Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer over the week was Toncoin, up 31.18%.
- Binance Holdings founder โCZโ said outflows from the largest cryptocurrency exchange have stabilized, Bloomberg writes, while warning employees that the industry's recovery from the collapse of rival FTX will be bumpy. He had previously said that Binance saw around $1.14 billion in net withdrawals on Tuesday.
- Bitcoin soared to $18,000 for the first time since exchange FTX fell into a chaotic bankruptcy last month, and the world's largest digital currency also got a boost from bets on a downturn from the Federal Reserve. A second month of weaker-than-expected inflation data also boosted cryptocurrencies, along with risk assets on the assumption that they would pave the way for slower Fed hikes, Bloomberg writes.
weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer over the week was Neutrino, down 33.29%.
- Binance Holdings, the dominant cryptocurrency exchange, has been hit by large outflows as traders move to take custody of their tokens amid revelations that rival FTX may have misused the funds. of customers before it imploded in November. As reported by Bloomberg, Binance digital token net outflows amounted to around $3.7 billion in the past week, including nearly $2 billion in the last 24 hours.
- Mazars Group, the accounting firm used by cryptocurrency giant Binance Holdings and other big industry players to guarantee their assets in reserve, has halted all such work for cryptocurrency clients, dealing a blow to an industry it seeks to bolster. confidence in him after the collapse of FTX. In an email sent by the French firm, Mazars said it had suspended the work of cryptocurrency firms due to indications that the "proof of reserve" reports it had released so far had failed to reassure markets, Bloomberg writes. .
Opportunities
- Cathie Wood acquired more shares of Tesla and Coinbase, underscoring her faith in electric vehicles and cryptocurrencies as key trends for the future. Ark Investment Management bought nearly 75,000 shares of the electric vehicle maker and around 297,000 of the cryptocurrency exchange operator on Wednesday, continuing a buying streak that began in October, Bloomberg writes.
- Client exits from Binance's cryptocurrency trading platforms are slowing, Bloomberg reports, based on blockchain data from two digital asset analytics firms. The net outflow, the difference between the value of cryptocurrencies entering and exiting the exchange, was around $239 million in the last 24 hours, which is lower than the daily average of $272 million over the past week.
- Hong Kong crypto futures ETFs raised more than $70 million before their debut. The CSOP Bitcoin Futures ETF has raised $53.8 million, while the CSOP Ether Futures ETF has raised $19.7 million in initial investments. According to Tim McCourt, an executive at the CME group, the listing of the ETFs shows the โgrowing demand for client exposure to Bitcoin and Ether,โ CoinTelegraph writes.
threats
- FTX co-founder Sam Bankman-Fried has been accused by US regulators of running a multi-year scheme to defraud investors, Bloomberg reports. The SEC said Tuesday that Bankman-Fried, who was arrested Monday in the Bahamas and faces criminal charges in the US, raised more than $1.8 billion from investors. The SEC also said it concealed the risk and FTX's relationship with its trading firm Alameda Research and used commingled client funds.
- Sam Bankman-Fried's trading house, Alameda Research, had a secret speed advantage when executing orders on his now-collapsed FTX cryptocurrency exchange. Alameda, which also went bankrupt last month along with FTX, was able to circumvent certain parts of the exchange's trading architecture and bypass some automated verification processes, Bloomberg writes.
- One of the most closely watched indicators of trader sentiment on leading derivatives exchange Binance suggests that anxiety has grown over the further fallout from this year's crypto market crash. The seven-day average open interest for Bitcoin perpetual futures has fallen 40.3% since early November, as of Wednesday. The decline comes as investors mine cryptocurrencies from exchanges like those run by Binance, Bloomberg writes.
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