Teams, widely used for collaboration, has been fully integrated into HoloLens since December.

But the metaverse has proven to be a struggle for Microsoft.

While Meta (née Facebook) went for the retail side of virtual reality and the metaverse, Microsoft went for corporate users. The premiere enterprise customer for HoloLens was supposed to be the U.S. Army, but Congress hasn’t warmed to the idea since test results have been mixed, leading to limited funding. The head of HoloLens at Microsoft left in the middle of the year.

If you’re high on the idea that the metaverse contains some kind of headset for virtual reality, that’s not very good for the thesis.

Struggle to catch up

VR/AR is far from new, but it found new energy when venture capitalists coined the term “metaverse” (metaverse must include VR or AR, to be sure).

In the gaming world, VR has struggled to overcome its status as a niche product. Sales of the headphones have been growing since their widespread introduction in 2016, but that growth has slowed. In late December, consulting firm IDC published a new forecast showing that average growth for AR/VR headsets is slowing.

The enterprise had to be where VR/AR, and thus the metaverse, succeeded. But this, in fact, did not occur to him at all. Microsoft chose to ax these teams when it needed to cut costs because executives privy to non-public numbers and discussions with potential customers apparently didn’t see the value of the middle.

What is not mentioned here is the presence of Apple. Apple has the potential to create a market for a product that others have tried and struggled to make. Remember that the iPhone was not the first smartphone. Palm, Microsoft, and Nokia had Internet-connected PDAs and phones before Apple entered the arena. But all this is largely forgotten compared to the iPhone.

According to a Bloomberg report, Apple still plans to enter the metaverse with mixed reality headsets in 2024-2025. Its original plan to build AR glasses has been delayed due to technical issues, but the company is still on track.

By the time Apple enters the market, perhaps in 2025, VR/AR will have been around for a decade. Any other environment with such limited performance would be labeled niche and the market would move on without paying much attention to it. The question is, can Apple turn it around, where the likes of Microsoft and HTC are struggling?

The idea of ​​a metaverse with a headset reflecting a virtualized form of reality is based on this.

Important events.

21:30 HKT/SGT (13:30 UTC) Chicago Fed National Activity Index (December)

23:00 HKT/SGT (15:00 UTC) European Commission Consumer Confidence (January)

6:00 a.m. HKT/SGT (10:00 p.m. UTC) Australia S&P Global Services PMI (January)

CoinDesk TV

In case you missed it, here’s the latest episode of First Mover on CoinDesk TV:

Genesis’ Crypto Credit Entities File For Bankruptcy, Winklevoss Threatens Legal Action Against DCG

Bitcoin (BTC) was worth about $21,000 when Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection. This comes after Gemini CEO Cameron Winklevoss threatened to sue Digital Currency Group (DCG). DCG owns Genesis and CoinDesk. CoinDesk’s News Desk Managing Editor Danny Nelson and Eric Snyder join First Mover to discuss Wilk Auslander LLP Partner. Plus, Swiss National Bank’s Thomas Moser and Carbonbase CEO Max Song spoke to CoinDesk’s Christine Lee from the World Economic Forum in Davos, Switzerland.

Titles

Genesis Seeks $5.1 Billion in Liabilities in Day One Bankruptcy Filing: Three of the institutional crypto brokerages filed for Chapter 11 protection late Thursday.

Crypto lender Genesis is FTX’s largest unsecured creditor with a $226 million claim: Genesis Global Capital leads the revised list, with several lenders’ names redacted.

Crypto analysts warn against shorting DYDX before unlocking $200M token: The token unlock on February 2nd will release 150 million coins worth approximately $200 million and 15% of the total supply.

Fantom Blockchain to finance ecosystem projects using a portion of Burned FTM fees: The fund aims to empower developers on Fantom by offering a decentralized avenue to fund projects, ideas and creativity through a community-driven decision-making process.

Digital Currency Group owes subsidiary Genesis Global more than $1.65 billion: Genesis filed for Chapter 11 bankruptcy protection Thursday, listing about $3.5 billion in debts.



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