Bitcoin retreats further into the gloom

The largest crypto by market cap dipped below $16.5K at one point on Wednesday. ALSO: CoinDesk Research Analyst George Kaloudis ranks his top five industry annoyances with FTX topping the list.

Good morning. This is what is happening:

Prices: Bitcoin, ether and most other major cryptocurrencies were in the red on Wednesday.

Perspectives: In this last week of 2022, First Mover Asia is reviewing some of the most notable CoinDesk (CD) columns. In his latest Crypto Long and Short newsletter, CD Research Analyst George Kaloudis considered five of the most upsetting events and trends in 2022. Unsurprisingly, topping his list, Kaloudis wrote about his anger at FTX (for the fraud), daredevils who take risks. (for the flex) and many Twitter users (for the hero worship of disgraced former CEO Sam Bankman-Fried)”.


BTC/ETH prices by CoinDesk indices; gold is the COMEX spot price. Prices starting at 4 pm ET

Another gloomy day for Bitcoin

By James Rubin

Bitcoin added another spoonful of pessimism to a year already gloomy Wednesday.

The largest cryptocurrency by market capitalization recently dropped one percentage point in the last 24 hours to trade just above $16,500. BTC has been nearing $17,000 since mid-December amid market concerns over the latest macroeconomic uncertainties and the increased likelihood of the US central bank adding to its recent diet of rate hikes. of interest.

In an interview with CoinDesk TV’s First Mover program, Brent Xu, founder and CEO of cross-chain DeFi hub Umee, said that markets look set to continue their current negativity well into 2023. “Markets will bottom out.” around the second or third trimester,” Xu said. “We’re going to see another six to 12 months of negative sentiment, possibly 18 months.”

Still, he added that he expects “better developments” in the long term.

Ether recently changed hands for just under $1,200 for the second day in a row, down more than 2% from Tuesday, at the same time. Other major cryptocurrencies by market value were largely in the red amid tepid trading that is typical for most assets at year-end. SOL, the Solana blockchain token, and APT, the native cryptocurrency of the Aptos blockchain system dropped more than 11% and 10%, respectively. The CoinDesk Market Index (CDI), an index that measures the performance of cryptocurrencies, recently fell 1.86%.

US stock indices fell slightly as investors weighed the implications of China reopening its borders after months of Covid lockdown. The technology-focused Nasdaq and the tech-heavy S&P 500 fell 1.4% and 1.2%, respectively. Stocks it typically trades sideways at this time of year, though a sell-off in Tesla stock this month and mass cancellations at Southwest Airlines may upset this traditional course.

For at least a day, a couple of mildly positive stories replaced the latest developments in crypto exchange The current FTX crisis among industry headlines. Bitcoin miner Argo Blockchain (ARBK) avoided filing for bankruptcy protection after agreeing to sell its Dickens Country, Texas mining facility to Galaxy Digital for $65 million and secure a $35 million loan from the cryptocurrency-focused financial services firm .

Earlier in the day (HKT), CoinDesk also reported that MicroStrategy (MSTR), the trading software provider that was co-founded by cryptocurrency advocate Michael Saylor, has added to its bitcoin (BTC) stash, buying around 2,395 bitcoins for $42.8 million between November 1 and on December 21 through its subsidiary MacroStrategy

Umee’s Xu said that the recent increase in macroeconomic conditions and the stability of cryptocurrency prices have been problematic for options trading. “If you are an options trader, not many volatilityXu said. “As long as there are price movements, they won’t stick around long enough to form a noticeable trend.

He added: “It’s just not the best time to invest in crypto assets.”

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5 Crypto Things That Irritated Me In 2022

By George Kaloudis

Attached are just five of the crypto-related things that bothered me in 2022. There were many more than five, but the obvious things like “the market went down” aren’t included because they’re not fun to write about.

1. The FTX/Alameda/SBF fraud

This is probably the umpteenth time I’ve read some version of a crypto person being mad about this, but I’m still mad at FTX (for the fraud), reckless risk takers (for flexing), and many Twitter-ers (for the hero worship). I think the fraud speaks for itself. The embezzlement (or whatever) at FTX hurt real people. Rubbing salt in the wound: I had to ask FTX founder Sam Bankman-Fried a few questions months before his exchange crashed, on a CoinDesk TV show, but couldn’t touch anything blunt. We talk about the Super Bowl mainly.

2. Flexing of cryptocurrency hedge fund founders

My brain is raising at least two forks for the folks at the Three Arrows Capital (3AC) crypto hedge fund. It’s one thing to be a little annoyed with highly leveraged hedge funds (like 3AC) doing risky things in general; it’s another to be upset about the associated flexing (i.e. “bragging”) that’s taken place on social media and elsewhere as highly leveraged hedge funds hoarded cash in recent years.

But it was revealed during the liquidation proceedings that 3AC co-founders Kyle Davies and Su Zhu paid for a $50 million superyacht with company funds while claiming that “100K ETH is dust.” To call 100,000 ether “dust” was to call $400 million “not a lot of money.” 3AC collapsed. In addition, the superyacht was called: “Mucho Wow”.

Yes, I know.

Very chilly.

Important events

5 pm HKT/SGT (9 am UTC): European Central Bank M3 Money Supply (November 3/YoY)

9:30pm HKT/SGT (1:30pm UTC): First-time US jobless claims (Dec 23)