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Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. In today's newsletter: |
- Price Point: Bitcoin and ether were both down Wednesday on the heels of a report that showed inflation in the U.K. hit a 40-year high.
- Market Moves: Bitcoin's futures prices on the Chicago Mercantile Exchange are in a period of prolonged backwardation for the first time since 2019, an indication of traders' bearish mood.
- In the News: Bankrupt crypto lender Voyager Digital has reached a settlement with two of its executives over loans the executives made to the now-defunct crypto hedge fund Three Arrows Capital.
- Chart of the Day: Crypto exchange Coinbase registered its largest one-day outflow of bitcoin since June on Tuesday.
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Bitcoin (BTC) lost ground on Wednesday, trading down 2%, as U.S. stock futures inched up ahead of earnings reports from major companies. The British pound fell after the release of a new report that showed U.K. inflation in September rising faster than economists expected and hitting a new 40-year high. Ether (ETH), the second-largest cryptocurrency by market value, was also down on the day by around 1.6%. Altcoins such as Aave’s AAVE and Uniswap’s UNI each rose about 5% while the rest of the market was weaker. After launching on mainnet on Monday, Aptos’ cryptocurrency has plunged in value. The hotly anticipated layer 1 token was listed in the $9 range and is trading down 40% on the day, according to data from CoinGecko. |
Voyager Digital Settles With 2 Execs on Three Arrows Capital Loans |
Voyager CEO Steve Ehrlich at Consensus 2019 in New York (CoinDesk) Bankrupt crypto lender Voyager Digital is planning to settle with two top executives over their handling of loans made to crypto hedge fund Three Arrows Capital following an internal probe, according to court filings submitted on Monday.An internal probe found that risky loans made to Three Arrows were based on minimal financial disclosures from the hedge fund. |
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Bitcoin Futures ‘Backwardation’ Could Signal Bullish Mood |
CME bitcoin futures (Laevitas, via Luno) |
Bitcoin futures listed on the Chicago Mercantile Exchange slipped into prolonged backwardation during September, according to a weekly report from crypto platform Luno. Backwardation is an unusual condition in futures markets when contracts for maturity or delivery many months in the future are trading at lower prices than near-term contracts. This hasn't happened since May 2019, according to Luno. “A steeper futures curve (i.e. a high next-month premium over front-month expiry) indicates bullish sentiment,” the report stated. “A flat futures curve or a downward trending curve implies the opposite – longs require compensation for the risk of exposure in further dated and less liquid BTC contracts.” Laurent Kssis, a crypto trading adviser at CEC Capital, said the constant selling isn’t helping change this pattern in the near future. “As impetus for a rally and any further good news in crypto unlikely before next year, the best strategy is calendar spreads i.e. selling puts and buying calls,” he said. |
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Biggest Gainers Biggest Losers |
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 Market Index is a broad-market index of digital assets, weighted by market capitalization. A full description of the methodology is here. |
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Coinbase Registers Biggest Daily BTC Outflow Since June |
More than 37,000 BTC worth $710 million left Coinbase on Tuesday, the biggest single-day outflow since June 17. (Source: Glassnode) |
- A pickup in exchange outflows is often taken to represent renewed accumulation.
- In the past, Coinbase has brokered institutional bitcoin investments.
- That said, on-chain data has its limitations and drawing definite conclusions is difficult. The bitcoin net exchange flows metric doesn't adjust for internal reshuffling of coins into new wallets by an exchange.
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Check out the CoinDesk TV show “First Mover,” hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9 a.m. U.S. Eastern time. |
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- Laura Shin, author of "The Cryptopians" and host of the "Unchained" podcast
- Jenny Johnson, CEO, Franklin Templeton
- Andy Kangpan, principal, Two Sigma Ventures
- Lauren Stephanian, partner, Pantera Capital
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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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