Good morning. What is happening:
Prices: Bitcoin, ether and other major cryptocurrencies traded sideways, although they were slightly greener.
Informations: Asia is ready for an expanded, crypto-friendly bank.
Bitcoin is watching and waiting from its $17K price
CoinDesk Market Index (CMI)
-0.9 ▼ 0.1%
+13.5 ▲ 0.1%
+1.5 ▲ 0.1%
The S&P 500 closes daily
-57.6 ▼ 1.4%
+12.2 ▲ 0.7%
Treasury income 10 years
BTC/ETH quotes for CoinDesk Indices; gold is the COMEX spot price. Prices as of 4:00 p.m
by James Rubin
Bitcoin spent another day watching and waiting.
The largest cryptocurrency by market capitalization recently traded just above $17,000, up one percentage point in the past 24 hours and roughly near the level of the past two weeks, as investors continued to gauge economic indicators that suggest the U.S. central bank still has a job to do. to do on the inflation front. BTC remained tied to the $17,000 handle it captured eight days ago when the Federal Reserve signaled a retreat from ultra-monetary hawkishness.
However, during a speech at the Brookings Institution on December 1, Fed Chairman Jerome Powell noted that the bank may raise interest rates higher than expected in 2023, even though it is considering cutting its next interest rate hike from the current 75 basis points later this month. (bps) increases to 50 bps. “The positive market reaction to Powell’s speech suggests that macro conditions will still play a significant role in BTC’s price discovery,” Arcane Research, which provides analysis of digital asset trends, wrote in a newsletter on Tuesday.
Arcane added that, apart from the reaction to Powell’s remarks, markets “remained disoriented…as BTC spent the first 6 days of December floating in a narrow trading range near $17,000. The market slowdown was reflected in a severe reduction in trading volume in the spot and derivatives markets.” and it appears to have caused market participants to shy away last month [away from] crypto market.”
Ether recently traded hands at around $1,260, up slightly from Monday at the same time. Most of the other major altcoins were recently in the green with AXS, the token of the Axie Infinity gaming platform, rising over 4.5% to continue its recent rally. The token of SUSHI, the decentralized exchange Sushiswap, has fallen by more than 10%. The CoinDesk Market Index (CDI), an index that measures the performance of cryptocurrencies, rose 0.33%.
In an increasingly common pattern, cryptocurrency prices have outperformed sinking U.S. equity indices amid inflation concerns and macroeconomic uncertainties looming over 2022. The technology-heavy Nasdaq lost 2%, while the S&P 500, with its strong technology component, lost 1.4%.
Arcane wrote that the more than week-long lull in the cryptocurrency market was due to “a trader’s departure” following the collapse of crypto giant FTX. “The crypto market has traded as a coordinated organism over the last week, evident from all indices trading in a very flat environment,” Arcane said.
In an emailed market analysis, Mark Conners, head of research at digital asset manager 3iQ, optimistically noted that institutions are “doubling down on the promise of blockchain and digital assets despite FTX filing for Chapter 11 bankruptcy protection and other contagion cases.” . Goldman Sachs ( GS ), one of the world’s largest investment banks, plans to spend tens of millions of dollars on cryptocurrency firms whose valuations have been hit hard by the FTX implosion, Reuters reported on Tuesday.
3iQ’s Connors also discussed Fidelity’s new retail-focused digital asset offering and BlackRock CEO Larry Fink’s comments on DeFi’s potential, and BNY Mellon CEO Robin Vince’s call to “embrace digital asset innovation” and “comprehensive regulatory a base is needed, but much of the base already exists and can be added from traditional asset adjustments. There is a way to be found.”
The biggest losers
Asia Is Ready for a Crypto-Friendly Bank
By Sam Reynolds
Short sellers are circling Silvergate Bank, worried about its exposure to FTX and falling digital asset prices. But while the bank’s exposure to the FTX exchange is limited, its problem is that it is entirely dependent on US regulations.
While Silvergate has no outstanding loans to FTX, the failed cryptocurrency represents only 10% of the bank’s total deposits of $11.9 billion. It’s not the worst-case scenario, but the concentration of deposits worries some short sellers: Coinbase, Paxos, Crypto.com and Kraken are the bank’s next biggest customers.
