CoinDesk speculation sees Cardano increase and Bitcoin return to US$21,000

Post author By Adelita
Post date January 20, 2023

The top 10 non-stablecoin cryptocurrency, including Bitcoin, Ether, and all of them, all recovered on Friday morning in Asia. The increases were led by Ripple and Cardano. When negative retail statistics, hawkish statements from the Federal Reserve, the potential for additional bankruptcy filings in the sector, and the troubles of Digital Currency Group all came together on Thursday, investors appeared to see lower-price possibilities in the falls.

Important Facts

Over the last 24 hours to 8 a.m. in Hong Kong, Bitcoin increased by 1.93% to US$21,085; this brings the week-to-date growth to 11.74%. Ether increased 2.44% to US$1,552, representing a 9.5% weekly gain.

The top 10 non-stablecoin cryptocurrencies by market capitalization saw gains led by XRP, the Ripple payment network token, which increased 3.78% to US$0.3938. The chief executive of Ripple Labs, Brad Garlinghouse, said CNBC on Wednesday in Davos, Switzerland, that the company’s legal battle with the Securities and Exchange Commission of the United States (SEC) will be resolved in “single digit months.”

Token ADA for Cardano increased by 3.66% to $0.3388. Early on Friday, amid rumours that CoinDesk is considering a sale, Cardano co-founder Charles Hoskinson indicated interest in purchasing CoinDesk, a cryptocurrency media outlet owned by Digital Currency Group, via a Youtube livestream.

As a result of their exposure to the FTX.com collapse, Genesis Global Capital, the brokerage arm of cryptocurrency venture capital firm Digital Currency Group (DCG), has reportedly considered filing for bankruptcy. Additionally, DCG stopped paying quarterly dividends, according to Bloomberg.

While trade volume decreased 33% to US$41.05 billion during the course of a day, the entire cryptocurrency market capitalization increased 1.21% to US$979.67 billion.

U.S. stocks fell on Thursday, with the S&P 500 Index and the Dow Jones Industrial Average each shedding 0.76%. Nasdaq Composite Index decreased by 0.96 percent.

After the U.S. Commerce Department reported on Wednesday that retail sales dropped 1.1% in December, matching the greatest loss in a year and above the 0.8% decline economists had projected, stock prices continued down, fueling concerns about an impending recession.

The Federal Reserve Vice Chair Lael Brainard said on Thursday that “inflation is high and it will take time and resolve to pull it back down to 2 percent,” which added to the recession worries. We’re committed to continuing on this path. The day before, James Bullard, president of the St. Louis Federal Reserve, stated that the Fed should not “pause” efforts to raise interest rates over 5%.

The Federal Reserve boosted interest rates last month by 50 basis points to 4.25% to 4.5%, the highest level in 15 years. The CME Group analysts forecast a 94.2% chance of a raise of 25 basis points at the upcoming Fed meeting, which takes place on January 31 and February 1.