The daily bulletin prepared by the Bybit Global team includes the markets and developments in the cryptocurrency market. US stocks closed the fourth day lower after a series of hawkish statements from global central banks. Investors are tightening their belts in the face of additional volatility stemming from the Bank of Japan’s unexpected turn in yield policy. The cryptocurrency market has been tough in the last 24 hours, with Bitcoin and Ethereum up 0.07% and 0.83% respectively. Today’s top-moving Filecoin (FIL), which has dropped 1.93% in the last 24 hours and 31.0% last week, has clearly underperformed the market following record-length liquidations.
FIL’s price drop came alongside other storage tokens such as Storj, which fell 16.4% over the same period. The two most popular hypotheses behind FIL’s poor performance are token unlocking and Grayscale’s rumored divestment. While FIL unlocked a linear token of 11.1 million coins, equivalent to $33 million, in December, Grayscale’s portfolio has only $297,000 worth of FIL tokens. But with $180 million in trading volume last week, these two factors are unlikely to tell the full story of FIL’s heavy sales. Instead, record-length liquidations may be the culprit, where several lenders’ margin calls could result in forced sell-offs, leading to this sudden and unexpected token drop. On a good note, Filecoin hasn’t stopped building in the bear market. In particular, the recent release of Filecoin’s smart contract language FVM has revealed the potential of DeFi.
Grayscale, the largest crypto fund listed, recently issued a year-end CEO letter to its investors, shedding light on the fund manager’s recent speculations and efforts regarding FTX, crypto development, its bankruptcy. Converting GBTC to ETF: Grayscale stressed the need to convert GBTC into an ETF in the best interest of investors, and they are committed to this effort. However, in the face of an ongoing lawsuit with the SEC, Grayscale may explore other options to return some of the capital to GBTC’s shareholders if the court does not rule in their favor. The option may include a tender offer for redemption of up to 20% of outstanding shares of GBTC. It is noteworthy that these solutions are subject to the approval of the shareholders.
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