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. In today’s newsletter: - Price Point: Bitcoin trades down slightly on the day but outperforms traditional markets over the month of July (see more on this in Omkar Godbole's Chart of The Day). Also: FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital.
- Market Moves: Digital asset investment funds saw inflows totalling $30 million last week, suggesting investor confidence is slowly growing.
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Bitcoin (BTC) was trading down slightly on Monday (3%) as stock futures edge upwards ahead of the U.S. Federal Reserve’s monetary-policy meeting this week and earnings reports. On Wednesday the Fed is expected to deliver another 0.75% point interest-rate increase as it attempts to cool rising inflation. BTC is still trading up 3% on the month, around $22,000. Ether (ETH), is down 5% over the last 24 hours, trading at $1,540. “Clearly ETH has outperformed due to EthCC in Paris last week, but I wonder if it has now run out of steam since we tested $1,600,” said Laurent Ksiss, head of Europe at Hashdex. “A bearish stance is not to be dismissed for the next two weeks as the crypto market is still not out of the woods, but last week's rally has offered optimism to many retail investors,” he added. The rest of the crypto market was trading in the red on Monday, with Cosmos’s ATOM down 8%, AVAX down 7% and Cardano’s ADA down 6%. In other news, crypto trading platform FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital. The joint proposal comes two weeks after Voyager filed for Chapter 11 bankruptcy. Lawyers representing Voyager Digital responded to the proposal by FTX calling it a "low-ball bid dressed up as a white knight rescue" that only benefits FTX. Over to the United Kingdom, U.K. bank Barclays ($BARC) is among the investors in cryptocurrency custody firm Copper's $2 billion funding round, according to a report by Sky News. Additionally, CoinDesk’s chief insights columnist, David Z. Morris, wrote an interesting piece over the weekend on Elon Musk’s influence over the crypto market and whether markets are still fazed by Tesla’s moves. |
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Crypto funds saw inflows totalling $30 million last week, according to a report from CoinShares. The prior week saw inflows corrected from $12 million to $343 million, marking the largest single week of inflows since November 2021 when BTC and ETH hit record all-time highs. |
BTC saw inflows totalling $19 million last week and ETH witnessed inflows totalling $8 million. The prior week, Ethereum saw inflows totalling $120 million. “These inflows imply a turning point in sentiment after a recent 11-week run of outflows,” said James Butterfill, head of research at CoinShares in the report. “it also suggests that as The Merge progresses to completion, investor confidence is slowly recovering,” said Butterfill. The Ethereum network’s Merge is set to take place in September. This brings month-to-date digital-asset fund inflows to $294 million. |
Chart of The Day by Omkar Godbole: Crypto Shines Despite Dollar Strength |
- Bitcoin and ether have outperformed traditional markets by a big margin this month.
- The top cryptocurrencies have chalked up double-digit gains despite the dollar strength, deviating from its record of moving in the opposite direction of the greenback. The dollar index or DXY, which gauges the greenback's strength against major fiat currencies, was up 2.5% for the month at press time. Still, it may be too early to say bitcoin has decoupled from the dollar. The 90-day correlation coefficient between the two stood at -0.65 at press time, indicating a negative or inverse relationship.
- The dollar may reassert its dominance if the Federal Reserve downplays the "inflation has peaked" narrative later this week, forcing markets to reprice continued aggressive monetary tightening for the rest of the year.
- "Things have to get far more critical before that [Fed pivot] event occurs. This allows room for dollar dominance," Francis Hunt, founder and director at The Market Sniper, said during an interview with Real Vision.
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Ether-Bitcoin Rally Stalls at Trendline From December Peak |
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- The ether-bitcoin (ETH/BTC) ratio is struggling to penetrate a valid resistance line drawn from December and May peaks.
- A break higher may allow smooth sailing toward the May 11 high of 0.076. The daily chart indicators, notably the RSI and the EMA ribbon, have flipped bullish.
- Ether picked up a strong bid early this month after Ethereum developers announced Sept, 19 as the tentative date for the completion of the supposedly-bullish and long-awaited transition from the proof-of-work to proof-of-stake consensus mechanism.
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With nearly a decade-long track record of being the world’s largest digital currency asset manager, Grayscale is an industry leader for secure and regulated exposure to crypto. Grayscale Digital Large Cap Fund (Symbol: GDLC) is designed to capture the market capitalization weighted performance of some of the largest and most liquid digital assets. As with all of Grayscale’s publicly-traded funds, investors can access the fund directly through brokerage or retirement accounts they already have - the same way they would for other asset classes like stocks and bonds. Simply type GDLC into an investment account, such as in Fidelity or Robinhood, to get started today. Learn more about Grayscale’s publicly-traded products here. Investing involves risks and the possible loss of principal. |
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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 There are no gainers in CoinDesk 20 today. 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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Join us for Converge22, Circle’s first annual crypto ecosystem conference, taking place September 27th-30th in San Francisco! Featuring wide-ranging demos and developer workshops, plus high-powered guest speakers including Aave’s Stani Kulechov, Compound’s Robert Leshner, Mary-Catherine Lader of Uniswap Labs, Anatoly Yakovenko of Solana, and dozens more. Register with code “Coindesk” for a discounted rate! Register today |
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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. - Eric Chen, co-founder, Injective Protocol
- Simon Yu (sports week guest), CEO, StormX
- Andrey Doronichev, CEO, Optic
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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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