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 Tuesday! Here’s what's happening in crypto today: |
- Sam Bankman-Fried was arrested and will appear in court today.
- Traders await the all-important U.S. CPI Report on November inflation.
- Grayscale’s GBTC won’t be converting to an ETF anytime soon.
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CoinDesk Market Index (CMI): 870 +1.9%
Bitcoin (BTC): $17,442 +2.6%
Ether (ETC): $1,287 +2.5%
S&P 500 futures: 4,010.00 +0.5%
FTSE 100: 7,472.31 +0.4%
Treasury Yield 10 Years: 3.61% +0.0 |
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The Royal Bahamas Police Force arrested FTX founder Sam Bankman-Fried. The founder of the collapsed crypto exchange will appear in court on Tuesday in the Bahamas. "He was arrested in reference to various financial offenses against laws of the United States, which are also offenses against laws of the Commonwealth of the Bahamas," a document said. This comes after the collapsed crypto exchange filed for bankruptcy in the U.S. last month, owing its 50 largest creditors almost $3.1 billion. |
(Jesse Hamilton/CoinDesk, modified via Photomosh) |
The U.S. Securities and Exchange Commission has charged Bankman-Fried for defrauding investors, according to a release on Tuesday. Legal filings claim that he inappropriately used customer funds to bail out the supposedly separate trading arm Alameda Research and fund both Bankman-Fried's personal lifestyle and political donations. “We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," SEC Chairman Gary Gensler said in a statement. Grayscale’s Bitcoin Trust (GBTC) won’t be converted into a spot bitcoin exchange-traded fund anytime soon. Grayscale sued the SEC over its bitcoin ETF application rejection on June 29. But the SEC is sticking to its guns. In the regulator’s first response brief since Grayscale filed suit, the SEC reiterated that its reasons for denying Grayscale’s applications were consistent with its earlier decisions to deny every other spot bitcoin ETF application it had received. GBTC was trading at a record discount of 49.12% relative to the price of bitcoin on Tuesday. (Grayscale is a sister company of CoinDesk.) |
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Market Insight: BTC Strategies for CPI |
The U.S. Bureau of Labor Statistics is scheduled to release the all-important Consumer Price Index figures for November at 8:30 a.m. ET (13:30 UTC) on Tuesday. If the inflation report comes hot, risky assets, including bitcoin, may face selling pressure. On the contrary, bitcoin could rally if data shows inflation showing signs of responding to the Federal Reserve's rate hike cycle. In other words, the CPI release could spark bitcoin, and trading giant Cumberland recommends an options strategy to profit from the post-data price action. "Sell BTC June calls and hedge with December options," Cumberland said in the CPI preview published on dominant crypto options exchange Deribit's market insights blog. |
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- The chart shows the number of bitcoin held in miner wallets going back to January 2021.
- The balance held by miners or those responsible for making coins has now dropped to 1.818 million BTC, the lowest since October 2021, extending the slide from the July high of 1.84 million.
- Miners' balance sheets have deteriorated this year as bitcoin prices have slumped, denting revenues.
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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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