The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk markets reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Monday! Here’s what you need to know today in crypto: |
- Bitcoin has broken through $42,000.
- Grayscale is setting up for the bitcoin ETF race by hiring an industry veteran from investment-management firm Invesco.
- U.K. lawmakers urge for lower digital pound holding limits.
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CoinDesk Market Index (CMI): 1,601 +3.5%
Bitcoin (BTC): $41,610 +5.4%
Ether (ETC): $2,233 +3.5%
S&P 500: 4,594.63 +0.6%
Gold: $2,087 +0.8%
Nikkei 225: $2,087 +0.8% |
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The price of bitcoin (BTC) climbed above $42,000 – a level not seen since before the crash of Terra – for the first time since April 2022 while ether (ETH) moved past $2,200. Bitcoin’s price had been toying with the $40,000 level in recent days, and finally breached it Monday to trade above $41,600 as of press time, according to CoinDesk Indices data, a 24-hour rise of about 6%. Ether was trading around $2,240, a similar percentage gain. The advance spurred crypto stocks higher, too. Crypto exchange Coinbase (COIN) jumped almost 9% in pre-market trading, as did Microstrategy (MSTR). Crypto miners such as Marathon Digital (MARA) and Riot (RIOT) added more than 10%. The other top 10 cryptocurrencies by market capitalization marked smaller gains, and BNB coin (BNB), a token affiliated with the Binance exchange, was little changed. |
BTC Price Chart (CoinDesk) |
Crypto asset manager Grayscale has hired Invesco's former Head of Americas, John Hoffman, to lead its distribution and partnerships team, six weeks before a decision is set to come out on whether the company will be allowed to launch a spot bitcoin (BTC) exchange-traded-fund (ETF). Hoffman – an ETF veteran – spent over 17 years at investment manager Invesco, first as the director of ETF institutional sales and capital markets at Invesco PowerShares Capital Management, before moving into an adviser role and most recently, leading the Americas, ETF and indexed strategies team. Lawmakers in the U.K. are asking the government to consider lowering holding limits for a potential digital pound and make sure its design won’t block the possibility of paying interest. Both the U.K. and its 27-nation neighbor, the European Union, have said in proposals that retail digital currencies should not be allowed to earn interest as bank deposits do. In a report published Saturday, U.K. legislators in the Treasury Committee of the House of Commons – the lower chamber of Parliament – expressed their concerns about the U.K.’s plans for a central bank digital currency (CBDC) in a February consultation. The government has said a digital pound was “likely needed” in the future. |
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Market Insight: Institutional Traders Split Between Bitcoin, Ether |
Institutional traders are bullish on bitcoin, mixed on ether and skeptical of altcoins, a new report from Bybit Research shows. During the first three quarters of 2023, institutional traders nearly doubled their holdings of bitcoin (BTC). As of September, half their assets were denominated in the largest cryptocurrency, driven by positive market sentiment and anticipation of the Securities and Exchange Commission (SEC) approving a spot BTC exchange-traded fund (ETF) in the U.S. Their stance contrasts with the lower BTC holdings of retail traders, possibly due to their higher leverage levels, Bybit's research shows. Institutional traders and whales, or large holders of bitcoin, were skeptical about altcoins, the report says, with the data showing a general decline in altcoin holdings among traders despite a brief rise in May. A notable decrease started in August, particularly among institutions, reflecting a cautious stance towards these more volatile assets. |
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- The chart shows the number of entities controlling addresses owning at least 1,000 BTC and bitcoin's price since May 2022.
- The number of so-called whale entities has increased to 1,509, the highest since September 2022, validating bitcoin's bullish price action.
- The metric is closely tracked for potential divergences as trend reversal indicators.
- Source: Glassnode
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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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