Bitcoin BTC price, Ether ETH price back in the green after being tested by Fed Chair Powell’s comments

Good morning Asia, this is how the markets are developing today.

Bitcoin and Ether started the morning in the green in Asia but are back in the red, albeit marginally, after Federal Reserve Chair Jerome Powell said the economy is running hotter than expected and the Fed is “ready.” to increase the pace”. rate hikes” in the name of maintaining price stability.

The world’s largest digital asset starts the Asian trading day at $22,249, down 1.1% over the last hour, while Ether is trading at $1,568, down 0.4% over the last day.

“I think there will be an impact on anything that is priced or traded against the US dollar,” AdvisorShares CEO Noah Hamman said on a recent CoinDesk TV show All About Bitcoin. “The second concern is reducing the Fed’s balance sheet. That pulls a lot of liquidity out of the market and that’s a bigger challenge for risky assets.”

Meanwhile, Chinese token Conflux is up 9.1% over the past 24 hours. Over the past week, the token is up 12.8%, outperforming other Chinese narrative coins like NEO and Filecoin.

Ether continues to outperform bitcoin, albeit marginally. Bitcoin is down about 1% over the past 48 hours, while Ether is down 0.25%.

“There is significant narrative and meaningful structural tailwind behind Ethereum over the next 12 to 18 months with Shanghai [upgrade] and many stakes are becoming liquid,” Quinn Thompson, head of capital markets at Maple Finance, said in a recent interview with CoinDesk TV.

While Ethereum and the mission-critical pieces of infrastructure may have their moment, Thompson said some of the more “speculative” projects on the “longer end of the spectrum” will struggle.

“That’s sort of the problem plaguing crypto right now. With less on-chain activity and fewer new addresses, there isn’t really an increase in activity that coincides with an increase in revenue,” he said. “Most protocols and projects in space are facing a bit of a crisis on the budget side.”

All of this helps the consolidation narrative, he said, and is causing majors like bitcoin and ether to outperform.

Crypto funds dented but barely broken after 2022 free fall.

In any other industry, like trad-fi or tech, that would be the end of these funds. Losing almost the entire fund would mean that its financiers, the limited partners (LPs), would ensure that everyone involved in implementing the fund’s investment strategy was fired.

But this is crypto, and things work differently.

While there is still some rot in the crypto VC industry and Galois Capital, which closed in late February after losing $40 million to the collapse of FTX, will not be the last fund to fail, many are this fund permanently. And some of them even extend over a longer time horizon.

Data from CryptoRank, which tracks the fund’s portfolios and known holdings, shows that large funds like Delphi Digital, Polychain or Animoca have fallen a staggering 80%, 64% and 81% over the past 365 days, respectively over the last three years still well in the green.

Many have also risen over the last three months thanks to the mini bull market in January and early February.

Nature heals. Bitcoin is trading above $20,283, its price on Nov. 2, the day FTX collapsed. There are still many tokens in the red, but many that have posted incredible and somewhat unexpected gains over the past few weeks. Who saw the rise of China tokens like Conflux or Filecoin?

But there are a few caveats.

CryptoRank cannot track the value of stock investments companies would have made (although there are always more tokens in their pockets than equity), nor can it track the preferential prices they might have secured as an investor for the tokens.

It also doesn’t know if capital is tied to FTX — because courts don’t unseal a list of creditors. Token prices are liquid and recovering. But capital stuck on FTX will be an Achilles’ heel for funds as it could take a decade to recover.

The Grayscale Bitcoin Trust’s discount to net asset value has fallen to its lowest level in a month ahead of oral arguments in federal court related to Grayscale’s lawsuit against the SEC. Grayscale and CoinDesk are both owned by DCG. Quinn Thompson, Head of Capital Markets at Maple Finance, shared his analysis of the crypto markets. Additionally, the company behind Bored Ape Yacht Club raised $16.5 million from its auction of 288 NFTs in its TwelveFold collection, which is based on the Ordinals protocol. Greg Solano, co-founder of Yuga Labs shared his reaction. And Uniswap Labs chief operating officer, Mary-Catherine Lader, joined the conversation.

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