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. In today’s newsletter: - Price Point: The action was in dogecoin (DOGE) Wednesday as bitcoin slid in sync with traditional markets. Celsius offers a financial update in U.S. bankruptcy proceedings, as the cash-flow situation looks increasingly bleak.
- Market Moves: Is there a flippening happening? Ether still has a ways to go before its market capitalization tops bitcoin’s, but lately the numbers have been moving in that direction.
- Chart of The Day: Bitcoin under pressure as U.S. bond yield ends a two-month downtrend.
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Both bitcoin (BTC) and ether (ETH) were trading down on Wednesday, as U.S. stock-index futures fell. |
BTC and ETH returns. (TradingView) |
U.K. inflation topped 10% last month to its highest in 40 years, underlying a gloomy outlook for Europe. Rising energy costs are likely to push European inflation rates higher even as U.S. inflation shows signs of slowing. Altcoins showing strength included Tezos (XTZ), which was up 6% over the last 24 hours and tokenized sports exchange Chilliz was up 4.2% Unus Sed Leo (LEO), Bitfinex’s exchange token, was also up around 4%. In the latest update from Celsius Network, the bankrupt cryptocurrency lender said it has gotten several proposals to inject cash into the company and won approval from a U.S. judge to sell bitcoin that it mines. Dogecoin has jumped in price as dogechain gains traction among crypto retail traders. Data from on-chain trackers shows some $4.6 million in value is now locked on Dogechain-based products since its launch earlier this week. CoinDesk’s Nikhilesh De reported on a U.S. Sen. Pat Toomey's tip that the Federal Deposit Insurance Corp. might be improperly pushing banks to avoid serving crypto companies. IPOR Labs AG launched a protocol to bring transparency and stability to the volatile DeFi credit market yesterday. Traders will be able to hedge, arbitrage and take directional positions on the interest rate movements to manage risk across their credit portfolios on the Ethereum blockchain. And CoinDesk’s Andres Engler wrote a great piece on thousands of locals in Argentina turning up to a convention center in Buenos Aires for the start of ETHLatam, even as the country faces its latest financial crisis. Read it here. |
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Ethereum Continues to Steal Market Share |
As the Merge is approaching, Ethereum’s share of the total crypto market cap has surpassed 20% for the first time since May after several weeks of outperforming BTC, according to data from Arcane Research. Ether keeps outperforming the rest of the crypto market as traders appear bullish on the network’s upcoming transition to proof-of-stake. The cryptocurrency is trading up 20% on the month. A report from FSInsight said that ether has a good chance of exceeding bitcoin in market cap over the next 12 months because the Ethereum blockchain’s switch to a proof-of-stake (PoS) mechanism will reduce both the production of the tokens and selling pressure from miners. Ethereum’s market share has increased from a bottom of 14.3% in mid-June to 20.1%. Bitcoin’s market share went from 47.5% to 40.1% during the same period, suggesting traders are favoring ether over bitcoin currently. The small cap index is the best performer with an 8% increase, whilst large and mid caps increased 6% and bitcoin saw the lowest gains at 3%. Arcane Research notes that Ethereum is also stealing market share from other smart contract platforms in terms of total value locked (TVL) on DeFi applications. Currently 59% of TVL in DeFi is on Ethereum. |
Chart of The Day by Omkar Godbole: Bitcoin Under Pressure as US Bond Yield Ends Two-Month Downtrend |
- The yield on the U.S. 10-year note jumped to 2.9%, ending the two-month downtrend.
- The breakout suggests the crypto market may be wrong in predicting that inflation has peaked and the Fed would slow rate hikes.
- Analysts at ING foresee renewed tightening of financial conditions – uptick in the dollar index and bond yields – in the coming weeks.
- The Fed may use minutes of the July meeting, scheduled for release later Wednesday, to push back against hopes of a 2023 easing cycle.
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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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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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