Good morning. Here’s what’s happening:
price: Bitcoin has once again regained its lost position to trade above $23,000.
insight: Stefan Rust, CEO of Laguna Labs, said in a CoinDesk Q&A that the Genesis Chapter 11 submission has caused many in the crypto industry to breathe a sigh of relief, and that Bitcoin’s near-term price outlook is set for the next Federal Reserve. I wrote that it would depend on the size of the Reserve Board rate hike.
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BTC/ETH price per CoinDesk Index; Gold is the COMEX spot price.Price around 4pm ET
Bitcoin Returns to $23,000
Tuesday’s crypto market slump turned into Wednesday’s resurgence as bitcoin surged above $23,700 before retreating slightly.
The largest cryptocurrency recently traded above $23,180, up more than 3.1% over the past 24 hours. BTC dipped below $23,500 at one point on Tuesday as investors profited from the cryptocurrency’s recent surge. Bitcoin rose more than 35%, largely due to lower inflation tailwinds and economic data suggesting the economy avoids a severe tailspin. A number of unfavorable fourth-quarter earnings, including those of tech giants Microsoft and Texas Instruments and iconic aerospace company Boeing, derailed at least the second half of that narrative by Wednesday, sending stocks lower.
“The stock market rally in January may be over and cryptocurrencies could fall here,” Edward Moya, senior market analyst at forex market maker Oanda, wrote in an email. rice field. “Bitcoin could fall towards $20,000 levels if the tech-driven selloff on Wall Street intensifies in the coming days.”
Ether followed a similar pattern to Bitcoin, rising from a depth near the $1,500 threshold and surpassing $1,618 earlier this week, up 5.4% from Tuesday. Most other major cryptocurrencies are in the green with APT, the token of the layer-1 blockchain Aptos, which recently climbed more than 48% over the past 24 hours to reach a record high of $18.62. APTMore stay up According to CoinDesk data, it has been over 425% since January 1st. This is likely due to the growth of Aptos’ non-fungible token market.
Layer 2 network Optimism’s native crypto, OPT, also rose nearly 20% from the previous day to a record high of $2.34.of CoinDesk Market Index (CDI), a metric that measures crypto performance, has recently declined by about 4%.
Traditional markets traded flat, and tech stocks Nasdaq and S&P 500 fell slightly as investors chewed up corporate earnings. Electric car maker Tesla beat earnings and earnings expectations after Wednesday’s market closure, but warned of a possible economic contraction.
On the other hand, Binance’s stablecoin BUSD Expansion The recent drop amid mismanagement issues and other debacles involving exchange-pegged tokens that surfaced earlier this month.
BUSD’s circulating supply fell to $15.4 billion on Wednesday, down $1 billion in the past week and $2 billion in a month, according to cryptocurrency price tracker CoinGecko.Latest drop sees BUSD prolong fall from $22 billion in early December turmoil User rushed to withdraw funds After Binance failed to report on its digital asset reserves.
The decline came as the overall market capitalization of stablecoins dropped for the 10th straight month in January to $137 billion, according to a report from the Research Group. crypto compareStablecoin dominance in the broader cryptocurrency market fell to 12.4% from a record high of 16.5% in December, according to CryptoCompare, as traders moved away from stablecoins to riskier assets. suggests that
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There are no losers in CoinDesk 20 today.
Laguna Labs CEO ties Bitcoin outlook to Fed’s next move
The main reason the cryptocurrency market has risen this year is because the industry has washed the system of the mischief and mayhem that sank the market in 2022, said Stefan Last, CEO of blockchain technology firm Laguna Labs, with CoinDesk. It is written in the Q&A of Chapter 11 bankruptcy protection for Genesis Global Holdco LLC earlier this month provided a culmination, wrote Rust. Genesis is the holding company of troubled cryptocurrency lender Genesis Global Capital. (Genesis is also a subsidiary of CoinDesk’s parent company, Digital Currency Group).
“All shipments from 2022 have been closed with a filing,” he wrote. “This caused many in the industry to breathe a sigh of relief.”
Rust is cautious about Bitcoin’s near-term outlook, putting it on the scale of the next rate hike by the US Central Bank. He was more optimistic about Ether. “ETH at $10,000 by the end of this year maintains deflationary momentum,” Rust wrote in the process of answering four questions about the crypto market.
