Crypto Weekly: the calm after the storm

STORY: From a strangely becalmed bitcoin, to ever deeper job cuts at crypto market firms, these are the week’s big stories in the world of virtual money…

Bitcoin crept higher as the new year started, gaining around 4%.

But it’s stubbornly stuck at around sixteen-to-seventeen thousand dollars, with trading volumes very subdued.

Bulls say such quiet periods rarely last long, and are often followed by sharp gains.

Bears say a global economic slowdown will leave people with less cash to spend on crypto.

After the virtual rollercoaster of last year, a quiet start is good enough for some investors.

New York is suing Celsius Network founder Alex Mashinsky.

“I don’t think anyone knows how far bitcoin can go”.

The city’s attorney general says he defrauded investors out of billions of dollars, and hid the failing health of his now-defunct crypto lending platform.

A lawyer for Mashinsky said he denied all the allegations.

Coinbase is cutting almost 1,000 jobs.

The firm has been hit by the crypto downturn, and chief Brian Armstrong says the market could face further contagion from the demise of FTX too.

The job cuts follow others at big names in the sector, including Genesis and Huobi.

And Reuters sources say U.S. regulators are investigating financial firms who invested in FTX, to see if they did their homework before putting money in.

The U.S. government has also launched a web site for victims of the collapse to communicate with law enforcement.

Former FTX boss Sam Bankman-Fried has pleaded not guilty to fraud charges, and faces a trial date in October.