Maybe the Short-time Correction for Crypto is Over

Market Picture

The cryptocurrency market has added 0.75% in the last 24 hours to 976bn, with Bitcoin rising by the same amount, testing $21K again.

The former cryptocurrency has corrected to 76.4% of the rally from December lows to this week’s highs. It cannot be ruled out that this is the end of the shakeout. Such shallow pullbacks are normal for strong bull markets in stocks or other assets. Confirmation that Bitcoin, with the crypto market, is once again bullish will be a recent high of $21.6K, clearing the way for $24.6K 161.8% Fibonacci, where the 200-week moving average also passes.

News Background

Crypto lending platform Genesis Global Capital, part of Digital Currency Group (DCG), is preparing to declare bankruptcy. According to knowledgeable sources at Bloomberg, the company will do so in the coming days, with Genesis’ debt levels reaching $3bn.

Genesis’ problems stemmed from the default of hedge fund Three Arrows Capital in June, with the collapse of FTX exacerbating the situation. DCG is considering selling its subsidiary CoinDesk.

The US Department of Justice has arrested Bitzlato cryptocurrency exchange platform founder Anatoly Legkodymov on charges of laundering $700M related to the closed darknet marketplace Hydra.

Banking group National Australia Bank (NAB) has announced plans to launch an AUDN stablecoin, pegged to and fully backed by the Australian dollar. AUDN will launch based on Ethereum and Algorand in the middle of the year.

In cooperation with fintech company Monei, Spain’s central bank will test EURM, a EUR-linked stablecoin, over the next 6-12 months.

by FxPro’s Senior Market Analyst Alex Kuptsikevich