Daily News | Mixed Messages from FOMC, Crypto Mostly See Gains, and US Seizes Robinhood Shares from FTX

2023-01-05, 03:22

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## TL; DR

🥂 Good morning, today is **Thursday, Jan. 05, 2023.**

**Macro:** Asian equities are expected to have a positive opening following a rebound in US stocks. The upturn was influenced by mixed messages from the Federal Reserve's latest FOMC meeting with data that showed signs of improving supply chain conditions but also pointed to a robust labor market. Meanwhile, the US government seized hundreds of millions of dollars worth of shares from Robinhood as part of a fraud case against FTX founder Sam Bankman-Fried.

**Crypto:** The top 20 cryptocurrencies mostly saw gains with BTC and Ether seeing 1.14% and 3.52%, respectively. Cardano stood out from the pack with a 6% increase, while Solana scaled back its previous gains. Meanwhile, CoinShares tracked funds net of $433 million in 2022, a 95% decline from the previous year's $9.1 billion.

****Topic of the Day:**** FTX's $450 Million in Robinhood Shares Seized by U.S. Justice Department

**Notable Headlines:** Indonesia plans to launch a national crypto exchange in the coming year; Genesis said in a letter to clients that it is still figuring out the best course of action; SEC filed motions asking a judge to halt BinanceUS’s acquisition of bankrupt crypto lender Voyager Digital…

## Macro at a Glance: US and Asian Markets on the Rise Following Mixed Fed Meeting and Seizure of Robinhood Shares

After a two-day slump, US stocks have finally seen a rebound and it looks like Asian stocks are set to follow suit with a positive opening on Thursday.

The S&P 500 rose a promising 0.4% and Treasuries rallied for a second consecutive day, while the dollar took a slight hit. This upturn may have been influenced by the mixed messages coming out of the Federal Reserve's latest FOMC meeting.

It seems the Federal Reserve is dead set on bringing down inflation and has warned investors not to underestimate their determination to keep interest rates high for the foreseeable future. Prior to the meeting, markets had been anticipating rate cuts in the second half of 2023.

The minutes revealed that the Fed's rate projections were significantly higher than market expectations and that officials were determined to lower inflation to the 2% target, even if it meant higher unemployment and slower economic growth.

However, Chair Jerome Powell assured the public at a press conference that the committee has "more work to do" and that it's ultimately more important how high rates ultimately rise and how long the Fed holds them there than the pace at which they are reached.

Thus, on the one hand, officials emphasized the importance of controlling inflation without slowing the economy too much. Still, on the other hand, they also expressed concern about the potential impact of a strong job market and looser financial conditions on rising consumer prices.

Wednesday's data release also showed signs of improving supply chain conditions and declining input prices but also pointed to a robust labor market. Meanwhile, the price of crude oil rose after taking a 9.5% hit over the past couple of days, partly due to China's complex reopening process.

Meanwhile, in a shocking move, the US government has seized hundreds of millions of dollars worth of shares from Robinhood as part of a fraud case against Sam Bankman-Fried, the founder of the now-failed cryptocurrency company FTX.

The shares, which are currently valued at over $460 million, have been claimed by various creditors of FTX who have filed court cases in an attempt to gain control of them. A court hearing will eventually be held to determine the ultimate fate of the shares and the seized assets. Bankman-Fried was extradited from the Bahamas to the US last month to face fraud charges.

💡 **Today's Markets at Jan. 04 23:50 UTC**

**BTC** +1.05% at $16,851; **Ether** +3.40% at $1,255.

**Asia: Australia** +0.46%**; Japan** -1.45%; **Hong Kong** +3.66%; **China** +0.22%; **India** -1.04%.

**Europe:** **London** +0.41%; **Paris** +2.30%; **Frankfurt** +2.18%.

**US Spot Indices:** **Dow** +0.40%; **S&P** +0.75%; **Nasdaq** +0.69%.

**US Index Futures: Dow** -0.04%; **S&P** +0.02%; **Nasdaq** +0.03%.

**US Two-year Treasury** down 3bps at 4.355%.

**US Ten-year Treasury** down 6bps at 3.690%.

**UK Ten-year Gilt Bond** down 15bp at 3.500%.

**[US Dollar](https://www.gate.io/trade/USD_USDT) Index** -0.30% at 103.94.

**FX in 24hrs:** GBP: +0.86%; EUR: +0.58%; JPY: -0.94%; CNY: +0.38%.

**Gold** +0.98% at 1,854; **Light** **Crude** -4.80% at 73.50.

🧠 **Catalysts this week**

**Wednesday**: France Inflation Rate, US ISM Manufacturing PMI, US JOLTs Job Openings, FOMC Minutes

**Thursday**: Japan Consumer Confidence, Germany Balance of Trade, Italy Inflation Rate, Canada Balance of Trade, US Balance of Trade

