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Bitcoin and Ether are falling as investors take profits; earnings reports and economic data are ruffling equities
Bitcoin and Ether fell in early Wednesday morning Asian trading, along with the other top ten non-stablecoin cryptocurrencies, as investors appeared to be taking profits after the year’s strong gains. Polkadot suffered the greatest loss. US equities were mixed on Tuesday as a result of Microsoft’s lower earnings guidance and the release of the US purchasing managers index, or PMI. The index, which measures business trends, was 46.6. While this exceeded expectations, a number less than 50 indicates that the economy is contracting.
Bitcoin traded 1.3% lower in the 24 hours to 8:45 a.m. in Hong Kong, at US$22,688, but was still up 6.8% in the previous calendar week. According to CoinMarketCap data, ether fell 4.6% to $1,555, losing 1.2% for the week.
Polkadot dropped 6.7% to US$6.15, the biggest drop on the top ten list. The token is still up 2.8% year to date.
Solana fell 5.7% to US$22.92, bringing the weekly loss to 0.2%. Cardano fell 5.7% to US$0.35, but was still up 2.1% for the week.
Over the last 24 hours, total crypto market capitalization fell 2.2% to US$1.03 trillion, while trading volume fell 6.4% to US$52.7 billion.
The Dow Jones Industrial Average rose 0.3% in the United States, while the S&P 500 Index fell 0.1%. The tech-heavy Nasdaq Composite Index fell 0.3% on the day.
Microsoft Corp reported better-than-expected earnings for the December quarter, but the stock fell 1.4% to $238.75 after the company’s earnings guidance for the next quarter disappointed investors.
The composite Purchasing Manager’s Index (PMI) for January, released on Tuesday, showed a contraction in private sector demand, with firms citing subdued customer demand and inflation denting client spending.
To try to slow inflation, the Federal Reserve of the United States raised interest rates by 50 basis points last month, to between 4.25% and 4.5%, the highest level in 15 years. Fed members will be in a “blackout period” before meeting to decide on the next interest rate move on January 31-February 1. CME Group analysts predict a 99.8% chance of a 25 basis point increase.
On Tuesday, cryptocurrency prices were mixed. The global crypto market cap was $1.05 trillion, with $55.7 billion in volume in the previous 24 hours.
Bitcoin
Bitcoin, the world’s largest and most popular virtual currency, gained 1.4 percent to $23,018. Its market capitalization was $442.9 billion. The total value of trade was $26.4 billion.
“The price increase could be attributed to BTC whales amassing and driving up the price.
Ethererum
The second largest virtual currency, fell 0.1 percent to $1,634.2, with a market capitalisation of $199.6 billion. In the last 24 hours, Ethereum’s trade volume was $8.2 billion.
Dogecoin
Dogecoin, a meme-based virtual currency, rose 0.5 percent on Tuesday. Its market capitalization was $11.8 billion. The total trade volume was $647.7 million.
Solana
Solana gained 0.7 percent to $24.5, with a market cap of $9 billion. Solana’s trade volume in the last 24 hours was $839.9 million.
Shiba Inu
Shiba Inu fell 0.5 percent to $6.6 billion in market capitalisation. In the last 24 hours, the trade volume was $252.4 million.
Polygon
Polygon fell 0.4 percent to $1, with a $8.7 billion market capitalisation. In the last 24 hours, the trade volume was $395.6 million.
On Monday, cryptocurrency prices were mixed. The global crypto market cap was $1.04 trillion, with $51.84 billion in volume in the previous 24 hours.
Bitcoin
Bitcoin, the world’s largest and most popular virtual currency, dropped 0.2 percent to $22,747.6. Its market capitalization was $438.2 billion. The total value of trade was $24.2 billion. In the last seven days, the token has risen 7.4 percent.
“Bitcoin climbed above the $22,900 level over the weekend, the highest in the past five months, as bullish sentiment returned to the market. The current support level is $22,700, and the resistance level is $22,900.
Ethererum
The second largest virtual currency, rose nearly 1.5 percent to nearly $1,640, with a market capitalisation of $200.6 billion. In the last 24 hours, Ethereum’s trade volume was $7.3 billion. In one week, the token has increased by 4.6 percent.
Dogecoin
Dogecoin, a meme-based virtual currency, increased by 7.3 percent on Monday. Its market capitalization was $12 billion. The total trade volume was $841.9 million.
Solana
With a market capitalisation of $9.2 billion, Solana fell 0.5 percent to $24.8. Solana’s trade volume in the last 24 hours was $1 billion.
Shiba Inu
Shiba Inu market capitalisation fell 1.5 percent to $6.7 billion. In the last 24 hours, the trade volume was $389.5 million.
Polygon
Polygon fell 1% to $0.9, with a $8 billion market capitalisation. In the last 24 hours, the trade volume was $389.5 billion.
In a report to creditors on Tuesday, bankrupt crypto exchange FTX stated that approximately $415 million in cryptocurrency had been stolen as a result of hacks.
Since the company’s bankruptcy filing on November 11, $323 million in cryptocurrency has been stolen from its international exchange, and $90 million has been stolen from its US exchange, according to CEO John Ray in a separate statement on Tuesday.
Sam Bankman-Fried, the founder of FTX, has been accused of stealing billions of dollars from FTX customers to pay debts owed by his crypto-focused hedge fund, Alameda Research. Bankman-Fried has pleaded not guilty to the charges of fraud.
FTX told a Delaware bankruptcy judge last week that it had recovered more than $5 billion in cryptocurrency, cash, and liquid securities nine weeks after declaring bankruptcy.
On Tuesday, the company revealed that it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency, and $300 million in liquid securities.
FTX did not provide a total liability estimate, but stated that it had identified significant shortfalls at both its international and US crypto exchanges.
“We are making progress in our efforts to maximise recoveries,” Ray said in a statement.
Based on crypto prices on November 11, 2022, the recovered crypto assets include $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin. Solana, which Bankman-Fried praised, lost the majority of its value by 2022.
FTX discovered a November asset seizure by the Securities Commission of the Bahamas during its initial investigation into system hacks, resulting in a dispute between FTX’s US-based bankruptcy team and Bahamian regulators.
The two parties reached an agreement in January, and Ray announced on Tuesday that the Bahamian government was holding $426 million for creditors.
During a Tuesday event at the Atlantic Council in Washington, Bahamas Prime Minister Philip Davis mentioned the dispute, saying Ray’s team had “come around” and accepted that the Bahamian asset seizure “was appropriate and perhaps has saved the day for many of the investors in FTX.”
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