5 Things to Know in Crypto Today: BTC Dumps Under $22K as Bears Take Control, XRP Launches On-Demand Liquidity

Key Points

• Cryptocurrencies have come under heavy selling pressure on Friday, with Bitcoin under $22,000 and Ethereum falling under $1,750.
• Total market capitalization is down over $58 billion, with technical selling and concerns about Fed hawkishness being cited.
• Ripple has introduced its on-demand liquidity service to Brazil after partnering with Travelex Bank.

Bears Regain Control as Bitcoin Dumps Back Under $22,000

After five straight sessions of modest losses, cryptocurrency markets have come under intense selling pressure on Friday. Bitcoin was last trading 7.5% lower in the last 24 hours, after dumping to fresh monthly lows under the $22,000 level, with bears eyeing a test of late-July lows under $21,000. Bitcoin is now trading about 13% below the multi-week highs it printed last week above $25,000.

Ethereum, meanwhile, was last down about 6% in the last 24 hours, under $1,750 and is just shy of 15% below last week’s multi-week highs above $2,000. Other major altcoins are also getting battered, with the likes of BNB, XRP, ADA, SOL, DOGE and DOT all down between 8% to 14% over the same time period. Cryptocurrency markets have shed nearly 5.5% of their market capitalization on Friday, losing over $58 billion in value. Total market cap has managed to remain above $1 trillion, for now.

Hawkish Fed Rhetoric Weighing on Crypto?

A few factors have been cited as weighing on cryptocurrency prices on Friday. Technical selling in Bitcoin after the cryptocurrency broke out of a bullish trend channel earlier this week is likely weighing.

But concerns about a more aggressive Fed tightening cycle may also be at play. Stock market and cryptocurrency sentiment has been supported in recent weeks on the idea that 1) US inflation has peaked and 2) US data has suggested the economy is not yet in recession and remains fairly healthy. But rhetoric from Fed policymakers since last month’s meeting has generally been quite hawkish.

Policymakers this week and last have reiterated that significant further rate hikes are needed as the fight against inflation remains far from won, and have also been expressing concerns about the still hot US economy making their fight against inflation more difficult. On Thursday, Fed policymaker James Bullard called for a third successive 75 bps rate hike at next month’s meeting and for the rate to hit 4% by the year’s end.

Recent downside US inflation surprises mean that markets currently view the September Fed meeting as a coin toss between a 50 and 75 bps rate hike, rather than outright favoring the latter. But Fed members have also been pushing back against the idea of rate cuts in 2023 and markets have been responding. US money markets have been pointing to rates peaking around 3.7% next March for the last few weeks, but have recently been raising their view on where rates will end 2023. Rates are seen around 3.3% in December 2023, versus under 3.1% two weeks ago.

Ripple’s ODL Service Arrives in Brazil

Ripple, the blockchain developer and issuer of the XRP token, has introduced its on-demand liquidity (ODL) service in Brazil in wake of its latest partnership with Travelex Bank.

Bom dia! Brazil is open for Ripple’s On-Demand Liquidity with Travelex—our first LATAM bank partner—and the first bank approved by the Central Bank of Brazil to operate exclusively in FX. We’re excited to bring crypto-native solutions to 🇧🇷https://t.co/G6U8nh9jIY

— Ripple (@Ripple) August 18, 2022

Ripple’s ODL service essentially uses XRP to facilitate cross-border transfers of fiat currency between countries. Initially, Travelex will use the service to facilitate flows between Brazil and Mexico.

CME to Introduce ETH Options Trading in September

The Chicago Mercantile Exchange (CME), one of the largest in the US, announced on Thursday that it intends, subject to a regulatory review, to introduce options contracts for its ETH futures that are already listed. The options are expected to start trading on 12 September and come after the CME launched micro-ETH futures trading earlier this year.

Tim McCourt, the CME’s head of equity and FX products, said that the CME has witnessed an increase in trading volumes and open interest for ETH futures, possibly as traders hedge risk ahead of the upcoming Ethereum mainnet merge to Proof-of-Stake (PoS) from Proof-of-Work (PoW).

Looking for a new opportunity to add the flexibility of options to your cryptocurrency portfolio? Meet CME Group’s Ether options, launching Sept. 12. https://t.co/yHc3s6oL9h pic.twitter.com/wlKTGNyE5K

— CME Group (@CMEGroup) August 18, 2022

US Wants an Independent Examiner to Look Into Celsius Bankruptcy

According to a recent court filing, the US Trustee office has asked for an independent examiner to be appointed to look into cryptocurrency lender Celsius Network’s fall into bankruptcy. According to the agency, which oversees bankruptcy processes in the US, there are “numerous questions” about Celsius and how its management allowed it to fall into bankruptcy so quickly.

#Celsius Bankruptcy HUGE News 🗞️

🇺🇸US Trustee Moves to Appoint Examiner to Provide a Comprehensive Public Report of Events Leading to Collapse, Cites “Extreme Financial Irregularities” at Company.

— Plan©️ (@TheRealPlanC) August 19, 2022