Bitcoin is expected to end the week 17% higher as cooling inflation spurs risk appetite

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Bitcoin (BTC-USD) will end the week 17% higher, tracking broader gains in capital markets, with investors betting on the Federal Reserve slowing the pace of rate hikes after recent data suggested so Inflation cooled.

Sentiment this week was boosted by cryptocurrency exchange FTX (FTT-USD), which discovered more than $5 billion in liquid assets.

“The absence of recent contagion in space and risk recovery in broader markets has lifted Bitcoin (BTC-USD) from its lows to its highest since the FTX scandal erupted,” said Craig Erlam, senior market analyst at OANDA.

“Traders may have some hope of a return above $20,000, a level that was once seen as a worrying low but is now potentially a sign of a rebound.”

The total crypto market cap is currently $938.43 billion, up 3.6% via Thursday, according to CoinMarketCap.

FTX developments

• Sam Bankman-Fried, FTX’s disgraced co-founder, has denied allegations that he stole $8 billion in client funds. He previously pleaded not guilty to eight counts.
• About 117 parties are said to be interested in acquiring shares in FTX. Lawyers representing FTX debtors have prioritized selling LedgerX, the derivatives arm of FTX US, FTX Japan, FTX Europe and Embed.

Layoffs… but not for Binance

• Crypto.com cuts headcount by ~20% amid macro issues and FTX-induced downturn.
• Blockchain.com is laying off 28% of its workforce in its second round of job cuts in response to the market slump. The company had shed 25% of its workforce in July.
• Coinbase (COIN) also announced another round of job cuts, this time at 25% of its workforce.
• However, Binance (BNB-USD) appears to be bucking the trend as it plans to increase its headcount by 15% to 30% in 2023. The workforce grew from 3,000 to 8,000 last year.

Regulatory Scanner

• The US SEC has sued crypto lender Genesis Global Capital and exchange Gemini Trust for selling unregistered securities to retail investors.
• The Justice Department is investigating Ian Macalinao and Dylan Macalinao, the two brothers who founded Solana’s (SOL-USD) stablecoin exchange Saber Labs.
• US prosecutors recently subpoenaed investment firms with ties to Binance. The subpoenas do not necessarily mean charges will be filed against the firms as the Binance investigation, which has been ongoing since 2018, is still ongoing.

Other Crypto News

• Binance has reportedly lost nearly a quarter of its assets in the two months since FTX imploded, despite CEO Zhao’s earlier assurances that “things have stabilized.” Binance recorded the largest trading volume among the 11 other centralized cryptocurrency exchanges.
• Digital Currency Group, Genesis’ parent company, is looking at raising fresh capital by spinning off some assets from its oversized venture capital portfolio. Genesis owes its creditors over $3 billion.
• WonderFi (OTCQB:WONDF) is reportedly in advanced merger talks with Coinsquare.

bitcoin price

Bitcoin (BTC-USD) rose 5.2% to $19.81k at 18:20 ET while Ether (ETH-USD) ticked 2% higher at $1.45,000.

Bitcoin (BTC-USD) is attempting to surpass $20,000 amid a rebound in risk appetite. SA writer The Digital Trend believes crypto should be close to the bottom now. “If we get strong enough deflationary signals and the economy stays strong in the coming days, Bitcoin could potentially rally back towards $30,000.”

Crypto-related stocks that ended in the green on Friday include: BIT Mining (BTCM) +42.1%Hut 8 Mining (HUT) +10.5%Iris Energy (IREN) +9.6%Marathon Digital (MARA) +9.3%Voyager Digital (OTCPK:VYGVQ) +8.2%.

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