The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Wednesday! Here’s what's happening in crypto today: |
| Core Scientific, one of the largest bitcoin miners by computing power, has filed for bankruptcy.Creditor committee expects to hear from Genesis and DCG by week's end.Sam Bankman-Fried will begin the extradition process. |
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CoinDesk Market Index (CMI): $829 +0.1%
Bitcoin (BTC): $16,845 +0.1%
Ether (ETC): $1,214 −0.0%
S&P 500 futures: 3,869.75 +0.5%
FTSE 100: 7,437.51 +0.9%
Treasury Yield 10 Years: 3.68% +0.1 |
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Core Scientific,one of the largest bitcoin miners by computing power, has filed for bankruptcy.The company filed for Chapter 11 at Southern District of Texas bankruptcy court. The miner's estimated liabilities are from $1 billion to $10 billion, according to the filing. It has around 1,000-5,000 creditors, with the largest unsecured claim coming from investment bank B. Riley. The bankruptcy of Core Scientific, which accounts for about 10% of computing power on the bitcoin network, operating 143,000 mining runs and hosting another 100,000 is the biggest one yet and is set to send shockwaves in an already crumbling industry. |
A creditor committee that includes crypto exchange Gemini has presented a plan to Genesis and Digital Currency Group (DCG) to “provide a path for the recovery of assets,” Gemini co-founder Cameron Winklevoss said in a tweet. The creditor committee expects to hear from Genesis and DCG by the end of the week. DCG is also the parent company of CoinDesk. Sam Bankman-Fried, former CEO of bankrupt crypto exchange FTX, has signed the necessary paperwork to begin the extradition process, reports the New York Post, citing Doan Cleare, the acting commissioner of corrections at Fox Hill Prison in The Bahamas. Bankman-Fried is set to appear in court on Wednesday morning to continue the extradition process. CNBC reported that Bankman-Fried will fly to the U.S. the same day, also citing Doan Cleare. |
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Market Insight: CMI Bears Similar to TradFi |
Money is searching for quality in both traditional and digital assets, as investors appear to favor safety above all for right now. CoinDesk Indices (CDI) data shows the Currency Select Index (CCYS), anchored by bitcoin (BTC), and the Smart Contract Platform Index (SCPX), anchored by ether (ETH), outperforming other select sectors within the CMI universe. CMI sectors represent comprehensive groupings of digital assets by sector, allowing for measurement of performance and a comparison. What the current data shows is that, similar to in past market cycles, flights to safety within the cryptosphere is translating to movement of capital into BTC and ETH, relative to other coins. On the other end of the spectrum, the more speculative Computing Index (CPU) and Culture & Entertainment (CNE) have lagged other sectors in both week to date and month to date performance. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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