Time to take stock of those crypto losses

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This article originally appeared in First Mover, CoinDesks’ daily newsletter providing context for the latest moves in the crypto markets. Subscribe to receive it in your inbox every day.

CoinDesk Market Index (CMI)

872

+19.5 2.3%

Bitcoin (BTC)

$17,253

+439.3 2.6%

Ethereum (ETH)

$1,286

+48.9 4.0%

S&P 500 Futures Contracts

3,989.00

+23.3 0.6%

FTSE100

7,475.08

+2.9 0.0%

10-year Treasury yield

3.49%

0.1

BTC/ETH price by CoinDesk indices, as of 7 a.m. ET (11 a.m. UTC)

The United States Securities and Exchange Commission is warning publicly traded companies to disclose crypto damages. The SEC has sent letters to companies signaling the need to disclose any potential impact of chaos on crypto markets. Recent bankruptcies and financial difficulties among crypto asset market participants have caused widespread disruption in these markets, the agencies’ Division of Corporation Finance said in a sample letter to companies, released Thursday.

The reduction in Grayscales Bitcoin Trust (GBTC) hit an all-time high of nearly 50%. The bearish sentiment surrounding confidence has deepened in recent weeks as fears have surfaced that crypto trading firm Genesis Global Trading, which is owned by Grayscales parent company Digital Currency Group (DCG), could file its balance sheet. DCG is also the parent company of CoinDesk. Shares of the world’s largest bitcoin fund, GBTC, hit a record discount rate of 47.3% on Thursday, according to data from crypto index provider TradeBlock.

Crypto trading firm Amber Group has dropped its $25 million sponsorship deal with Chelsea FC and is laying off staff. Amber Group, which is backed by Temasek and Sequoia Capital, is ending its sponsorship deal with the football club, according to a Bloomberg report. The company is also laying off about 300 employees to reduce its workforce to less than 400 people. At one point, Amber Group employed over 1,100 people.

The chart compares bitcoin’s implied volatility with the dollar index, WTI crude, swaps, and the S&P 500 since September 2021.

Bitcoin’s implied volatility (shown in dark purple at the bottom of the chart), which represents investors’ expectations of price turbulence, has fallen this year despite the collapse of several crypto industry leaders, including Terra. , FTX and BlockFi.

“Cryptocurrency volatility is expected to drop significantly next year, either because all major risk events are ruled out or because speculators lose interest in taking leveraged positions,” Matrixport said.

The story continues

Omkar Godbole

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