By James Rubin, coindesk.com
21st November 2022 – (New York) Four days before the U.S. Thanksgiving holiday, crypto markets decided they didn’t have much for which to be thankful.
Bitcoin was recently down 2.8% over the past 24 hours (UTC), although it managed to hold snugly well above its most recent $16,000 support for a 12th consecutive day. Last week, the largest cryptocurrency by market capitalization weathered the cascade of misadventures tied to crypto exchange FTX’s collapse, although Joe DiPasquale, CEO of crypto fund manager BitBull Capital, wrote in an email to CoinDesk that investors should gird themselves for a rocky week ahead.
“The last week saw Bitcoin trading in a very tight range, unable to breach $17k conclusively,” DiPasquale wrote. “However, given the sideways action, we can expect volatility in the coming week.”
Ether was recently trading hands below its most recent $1,200 support and was down over 6% from Saturday, same time. The second largest crypto in market value has plummeted almost 10% from its high of $1,275 last week. Other major cryptos dove deeply into the red with sports fan coin CHZ plunging more than 14%. CHZ and fan tokens for national soccer teams had been on an upswing recently amid euphoria for the World Cup, which kicked off Sunday with Ecuador defeating the host nation Qatar.
Popular meme coin, DOGE, and Crypto.com’s CRO token were recently trading down more than 10%.
The CoinDesk Market Index (CDI), an index measuring cryptos’ performance, was down 0.4% and about where it stood a week ago. The Fear & Greed index, a measure of market sentiment about crypto, remained in extreme fear territory – its standing throughout much of the growing FTX crisis.
Crypto prices veered from equity markets, an increasing occurrence in recent weeks as the major indexes each closed slightly higher on Friday two days after the Commerce Department’s monthly retail report showed surprisingly resilient consumer spending. The tech-heavy Nasdaq was up 0.01%, while the S&P 500, which has a strong tech component, and the Dow Jones Industrial Average (DJIA) climbed 0.48% and 0.59%, respectively.
Traditional markets have also been unaffected by FTX’s spectacular flameout and now daily revelations about its mismanagement. On Sunday, CoinDesk’s Shaurya Malwa (a regular contributor to this newsletter wrote that whoever was behind the $600 million exploit of FTX on Nov. 11, had started exchanging millions of dollars worth of ether to Ren Bitcoin (renBTC), a token that represents bitcoin on other blockchains.
Earlier in the week, Malwa had reported that funds stolen from FTX were steadily converted to ether over the past week, making the exploiter one of the largest holders of the token.
BitBull’s DiPasquale said that bulls will be looking for ongoing support above bitcoin’s brief low at about $15,500 earlier this month as FTX’s severe liquidity problems became apparent. “Once that range is evident, consolidation around that low could see the price shooting toward $18k in the near term,” he wrote.