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US stocks dropped on Monday as Federal Reserve officials reiterated their unwavering stance on bringing inflation under control. Tech benchmarks closed lower on the back of an uncertain outlook of slowing the tempo for rate hikes. The dollar climbed for a third day as investors sought haven assets.
The broader crypto market wobbled on Monday, with major cryptocurrencies falling below key support levels as investors continued to grapple with further contagion following the FTX collapse. BTC plunged below the $15.5k level, approaching a two-year low, before moving up to consolidate near the $15.8k mark. Once the $15.5k support is breached, the price of BTC will likely enter a no man's land with few on-chain price walls until the $13.5k level, which is dangerously close to the estimated mining production cost. Meanwhile, since the latest difficulty adjustment, there has been a 15-25% drop in the total BTC hash rate across the network, suggesting that some major miners may have just powered down.
ETH struggles to defend the $1,100 handle after posting a 1.6% decline in the last 24 hours. Investment products that short ETH have seen the largest inflow on record, pointing to dampened sentiments due to the FTX drainer’s recent dump. Mid-to-large-cap altcoins saw mixed performances, with APE defying the market slump with an 8% gain in a similar time frame.
After suspending the services of its lending arm last week, Genesis Global Capital saw its fund-raising efforts rendered moot as one of the companies it approached decided not to invest on the grounds of a potential conflict of interest, according to WSJ’s report. The firm warned of the risk of bankruptcy despite claiming that it has “no plans to file bankruptcy imminently”. Genesis’ financial troubles were first brought to light on Nov. 16, when the company announced the suspension of redemptions and new loan originations on Twitter, citing abnormal withdrawal requests in the aftermath of the sudden FTX collapse. This is also the last public statement from the firm, and the subsequent silence has set off widespread concerns of another crypto giant falling victim to the FTX contagion.