**Friday**: Eurozone Inflation Rate, US Non Farm Payrolls, US ISM Non-Manufacturing PMI

## Crypto Daily Digest: Positive Gains Across Cryptocurrency Market, Despite Tough Year for Asset Funds

Following the optimism of main street, the top 20 cryptocurrencies mostly saw impressive gains. [Bitcoin](https://www.gate.io/trade/BTC_USDT) (BTC) managed to hold its own with a 1.14% increase to reach $16,857, while Ether (ETH) saw a more significant boost of 3.52% to hit $1,256.

Dogecoin (DOGE) had a solid performance with a 3.96% climb. Cardano (ADA) made significant strides with a 6.03% jump to $0.268, and Polygon (MATIC) had a decent 3.60%. On the downside, Tron (TRX) dipped 0.17%, [Litecoin](https://www.gate.io/trade/LTC_USDT) (LTC) fell 0.30%, and Solana (SOL) experienced a 1.08% drop to $13.37.

In related news, Solana's non-fungible tokens (NFTs) trading volumes have reached their highest point since September. In fact, Solana managed to hold onto its coveted second spot behind Ethereum throughout the entire year, according to data from The Block.

The Nasdaq had nearly a 0.70% increase on Wednesday. Coinbase (NASDAQ:COIN) saw a massive bump of 12.2% by day’s end, following a near 8% drop the day before. Meanwhile, Jack Dorsey’s Block (NASDAQ:SQ) experienced a modest increase of 2.57%.

Grayscale's [Bitcoin](https://www.gate.io/trade/BTC_USDT) fund saw its discount to net asset value widens, with shares now trading at a discount of 46% to the value of the [Bitcoin](https://www.gate.io/trade/BTC_USDT) in the fund. On the other hand, Grayscale's ether trust reached a record-high discount of around 60%.

According to CoinShares, funds tracked by the company netted a measly $433 million in 2022, a far cry (-95%) from the impressive $9.1 billion the previous year. As the price of [Bitcoin](https://www.gate.io/trade/BTC_USDT) dropped about 60% over the same period, the market was hit with a harsh "crypto winter," possibly due to the U.S. Federal Reserve's interest rate hikes to combat inflation.

However, a weaker U.S. dollar and a pivot from the Federal Reserve in 2H 2023 could potentially be very supportive for [Bitcoin](https://www.gate.io/trade/BTC_USDT), as it's an interest rate-sensitive asset. Until then, it's unlikely the market will see significant investor inflows.

Despite the rough year, [Bitcoin](https://www.gate.io/trade/BTC_USDT) was the best-performing cryptocurrency, with inflows of $287 million (though this is still its worst year since 2018, with inflows at $146 million). Ether had a particularly tumultuous year, with outflows of $402 million, likely due to investor concerns over the transition to proof of stake and the timing of un-staking.

🌐 **Top 20 Coins Performance**

**BTC** +1.14% at 16,857; **ETH** +3.52% at 1,256.

**BNB** +5.25% at 259; **XRP** +1.31% at 0.347; **DOGE** +3.96% at 0.0733.

**ADA** +6.03% at 0.268; **MATIC** +3.60% at 0.808; **DOT** +2.11% at 4.64.

**TRX** -0.17% at 0.0547; **SHIB** +2.83% at 0.00000836 **LTC** -0.30% at 75.66.

**SOL** -1.08% at 13.37; **UNI** +2.77% at 5.53; **AVAX** +6.27% at 12.09.

**TONCOIN** +0.30% at 2.24; **GT** +1.72% at 3.27.

## Topic of the Day: FTX's $450 Million in Robinhood Shares Seized by U.S. Justice Department

In a shocking move, the U.S. Justice Department announced that it had seized $450 million worth of Robinhood shares from FTX in a Delaware bankruptcy court hearing.

