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 Friday and happy holidays! Here’s what you need to know today in crypto: |
- Bitcoin broke $38,000 briefly for the first time since May 2022.
- Grayscale’s GBTC could see $2.7 billion of outflows if its ETF conversion is approved, said JPMorgan.
- Terra Founder Do Kwon’s extradition has been approved by a court in Montenegro.
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CoinDesk Market Index (CMI): 1,492 +1.4%
Bitcoin (BTC): $37,947 +1.3%
Ether (ETC): $2,105 +2.1%
S&P 500: 4,556.62 +0.4%
Gold: $1,997 +0.3%
Nikkei 225: $1,997 +0.3% |
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Bitcoin briefly touched $38,000 on Friday morning for the first time since May 2022 amid quiet trading in traditional markets on the day after the U.S. Thanksgiving holiday. The cryptocurrency has since retreated slightly, but remains 1.5% up on the day, with some observers predicting it will climb higher in the short term. Trader Michael Van Pope said in a tweet that the next price point for bitcoin is $40,000. “Slowly grinding upwards to a new resistance point and a break above $38K immediately means $40K is next,” he wrote. Ether added almost 2% on the day to trade at around $2,100. |
BTC price chart (TradingView) |
A significant number of Grayscale Bitcoin Trust (GBTC) shares have been bought in the secondary market this year at a deep discount to net asset value in anticipation the trust’s conversion to an exchange-traded fund (ETF) will be approved by the U.S. Securities and Exchange Commission (SEC), JPMorgan said in a research report Thursday. The bank estimates a net $2.5 billion has flowed into GBTC since the start of the year, increasing to $2.7 billion if adding the covering of short interest. “Assuming this buying flow was mostly speculative in anticipation of GBTC being converted to an ETF, then it is likely that this $2.7b would come out of GBTC as these investors take profit once GBTC gets converted,” analysts led by Nikolaos Panigirtzoglou wrote. A court in Podgorica, the capital of Montenegro, approved the extradition of Terra founder Do Kwon to either South Korea or the United States, according to an update posted on the judiciary's website. Kwon was arrested in March after being caught in Podgorica's airport with falsified documents. The final decision on the extradition will be made by the Montenegrin justice minister after Kwon serves a four-month prison sentence for document forgery, it said. Following his arrest in Montenegro, Kwon faces multiple counts of fraud charged by U.S. federal prosecutors, in addition to existing civil charges in the U.S. and an investigation in South Korea related to last year's terraUSD collapse. |
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Market Insight: FLIP Token More Than Doubles on First Day of Trading |
FLIP, the native token of cross-chain swap platform ChainFlip, more than doubled on its first day of trading. The token, listed on several exchanges including Bybit, Crypto.com, Kucoin and Gate.io, added more than 150% to as high as $5.94. Trading volume hit $79 million across all venues since its release, according to CoinMarketCap. ChainFlip was developed using the Rust coding language and is based on Uniswap's V3 design on the Ethereum blockchain. It describes itself as a “JIT (Just In Time ) automated market maker,” which aims to improve efficiency when trading and reduce slippage. Slippage – the difference between the price a trader expects to pay and the price they actually pay – can occur if there is a lack of liquidity when large orders are executed. |
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- The chart shows the share of the U.S. dollar, Euro and Chinese yuan in SWIFT transactions since 2010.
- The greenback remains the most used currency in financial transactions even as popular narrative suggests de-dollarization has gathered pace.
- De-euroization has gathered pace, with the single currency's share falling to the lowest in over 13 years.
- Source: Deutsche Bank Research
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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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