The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I’m Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off.) Price point: Bitcoin's price holds steady – defending $30K – as the European Central Bank moves to raise interest rates for the first time in more than a decade. Market Moves: Mixed-up address snafu leads to $15M theft of Optimism's OP tokens, Sam Kessler reports. - Featured story: The Osmosis Chain will remain halted for at least 48 hours following a liquidity pool exploit that resulted in an estimated loss of $5 million, Oliver Knight reports.
This newsletter was produced by Parikshit Mishra. Let us know what you think of First Mover by replying to this email. |
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Bitcoin (BTC) was holding steady Thursday as the European Central Bank announced its first interest-rate hike in more than a decade. As flagged in CoinDesk's Market Wrap newsletter on Wednesday, bitcoin's price this year has traded around expectations of central-bank monetary policy tightening – since the liquidity-sucking exercises also appear to influence cryptocurrencies. For most of this year, the U.S. Federal Reserve's actions have attracted most of the focus. Now that the ECB is also moving to rein in soaring inflation, crypto traders are paying attention. "The globalization of markets means that this would affect all economies, so equities and crypto could suffer as a result in the short term," Marcus Sotiriou, analyst at UK-based digital-asset broker GlobalBlock, wrote Thursday in an email. After a 3% drop on Wednesday, the bitcoin price was flat to slightly higher on Thursday around $30,200. For now, crypto bulls appear to have defended the crucial $30,000 price threshold. But some crypto analysts have warned that a deeper sell-off remains in the cards. "We still believe that the bear market for bitcoin and the entire cryptocurrency market has yet to play its final act, and that should be expected before the end of the year," said Alex Kuptsikevich, senior market analyst at FxPro. For the past four weeks, bitcoin has traded in a tight range between roughly $32,300 and $28,000. Such action resembles the U.S. stock market lately, where commentators have described the situation as "boring." As more central banks follow the Fed's lead, markets might get more interesting again. Or maybe the central banks will simply suppress the volatility. ICYMI: Please check out a smart piece by CoinDesk's Sam Reynolds in Thursday's First Mover Asia about major South Korean exchanges delisting litecoin (LTC). |
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Wintermute concedes "serious error" leading to $15 million theft of Optimism's OP tokens Ethereum scaling solution Optimism announced Wednesday that $15 million in OP governance tokens have been stolen by attackers, Sam Kessler reports. Optimism intended to send the funds to a crypto market maker, but they fell into the wrong hands when the market maker, Wintermute, provided Optimism’s team with an incorrect blockchain address. In a statement, Wintermute CEO Evgeny Gaevoy took responsibility for allowing the theft: “We made a serious error." The attack followed a difficult couple of weeks for Optimism, whose botched OP token airdrop sent the token’s price tumbling in its first hours. The OP token fell an additional 20% on Wednesday's news according to the most recent data from CoinMarketCap. Link to full story: $15M of Optimism Tokens Stolen by an Attacker After Wintermute Sent Wrong Wallet Address |
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The SEC wants to hear from investors, like you. As part of Grayscale’s filing to convert Grayscale Bitcoin Trust (Symbol: GBTC) to an ETF, the SEC provides a 240-day review period for anyone to submit comments for consideration.If you support the conversion, write to the SEC by clicking here. Your submission matters because: We can level the playing field. To date, the SEC has only permitted Bitcoin Futures ETFs, while rejecting “physically-backed” or Spot Bitcoin ETFs. The choice should be yours. If you’ve been waiting for the familiarity and protections of a Bitcoin ETF, we believe you should not be forced into a Futures-based product simply because it’s the only one that exists. You can help take GBTC to the next level, conversion to an ETF. It’s already the world’s largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Learn more here. This information should not be relied upon as investment advice or a recommendation regarding any security. Visit here for important disclosures. |
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers Biggest Losers |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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Osmosis to Cover Possible $5M Exploit Loss; Chain to Remain Halted for 2 Days |
The Osmosis Chain will remain halted for at least 48 hours following a liquidity pool exploit that resulted in an estimated loss of $5 million. In a series of updates on Twitter and in a Discord post at 17:32 UTC on Wednesday, the Osmosis team said it will cover all losses using its strategic reserves. The bug was an issue with the JoinPoolNoSwap function, in which liquidity providers received 50% more than they should have done when withdrawing from liquidity pools. The bug was exploited by a "small number of individuals," Osmosis said. Four individuals have been identified as being responsible for 95% of the exploited amount. "Funds have been linked to CEX accounts," Osmosis community analyst RoboMcGobo wrote on Discord referring to centralized crypto exchanges. "Law enforcement has been notified. We're hopeful that the exploiters will do the right thing here so that aggressive action will not be necessary." Link to full story: Osmosis to Cover Possible $5M Exploit Loss; Chain to Remain Halted for 2 Days |
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And check out the CoinDesk TV show “First Mover,” hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. - Chris Giancarlo, senior counsel, Willkie Farr & Gallagher
- Joshua Lim, head of derivatives trading, Genesis Global Trading
- Staci Warden, CEO, Algorand Foundation
- Kevin Owocki, founder, Gitcoin
- David Olsson, SVP and global head of institutional distribution, BlockFi
- Ken Timsit, managing director, Cronos Chain
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Consensus 2022, the must-attend crypto and blockchain experience of the year, is heading to Austin, Texas, from June 9-12. This is the only festival showcasing and celebrating all sides of the blockchain and crypto ecosystems and their wide-reaching effect on commerce, culture and communities. Register now for the lowest price. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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