You are viewing Crypto Daybook Americas, your morning briefing on what happened in the crypto markets overnight and what’s expected during the coming day. Crypto Daybook Americas will kickstart your morning with comprehensive insights. If you’re not already subscribed to the email, click here. You won’t want to start your day without it.
By Omkar Godbole (All times ET unless indicated otherwise)
December has started weak, with bitcoin BTC$86,044.81 trading at $86,800, down 5% over 24 hours after touching a low of $85,732 during the early Asian hours. The CoinDesk 20 and CoinDesk 80 Indices are off more than 6% apiece, signaling deeper risk-off moves in the broader crypto market.
The blame likely falls on fresh worries over Bank of Japan rate hikes and soft Chinese economic data, both of which are crimping risk appetite across regional equities and digital assets.
“Markets are questioning whether global liquidity is truly easing,” Singapore-based QCP Capital noted, pointing to Strategy CEO Phong Lee’s remark that his firm could sell its BTC holdings if shares trade below net-asset value and funding dries up as another bearish catalyst.
The real headline, though, is yet another hack: this time, the DeFi platform Yearn suffered a $9 million loss. (Details on the strategy employed by the backer can wait) What’s telling is that hacks keep hitting DeFi and centralized platforms alike, with over $9 billion lost to scams, hacks and exploits in the past 12 months, per De.Fi data – a figure that would rank as a top-20 token by market cap.
Hack recoveries? Just $154 million over the same stretch.
So, not only is security a major concern, but post-hack recovery technology and enforcement efforts are also falling short. Talk about denting investor confidence!
The takeaway is that ETFs and other alternative vehicles have broadened crypto’s investor base, lifting crypto valuations, but security lags far behind. Perhaps it’s time for investors to press VCs and pundits on “wen institutional-grade security?” and not just “wen $200K/$500 for BTC?”
As for the next 24 hours, market trajectory largely depends on what the Fed Chair Jerome Powell says during his speech at the Hoover Institution’s George P. Shultz Memorial Lecture Series later today. Bulls want dovish signals for swift rate cuts to pressure the dollar and support BTC. Neutral or hawkish? More downside can be seen. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
