The CEO of crypto lending and borrowing platform Hexn.io, believes recent crypto debacles will leave the industry stronger by weeding out weaker companies and fostering stronger regulatory efforts.

Good morning. Here’s what’s happening:

Prices: A day before the U.S. Thanksgiving weekend, bitcoin was trading up more than 2%.

Insights: The CEO of crypto lending and borrowing platform Hexn.io, believes recent crypto debacles will leave the industry stronger.

Prices

BTC/ETH prices per CoinDesk Indices; gold is COMEX spot price. Prices as of about 4 p.m. ET

FOMC Minutes Buoy Crypto Investors

By James Rubin

Bitcoin started celebrating the U.S. Thanksgiving holiday weekend a little early, rising 2.4% as investors savored the latest encouraging signs that the U.S. central bank would soon be ratcheting back its monetary hawkishness.

The largest cryptocurrency by market capitalization was recently trading at about $16,560. With a couple of minor glitches, BTC has remained steadfast over $16,000 even as the fallout from crypto exchange FTX's collapse has widened.

Ether was recently changing hands at $1,183, up 4.4% from Tuesday, same time. Most other major cryptos were recently in the green with LINK and UNI rising more than 5% and 3%, respectively. The CoinDesk Market Index (CDI), an index measuring cryptos' performance, jumped more than 2%.

Crypto prices dovetailed with equity markets, which closed higher Wednesday after minutes from the Federal Open Market Committee (FOMC) revealed that bank officials might be receptive to slowing interest rate increases from their recent diet of 75 basis point hikes. The tech-focused Nasdaq climbed about 1% and the S&P 500 and Dow Jones Industrial Average each rose a few fractions of a percentage point.

Katie Stockton, founder and managing partner at strategy and research group Fairlead Strategies, told CoinDesk TV's First Mover program that bitcoin's price increases came amid "signs" of "short-term downside exhaustion."

"Those are measurable for us, not just a feeling," Stockton said. "These are from some indicators we use on the technical front, and on the daily and weekly charts of bitcoin, we have counter trend signals that suggest we'll see stabilization, not a big relief rally, but stabilization for another few weeks."

Insights

A CEO Sees Pluses in Cryptos Recent Ruins

By Shaurya Malwa and James Rubin

The collapse of crypto exchange FTX and widening fallout have raised fundamental questions about the future of the crypto industry.

Can users trust any projects to protect their assets? How low will prices sink?

Yet Sergei Ivano, CEO at crypto lending and borrowing platform Hexn.io, believes the crisis will leave the industry stronger by weeding out weaker companies, encouraging others to be more transparent and fostering stronger regulatory efforts.

“Recent events connected to FTX and Alameda Research (FTX’s research and trading arm) are positive for the whole industry because they have triggered deleverage,” Ivano said. “All weak and unprofitable businesses that have grown during (the)  bullish phase of 2020-2021 will face problems if they don’t understand risk-management and principles of dealing in a bearish market.”

Ivano noted that markets are weak and that institutions are facing significant outflows. “Onchain metrics reveals that large and old addresses in Bitcoin and Ethereum continue to grow,” he said.

“Customers don't trust centralized entities, choosing DeFi protocols instead and withdrawing their funds from centralized markets,” he added, but said this situation will change in the next several months,” when the current stressful period ends.

He believes that the slapdash business practices and accounting procedures that enabled not only FTX’s implosion (and Chapter 11 bankruptcy protection filing but other debacles over the past six months, including the crumbling of the Terra ecosystem and Chapter 15 bankruptcy filing by crypto hedge fund Three Arrows Capital, will spur “more strict regulation.”

“Regulators will require more information about the structure of balances of centralized exchanges and platforms,” Ivano said.

Yet he also paused over some companies current efforts to share information about their reserves. “Leaders of industry are trying to publish proof of reserves of their companies, but these proofs are funny because this information is useless without knowledge about obligations of companies,” he said. “Proper way to implement such report is to publish reserves and obligations in the same time.”

Important events

5:00 p.m. HKT/SGT(9:00 UTC) Germany's IFO - Business Climate (Nov)

5:45 a.m. HKT/SGT(21:45 UTC) New Zealand Retail Sales (QoQ)

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP