Ether, Bitcoin Post Gains as Crypto Market Cheers Sam Bankman-Fried's Arrest, Inflation Data
The arrest of Sam Bankman-Fried in the Bahamas and the subsequent unsealing of a U.S. indictment against the former FTX CEO has seemingly calmed the market with ether (ETH) and bitcoin (BTC) both posting modest gains during the Asian trading hours.
Bitcoin recently hit a one-month high earlier this week ahead of U.S. inflation data, and its dominance has cracked 41%, CoinDesk previously reported. Digital assets are generally rising as traders expect the Fed to slow down its inflation-fighting interest rate hikes.
"This is the main trigger in the increase in prices," Raphael Kim, the founder of Seoul-based crypto VC Reframe told CoinDesk. Kim said that the lower-than-expected CPI was a relief to many traders, who are building a post-FTX investment narrative.
Many other tokens on the CoinDesk 20 were up during the Asia afternoon trading session, in particular, layer 1 tokens such as Avalanche (AVAX0, up 7.3% to $13.69, Solana (SOL) up 7% to $13.94, and Cosmos (ATOM) up 6.9% to $9.92.
Data from CoinGlass shows that traders which held short positions have faced immense liquidation pressure over the last 24 hours. In total, $119.51 million in positions have been liquidated, with 83% of them being shorts.
Meanwhile, Binance’s exchange token, BNB, is up 4% to $274.
Nansen data shows that the netflow to the exchange flipped positive during the last 24 hours to $715 million. During the Tuesday trading day outflow hit nearly $2 billion over regulatory concerns and news that the exchange was temporarily suspending USDC withdrawals.
Changpeng "CZ" Zhao, founder and CEO, tweeted that he welcomes the “stress test” and suggested that all centralized exchanges should have similar regular tests. While the exchange doesn’t appear to have a liquidity problem at this time, CZ has warned staff to expect “turbulent times” ahead.