Silvergate’s smaller competitor, Signature, appears to be aware of the problem and recently announced its intention to reduce cryptocurrency exposure. Investors say it’s as good a time as ever to reduce cryptocurrency exposure, as Silvergate’s shares have underperformed bitcoin itself, as well as KRE, a regional bank ETF that holds shares in many similarly sized banks.
And all of Silvergate’s major customers are located in the United States. For a bank that in theory specializes in a decentralized asset class, the bank’s book is very centralized around the US regulatory regime.
A definitive regulatory response to the collapse of FTX has yet to be written. But lawmakers are eager to find out what happened, and there is talk of putting in place significant safeguards to ensure it doesn’t happen again.
We can all agree that the FTX-Alameda structure was problematic, but lawmakers should look beyond that and do what they can to severely limit future cryptocurrency trading in the United States. 2023 and beyond – and Silvergate will deal with this more regulated reality.
But the US is not the only regulatory regime in town. Around Asia, there are countries and territories with more industry-friendly rulebooks that provide regulatory clarity that many US stakeholders complain is lacking.
Of course, some, like Singapore, discourage retail trade, but make up for it with a high concentration of trading organizations and family offices. Then there’s Thailand, which bans meme coins and some non-functional tokens (NFTs) citing a lack of substance, but does not prevent retail cryptocurrency trading if the rules are followed.
“…To protect consumers, we need regulatory guidance for companies that provides trust and transparency. There’s a reason so much cryptocurrency trading is offshore – there’s 0 guidance for companies to follow here in the US,” Ripple CEO Brad Garlinghouse he tweeted. mid november.
“Compare this to Singapore, which has a licensing framework, an established token taxonomy, and more. They can regulate cryptocurrency accordingly. They’ve done the work to define what ‘good’ looks like, and they know all the tokens” t securities (though [SEC Chair Gary Gensler] insists),” he added in a follow-up tweet.
If cryptocurrency gradually goes offshore due to reactionary overregulation in the US, Silvergate will not be exposed.
Instead, overseas crypto-friendly banks like Thailand’s SCB (which actively invests in crypto infrastructure) or DBS will take over. Finally, it is not difficult to repeat: Silvergate has developed its position in the market by not being ostensibly crypto-hostile like other banks. Several competitors have already emerged, such as Hong Kong’s First Digital Trust (FDT), which names Silvergate as a direct competitor.
The market is ready for this scale, multiplying Silvergate in a more conducive environment for cryptocurrency trading.
12:00 HKT/SGT (4:00 UTC) Australia’s Gross Domestic Product (GDP)
21:30 HKT/SGT (13:30 UTC) European Union Gross Domestic Product (GDP)
2:30 HKT/SGT (18:30 UTC) Bank of Canada Interest Rate Decision
In case you missed it, here’s the latest episode of First Mover on CoinDesk TV:
Scottie Pippen on the Big NFT Bounce and the Future of Sports in Crypto; Bitcoin is close to $17,000
NBA Hall of Famer Scottie Pippen steps into the metaverse with shoes he can only fill, or in this case, leave at OpenSea. Yes, we’re talking Pippen Sneaker NFTs! The legendary basketball champion joined First Mover in studio with Orange Comet CEO Dave Broome to discuss the latest project. Plus, has bitcoin bottomed out? eToro Crypto consultant Glen Goodman shared his analysis of the cryptocurrency markets. And Molly White discussed her mission to expose crypto scams and hacks, which earned her a spot on CoinDesk’s Most Influential 2022 list.
Ledger taps iPod creator Tony Fadell for new crypto wallet: The Ledger Stax is a sleek device that has an electronic ink display on the outside that can display transaction details and even NFTs.
Sam Bankman-Fried hired Mark Cohen as his lawyer: Reuters: Bankman-Fried, the former head of the now-bankrupt cryptocurrency exchange, has yet to be charged with any crime.
DESK Improvement Offers Tokenized Reader Experience on CoinDesk’s Website: Expanding social engagement helps CoinDesk build Web3-based feedback with readers.
Blockchain Data Provider Chainlink Launches Staking of Native Token LINK: According to co-founder Sergey Nazarov, staking will provide incentives that will allow the growth of the Chainlink system.
ConsenSys to Update MetaMask Crypto Wallet in Response to Privacy Vulnerability: The firm has clarified its data sharing practices and said it will redesign MetaMask’s settings page to address users’ concerns.