CoinDesk: Could the recent fall in inflation and investor expectations for the magnitude of the next rate hike drive the recent market rally? What other factors are at play?
rust: Rising expectations that rates will not rise by 50 basis points have certainly boosted investor confidence. However, I don’t think that’s the main factor. Cryptocurrency is going through his 400-day bear market and many of the true believers believe that even the DCG/Genesis/Gemini narrative has impacted the market as financial markets and decentralized financial institutions have largely pulled back. I am aware that I am not. That’s the main driving force behind the pump – the fact that all baggage from 2022 was closed with Genesis Chapter 11 filing. I breathe a sigh of relief in the area of decentralized finance where the possible financial opportunities are clear.
CoinDesk: Do you hold support around $22.9k as the market appears to be establishing, or are you anticipating a pullback?
rust: I’m not sure we’ll maintain that support, especially if rates rise by 50 basis points. Truflation takes into account recent CPI numbers to make predictions. All these factors have led me to believe that US interest rates will rise by 50 basis points at the next FOMC meeting next week. Looking at the numbers, inflation has not yet been contained.
CoinDesk: What are your expectations for the price of Ether and other major tokens?
rust: Big tokens, especially Bitcoin, and Ethereum will do well. The cryptocurrency market will recover at a faster pace than traditional financial markets. ETH is currently on a deflationary trend while the chain is seeing significantly increased activity in addition to the involvement of Ethereum developers, rapid improvements to the Ethereum network itself, and faster settlements associated with all activity. I have. Despite the unlocking of staked ETH with the Shanghai release, many will be surprised that the majority of stake remains staked. That could shift to liquid staking derivatives, a fast-growing market across the Ethereum DeFi ecosystem. If ETH hits $10,000 by the end of the year, the deflationary momentum will continue. Declining supply, increased activity, and faster circulation will require better value and more circulation to facilitate digital exchanges and transactions on layers 1 and 2 of the Ethereum blockchain. .
CoinDesk: You’ve recently noticed an increase in the number of transactions and engagements on Binance. But will increased scrutiny of exchanges pose a threat to the crypto industry this year?
Binance has 3 or 4 different entities. We have Binance US, Binance International and BNB Chain. Binance US has passed the regulatory framework like other US exchanges, but Binance International is already licensed in multiple jurisdictions around the world and, like other big tech companies, Exactly the same way Google is scrutinized, Microsoft is scrutinized, and Amazon is scrutinized. be scrutinized. All big tech companies are under scrutiny all the time, so I don’t think there is any difference in how Binance is scrutinized.
When it comes to decentralized finance, BNB Chain has a different infrastructure and is a different beast, with high transaction volumes, extremely cost-effective transaction fees, and high speeds. Fully Decentralized? No, but we see the same thing with Polygon. Distro is the name of the game. As long as we work out the kinks, start distributing our decentralization strategies, and see it done on Polygon and Binance, we can focus on decentralization over time.
12:30 PM HKT/SGT (4:30 UTC) US Durable Goods Orders (December)
12:30 PM HKT/SGT (4:30 UTC) US Gross Domestic Product Annualized (Q4)
10:30 PM HKT/SGT (14:30 UTC) Tokyo Consumer Price Index (YoY/January)
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“Policy Week” continued at CoinDesk with a comprehensive report on the state of crypto regulation. Linda Jenn, Chief Global Regulatory Officer of the Crypto Council for Innovation, joins the “first movers” on how looming European regulation could affect crypto companies. I explained that there is Additionally, Prosper her trading academy cryptocurrency educator Howard Greenberg shares her outlook on Bitcoin Ethereum his protocol Did. Separately, his CEO of QuickNode, Alex Nabutovsky, spoke about his company’s latest $60 million funding round.
Irish Central Bank Chief Calls for Ban on Bloomberg Crypto Ads: Gabriel Makhlouf told Parliament in Ireland on Wednesday that cryptocurrencies have “no social value at all”.
Layer 1 Blockchain Aptos Token Hits All-Time High: APT has surged since the beginning of the year, but some traders expect the rally to be short-lived.
DYDX token surge if unlocking is delayed until December. Next month’s unlocking of 150 million tokens will be reduced and 83 million tokens allocated to investors will be locked until December.
Pantera, Jump Crypto Back $150M Injective Ecosystem Fund: This initiative will support financial apps developed to work across blockchains based on the Cosmos system.
Canto DEX trading volume jumps 200% over proposal to upgrade network:Canto’s token price has tripled since January 1st.