The Breakdown First Five - Monday, February 5, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Chinese Small Caps Crash

Chinese stocks got the week started with a bang as the small cap CSI 1000 index plunged by 8%. The crash triggered circuit breakers, halting almost 30% of the market. Beijing have once again pledged support, but promises are cheap compared to actual intervention. The CSI 1000 is down 30% so far this year, hitting 5-year lows. 

4. Binance Compliance Exec Returns 

Steven Christie has returned to Binance as its Deputy Chief Compliance Officer. Christie resigned mid-last year alongside several other executives. Christie said he just wanted to spend time with family, help out around the house and lose some weight. As Binance looks to appoint a government monitor shortly, it appears Christie is happily returning to a new, more compliant Binance. Christie shed 20 pounds, but the household chores remain. 

3. FTX Anthropic Sale

The FTX estate has requested approval to offload their stake in AI startup Anthropic. The court filings disclosed the exact size of the venture investment for the first time, 7.84%. This means the $500M Series A investment is now valued at roughly $1.4B. FTX asked for the process to be expedited to allow them to hold an auction next month. Their target price was not divulged. 

2. Genesis: Permission to Dump?

Bankrupt crypto lender Genesis has requested permission to liquidate $1.4B in GBTC shares. Gemini, the lead creditor, are supporting the request, moving the process of repaying creditors forward. The sale could be approved as soon as Thursday. This could add additional sell pressure just as the Bitcoin ETFs have begun to stabilize. 

1. Bukele Elected For Second Term

President Bukele has declared victory in El Salvador with over 85% of the vote. Bukele will commence his second five year term in June. He heralded the victory as “The record in the entire democratic history of the world.” Critics note that the constitution prevents a second term, but Bukele used a loophole to gain eligibility. Still it’s hard to argue with this level of public support.

Thanks for reading -NLW