The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk Reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Tuesday. Here’s what you need to know in crypto. |
| FTX hacked funds are on the move. Solana-based DeFi apps lose $700 million in value.FTX may have more than 1 million creditors. |
* Clarification: In Monday's email, our subject line read, "FTX Faces Criminal Charges." That is incorrect. FTX is being investigated and wasn't charged yet. |
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The FTX hacker who drained $600 million from the crypto exchange began moving the stolen funds Tuesday. Having siphoned funds from FTX’s wallets on Friday, the attacker then amassed $48 million of the stablecoin DAI, before swapping it all for 37,000 ETH. The address now holds more than 288,000 ETH, making it the 35th-largest owner of the cryptocurrency, according to data by security firm PeckShield. FTX announced on Friday that it had been hacked only hours after it had filed for bankruptcy. |
Solana DeFi applications have lost more than $700 million in value since the FTX debacle took hold at the start of this month. DeFi (decentralized-finance) applications in the ecosystem grew to $10 billion last November, with FTX founder Sam Bankman Fried among Solana’s chief proponents. That figure diminished with the broader crypto market contraction to sit at $1 billion on Nov. 2 this year, before shrinking dramatically to around $300 million with the FTX fallout. The more than 50% drop in the price of SOL, the network’s native token, has contributed to the fall. At the time of writing, SOL was priced at $14.64, compared with $32.64 at the start of this month. FTX may have more than 1 million creditors, according to a court document that helps to explain the crypto exchange’s sudden descent into bankruptcy. FTX filed a motion to handle its overall group of entities rather than treating its various subsidiaries and arms as individual cases. The firm filed for bankruptcy on Friday, saying it had between $10 billion and $50 billion in assets and liabilities. |
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Market Insight: Bitcoin's Next Support at $13.5K |
Analysts say bitcoin could drop to below $14,000, after slipping to below $18,000 following a 22% fall last week. Morgan Stanley wrote in a note to clients that the 2019 high of $13,500 or the third quarter 2020 high of $12,500 are the next support levels to watch out for now that BTC has fallen below $18,000, an area of support in recent weeks. During periods of consolidation in a certain range, assets build potential energy, which is then unleashed, driving its value in one direction or another. With a longer consolidation period, more energy is built up, and therefore, the breakout is more dramatic. While this is just theoretical, the outlook for bitcoin suggests a further slide is likely, given the adverse macroeconomic conditions paired with the collapse of FTX. |
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| The chart by Kaiko shows bitcoin's liquidity on major exchanges, measured by market depth within 2% of the average price (the average of the current bid and ask prices being quoted) since January. Liquidity has deteriorated significantly in the wake of FTX's collapse, with market depth falling from 11,800 BTC to a five-month low of 7,000 BTC.Market depth refers to the degree of an asset's resilience to large buy and sell orders. The greater the depth, the more liquid the market is and vice versa. |
Omkar Godbole and Jocelyn Yang |
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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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