Read in the Digest
- Crypto market overview: Bitcoin and Ethereum continue to correct, AVAX shines. number of Bitcoin addresses at ATH.
- MoonPay completes $555 million series A funding, Binance seeks sovereign wealth funds.
- Jerome Powell returns as U.S. Fed Chair. What does it mean for Crypto?
- Citi to expand digital assets division for institutional investors with 100 new hires.
Crypto Market Overview: Bitcoin and Ethereum Continue to Correct, AVAX Shines. Number of Bitcoin Addresses at ATH
After a spectacular start to November, hitting an all-time high market cap of $3 trillion, the crypto market has been forced to endure a protracted correction which has seen market leaders like Bitcoin and Ethereum drop significant portions of their value.
Over the last week, Bitcoin (BTC) has dropped by more than 7.5% in value and is now valued at $56,389 as of this writing. BTC dominance has dropped to 41.8%, as Bitcoin’s market cap now stands at $1.062 trillion.
The seven day price chart for Bitcoin (BTC). Source: Tradingview
The world’s second-largest cryptocurrency, Ethereum, joined Bitcoin in the drop, losing 3.1% of its value in the last week. ETH is now valued at $4,145.21, giving it a market cap of $491.36 billion at the time of writing.
The seven day price chart for Ethereum (ETH). Source: Tradingview
While ETH and BTC struggle, some Altcoins have continued to post gains. Over the last week, Avalanche (AVAX) has gained by more than 44%, setting an all-time high of $146.22 on November 21st, while it now trades $126.84 at the time of this writing.
The seven day price chart for Avalanche (AVAX). Source: Tradingview
Crypto.com Coin (CRO) is the top gainer in the top 20, surging by as much as 85% over the last week. CRO is now valued at $0.7703 after gaining more than 13% in the last 24 hours.
The seven day price chart for Crypto.com coin (CRO). Source: Tradingview
Flipsider:
- While the market continues to shine, the number of Bitcoin addresses with a non-zero balance has reached a new all-time high of 38.76 million addresses.
MoonPay Completes $555 Million Series A Funding, Binance Seeks Sovereign Wealth Funds
Funding rounds have become increasingly popular among crypto projects raising money from institutional investors. Crypto payment provider, MoonPay, has completed a Series A equity funding round, raising $555 million in the process.
MoonPay, launched in 2019, is now valued at $3.4 billion as a result of the funding round, which was led by Tiger Global and Coatue. MoonPay plans to use the funds to expand its services, while setting its eyes on an IPO in the future.
Joining the industry newcomer in raising funds is market leader Binance. In an interview, the CEO of Binance, Changpeng Zhao, announced the exchange’s plans to engage with sovereign wealth funds about potentially investing in Binance.
Zhao believes gaining investment from sovereign wealth funds will change regulatory perceptions about Binance. After years of operating as a decentralized exchange, Binance is looking to set up its HQ in the Republic of Ireland, registering its fourth entity in the process.
Flipsider:
- Despite wanting to partner with sovereign funds, CZ explains that Binance would rather not be tied.
Jerome Powell Returns as U.S. Fed Chair. What Does It Mean for Cryptos?
On Monday, November 22nd, President Joe Biden announced his nomination of Jerome Powell to the Chair of the Board of Governors of the Federal Reserve System for a second term. Additionally, Lael Brainard was appointed as the Vice-Chair.
The nomination will mean that Powell, initially appointed by former President Donald Trump in 2018, will serve as the Fed Chair for the next four years. Powell’s job includes managing inflation and regulating the financial system.
According to analysts, Powell’s reappointment raises hopes that the relaxed monetary policies will continue. However, when it comes to cryptocurrencies, Powell and Brainard have been very averse to the asset class, believing that crypto shouldn’t operate without proper regulation.
The Fed Chair recently called for more regulation of stablecoins, while reassuring the crypto community that there would not be a ban.
Flipsider:
- While they have not been big fans of cryptos, Governor Brainard has been linked to a push for a U.S. central bank digital currency.
Why You Should Care
Both Powell and Brainard are institutionalists who would push for regulators to have more control over cryptocurrencies.
Citi to Expand Digital Assets Division for Institutional Investors with 100 New Hires
American multinational investment bank, Citigroup (NYSE:C), has announced the expansion of its digital asset division with 100 new hires. The banking giant, which launched its digital assets division in June, is looking to expand the area for institutional clients.
The digital asset team will be part of Citi’s Institutional Clients Group. By expanding, Citigroup plans to create a strategy for helping institutional clients to utilize blockchain technology in their businesses.
Citigroup also appointed Puneet Singhvi as head of the digital asset division. Singhvi previously served as the head of blockchain and digital assets within Citi’s global markets division. The change in staffing will take place from December 1st.
Emily Turner, the current head of the digital asset team, wrote in a memo;
"[The Institutional Client Group's] digital asset efforts are a continuation of our work with blockchain. As such, Puneet's team will lead ICG-wide digital asset governance and work in close partnership with our second and third lines."
Flipsider:
- Despite growing interest in crypto, billionaire Elon Musk has urged investors not to invest too heavily into cryptocurrencies.
Why You Should Care
Citigroup is one of many big players in the banking sector that have delved into the crypto industry as it continues to grow.
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