Crypto market recovers 62,639 million dollars

At the beginning of the year, the cryptocurrency market worldwide has recovered 62.639 million dollars in market capitalization, reaching a total value of 857.780 million dollars, according to information from coinmarketcap.com.

Bitcoin, the most famous cryptocurrency in the world, as well as the most traded in the market, has recovered 5.09% of its value in the first week and a half of the new year, going from $16,608 to $17,453 per unit.

The recovery of this cryptocurrency is significant after it lost close to 60% in 2022, amid complicated market conditions that were marked by mistrust after the collapse of the FTX cryptocurrency exchange, which declared bankruptcy at early November, when his clients sought to withdraw billions of dollars.

However, the greatest recovery has been seen in the crypto solana, which in the first 10 days of January has rebounded 65.79%, to $16.43.

The second place is occupied by Cardano, taking advantage by 31.47%, at $0.32 per unit.

Other strong cryptocurrencies such as ethereum (+11.60%), dogecoin (+9.55), litecoin (+19.96%) and ripple (+2.47%) have also reported significant gains.

In the negotiations of this Tuesday, January 10, the cryptocurrency market had another important advance. According to coinmarketcap.com it increased 1.06 percent.

The recovery of cryptocurrencies goes hand in hand with the improvement in the prices of other risky assets.

Although both the capital market and the cryptocurrency industry are awaiting the data from the US Consumer Price Index (CPI), which will be published on January 12.

Under pressure

Last year, rising interest rates globally and fears of an economic downturn wiped out more than $1 trillion from the cryptocurrency sector.

The biggest blow, however, came after the largest cryptocurrency exchange, FTX, filed for bankruptcy in November.

The rapid decline in the crypto-asset market has triggered harsh scrutiny from US regulators over the way major exchanges guard user funds.

“The entire industry has been going through a confidence crisis since the FTX bankruptcy and transaction volumes remain very weak. This new job cut from Coinbase Global is nothing more than a reflection of the current challenging environment,” said Owen Lau, Analyst at Oppenheimer.

The foregoing, in reference to the news this Tuesday that Coinbase Global announced that it will cut around 20% of its workforce, which means a reduction of about 950 employees, as part of a restructuring plan, in the third round of layoffs from the cryptocurrency exchange since last year.

The firm had about 4,700 employees at the end of September 2022.

The firm’s CEO, Brian Armstrong, blamed “rogue actors” for cryptocurrency headwinds.

The company’s shares lost 86% of their value last year, in line with the sector’s fall from grace. However, this Tuesday their shares advanced 12.96% on the NASDAQ, to $43.23 each. (With agency information)

termometro.economico@eleconomista.mx