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Bitcoin and Other Cryptocurrencies Had Double-Digit Drops Friday, Largest Liquidation Event Ever

3 months ago
An anonymous reader shared this report from the Independent: Bitcoin and Ethereum both saw record liquidations as investors reacted to fears over a trade war, which saw many crypto investors move their money to stablecoins or safer assets... Bitcoin fell by more than 10 per cent to below $110,000, before recovering to $113,096 on Saturday morning. The value of Ethereum slumped by 11.2 per cent to $3,878. Other cryptocurrencies, including XRP, Doge and Ada, fell around 19 per cent, 27 per cent, and 25 per cent in the last 24 hours, respectively. LiveMint shares some statistics from Bloomberg: Citing 24-hour data from Coinglass, the report noted that more than $19 billion has been wiped out in the "largest liquidation event in crypto history", which impacted more than 1.6 million traders. It added that more than $7 billion of those positions were sold in less than one hour of trading on October 10. According to data on CoinMarketCap, the cryptocurrency market cap has dived to $3.74 trillion from the record-high $4.30 trillion level, the previous day. Trading volumes as of the market close were recorded at $490.23 billion. Bitcoin retreated on Friday, as US-China trade tensions reignited, after racing to record highs earlier in the week as persistent rate-cut bets and signs of some cooling in geopolitical tensions helped boost risk. Bitcoin was trading at $105,505.4 on Friday, down 13.15% on the day.

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EditorDavid

'Circular' AI Mega-Deals by AI and Hardware Giants are Raising Eyebrows

3 months ago
"Nvidia is investing billions in and selling chips to OpenAI, which is also buying chips from and earning stock in AMD," writes SFGate. "AMD sells processors to Oracle, which is building data centers with OpenAI — which also gets data center work from CoreWeave. And that company is partially owned by, yes, Nvidia. "Taken together, it's a doozy." There are other collaborations and rivalries and many other factors at play, but OpenAI is the many-tentacled octopus in the middle, spinning its achievement of ChatGPT into a blitz of speculative investments. "We are in a phase of the build-out where the entire industry's got to come together and everybody's going to do super well," OpenAI CEO Sam Altman told the Wall Street Journal on Monday. "You'll see this on chips. You'll see this on data centers. You'll see this lower down the supply chain...." Some worry that the more closely companies intertwine, the more susceptible they are to creating a bubble, or a market not actually supported by real consumer demand. "You don't have to be a skeptic about AI technology's promise in general to see this announcement as a troubling signal about how self-referential the entire space has become," Bespoke Investment Group wrote in a note to clients, per CNBC. "If NVDA has to provide the capital that becomes its revenues in order to maintain growth, the whole ecosystem may be unsustainable..." Also, even with Nvidia's investment, AMD's shares and OpenAI's repeated fundraises, the ChatGPT-maker doesn't have the cash to meet all of these vast commitments. And if OpenAI's soaring projections about demand for AI computing don't bear out, there will be a lot of committed money — and a large share of the stock market — that would see its foundations topple. Thanks to long-time Slashdot reader mspohr for sharing the news.

Read more of this story at Slashdot.

EditorDavid