[US market]Bitcoin rises to the level for the first time in a month ── Coinbase, Consensys lay off | coindesk JAPAN | Coindesk Japan

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US cryptocurrency trading giant Coinbase announced on January 9 that it will cut about 950 employees as part of a restructuring that is expected to be completed by the end of the second quarter of 2023.

That figure represents about 20% of the roughly 4,700 employees, according to the company’s website.

Coinbase began layoffs in June 2022 when the crypto bear market began. CEO Brian Armstrong said at the time that the company had “grown too fast” in a bull market, noting that it had expanded from 1,250 to more than 5,000 employees in early 2021. .

Wall Street analysts reacted positively to Coinbase’s layoffs. “This morning’s news is positive, indicating that the company is taking financial controls seriously in a very challenging crypto/macro environment,” a Barclays analyst wrote. . But he also said it could be a sign the company is preparing for a tough year ahead.

Ethereum blockchain application and infrastructure developer ConsenSys is also laying off more than 100 staff, according to a person familiar with the matter.

Market trend

Source: CoinDesk and highcharts.com

Bitcoin (BTC): Up 1.7% in 24 hours, near $17,400. At one point, the stock was listed at $17,488, the highest level in almost four weeks. But big investors, often referred to as “whales,” remain on the sidelines due to low liquidity in the bitcoin market.

Ethereum (ETH): Up 1.5% in 24 hours, near $1340. Like Bitcoin, it has risen to its highest level in almost four weeks.

Binance USD (BUSD)Major cryptocurrency exchange Binance has admitted that its stablecoin, Binance USD, was always not fully backed by reserves, according to Bloomberg, but that is now an issue. said to have improved. Bloomberg reports that Binance USD experienced periods of collateral shortages in 2020 and 2021, citing analysis from blockchain analytics firm ChainArgos.

stock market: Stocks rallied Tuesday after Fed Governor Michelle Bowman said she expected further interest rate hikes to keep inflation in check. The Nasdaq rose 1.0%, the S&P 500 0.7% and the Dow Jones Industrial Average 0.5%.

latest price

● CoinDesk Market Index (CMI): 853.03, +1.6%
Bitcoin: $17,486, +1.8%
Ethereum: $1,342, +1.8%

● S&P500: 3,919.25, +0.7%
Gold: $1,882, +0.5%
US 10-year yield: 3.62%, +0.1

market analysis

Source: TradingView

Signs of rising volatility may be starting to appear in Bitcoin and Ethereum. However, these signs are often optimistic and judging any indicator in isolation is risky.

Bitcoin broke the upper end of the Bollinger Bands on December 13, but fell 2% 14 days later. Ethereum broke the cap on Oct. 29 and fell 22% 14 days later.

Bullish investors will note that the price is entering territory that previously had low trading volumes. These “low volume nodes” are generally considered to be areas where prices move quickly in search of the next area of ​​agreement.

For example, in the case of Bitcoin, the next consensus area will be around $19,000, up about 9% from the current level, and Ethereum, up about 16% around $1,590.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: CoinDesk and highcharts.com
｜ Original: Crypto Markets Today: Coinbase Announces More Job Cuts Amid Market Jitters