10 things before the opening bell

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1. Winter sets in for crypto markets. The long and brutal sell-off that started this month with fears of interest rate hikes pushed the value of the cryptocurrency market below $2 trillion on Wednesday, with 2% of the total market cap shaved off within 24 hours.

Bitcoin and ethereum fell Wednesday, with ethereum threatening to break below the $3,000 threshold. Smaller tokens, including so-called “ethereum killers” cardano and avalanche, also tumbled.

Billionaire investor Mike Novogratz expects surging bond yields to keep crypto prices under pressure, and Skybridge Capital CEO Anthony Scaramucci has said he’s not buying the dip for bitcoin because he sees “sloppiness” ahead.

US Treasury yields hit two-year highs, stocks have been in the red, and the Fed continues to signal that rate hikes are on the way. As investors navigate inflation and brace for the Fed’s hawkish pivot, they’ve flocked to safe haven assets, sparking a bear market for crypto.

Some stats to consider as crypto struggles: 

• The crypto market is now worth about $1.95 trillion, having peaked at nearly $3 trillion in mid-November.  
• Bitcoin has tumbled from a November all-time high of $69,000 to around $41,000.
• Overseas, Singapore is cracking down on crypto ATMs and a top European markets regulator said proof-of-work mining should be banned in the EU.

2. Stocks traded down in the midweek session. The Nasdaq fell into correction territory and extended its streak of choppy trading. Here are the latest moves on the market.

3. Fans, artists, and brands like Hermes are fighting over the rights to sell NFTs worth millions. Olive Garden and Miramax, for example, have taken legal action against NFT projects that the companies argue violate trademark or contractual rights. The outcomes could define who gets to make money in the metaverse.

4. On the docket: Netflix, Costco, and Union Pacific, all reporting.

5. Stocks are in a dotcom-style bubble with “massive downside risk,” said RBAdvisor’s Dan Suzuki. He flagged tighter liquidity, slowing profits, and high valuations as his top three market risks — and he said the bubble could affect almost 50% of the market.

6. SoFi won approval to become a bank — but only under the condition that it doesn’t do any business in crypto. The stock jumped in Wednesday trading after the OCC gave the green light.

7. JPMorgan said thematic ETFs are expensive and don’t beat the market. The allure of investing in next-gen themes like robots and space travel doesn’t lead to outperformance for investors, according to the bank — here’s why.

8. Tesla stock could slump 50% while three legacy automakers enter the EV race. David Neuhauser told CNBC that the leading EV maker is facing pressure from Volkswagen, Ford, and GM. He thinks Elon Musk’s Tesla is going to have a difficult time increasing its $1 trillion market valuation.

9. The manager of a $1.1 billion blockchain ETF that’s returned 47% over the past three years shared his stock picks. Mike Venuto’s Amplify invests in firms developing blockchain technology. He thinks these 13 under-the-radar stocks could become “the next big thing” in crypto.  

10. A 21-year veteran trader explained an options trade designed to help investors “sustain risks long enough to see the light of profitability.” Dan Kaufman said an options spread can help mitigate risk as market volatility is expected to pick up. Plus, he shared what’s behind bitcoin’s growing correlation with high-growth tech stocks.

Compiled by Phil Rosen. Feedback? Email prosen@insider.com or tweet @philrosenn.

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