The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here's what you need to know today in crypto: |
- Crypto market pulls back.
- Almost all FTX creditors could get back 118% of their claims.
- Lyra Finance offers liquid staking token holders automated trading strategies.
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CoinDesk 20 Index: 2,171 −3.9%
Bitcoin (BTC): $62,164 −2.9%
Ether (ETC): $2,983 −3.6%
S&P 500: 5,187.70 +0.1%
Gold: $2,322 +0.3%
Nikkei 225: $2,322 +0.3% |
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| Bitcoin slid toward $62,000 during the Asian and European mornings on Wednesday as part of a broader dip across the crypto market in which tokens lost more of their gains from the rally at the end of last week. BTC is priced at around $62,200 at the time of writing, down nearly 2.9% in the last 24 hours. The CoinDesk 20 Index (CD20), which measures the performance of the whole digital asset market, has sunk around 3.65%. Solana is one of the worst affected of the leading altcoins, falling 6.5% to $146, while ether has declined by around 3.63% to trade around $3,000. |
Bankrupt cryptocurrency exchange FTX proposed a new reorganization plan that would see 98% of its creditors get back 118% of their claims in cash within 60 days of court approval. The proposed payouts are higher than earlier estimates from the FTX estate, which said in October it expected to pay back only 90% of customer funds. The estate said it expects to have between $14.5 billion and $16.3 billion in cash available from scraping together the company's assets and liquidating them. It also denied that the recovery in crypto prices since FTX's collapse in November 2022 is the driving force behind its pile of cash. Holders of liquid staking tokens on decentralized options platform Lyra Finance can now generate additional yield using automated versions of strategies like basis trade and covered calls. Lyra says holders of rswETH and eETH, the native liquid staking tokens of Swell Network and Ether.Fi respectively, could earn an annual percentage yield of 10%-50%. Liquid staking protocols like Swell and Ether.Fi allow users to deposit their tokens, which are then restaked in EigenLayer, thereby receiving liquid staking tokens that can be exchanged for ether. "We believe that tokenized derivatives yield is a game-changing primitive that will underpin the bootstrapping of networks and the expansion of sustainable crypto economic markets," Nick Forster, co-founder of Lyra, said. |
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Market Insight: Key Bitcoin Indicator Suggests Period of Calm |
One key bitcoin indicator suggests there is a relatively low volatility market ahead, which could be seen as a positive development by long-term investors. The volatility risk premium (VRP) reflects the tendency of an asset's option-induced implied volatility, a measure of expectations for price turbulence, to exceed realized volatility over time. The spread represents the premium options sellers demand for additional risks associated with future uncertainty and price volatility. Bitcoin's one-month VRP has dropped to 2.5% from 15% since the halving on April 20, according to data tracked by Bitfinex's analysts. The VRP calculation is based on the gap between Volmex's bitcoin 30-day implied volatility index (BVIV) and one-month realized volatility (VBRV). This narrowing may indicate a realignment of market expectations to a more stable environment with less uncertainty in the future and thus more predictable conditions, which could be welcomed by long-term investors. |
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- The chart shows bitcoin call-put skews, which measure demand for calls relative to puts.
- The seven-day (red) and 30-day (light blue) skews remain below zero, indicating persistent demand for put options, offering protection against price drops.
- It likely reflects concerns about the U.S. SEC not approving the spot ether ETF this month.
- Source: Amberdata
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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