The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto: |
- Bitcoin regained $40K as the crypto market ticked back up.
- Nexo files an arbitration claim against the Republic of Bulgaria.
- Donald Trump-labeled crypto wallet holds over $1 million in TRUMP meme token.
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CoinDesk 20 Index: 1,563 +4.0%
Bitcoin (BTC): $40,188 +3.3%
Ether (ETC): $2,242 +0.9%
S&P 500: 4,864.60 +0.3%
Gold: $2,035 +0.8%
Nikkei 225: $2,035 +0.8% |
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The crypto market ticked tentatively upward this morning with bitcoin moving back above $40,000. Bitcoin settled back above the $40,000 mark having climbed as high as $40,166 during the Asian morning. BTC had sunk below the $39,000 mark on Tuesday, down almost 20% on its peak following the listing of the first spot bitcoin ETFs in the U.S. two weeks ago. Solana's SOL and Avalanche's AVAX led the broader market higher, gaining around 8.5% and 11.5% respectively. The CoinDesk 20 Index, a liquid index that tracks the highest tokens by capitalization, is up around 3% in the last 24 hours. |
Cryptocurrency lender Nexo has filed an arbitration claim against the Republic of Bulgaria, seeking $3 billion in damages, accusing the country of “wrongful and politically motivated actions...involving unjustified and oppressive criminal investigations." Nexo claims that the investigations damaged its brand and reputation and led it to lose certain business opportunities, such as a potential initial IPO in the U.S. The Bulgarian Prosecutor’s Office closed its investigation into Nexo for alleged money laundering offenses in December because there was no evidence of criminal activity. A Donald Trump-labeled crypto wallet holds over $1 million of a TRUMP meme coin, having been worth only $7,100 on receipt. Issuance of the token has nothing to do with Trump directly, but some are using the tokens as a speculative bet on his ongoing presidential campaign. The tokens have a market capitalization of over $85 million on Wednesday, data shows. Sending tokens to a popular entity’s wallet is sometimes used as a strategy for attracting eyeballs by meme coin makers. The value of Trump’s wallet has shot up to $2.5 million, holding over $750,000 each in ether and wrapped ether and tiny amounts of several other tokens, most of which were likely sent to the wallet unsolicited. |
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Market Insight: Crypto Whales Hunt for Bargains |
Crypto whales appear to be snapping up bitcoin amid its 19% price slide since spot ETFs began trading in the U.S. two weeks ago. Data from TradingView shows that over the weekend, bitcoin traded at a premium of $100 on Bitfinex compared to the global average price. At the time of writing, the premium was near $70, notably higher than other exchanges, including Coinbase and Binance. Bitfinex whales are notorious for making waves in the market. “Someone on Bitfinex has been nonstop TWAP buying $BTC for 3 days straight now, which is why Bitfinex has been trading at a fat premium. About $50m spot accumulated so far is my estimate,” market analyst and trader Byzantine General said Sunday. TWAP, or trade-weighted average price, is an algorithmic strategy used for splitting up large orders over time, helping traders minimize slippage when buying or selling large orders. |
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- The notional open interest, or the dollar value locked in the number of active bitcoin futures contracts on the Chicago Mercantile Exchange, has dropped by nearly $1.5 billion since the launch of spot ETFs in the U.S.
- According to Reflexivity Research, the decline represents the unwinding of longs betting on ETF approvals and entities using BITO/CME futures as a liquidity bridging vehicle leading into the ETF launches.
- Authorized participants likely bought bitcoin before the launch while simultaneously selling CME futures or BITO to hedge their risks.
- Source: Velo Data
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- Omkar Godbole We may earn a commission from partner links. Commissions do not affect our journalists’ opinions or evaluations. For more, see our Ethics Policy. |
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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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