Main Takeaway: Markets Recover To End The Week
The crypto markets recovered 4% on the day with a nice showing of green to finish off the work week. Last week was similar, after ending Friday in the green, but only to have a choppy weekend. The markets have to be careful of fakeouts at this point, as continued bankruptcies and layoffs come to the fray. OpenSea has announced it’s laying off 20% of staff, which will be a hit to the NFT industry in the short term.
What investors should be looking at is the July 26-27 FOMC meeting where the US Fed may announce the biggest rate hike in decades. So keep an eye on the crypto markets and correlation with the traditional markets.
Key Stories: Celsius Balance Sheet & Circle’s Reserves
Recent bankruptcy filings show that Celsius owes its users approximately $4.7 billion – and the company has a $1.2 billion gap in its balance sheet (liabilities at $5.5 billion and assets at $4.3 billion).
This is not looking good as the company may be forced to sell its CEL token. However, the CEL coin is up 26% d-o-d. Traders should closely examine Mashinsky’s and Celsius’s bankruptcy filings for more details and what their plans are moving forward. But as the market has seen lately, the contagion is still not over and there are likely more dominos to fall down the road.
Secondly, in an effort to increase its transparency, Circle has released a detailed breakdown of its reserves for the USDC stablecoin. In the image below is a breakdown of their assets. They currently have $55.7 billion in total USDC reserve assets and $13.6 billion in total cash held at US-regulated financial institutions.
Today’s Top Gainers
As the markets are up 4%, there are many coins on Phemex that are trading well. In particular, the top five gainers on the day are QuickSwap (QUICK/USDT), Celsius Network (CEL/USDT), DREP (DREP/USDT), Quant (QNT/USDT), and StepWatch (SWP/USDT).
