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 tumbles to $23K as fears mount of fresh systemic risks, with financial markets still under threat from the Federal Reserve's campaign to stamp out inflation. Market Moves: The crypto lender Celsius jolted traders with the news that it was pausing withdrawals due to "extreme market conditions."
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) suffered one of its worst price declines of the year, tumbling alongside ether (ETH) and other cryptocurrencies as a fresh wave of panic struck traders just one month after the Terra blockchain's meltdown. As of press time bitcoin was down 11% to about $23,900, extending a losing streak that has now stretched to seven straight days. Ether, the native token of the Ethereum blockchain, plunged 16% to $1,232. The overall market capitalization of cryptocurrencies fell below $1 trillion for the first time since January 2021. The latest sell-off came as fears emerged of a new potential systemic threat to digital-asset markets, after the crypto lending service Celsius announced in a blog post that it was pausing withdrawals amid "extreme market conditions." The price of Celsius's CEL token fell over 50% after the news came out. Analysts also cited growing concern that the Federal Reserve may have to step up its campaign to tighten monetary conditions after a report Friday showed the U.S. inflation rate unexpectedly accelerating to a new four-decade high. Cryptocurrencies, like stocks, have come under harsh downward price pressure this year from the central bank's push to withdraw excess liquidity from financial markets. In traditional finance, U.S. stock futures were down, pointing to a dismal start to the week as signals appeared in the bond market that recession risk is rising. Read More: Bitcoin Plunges Below $25K, Lowest Level Since December 2020 |
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Nexo Proposes Celsius Buyout as Rival Lending Platform Halts Withdrawals - by Oliver Knight and Nikhilesh De |
Cryptocurrency lending platform Nexo expressed interest in buying certain assets from rival Celsius after the lending platform said it was freezing withdrawals and transfers because of extreme market conditions. In a letter to Celsius on Monday, Nexo said it was particularly interested in Celsius’ collateralized loan portfolio. Nexo publicized the letter, which didn't mention a price, in a tweet. Zug, Switzerland-based Nexo said it was looking to acquire assets “mostly or fully of collateralized loan receivables secured by corresponding collateral assets, as well as brand assets and the customer database." Celsius wrote earlier in a blog post that "We are working with a singular focus: to protect and preserve assets to meet our obligations to customers.” “Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible," Celsius wrote. "There is a lot of work ahead as we consider various options. This process will take time, and there may be delays." Link to full story: Nexo Proposes Celsius Buyout as Rival Halts Withdrawals |
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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 - you have until the end of June to submit your thoughts. 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 There are no gainers in CoinDesk 20 today. 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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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. |
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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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