Top 10 crypto fall as Blockfi enters bankruptcy, macroeconomic concerns spread

Bitcoin and Ether traded lower in Asia on Tuesday morning as US-based crypto lender Blockfi filed for bankruptcy overnight in what is seen as another casualty of this month’s FTX exchange collapse. All of the top 10 non-stablecoin cryptocurrencies by market capitalization fell in a week that began with global capital markets rocked by protests in China against zero-Covid policies. BNB was the biggest drop, while Solana came in second, dropping out of the top 10 list altogether.

Check out the related article: Bitcoin price is taking a hit in Asian equity markets amid growing protests in China against Covid-19 lockdowns.

Fast facts

  • Bitcoin fell 1.4% to US$16,213 in the 24 hours to 8am in Hong Kong, while Ether fell 2.2% to US$1,169, according to CoinMarketCap.

  • BNB, a token backed by Binance Global Inc, the world’s largest cryptocurrency exchange, fell 5.2 percent to US$292.91.

  • BNB was rocked after Binance released proof of its reserves on Friday, following the collapse of Bahamas-based cryptocurrency exchange However, Jesse Powell, co-founder and CEO of rival crypto exchange Kraken, he tweeted on Saturday that Binance’s statement of assets was “meaningless” without showing liabilities.

  • Solana fell 5 percent to trade at US$13.40 as it was overtaken in CoinMarketCap’s top 10 list by Tron and the meme token, Shiba Inu.

  • Monday was the worst trading day in nearly three weeks after protests in China as well as hawkish sentiments from the US Federal Reserve regarding interest rates and a possible rail strike in the US.

  • Protests erupted at universities and at least eight Chinese cities on Friday after a fire killed at least 10 people at an apartment building in Urumqi in the northwestern region of Xinjiang. It has been reported that many people are trapped inside their homes and unable to escape due to China’s zero-covid policy.

  • Chinese police came out in force on Monday to try and prevent further protests, arresting people in cities where protests were taking place, according to media reports.

  • The Dow Jones Industrial Average fell 1.5%, the S&P 500 fell 1.5% and the Nasdaq Composite fell 1.6% for the day.

  • By 2023, unemployment in the United States could rise to 5% from 3.7% now, as the Fed’s campaign to reduce nearly four decades of high inflation slows the economy, John Williams, president of the New York Fed. in said a virtual speech to the Economic Club of New York on Monday. Williams predicted that inflation would remain around 5% until the end of this year before returning to 3% to 3.5% by the end of 2023.

  • The Fed has been raising interest rates since March this year to try to tame inflation, raising them from near zero to a 15-year high of 3.75% to 4%, and hinted that rates may exceed 5%. The Fed has signaled that it will continue to raise rates until inflation reaches a target rate of 2%. The consumer price index showed that inflation was 7.7 percent in October, compared to 8.2 percent in September.

  • US President Joe Biden on Monday asked Congress to intervene in the railroad strike, which he said would “destroy our economy.”

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Check out the related article: NFT images of anti-lockdown protests in China flood OpenSea


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