Cryptocurrencies edged down on Black Friday, amidst easing Fed fears that lifted risky assets including stocks. Cryptocurrencies remain muted whilst the anxiety over potential contagion from the FTX collapse lingers. The Dollar Index gained mildly whereas the Wall Street Futures are trading in the green zone.
Overall crypto market capitalization is currently at $830 billion, versus $831 billion a day earlier.
Bitcoin which commands 38 percent of the overall crypto market shed 0.4 percent overnight. BTC is currently trading at $16,483 after ranging between $16,641 and $16,388 in the past 24 hours.
Ethereum which has a 17.5 percent share of the overall crypto market declined 0.9 percent overnight and is currently trading at $1,184.97. Ether ranged between $1,203.98 and $1,174.82 in the past 24 hours.
Third ranked Tether (USDT) continued its divergence from the $1 peg and traded between $0.9995 and $0.9993 in the past 24 hours. The top ranked stablecoin last traded at the $1 level on November 9.
4th ranked BNB (BNB), the native cryptocurrency of the Binance cryptocurrency exchange is currently trading 0.5 percent lower on an overnight basis. Meanwhile Changpeng Zhao (CZ), the CEO of Binance who recently proposed the setting up of a $1 billion industry recovery fund has reportedly hinted at increasing the fund’s corpus to $2 billion.
5th ranked USDCoin (USDC) traded between $1 and $0.9999 in the past 24 hours. 7th ranked XRP (XRP) gained 8.2 percent whereas 8th ranked Dogecoin (DOGE) added 5.5 percent.
47th ranked Huobi Token (HT) is the top gainer with a 7.8 percent overnight rally.
20th ranked UNUS SED LEO (LEO), the native token of the Bitfinex cryptocurrency exchange dropped 8 percent in the past 24 hours.
Close on the heels of the FTX fiasco that involved a catastrophic comingling of funds within the group, reports have emerged that crypto conglomerate Digital Currency Group has used funds it borrowed from its unit Genesis Trading to invest in the products of another unit viz Grayscale Bitcoin Trust. According to a report by Financial Times, billionaire Barry Silbert told investors that DCG had borrowed $575 million from Genesis “on an arm’s length basis” to fund undisclosed “investment opportunities” and buy back DCG shares from non-employee shareholders. Grayscale Bitcoin Trust has been in the news recently for its refusal to part with information on proof-of-reserves citing security concerns.
The IMF has in a recent blogpost cautioned that Africa’s growing crypto market needs better regulations. The blog notes that policymakers are worried that cryptocurrencies can be used to transfer funds illegally out of the region and to circumvent local rules to prevent capital outflows. Widespread use of crypto could also undermine the effectiveness of monetary policy, creating risks for financial and macroeconomic stability, the blog added.
The blog, based on the Regional Economic Outlook for Sub-Saharan Africa terms it a much greater risk if crypto is adopted as legal tender, like what was done by the Central African Republic. If crypto assets are held or accepted by the government as means of payment, it could put public finances at risk.
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