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. This newsletter was produced by Bradley Keoun. Please let us know what you think of First Mover by replying to this email. |
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Bitcoin (BTC) traded above the $21,500 threshold for the first time in a week. The world’s largest cryptocurrency by market capitalization was up 45% on the day after dipping to lows of $19,300 earlier on in the week. U.S. stock futures slid and European equities were lower as the news broke that Japan’s former longest serving prime minister known for his "Abenomics" policy, was shot while making a campaign speech in Nara. Ether (ETH) was up 2.5% at around $1,211. ETH started the week off at lows of $1,000 and has since climbed. |
7-day ETH price chart. (CoinDesk) |
The correlation between cryptocurrencies and risk-on assets continues to strengthen as the global macro environment appears to be the driver behind price action. Looking forward for the cryptomarket, Fabio Ackeret, sales trader at Crypto Finance AG, said he sees no breakout ahead anytime soon. “To see crypto breaking out on the upside, the dust of all recent events needs to settle (UST, Celsius, 3AC),” said Ackeret in a note on Friday. |
BTC/S&P500 Index Correlation. (TradingView) |
Laurent Kssis, head of Europe at Hashdex, said the recent price uptick for BTC and ETH is to a large extent down to short liquidations being washed out, triggering buy orders. According to data from Coinglass, short liquidations totalled at $91.8 million over the last 24-hours. |
Also an interesting outcome of bitcoin’s recent price recovery, was that crypto miners’ share prices were up 9.6% between Wednesday and Thursday, according to data from CoinDesk. In other news, crypto lender Celsuis deposited $500 million in wrapped bitcoin (WBTC), a bitcoin derivative product of the Ethereum blockchain, to crypto exchange FTX just hours after Celsius repaid its debt to the decentralized lending protocol Maker and reclaimed $450 million of collateral in WBTC. In Spain, ‘Moon Tech Spain,’ Binance's Spanish subsidiary, has been granted registration as a virtual asset services provider (VASP) by the country's central bank. Over in Latin America, Bitso, announced on Thursday it has launched a cryptocurrency remittance service in Colombia. The service – which will allow individuals and businesses to send and receive digital dollars – is the first crypto remittance product in Colombia to date, according to Bitso. Remittances totaling $8.56 billion were sent to Colombia from abroad in 2021, an all-time record, El Tiempo newspaper reported. Compass Mining has let go of 15% of its employees, and has cut executive compensation to ride out the crypto downturn. The bitcoin mining company said it's reassessing its priorities after growing too quickly. |
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Market Moves By Omkar Godble
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Bitcoin 'Bear Cross' Raises Outlook for Bull Revival Yes, you read the title right. An impending bearish crossover, a technical pattern theoretically suggesting continued weakness in the bitcoin (BTC) price, could be a trap for sellers and portend a bullish revival. A three-day-candlestick chart shows the simple moving average (SMA) of the past 100 candlesticks is on the verge of crossing below the 200-candle SMA, confirming the first bearish crossover of the two averages since December 2018. Historically, the crossover has marked an end of bear markets and paved the way for notable bull runs. The averages crossed bearishly in December 2018, trapping sellers on the wrong side of the market. Bitcoin bottomed near $3,200 and spent the following three months building a base for a rally. The cryptocurrency hit a high of $13,800 by the end of June 2019. The bear cross of February 2015 coincided with peak selling, and bitcoin began a multiyear bull run seven months later. The first bear cross, dated June 2012, also trapped sellers on the wrong side of the market. Crossovers between longer duration moving averages are known to be contrary indicators because they are based on past data and tend to lag prices. The market is often battered, oversold and overdue for a reversal higher by the time the crossover is confirmed. Past performance is not a guarantee of future results. That said, history could repeat itself because the Fed's hawkishness, or anti-stimulus stance, appears to have peaked and traders are now pricing interest rate cuts for 2023. Read the full story here: Bitcoin 'Bear Cross' Raises Outlook for Bull Revival |
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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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Check out the CoinDesk TV show “First Mover,” hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. - Marc Chandler, managing director and chief market strategist, Bannockburn Global Forex
- Ruchir Sharma, chairman, Rockefeller International
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Where innovators, changemakers, investors and leaders present their best ideas for investing in the future of the Web 3, digital assets, blockchain and crypto ecosystems. 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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