Cryptos weak amid easing Fed fears

Cryptocurrencies declined modestly on Black Friday as Fed fears that risky assets, including stocks, were being hiked eased. Cryptocurrencies remain silent amid fears of possible contagion from the FTX collapse. The dollar index edged higher, while Wall Street futures are trading in the green.

The total crypto market cap is currently $830 billion compared to $831 billion the day before.

Bitcoin, which accounts for 38 percent of the total crypto market, lost 0.4 percent overnight. BTC is currently trading at $16,483 after oscillating between $16,641 and $16,388 over the past 24 hours.

Ethereum, which has a 17.5 percent share of the overall crypto market, is down 0.9 percent overnight and is currently trading at $1,184.97. Ether has ranged between $1,203.98 and $1,174.82 over the past 24 hours.

Third-ranked Tether (USDT) continued its deviation from the $1 peg, trading between $0.9995 and $0.9993 for the past 24 hours. The top-ranking stablecoin last traded at the $1 level on November 9th.

The 4th-ranked BNB (BNB), cryptocurrency exchange Binance’s native cryptocurrency, is currently trading down 0.5 percent overnight. Meanwhile, Changpeng Zhao (CZ), the CEO of Binance, which recently proposed setting up a $1 billion industrial recovery fund, has reportedly hinted at increasing the fund’s corpus to $2 billion.

USDCoin (USDC) at number 5 has traded between $1 and $0.9999 for the last 24 hours. XRP (XRP) at No. 7 is up 8.2 percent, while Dogecoin (DOGE) at No. 8 is up 5.5 percent.

47th place Huobi Token (HT) is the top gainer with a 7.8 percent overnight rally.
At 20th place, UNUS SED LEO (LEO), the native token of the Bitfinex cryptocurrency exchange, fell 8 percent over the past 24 hours.

Shortly after the FTX fiasco, which resulted in a disastrous commingling of funds within the group, reports have surfaced that crypto conglomerate Digital Currency Group used funds borrowed from its Genesis Trading unit to invest in the products of another unit, namely Grayscale Bitcoin Trust to invest . According to a Financial Times report, billionaire investor Barry Silbert told investors that DCG borrowed $575 million from Genesis “at arm’s length” to fund undisclosed “investment opportunities” to buy back DCG stock from non-employee shareholders. Grayscale Bitcoin Trust was recently in the news for its refusal to part with proof of reserve information, citing security concerns.

The IMF warned in a recent blog post that Africa’s growing crypto market needs better regulation. The blog notes that policymakers are concerned that cryptocurrencies can be used to illegally move funds out of the region and circumvent local rules to prevent capital outflows. The widespread use of crypto could also erode the effectiveness of monetary policy and create risks to financial and macroeconomic stability, the blog added.

The blog, based on the Regional Economic Outlook for Sub-Saharan Africa, calls it a much greater risk if crypto becomes legal tender, as Central African Republic has done. If crypto assets are held or accepted as payment by the government, it could endanger public finances.

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