How does Celsius filing for chapter 11 bankruptcy affect the crypto space?
Today's filing follows the controversial decision by Celsius, a major cryptocurrency lender, last month to pause withdrawals, swaps, and transfers on its platform to stabilize its business. The troubled crypto lender said the purpose for the voluntary action is to enable a "comprehensive restructuring plan" that benefits all "stakeholders." However, this decision has brought even more doubts to the crypto space after the major disaster involving Terra Luna just recently shook investor confidence in the sector. As the Celcius situation develops, it will be essential to see how the company manages to resolve some key issues that are deeply rooted in its business model and if it can restore faith in the crypto lending side of the industry which for the time being has appeared to be promising but highly unstable and unreliable in times of excessive volatility.
Investors await major bank report as US earning season starts
After what has been a troubling few months for stock markets and economies, investors are anticipating the start of the US earning season which as always kicks off with major financial institutions and banks. Today, while inflation remains a key topic, particularly after yesterday's CPI reading surprised by showing an increase of 9,1% and prompting increased expectations for a 100bp rate increase by the FED, stock investors will be looking at JPMorgan and Morgan Stanley's earning reports. Financial institution reports are particularly interesting because they can give a general overview of the health of an economy and their projections can sometimes set the tone for the coming trading sessions, especially as investors continue to be uncertain about the prospects of recession and upcoming central bank decisions. Both reports will be released before the US market open and could play an important role in how today's session goes after yesterday saw indices and risk assets take a hit following the surprise inflation reading.