With Bitcoin aside, this Wednesday the smallest cryptocurrencies go up and Solana already recovers 75% in 6 days

Not even the 14th anniversary of Bitcoin since it was actually launched on January 3, 2009 has motivated investors to lose 0.5% in the last 24 hours.

Analysts continue to bet that the bottom of the market, although close, hasn’t actually arrived yet. “I don’t think we’ve hit rock bottom,” Bilal Little, president of DFD Partners, a distribution platform for asset managers, told CoinDesk.

“I still believe there will probably be one or two other big issues in the stocks that will have some impact on the market. But when we hit somewhere in between, $12,000 to $13,000 or more, we should have a good flush in the system.”

Analysts are closely watching the cryptocurrency’s reaction to the release of the minutes of the latest meeting of the Open Market Committee (FOMC), the US Central Bank’s Copom. At its last meeting, on 14 December, the Fed raised the basic interest rates of the US economy by 50 basis points, reducing the pace of monetary tightening.

“Bitcoin could take a turn this afternoon after the release of the FOMC minutes, which could give us indications of a possible slowdown in the pace of interest rates in 2023,” assesses Fernando Pereira, brokerage analyst at Bitget.

The second most valuable cryptocurrency, Ethereum (ETH) surpassed Bitcoin this morning to trade 2.5% higher to $1,250. Furthermore, Binance Coin (BNB) rises by 3.4% and Solana (SOL) is still in full recovery and is driving the altcoins upwards today with an advance of more than 16%, close to seeking the $14 level after having touched less than the US $8 six days ago – a recovery, then, of about 75%.

The resurgence of the SOL token, which began with public support for the project by Vitalik Buterin, co-founder of rival Ethereum, accelerated as traders began speculating about a new meme cryptocurrency called “Bonk” that runs on the Solana network. From then on, investors interested in navigating the asset’s rise began buying SOL to acquire the item.

Equity indices finished their first trading day of 2023 lower, with the Nasdaq and S&P 500 down 0.8% and 0.4%, amid investors’ lingering worries about inflation and the looming outlook of a recession. New York futures are trading at a slight high this Wednesday.

The FTX case has gained a new chapter with Sam Bankman-Fried, founder of the brokerage firm, pleading not guilty to eight charges in the US, including electronic fraud and campaign finance violations. Judge Lewis Kaplan of the Southern District of New York has tentatively scheduled Bankman-Fried’s trial for October.

In addition, investors appear to have reacted to a report from brokerage Bernstein, which reminded the market that despite last year’s Bitcoin crash, it is up about 60 times from its 2014 low and about five times from its 2014 low. 2014. 2018 low, the company said, was up 14-fold from its 2018 low, despite a 68% decline in 2022.

Analysts Gautam Chhugani and Manas Agrawal optimistically noted that “cryptocurrencies are likely to be among the few sectors that can keep pace with the growth of cutting-edge technology, in a largely mature technology landscape. And that they reach less than 5% of total Internet users with “significant scope for application-based adoption.”

Check out the performance of the main cryptocurrencies at 7:00:

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Solana continues to gain users, says the spokesperson for the project

The fall of cryptocurrency exchange FTX hasn’t stopped the Solana network from attracting users and developers, according to Austin Federa, head of strategy and communications at the Solana Foundation.

Speaking to CoinDesk, Federa said the network has seen increased activity despite the FTX contagion.

“What you’ve seen is real staying power for users and developers to build on the network,” he said.

“You don’t see projects migrating from Solana that need the performance and power of the grid,” Federa said. “There are a lot of things you can only build in Solana, and those developers keep building here.”

Fed warns US banks against cryptocurrencies

On Tuesday (3) the US Federal Reserve and other regulators issued a warning to the banking system against the banking system.

The message, however, does not mention any new policies targeting digital assets.

“Given the significant risks highlighted by the recent bankruptcies of several major cryptocurrency firms, agencies continue to adopt a careful and cautious approach to current or proposed cryptocurrency-related activities and exposures at each banking organization,” the statement said.

Executive admits to stealing from SPACs to buy cryptocurrencies

A former chief financial officer of several special purpose acquisitions (SPAC) firms pleaded guilty to embezzling more than $5 million and losing nearly everything trading meme stocks and cryptocurrencies, Reuters reported on Wednesday.

American Cooper Morgenthau, 35, faces a possible prison sentence of about 6-7 and a half years. His sentencing is set for April 25.

One of the companies that experienced deviations was SPAC African Gold Acquisition Corp.

Authorities said that between June 2021 and August 2022, Morgenthau stole more than $1.2 million from the company and covered up the theft by falsifying his bank statements.

He spent or lost everything in securities trading.

To cover his losses, Morgenthau embezzled $4.7 million from SPAC investors known as Strategic Metals Acquisition Corp, but lost it all again, this time in cryptocurrencies.

Binance won’t crash, says Bernstein

Binance is creditworthy, liquid, and stable, which is evident in the exchange’s more than $55 billion of verifiable cold wallet addresses, Bernstein said in a report released Monday.

The cryptocurrency exchange could also “pass the withdrawal test,” as it did when $6 billion in customer funds were withdrawn on Dec. 13, the report said.

“Binance’s undisputed market leadership was no accident – ​​it has a long history of correct customer actions,” the report added, noting that the exchange has honored its commitments to customers in the wake of hacks and regulatory challenges.

The exchange now accounts for about 75% of the market share, a “virtual monopoly in global cryptocurrency trading.”

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