Global investors woke up with a greater appetite for risky assets this Wednesday (21st), after panic stemming from signs of monetary tightening in Japan. In this context, the largest cryptocurrencies remain stalled, while today the expectation of Sam Bankman Fried, co-founder of FTX, to be delivered to the United States is growing.
Bitcoin (BTC) price increased by a slight 0.3% over the past 24 hours, at a price of $16,847.71. Ethereum (ETH) price rose 0.5% to $1,213.15, according to data from Coingecko.
In fact, Bitcoin (BTC) is down 0.6%, trading at R$88,405.43, according to the Bitcoin Gateway Index (IPB).
Core Scientific’s injunctive recovery
Cryptocurrency devaluation and rising energy costs have hit Core Scientific, one of the largest publicly traded cryptocurrency mining companies in the United States, hard. The company will file for bankruptcy in Texas under Chapter 11 bankruptcy Wednesday morning, a person familiar with the matter told CNBC.
According to the report, the bitcoin miner continues to generate positive cash flows and plans to continue mining operations as creditors are paid off. Shares of Core Scientific are down 98% since January.
Greenidge Generation, another troubled miner, has signed a non-binding agreement to sell most of its hardware to an NYDIG lender in an effort to pay off $74 million in debt and focus operations on custodial, according to a US Securities and Exchange Commission (CVM) filing. .
Among altcoins, Dogecoin (DOGE) is down 1.2% over the past 24 hours and has accumulated losses of about 20% in seven days. In addition to being affected by investor preference for digital currencies that are seen as safer amid market turmoil, the news that Elon Musk is stepping down as CEO of Twitter is also affecting the price of Dogecoin, the billionaire’s “estimation currency”.
After a poll with more than 10 million votes (57.5% of the total) decided Musk’s resignation, the Tesla owner is already looking for a new CEO and intends to focus on the platform’s engineering teams going forward, according to Bloomberg.
Despite the losses, Dogecoin’s market cap of around $10 billion still dwarfs Coinbase by about $8 billion. The share price of the US cryptocurrency exchange reached an all-time low on Tuesday (20). However, Coinbase managed to double its market share to 40% among cryptocurrency exchanges supporting fiat currencies between September and December, while Binance’s share rose to 87% in the period, according to data from The Block.
Other altcoins worked between gains and losses this Wednesday, such as XRP (-0.4%), Cardano (-2%), Polkadot (-2%), Shiba Inu (-1.4%), Solana (-2.1%), and Avalanche (- 0.9%). Nubank has started selling two additional cryptocurrencies on its app: Polygon (MATIC) and Uniswap (UNI), which are showing little difference this morning.
Crypto broker OKX announced that it will list Binance Coin (BNB), the native cryptocurrency of rival Binance, on its trading platform, which is up 0.5%.
BIT, BitDAO’s native token, has been running with little difference in the last 24 hours. BitDAO is considering a $100 million buyback of BIT in early 2023 as part of a capital injection strategy for the decentralized autonomous enterprise. The plan is part of a governance proposal submitted on Monday (19).
Global markets were shaken on Tuesday by the decision of Japan’s central bank, the Bank of Japan, to adjust the control band for the 10-year government bond yield curve, raising the ceiling from 0.25% to 0.5%.
Japan’s short-term interest rate remains negative, but investors and analysts saw the move as a first step towards normalizing monetary policy. And what does this have to do with cryptographic assets?
With interest rates likely to rise in Japan, many Japanese institutions are likely to repatriate funds invested in stocks and bonds, which could drain liquidity in the global market for risky assets such as cryptocurrencies. According to data compiled by Bloomberg, Japanese investors have invested more than $3 trillion in stocks and foreign debt, and almost half of it is in the United States.
But bitcoin seems to be ignoring it, at least for the time being, and it is still stuck at $16,800. In seven days, the largest cryptocurrency has fallen by 5%, according to data from CoinGecko.
“Bitcoin’s rally is a bit unimpressive as cryptocurrency traders remain in ‘hold mode’ over what will be the next big crypto-asset domino to drop or whether we will have clearer guidance on Regulatory Front.” Oanda, in CoinDesk analysis.
Sam Bankman Fried Delivery
Federal authorities are expected to fly Sam Bankman-Fried to the United States on Wednesday, where the co-founder of FTX will face a series of criminal charges related to the collapse of the cryptocurrency exchange.
Bankman-Fried will be signing papers this morning waiving his rights to challenge his extradition in Nassau Magistrates Court.
Then, the SBF will escort the FBI agents on a non-commercial flight back to the United States, a person familiar with the plans told Bloomberg. Another source said the plane would take off from a private airport in the island nation.
The SBF had agreed to extradite him to the United States because it saw greater chances of him being granted temporary bail in his country, a request that was denied in the Bahamas.
