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 Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. - Price Point: Bitcoin lost ground on Wednesday, after gaining on Tuesday. Traditional markets were reacting to the Bank of England’s surprise plan to buy bonds.
- Market Moves: Bitcoin has outperformed traditional markets in recent days for several reasons, including the absence of large sellers.
- Chart of the Day: The options markets point to signs of a deeper sell-off in bitcoin.
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After breaking above $20,000 on Tuesday, bitcoin (BTC) has lost ground again and is trading at around $18,500. Still, the world’s largest cryptocurrency is up over the past seven days. Analysts aren’t citing any true catalyst for the decline yet. In traditional markets, U.S. stock futures and European indexes are dropping, indicating another painful day. This follows the S&P 500’s hitting a two-year low on Tuesday. On Wednesday, the Bank of England said it will buy bonds to stop the spread of a financial crisis. This move caused an immediate reaction for bond prices in the U.K. The pound rallied, but remained slightly lower against the dollar on the day. The rest of the crypto market was mostly trading in the red, erasing Tuesday’s gains. Cosmos’ ATOM was down 10%, Algorand fell 7%, and the token for the Near protocol dropped 6%. In the news, cryptocurrency lender Nexo acquired a minority stake in Summit National Bank, a financial institution regulated by the Office of the Comptroller of the Currency. Celsius Network’s native token CEL rocketed upward late Tuesday amid reports that Sam Bankman-Fried, CEO of crypto exchange FTX, could bid on the bankrupt crypto lender’s assets, CoinDesk’s Danny Nelson reported. It was also announced that the Bahamas-based crypto exchange is moving its U.S. headquarters to Miami, only four months after cutting the ribbon on its headquarters in Chicago. Decentralized-finance protocol Ribbon Finance, known for its on-chain structured products, said at the Token 2049 conference in Singapore that it is launching an options exchange to boost demand for its services among savvy crypto traders. |
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Bitcoin Steady Under $20K in Face of Traditional-Market Turmoil, Here's Why |
Bitcoin has outperformed almost every traditional asset in recent days. Observers said the cryptocurrency has stayed resilient to renewed turmoil in traditional markets due to several factors, including the absence of large sellers, continued holding by long-term investors and quarterly options expiry. Since the Federal Reserve raised U.S. borrowing costs by 75 basis points a week ago, the dollar index has rallied 4% while the S&P 500 has dropped by 6.4% and the British pound has crashed to an all-time low against the greenback. Bitcoin, however, has remained locked between $18,000 and $20,000. "I think what we're seeing is more a lack of large sellers, rather than a plethora of large buyers," Mike Alfred, a value investor and founder of digital assets investment platform Eaglebrook Advisors, said. "There are no large sellers left. Forced selling has already occurred." Read the full story here. |
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From crypto autodidacts to student blockchain clubs and even university PhD programs, we're witnessing a sea change as the emerging technology of blockchain becomes more popular and the masses seek to understand, program, operate and use it. Follow us all week as we track the changing education opportunities in blockchain, crypto and Web3. 'Decentralization Under Centralization': How Chinese Universities Teach Blockchain President Xi wants China to be the world’s leader in blockchain technology but has banned its most popular uses. Students and faculty wonder whether universities can successfully teach blockchain with Chinese characteristics, and if graduates can find jobs. Is Peter Thiel’s Pro-Dropout Fellowship Mostly an Advertisement for Himself? The $100,000 Thiel Fellowships garner big headlines for successes like Figma and Ethereum. But a deeper look shows a program that’s more about hype than reform. |
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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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Options Skew Shows Fears of Deeper Bitcoin Sell-Off Persist |
Chart showing a continued bias for puts or options offering protection against price slide. |
- Bitcoin's six-month put-call skew continues to climb, indicating persistent demand for downside protection, even as the cryptocurrency remains resilient in the face of traditional market turmoil.
- The put-call skew measures the richness of puts relative to calls.
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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. - Sylvia Jablonski, CEO, Defiance ETFs
- Tira Grey, managing director, CoinDesk Events
- Alex Dwek, chief operating officer, Nas Company
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The Investing in Digital Enterprises and Assets Summit reveals the most scalable and fastest-growing market opportunities in blockchain, digital assets, Web3 and the metaverse for traditional asset managers and institutional investors. Learn directly from the founders and developers pioneering breakthrough innovations that will drive large-scale adoption. Use code FM_20 for 20% off the General Pass. Register now. |
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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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