Good morning, and welcome to First Mover. Here's what's happening this morning:

Market Moves: Bitcoin, Ether Dip Despite China Rate Cut
Technician's Take: Bitcoin Sensitive to Tech Cycle

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. Today's show will feature guests:

Marc Lopresti, co-managing director and member of the board, The Strategic Funds
Chris Giancarlo, former CFTC chairman

– Omkar

Bitcoin and ether were again trading lower in Asian hours, continuing the year-long trend of losing ground mainly when America is asleep. The decline comes as traditional markets turn a blind eye to China’s interest rate cut and remain risk-averse.

Data provided by options trader Fredrick Collins shows that bitcoin and ether have consistently faced selling pressure during the Asian hours this year. Most of year-to-date gains made by bitcoin and ether, 60% and 420% respectively, have come during the American hours, represented by 8:00 am to 6:00 pm New York time. Further, Asia has been the driver of the recent sell-off in bitcoin.

The trend continued on Monday despite the People’s Bank of China (PBOC) taking steps to cushion the economy from the negative impact of property market woes and renewed coronavirus concerns.

The Chinese central bank announced a cut in its one-year loan prime rate, a de facto benchmark rate since 2019, from 3.85% to 3.8%, confirming the first reduction in nearly two years.

Interest rate cuts tend to inject liquidity into the economy. Thus, perceived inflation hedges like bitcoin, gold, and asset prices, in general, typically react positively to rate cuts. However, Asian equities traded lower alongside a 1.10% drop in the futures tied to the S&P 500. Oil prices slipped more than 3% and the anti-risk currencies like the Japanese yen are drawing safe-haven bids.

The market action suggests China’s rate cut is perhaps too small compared to the impending tightening by the Fed and other central banks. Last week, the Fed signaled three rate hikes in 2022 and the Bank of England delivered a surprise interest rate hike.

Read the full story here:

Bitcoin, Ether Dip in ‘Bearish Asia Session’ as China Rate Cut Fails to Inspire Risk Buying

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These are the biggest movers in the CoinDesk 20 over the past 24 hours:

Top Gainers:

XRP (XRP): +2%, Sector: Payments

Top Losers:

Cosmos (ATOM): -8%, Sector: Smart contract platform
Algorand (ALGO): -7.8%, Sector: Smart contract platform
Internet Computer (ICP): -3%, Sector: Computing

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.

Bitcoin Sensitive to Tech Cycle

Bitcoin's weekly chart (Source: TradingView)

The weekly chart above shows that bitcoin tends to do well when tech stocks outperform the broader market.
With the Nasdaq/Dow Jones ratio teasing a rising trendline breakdown or tech underperformance ahead, the path of least resistance for bitcoin appears to be on the lower side.

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In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Crypto Markets Drifting Lower, The Silicon Valley Playbook and the Coming of Web 3

"First Mover" hosts speak to Bloomberg journalist and author of the book "The Contrarian," Max Chafkin, about the Silicon Valley evolution and the coming of Web 3. 3IQ CEO Fred Pye shares markets insights as bitcoin trading lower today, Plus, will metaverse real estate see more growth on blockchains other than Ethereum? Head of Metaverse Growth at Unique Network Irina Karagyaur shares her take.

Fantom DeFi Project Grim Finance Exploited for $30M The hit was one of the largest on the Fantom blockchain.
Ether Drops to $3.8K As Over $12.5M Futures Liquidated The second-largest cryptocurrency by market cap, saw the most futures liquidation during early Asian hours.
Polkadot Parachains Go Live, Capping Yearslong Tech Build for Ambitious Blockchain Project The first five parachains are Acala, Moonbeam, Parallel Finance, Astar and Clover.
MicroStrategy’s Saylor Lays Out Ways Firm Could Generate Yield From Its Massive Bitcoin Holdings The CEO discussed several ways the software company could produce income from the 122,478 bitcoin on its balance sheet.
Reddit Co-Founder Creates $200M Initiative With Polygon for Web 3, Social Media Polygon will provide the infrastructure for the projects that the initiative backs.

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.