FTX’s new management, which took the helm when Bankman-Fried resigned on Nov. 11, said in a hearing with creditors on Tuesday that it had identified more than $1 billion in assets, CoinDesk reported. The company has located about $720 million in cash, which the exchange has not yet consolidated, in US financial institutions authorized to hold funds by the Department of Justice. Another approximately $500 million has been deposited in US institutions. The new management of FTX also wants to recover the $70 million donated by SBF politicians.
The remnants of the former Bankman Fried empire have attracted the interest of some of the largest investors in so-called “distressed” or distressed assets. The Baupost Group and Oaktree Capital Management are among those consulted about complaints from FTX clients with assets locked up on the cryptocurrency exchange, according to a person familiar with Bloomberg. Meanwhile, Citigroup, Cowen, and Seaport Global are trying to act as middlemen in this new market.
In the opinion of experts, separating assets from cryptocurrency exchanges and client funds could have avoided or reduced cases like FTX. The so-called segregation of assets was excluded from the cryptocurrency law approved by the House of Representatives, the deadline for which President Jair Bolsonaro will be sanctioned expires on Wednesday (21).
In an interview with InfoMoney, Michael Shauloff, CEO of Fireblocks, an Israeli cryptocurrency custody infrastructure company, said that separation should be there in most cases: “And if there is anything we have learned, especially in this crypto environment, it is that there is no Protection If something happens, the central bank won’t step in and save everyone, basically everything will collapse, so the transparency when there is no separation should be very clear.
Mega da Ferrada
Many Brazilian investors lost money with FTX. Some may try to make up for the loss by betting on this year’s Mega da Virada, with an estimated prize pool of R$450 million. But Annalisa Blando, a member of the investment committee at MB Asset and chair of the Financial Education Committee at MB, told Cointelegraph that before getting rich, an investor should be careful not to get poor.
“Critical to this person becoming happily ever after is paying attention to the expenses, which can be high, but have limits, and where they are going to invest those resources. Having a good, Planejar-certified financial planner with proven experience, can be a great solution (… ) “, He said.
The Rio de Janeiro judge decided that the founder of GAS ConsultoriaHe, Gladson Acacio dos Santos, is going to a popular jury for murder. As indicated in the sentence, Bitcoin Pharoah is accused of killing two people: Wesley Pisano Santarem and Adelson José da Costa, who survived the attempted murder. The complaint filed by the Public Prosecutor’s Office says that the motive behind the crimes was that both of them were working in the same business as GAS Consultoria in the Lagos area of Rio de Janeiro, and they were considered competitors.
A panel of lenders, which includes the Gemini cryptocurrency exchangea plan to Genesis Global and its parent company Digital Currency Group aims to propose a “path to asset recovery”, he said in a tweet Gemini Co-Founder, Cameron Winklevoss. Gemini was forced to suspend the Gemini Earn passive income program, which is run in partnership with Genesis, which halted redemptions on the cryptocurrency credit platform after the FTX crash. BlockFi, another crypto credit platform that has suspended withdrawals, is considering opening withdrawals for some users.
Binance is now part of an executive committee From the Chamber of Digital Commerce, a US lobby group for the blockchain industry. The world’s largest cryptocurrency exchange intends to contribute to the research and potential impact on crypto legislation through discussions with policymakers and regulators, according to a statement.
Listing of Sango, the cryptocurrency of the Central African Republicuntil the first quarter of 2023. Market conditions and seasonal factors, such as the holiday season, were cited as reasons for the delay by the project’s Telegram channel managers.
Sandeep Nailwal, Co-Founder of Polygon and Symbolic Capital, Launch web3 startup accelerator. The New York-based accelerator, called Beacon, plans to support early-stage crypto projects through mentorship and funding. Fifteen startups have already received Beacon funding, Nailwal told The Block, but the CEO doesn’t intend to announce the names until January.
Brazil’s biggest funding YouTuber, Natalia Arcuri, owner of Me Poupe! , decided to distribute 15,000 non-fungible tokens (NFTs) during a YouTube livestream on Tuesday (20). The tokens, offered by digital real estate company Netspaces, represent a fraction of a property located in Rio Grande do Sul. However, only those who purchase courses from Me Poupe! They are entitled to get NFT.
NBA Legend Scottie Pippen NFT Collectionbroke the OpenSeas market sales record previously held by actor Anthony Hopkins, according to The Block. The 1,000-piece set for the former Chicago Bulls basketball player sold out in just 77 seconds on Tuesday, according to Orange Comet, the company responsible for producing Pippen and Hopkins NFT sets. The sales speed of Pippen’s NFTs has outpaced that of former President Donald Trump’s collection, which also sold out last week.
The euphoria is not reflected in the sales of NFTs by auction house Christie’s, which has traded 87 non-fungible tokens worth $5.9 million this year, down 96% from $150 million in 2021.
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