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US stocks trimmed gains after the retail sales data-inspired rally lost steam. Investors’ sentiments were bruised after a Federal Reserve official claimed that the Fed should avoid incorporating financial stability risks into its considerations. Asian stocks remained under pressure as a tech-led selloff in Chinese shares intensified.
The broader market recoiled as the FTX saga slowly unwound. As of the time of writing, BTC manages to defend the $16.5k handle despite posting a 1.5% loss in the last 24 hours. ETH is down 2.8% in the same period and is currently changing hands precariously above the $1,200 mark. Mid-to-large-cap altcoins are largely submerged in a sea of red, with ALGO and MATIC giving up previous gains and leading the correction on more than 5% losses in the same period. The trust issue that surfaced in the FTX saga has provided some tailwinds to Trust Wallet, whose native token TWT sees a 19.8% rise amid the general market slump.
Despite extensive coverage of the FTX-inflicted turmoil in traditional financial media, the equity markets remain largely unfazed, with the exception of crypto-linked stocks. Coinbase, Block, Silvergate, and MicroStrategy, among others, have sustained considerable losses since FTX filed for bankruptcy and have consistently closed lower than major benchmarks.
The rapid collapse of FTX continues to send shock waves across the industry, snaring some of the largest crypto lenders, including BlockFi, which is said to be preparing bankruptcy filings. Genesis Global Capital, the latest victim of the fallout, is battling solvency issues and has since suspended withdrawals and new loan requests, as withdrawal requests exceed current liquidity. Shortly afterward, crypto exchange Gemini Trust halted the redemption of its yield product for retail investors, before briefly going offline due to a server outage. Meanwhile, Grayscale reassured investors that business is as usual despite its sister company’s predicament. However, Grayscale’s flagship product GBTC saw its discount widen to 39.27% on Wednesday.