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 Thursday. Here’s what you need to know about crypto today: |
- The Senate Banking Committee to Sam Bankman-Fried: Let's talk.
- Gary Gensler says the SEC has the power now to regulate crypto.
- The Bank of Spain will test a wholesale CBDC.
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CoinDesk Market Index (CMI): 852 +0.3%
Bitcoin (BTC): $16,837 +0.2%
Ether (ETC): $1,239 +1.3%
S&P 500 futures: 3,945.75 +0.2%
FTSE 100: 7,486.21 −0.0%
Treasury Yield 10 Years: 3.41% −0.1
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Following up on the unfolding of crypto exchange FTX, the Senate Banking Committee said it wants Sam Bankman-Fried, the exchange’s founder and former CEO, to appear before it next week in person to discuss the collapse of the exchange. If he doesn’t voluntarily testify, the committee will subpoena him, according to a letter from its leaders on Wednesday. “FTX’s collapse has caused real financial harm to consumers, and effects have spilled over into other parts of the crypto industry. The American people need answers about Sam Bankman-Fried’s misconduct at FTX," the lawmakers said in a prepared statement. |
Former FTX CEO Sam Bankman-Fried (Alex Wong/Getty Images) |
U.S. Securities and Exchange Commission Chairman Gary Gensler said the SEC is fine going after crypto with its current authority. Gensler said he isn’t waiting for new powers from Congress to enforce securities laws against crypto companies, though he added that it would be good to have more money and additional reach beyond U.S. borders. Gensler declined to talk specifically about the failed crypto exchange FTX in an interview on Yahoo Finance. The Bank of Spain has plans to start a wholesale central bank digital currency (CBDC) project. On Monday, it asked financial institutions and tech providers to submit proposals for the initiative by Jan. 31. The program seeks to simulate the use of a CBDC in wholesale transactions, the bank said in an official statement. A wholesale CBDC would be used in the transfers of funds between banks and financial institutions, as opposed to a retail CBDC, which would used by the public for everyday purchases. |
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Market Insight: Crypto Options Hit Record |
Deribit, the world's largest crypto options exchange, has been busier than ever. The number of ether options contracts traded rose 10% in November from October, reaching a record high of 8.9 million. Trading volume in bitcoin options rose 17% to 778,000 contracts, nearing the record rally registered in January 2021, according to data sourced from Deribit. In nominal terms, the total options turnover rose 5% to $25.5 billion, with the exchange accounting for over 90% of the global trading volume. On Deribit, one ether and one bitcoin option contract represent 1 ETH and 1 BTC, respectively. Volumes rose as Sam Bankman-Fried's exchange FTX, formerly the third-largest crypto spot and futures platform worldwide, went bankrupt, raising fears of widespread contagion. |
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- The chart shows bitcoin's UTXO value bands – the distribution of all unspent transaction outputs. The indicator shows behaviors of whales (large investors, pink area) or retail investors separated by the number of coins they hold, along with price actions.
- Whales, represented by the UTXO value band of 1,000 BTC to 10,000 BTC, have decreased their holdings by 367,000 BTC since June.
- "We will need to see whales increasing their holdings for a price rally to be sustainable. An upward trend in bitcoin prices is typically related to large holders accumulating bitcoin," CryptoQuant said.
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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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