Bitcoin, Ether Little Changed After Weekend Crisis; Binance BNB token regains ground

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Bitcoin and Ether were trading light Monday morning in Asia after collapsing over the weekend following a week of concerns over a global recession and the stability of cryptocurrency exchanges. However, the Binance exchange’s BNB token regained some lost ground, while others on the list of the top 10 non-stablecoins by market capitalization were mixed to little changed.

See Related Article: Binances Reserve Proof Auditor Suspends Work from Crypto Firms

Fast facts

Bitcoin was down 0.15% at US$16,773 in the 24 hours at 8am in Hong Kong after breaking through the support line of US$17,000 over the weekend. Ether fell 0.18% to US$1,168, according to data from CoinMarketCap.

The total crypto market cap was little changed in the past 24 hours, rising 0.07% to $810.53 billion, while trading volume fell 37.54%.

On Friday, Paris-based accounting firm Mazars Group halted work on reviewing the assets and proof of reserves of global crypto exchanges, including Crypto.com, Kucoin and Binance, a Binance spokesperson told CNBC on Friday. last.

In a statement, Mazars told CNBC he was concerned about how [proof-of-reserves] the reports are understood by the public, adding that the reports are not an audit.

The accounting firm has yet to issue a public statement on the suspension, but the move has added to market jitters about the risks surrounding crypto exchanges since last month’s collapse of FTX.com amid allegations of embezzlement of client funds.

Following the Mazars development, Bitcoin fell 4.5% to trade at US$16,584 over the weekend. Ether lost 7%. BNB fell 16% on Saturday, but recovered some 4.13% to US$252 on Monday morning. Clients withdrew billions of dollars from the Binance exchange last week.

US stocks ended lower on Friday, with the Dow Jones Industrial Average losing 0.85%. The S&P 500 Index fell 1.11% and the Nasdaq Composite Index fell 0.97%.

The US Federal Reserve on Wednesday raised interest rates by the expected 50 basis points, bringing them to between 4.25% and 4.5%, the highest level in 15 years. Fed Chairman Jerome Powell announced that more rate hikes are coming, adding to concerns about a global recession.

The Fed has raised rates by 75 basis points in the previous four consecutive meetings as part of a campaign to reduce inflation in the US economy. He began the tightening in March, taking rates from near zero to a 15-year high of 3.75% to 4%, and signaled that rates could eventually top 5%.

The latest US consumer price index showed inflation was up 7.1% in November from a year ago, but less than the 7.3% forecast by Trading Economics. The CPI showed a steady decline, dropping from 7.7% in October to 8.2% in September.

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