FTX Explores Restarting Operations, Genesis Negotiates Bankruptcy Filing

Stocks are continuing to slide today, extending this week’s pullback. The Dow retraced January gains down 0.8%, while the S&P and Nasdaq fell 0.8% and 1.1%, respectively, still in the green for the month. Concerns the Fed might overtighten and cause a recession have begun to overshadow positive developments of falling inflation. Mixed comments from Fed officials yesterday also muddied the Fed’s rate path outlook. Lorie Logan and Patrick Harker called for a decreased 25 bp hike, while James Bullard spoke about ‘front-loading’ and keeping the next hike at 50 bps. Despite this, Fed Funds futures currently place a ~92% probability that the next hike will be 25 bps. This morning’s report by the Labor Department added to monetary tightening concerns, as initial filings for weekly unemployment insurance claims came in at their lowest level since late June last year. BTC and ETH are also sliding, down 0.3% and 0.6%, to trade around ~$20,800 and $1530, respectively. Concerns about an imminent enforcement action from the DOJ yesterday triggered the initial sell-off. While the announcement did not have any surface-level implications for the current regulatory environment, its notable crypto markets failed to regain last week’s bullish momentum.