Bitcoin and Ethereum were in the red on Wednesday evening as the global cryptocurrency market cap dropped 1% to $835.4 billion at 8:18 p.m. EST.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Trust Wallet Token (TWT)||+4.25%||$2.10|
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What Happened: Major coins were seen trading lower at the time of writing, on a day when risk assets, such as stocks, ended in negative territory.
The S&P 500 and Nasdaq finished Wednesday 0.8% and 1.5% lower, respectively. The tech-heavy Nasdaq was weighed down by subdued earnings numbers.
Meanwhile, cryptocurrencies are still grappling with the FTX and Alameda shock that has led to a domino effect.
On Wednesday, the lending arm of Genesis Global Trading said it was temporarily stopping accepting redemptions and giving new loans. It has $2.8 billion in total active loans at the end of the third quarter of 2022.
"FTX contagion remains the primary focus for the cryptoverse," noted Edward Moya, a senior market analyst with OANDA.
"Bitcoin and Ethereum are lower on the day as contagion fears remain elevated and as the broader markets are dragged down after a round of hawkish Fed speak and mixed signals about the U.S. consumer," said Moya, in a note, seen by Benzinga.
Santiment tweeted that while there have been discussions about a scenario involving traders fleeing exchanges "en masse" following the collapse of FTX and the Gemini withdrawal halt.
"Top assets are still circulating at a normal rate, indicating these fears may be overblown," said the market intelligence platform.
CryptoQuant analyst JA Maartunn said in a note that in the current year, 24% of Bitcoin is trading below the realized price. The analyst said that the realized price is the average purchase price of all Bitcoin.
"Dips below the average price are decreasing," said Maartunn. According to the analyst, 60% of Bitcoin in 2012 traded below the realized price, while in 2015 and 2019 these figures were 41% and 30% respectively.
Cryptocurrency trader Michaël van de Poppe said on the current scenario prevalent in the markets. "It feels odd to say, but it’s such a giant opportunity to be able to accumulate [crypto] at these levels."
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