Inner pressure in crypto remains
Inner pressure in crypto remains
Market picture
Bitcoin is trading near $17.3K, adding 4.6% in the past 24 hours. Total crypto market capitalisation is up 3.6% to $873bn. This could be considered a good performance, but the dynamics of other markets led us to expect more from cryptocurrencies.
FXT's failure continues to weigh on the entire sector, which is now clearly dominated by client money outflows due to an apparent drop in confidence in cryptocurrency exchanges. While most of this may be the transfer of coins to cold wallets, impressive sales also exist. As a result, there is a noticeable shift to short-term speculation in the crypto market with an attempt to reduce leverage and lock in profits on the upside.
News background
After several days of sharp declines, the crypto market recouped some losses amid weak US inflation data. Risky assets rose, while the US dollar fell due to speculation over a slowdown in the Fed's rate hike.
Tron founder Justin Sun said he was working with FTX to "develop a solution to start moving forward". He did not specify which initiative he was referring to. Sun later added that FTX has resumed trading Tron (TRX) on its platform, and the parties are now working to restore the withdrawal feature.
The head of FTX, who did not deny the $8bn hole in its balance sheet, stressed that the liquidity problems were solely with the global FTX International platform and did not affect US-based FTX.US.
JPMorgan believes bitcoin's fall isn't over, and the FTX liquidity crisis could lead to "cascading liquidations" and BTC collapsing to $13,000.
Binance confirmed its $70bn in assets, revealing on its website the addresses where it stores the cryptocurrency.
By the FxPro Analyst Team
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