Crypto SWOT: Bitcoin Traded Above $21,000 Again Last Week

[ad_1]

Strengths

Among the cryptocurrencies tracked by CoinMarketCap, the best performer of the week was Frax Share, up 52.68%. Bitcoin is starting the year off on a high, seemingly shaking off any negative sentiment it was mired in last year and on the cusp of its longest winning streak in nearly a decade. Bitcoin was little changed after rising for 13 straight days, which added more than 25%, to trade above $21,000, writes Bloomberg.

FTX’s controversial FTT token jumped more than 40% after the bankrupt company’s new CEO, John J. Ray, said he was exploring the possibility of restarting the crypto exchange. A raise is an option being considered as Ray strives to return money to FTX clients, writes Bloomberg.

Weaknesses

Among the cryptocurrencies tracked by CoinMarketCap, the worst performer of the week was Trust Wallet, down 3.46%. in deposits after the collapse of Sam Bankman Fried’s FTX. The bank said the losses were mainly the result of asset sales it was forced to make following the collapse of the crypto exchange, writes Bloomberg. Bitcoin fell for the first time in about two weeks, sparking a string of gains that had reassured digital asset advocates following last year’s market meltdown. Bitcoin fell 4.2% to $20,412 on Wednesday, Bloomberg writes.

Opportunities

HashKey Capital has raised $500 million to create one of Asia’s largest crypto investment pools, betting on an industry rebound still reeling from FTX’s collapse. HashKey’s latest fund will invest in blockchain infrastructure and applications that have the potential for mass adoption, writes Bloomberg, with money from investors including sovereign wealth funds, family offices and high net worth individuals. Former FTX US Chairman Brett Harrison has raised $5 million for a new crypto software startup from investors including Coinbase Ventures and Circle Ventures as he tries to move past his association with the failure of Sam Bankman-Fried’s digital asset exchange. The company, Architect, will create trading software to make it easier to use centralized and decentralized crypto markets for large investors like institutions, writes Bloomberg. Charles Hoskinson, co-founder of the Cardano blockchain, said he was considering buying crypto news service CoinDesk to revamp it into a mix of news site and community. CoinDesk said on Wednesday it had engaged Lazard as a financial adviser to explore options, including a partial or full sale. The site is owned by Digital Currency Group, a conglomerate whose lending subsidiary Genesis has filed for bankruptcy, writes Bloomberg.

Threats

OSL, a digital asset platform backed by Fidelity International, is cutting costs by about a third as turmoil in crypto markets continues to reverberate across the industry. The decision to cut costs was made in response to “current market conditions”, writes Bloomberg. A Russian national has been charged with money laundering in connection with a cryptocurrency operation that allowed criminals to hide the proceeds of illegal gambling and drug transactions worth $700 million. Anatoly Legkodymov, founder of crypto exchange Bitzlato, was arrested in Miami on Tuesday, the US Department of Justice announced at a press conference on Wednesday. Bitzlato was a key financial resource for Hydra’s dark web market, writes Bloomberg. Cryptocurrency lender Genesis Global Holdco has filed for bankruptcy, the latest company to collapse following the rapid fall of FTX. The company filed for Chapter 11 protection Thursday in the Southern District of New York, Bloomberg writes.

To learn more and get the Crypto SWOT delivered straight to your inbox, subscribe to the FREE Investor Alert newsletter by clicking here.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

[ad_2]