Bitcoin and Ether rose on Wednesday morning in Asia along with most of the cryptocurrency top 10 by market capitalization, excluding stablecoins, eking out gains amid reports of alleged Russian missile strikes on Poland while inflationary data out of the U.S. provided support.
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Fast facts
- Bitcoin gained 1.6% to US$13,886 in the 24 hours to 8 a.m. in Hong Kong, while Ether rose 0.8% to US$1,252, according to CoinMarketCap.
- XRP rose 3.2% to US$0.38, continuing a positive price run over the past few days as U.S.-based cryptocurrency exchange Coinbase submitted an amicus brief on Monday to support Ripple Labs Inc. — the company that uses XRP to power its payment system — in its lawsuit with the U.S. Securities and Exchange Commission.
- Polygon rose 2.6% to US$0.94 and Solana gained 2.1% to US$14.30, though was still trading down roughly 40% for the week as it was hit particularly hard by Alameda selling off large quantities of its reserves in the token to try to stabilize the price of the collapsing FTT, the native token of sister firm FTX.com.
- Cronos, the native token of fellow exchange Crypto.com, gained 5.8% to US$0.073 but represents only a small recovery for the token which is still trading down nearly 30% for the week after details emerged that Crypto.com accidentally sent roughly US$400 million worth of Ether to the wrong wallet address, in an attempt to move it to cold storage. This sparked concerns of a situation similar to FTT, where its plunging price greatly compounded financial pressures on FTX and contributed to its eventual bankruptcy on Friday.
- U.S. equities ended the day higher on Tuesday; the Dow Jones Industrial Average gained 0.2%, the S&P 500 Index rose 0.9% and the Nasdaq Composite Index finished the day 1.5% higher.
- Stocks were initially shaken before recovering following reports of alleged Russian military strikes over the Polish border near the town of Przewodow, in which two people are believed to have died. As Poland is a member of the North Atlantic Treaty Organization (NATO), an attack on the country is considered an attack on the entire organization, and the strikes risk a significant escalation in the 9-month-long war as other member states could be drawn in to respond militarily. Russia’s defense ministry has denied the reports, while authorities continue to investigate.
- The U.S. producer price index data added support for markets, however, as it showed that wholesale prices increased 0.2% in October — below the 0.4% anticipated by analysts — adding to the evidence that inflation is slowing in the country. Inflation was running at 7.7% in October, below the 8.2% it was at in October.
- The U.S. Federal Reserve has been raising interest rates since March this year to try to tackle inflation, steadily raising them from near zero to a 15-year high of 3.75% to 4%. The Fed has signaled that it will continue to raise rates until inflation reaches a target range of 2%.
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