After an apparent paralysis in the crypto-market, it appears the illusion of immobility is soon to be shattered, as top cryptocurrencies jerk into action after their stable states. Ethereum has climbed onto a three-week high whereas Bitcoin too is trading at the highest point it has been at, during the last eight days. This shift in momentum comes about as the market braces for the report by the Federal Open Market Committee, in order to gauge the wider state of the economy.
Highlights of the week
- In the recent development following fraud charges on the disgraced FTX head, Sam Bankman-Fried has pleaded not guilty, to the charges laid out against him by the judge of the Manhattan courthouse. The charges include six counts of varying degrees of conspiracy and at least two counts of wire fraud. The news comes as surprising for many onlookers in the crypto space, expecting SBF to plead guilty, and go for the plea deal.
- In a joint statement, several US regulating agencies have issued warnings to the banking industry, calling for caution towards the risk inherent to cryptocurrency exposure. These regulators include the Federal Reserve, the Office of the Comptroller of Currency, and the Federal Deposit Insurance Corporation. They emphasize the dangers of crypto-volatility, to which banking business models are particularly vulnerable.
- Following non-compliance with the host agreement, the bankrupt Core Scientific has agreed to shut down over 37,000 BTC mining rigs, currently under operation by Celsius. Celsius, which also has filed for bankruptcy owes Core Scientific almost $8 million for hosting and energy charges. The news is highly significant, especially with Core Scientific’s previous position as the industry’s largest crypto miner.
- The Nigerian cryptocurrency exchange, Roqqu, came with a major achievement, after getting authorization which would allow it to begin operations in up to 28 countries based in the EU. This license acquisition is a major step for the exchange, which could accelerate its expansion by a considerable degree.
- In a recent conference hosted by the World Economic Forum, the financial industry’s leaders reviewed the tumultuous 2022, and its impact on cryptocurrency in particular. There appears to be consensus across the board that blockchain-based decentralized finance will remain fundamental throughout the future.
Crypto fear & greed index
Market sentiment remains static for yet another week, with little movement being seen throughout the prior month. The Crypto fear and greed index denotes a figure of 29, which lies within the fear zone. According to the index, market sentiment has hovered around this region since late November.
Even the change of the year could not woo market players to take a more optimistic stance on the wider crypto sphere. It is apparent that market sentiment never really saw recovery since the FTX contagion hit. Only time may tell when the index may see a shift in either direction. Many analysts have pointed out, however, that this bearish sentiment is not unique to cryptocurrency market participants and reflects a wider sense of negative outlook linked to macroeconomic uncertainty, and fears of a potential recession.
