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 Friday! Here’s what's happening in crypto today: |
- Binance auditor Mazars pauses work for crypto clients.
- FTX wants to sell its functioning units, including LedgerX.
- Post-FTX, Amber Group seeks to raise capital quickly.
- Bitcoin, ether and U.S. stock futures were all down early Friday.
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Binance’s proof-of-reserves auditor Mazars has paused all work for its crypto clients, Binance said in an emailed statement. "Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment," a Binance spokesperson said. The accounting firm performed a proof-of-reserves assessment of Binance earlier this month, finding its bitcoin reserves were overcollateralized. Bitcoin coin (BNB) fell after the announcement. It has lost about 5% in the past 24 hours, CoinDesk data shows |
FTX, the crypto exchange that filed for bankruptcy last month, wants to sell its functioning units, including its U.S.-based derivatives wing LedgerX. On Thursday, the exchange petitioned a U.S. bankruptcy court for permission to sell several subsidiaries, including FTX Japan, FTX Europe and Embed Business. "Based on their preliminary review, the debtors own or control a number of subsidiaries and assets that are regulated, licensed and/or largely not integrated into the debtors’ operations, within and outside of the United States," the filing said. "The debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises." Crypto trading firm Amber Group changed its fundraising strategy to raise $300 million in Series C round, as a reaction to the fall of FTX. The collapse of the exchange affected some of Amber’s products and customers, increasing the need to raise capital quickly. Amber decided to move from its efforts to raise a Series B+ round at a $3 billion valuation in favor of a Series C. "Post the FTX collapse, we paused [the series B+ fundraise] after a partial closing and instead moved forward on Series C," the firm said. Bitcoin (BTC) was down 4% to just below $17,000 early Friday Eastern time, and ether (ETH) dropped 6% to $1,212 as more bad news in the crypto world keeps coming forth. U.S. stock futures also pointed down after the Dow Jones Industrial Average sank 764 points on Thursday on recession fears. |
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Market Insight: Bitcoin 'Death Cross' Looms |
Bitcoin's weekly chart shows an impending death cross, the first in the cryptocurrency's 13 year history. (TradingView) (TradingView/CoinDesk) |
Things could soon go from bad to worse for bitcoin traders looking for bullish cues on technical charts. The cryptocurrency's 50-week simple moving average is falling fast and looks set to cross below the 200-week SMA for the first time on record. According to technical analysis theory, the bearish intersection of the two averages often referred to as the death cross, means the market is about to head into a tailspin. Bitcoin has dropped 75% since reaching a record high of almost $69,000 in November last year. The bear market has proved to be more intense than the previous ones during which sellers failed to establish a foothold under the 200-day SMA. |
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- The chart shows daily trading volume in bitcoin and ether futures markets since December 2020.
- Trading activity has slowed to levels last seen roughly two years ago, representing the impact of global liquidity tightening and widespread deleveraging and contagion from the collapse of several industry bigwigs, including Terra, Three Arrows Capital and FTX.
- The exodus of leverage traders means less speculation, which is perhaps a positive development in the eyes of those averse to the cryptocurrencies' high volatility. It's not great for liquidity, however.
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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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