Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
S&P 500 futures
4,161.00
+13.8 ? 0.3%
FTSE 100
7,972.89
+25.3 ? 0.3%
Treasury Yield 10 Years
3.72%
? 0.0
BTC/ETH prices per CoinDesk Indices, as of 7 a.m. ET (11 a.m. UTC)
Bitcoin (BTC) saw small gains on Tuesday alongside equity futures ahead of the release of U.S. inflation numbers. The Consumer Price Index (CPI) is expected dip to an annual rate of 5.5% in January after printing 5.7% the previous month. The continued easing of inflation could prove positive for risk assets as it lowers the need for the Federal Reserve to be as aggressive with monetary policy tightening. “Today’s CPI print is crucially important to decide the extent of downside for crypto,” QCP Capital wrote in a morning note.
LQTY, the native token of censorship-resistant decentralized stablecoin lender Liquidity, surged Monday after the NYDFS ordered Paxos to stop minting BUSD. The token rose 45% to a six-month high of $1.07, registering its biggest single-day percentage gain in at least a year, per data from TradingView. The rally likely stemmed from the Paxos-BUSD drama that triggered fears of a regulatory crackdown on the broader centralized stablecoin ecosystem, with some wondering if Circle’s USDC might be next. If so, the case for decentralized and censorship-resistant stablecoins like Liquity’s LUSD becomes clearer.
It was rival stablecoin issuer Circle that sounded the alarm on Paxos, according to Bloomberg. Circle reportedly tipped off the New York Department of Financial Services (NYDFS) in the fall of 2022, complaining that blockchain data revealed Binance did not have enough reserves to back up the BUSD tokens it had issued through Paxos. The revelation comes several days after CoinDesk initially reported that NYDFS was investigating Paxos.
Bank of America’s latest survey of global fund managers shows the percentage of money managers expecting a global economic recession in the next 12 months has dropped to 24%, having peaked at 77% in November.
The sharp decline means managers may be less hesitant to allocate money to risk assets, including cryptocurrencies, than at the end of 2022.
Read more about
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
