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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It's Tuesday! Here’s what you need to know today in crypto: |
- Bitcoin slips below $39K for the first time since Dec. 1.
- FTX's native token FTT rises as much as 11% on Grayscale ETF share dump.
- Donald Trump reiterates CBDC opposition.
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CoinDesk 20 Index: 1,502 −6.5%
Bitcoin (BTC): $38,846 −4.6%
Ether (ETC): $2,212 −6.7%
S&P 500: 4,850.43 +0.2%
Gold: $2,025 +0.3%
Nikkei 225: $2,025 +0.3% |
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Bitcoin slipped below $39,000 during the European morning, its lowest level since the start of December, as institutional sales tied to recently launched ETFs continue to weigh down BTC. CoinDesk 20, a liquid index that tracks the highest tokens by capitalization, fell nearly 6%, indicative of average declines in the broader crypto market. Analysts at crypto exchange Bitfinex said in a Tuesday note that the recent slump in bitcoin prices had wiped out gains for short-term investors – with realized losses increasing, adding to a market drop. “Many holders, especially those who acquired BTC less than a month ago, are now exiting the market at a loss,” the analysts said. “Such a substantial decrease in average profits for short-term holders, who tend to react more acutely to short-term market fluctuations, can be a precursor to selling pressure or exit liquidity.” |
FTT, the native token of bankrupt crypto exchange FTX, bucked the trend of the wider market to rise as much as 11% after CoinDesk reported that FTX’s bankruptcy estate had dumped 22 million shares of Grayscale’s GBTC bitcoin ETF. These were worth nearly $1 billion and accounted for almost half of all GBTC sales since the product went live early this month. FTT tokens have been largely a speculative instrument since FTX's collapse, but plans of an FTX restart or creditor repayments have previously caused brief price spikes. FTT trading volumes jumped to $90 million from Sunday’s $22 million, CoinGecko data shows. Donald Trump reiterated his opposition to central bank digital currencies (CBDCs) at a rally in Laconia, New Hampshire Monday Night, crediting former Republican candidate Vivek Ramaswamy for the policy. “Vivek wanted this: I will never allow the creation of a Central Bank Digital Currency,” Trump said. He had previously called a digital dollar a dangerous threat to freedom…[giving] a federal government absolute control over your money." Digital assets have not been a central issue in the 2024 U.S. presidential race but have kept reappearing in the spotlight as a peripheral topic by Republican candidates. Still, with recent candidate dropouts, its prominence in discussions may further diminish. |
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Looking for the premier Bitcoin ETF? Look for Grayscale Bitcoin Trust ETF (Ticker: GBTC). GBTC is the world’s largest spot bitcoin ETF with $26.6B in AUM as of 1/11/24. It is also the world’s oldest Bitcoin fund, first created in 2013 to give investors secure and familiar access to Bitcoin. GBTC is managed by Grayscale, one of the only asset managers with a decade of experience operating a Bitcoin investment vehicle. Remember, Bitcoin investing begins with GBTC. Find ticker: GBTC in your brokerage account or ask your financial advisor today. Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903 - 2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the Marketing Agent for the Trust. An investment in the Trust involves risks, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. Extreme volatility of trading prices that many digital assets, including Bitcoin, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of GBTC and the shares could lose all or substantially all of their value. |
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Market Insight: Bitcoin Indicator, Which Signaled Late 2023 Rally, Is About to Flash Bearish Signal |
The Guppy Multiple Moving Average indicator is about to flash a red signal, indicating a strengthening of downward momentum on bitcoin's price. The indicator, which flipped bullish in October, kicking off BTC's price surge of 70%, groups several exponential moving averages (EMA) into two categories, short and long-term, to help traders identify trend changes and trade a trending market. A bearish shift in momentum occurs when the short-term band crosses below the longer-term band. Most traders tend to be trend-following, preferring to enter when the crossover appears and hold in the direction of the long-term trend. As well as the most recent rally, the GMMA also predicted the bullish momentum in early 2023 and downturns in December 2021 and April 2020. |
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- The chart shows a seven-day call-put skew for ether since October.
- The metric has dropped to -7%, the lowest in three months, indicating a bias for puts or options allowing buyers to profit from or hedge against price slides.
- Source: Amberdata
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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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Grayscale is the world’s largest crypto asset manager*. We enable investors to access the digital economy through a family of regulated and future-forward investment products. Our decade-long track record and deep expertise as a crypto-specialist means that investors, advisors, and allocators turn to us for both investment insights and innovative products. Crypto investing begins with Grayscale. *By AUM as of 1/16/24. Investing involves risk and possible loss of principal. |
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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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