The shares were originally purchased by Emergent, a holding company created by former FTX CEO Sam Bankman-Fried and co-founder Gary Wang, using funds from $546 million in loans from Alameda Research. However, the ownership of the shares is currently unclear, with FTX creditors and BlockFi both claiming ownership. The Justice Department stated that it will file a notice of seizure outlining the assets taken from FTX, and a court hearing has been scheduled for January 20, 2023 to address the issue.

Bankman-Fried, Wang, and former Alameda Research CEO Caroline Ellison are facing charges including bank and wire fraud, money laundering, and conspiracy, and if found guilty, could face life in federal prison. The case is complicated by ongoing litigation surrounding the collapse of FTX and the subsequent Chapter 11 bankruptcy of BlockFi, as well as proceedings in Antigua and Barbuda regarding the Robinhood shares.

FTX lawyer James Bromley noted that the seizures were ordered by the court in connection with the criminal actions taken against the trio in the Southern District of New York. He also emphasized that the Robinhood shares being seized were from accounts not currently under the control of FTX's debtors. It remains to be seen how the court will ultimately rule on the ownership of the seized assets.

![](https://gimg2.gateimg.com/image/article/1672888736Untitled4.png)
Robinhood (NASDAQ:HOOD) has been down by nearly 55% YTD.

![](https://gimg2.gateimg.com/image/article/1672888792Untitled5.png)
FTX TOKEN (FTT) rose nearly 18% since the start of 2023.

If you’d like us to cover any specific token or macro data, feel free to reach out to us by dropping a message in [our Reddit community](https://www.reddit.com/r/GateioExchange/).

## Further Reading

**[Market Trend](https://www.gate.io/blog_detail/1978/)**｜FBI Begins Investigating 3Commas Data Breach; Charles Hoskinson Reveals Upcoming ADA Experiment

**[Gate.io Annual Review in 2022](https://www.gate.io/blog_detail/1970/)** | Rewind and be reminded of the achievements and catastrophes 2022 has brought us.

**[Debunking Common [Bitcoin](https://www.gate.io/trade/BTC_USDT) Rumors: BTC Is Secure and Safe](https://www.gate.io/blog_detail/1990/)** | [Bitcoin](https://www.gate.io/trade/BTC_USDT) FUD Debunked

**[Gate Charity Launches New Year NFT Collection for Children's Education in India](https://www.gate.io/blog_detail/1984/)** | The 2023 Gate Charity New Year NFT - India collection will feature 48 unique art pieces hand-drawn by children supported by the Manav Mandir Gurukul, with 1,000 NFTs available to mint.

## Notable headlines

**🔹 Indonesia plans to launch a national crypto exchange in the coming year.** Crypto supervision will be transferred between financial regulators in the country’s financial-sector reforms.

**🔹 The Israel Securities Authority proposed amendments to three existing financial laws to include digital assets.** Once authorized and published, the new crypto laws will be enacted after six months.

**🔹 Troubled crypto lender Genesis said in a letter to clients that it is still figuring out the best course of action.** The firm said it had made some headway in reducing costs and bolstering business efficiencies.

**🔹 Regulators, including the SEC, filed motions asking a judge to halt BinanceUS’s acquisition of bankrupt crypto lender Voyager Digital** until the company discloses more about its finances and relationship with its global parent company. The federal and state agencies that objected cited the possibility that assets could be moved offshore, and harder to recover on behalf of consumers.

**🔹 Solana’s top NFT marketplace Magic Eden updates its verification system following fake y00ts and ABC NFTs.** Earlier, Magic Eden blamed third-party cachers for NFT projects displaying wrong images, even adult content, for its collections and claimed it wasn't hacked.

**🔹 A DeFi user lost $3.4 million of GMX tokens in an apparent phishing attack.** Security analysts say a malicious actor was able to dupe the user into approving a malicious transaction.

**🔹 The COO of RTFKT fell victim to a phishing scam and lost almost all of his NFTs.** OpenSea activity suggests the phisher used two wallets to drain Gopalani’s wallet of NFTs worth upwards of $175,000 at floor prices. RTFKT’s CTO responded to the loss by stating that the brand “won’t be able to go in deeper details until further notice,” citing legal reasons.

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<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

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