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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: BTC is down 5% on the day and one trader predicts the world's largest cryptocurrency could hit lows of $15,000 in August due to a worsening macro environment.
- Market Moves: Stablecoin Tether has found stability for the first time in over two months. One trader said while tether has passed the market's stress test with a return to normalcy - concerns about its reserves will linger.
- Chart of The Day: Ether's options market has turned cautious.
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Bitcoin (BTC) was trading down 5% on Tuesday morning as global markets dropped. U.S. stock futures slipped while investors analyzed recent earning reports and awaited results from technology companies. Microsoft and Google will post quarterly earnings after the U.S. market close on Tuesday. Amazon and Apple will update theirs on Thursday. The Federal Reserve is also set to announce another interest rate hike on Wednesday. Crypto Finance AG’s Head of Trading Mike Schwitalla said in a note Tuesday morning that the Fed’s decision will be more of a non-event. “Due to the good forward guidance of the Fed in recent weeks, I think the market is adequately positioned, and it will be more of a non-event,” said Schwitalla. BTC might see levels as low as $15,000 in August due to the worsening macro environment, Schwitalla said. “We can see the medium-term downtrend, which has been in place since April.” |
The horizontal lines in the chart are supports and resistances. (TradingView via Crypto AG) “The big question now is whether or not the market can break through this trendline. In case of a breakout, prices of $29,000 are possible in the short-term,” said Schwitalla. Ether (ETH), the second largest cryptocurrency by market value, was down 8.8% at around $1,400. All other altcoins were trading in the red on Thursday, with NEAR Protocol taking the largest hit, down 11.5%. In other news, the U.S. Securities and Exchange Commission (SEC) is reportedly probing crypto exchange Coinbase, a publicly-traded company it oversees, on suspicion it allowed U.S. persons to trade unregistered securities. Meanwhile, some U.S. senators are trying to free Americans from tracking taxes every time cryptocurrencies change hands, introducing a bill that would exempt them from reporting any trade in which they earn less than $50. Hong Kong-based crypto exchange OSL Digital Securities is set to distribute security tokens to professional investors in a private security token offering (STO). The Ethereum-developed tokens distributed represented a US$10,000 worth of a coupon-rate USD bond linked to the performance of bitcoin. Also, Binance’s CEO Changpeng Zhao has sued Bloomberg Businessweek’s publisher Modern Media on defamation claims over a translated Chinese language article title that portrayed the crypto exchange chief as running a “ponzi scheme." |
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By Omkar Godbole Tether (USDT), a stablecoin meant to be worth a dollar, has found stability for the first time in over two months. The world's largest stablecoin by market value regained its dollar peg on July 20 and has remained steady since then, the first such instance since the collapse of Terra's algorithmic stablecoin TerraUSD or UST (now TerraClassicUSD) in the second week of May. Terra's UST, the-then third largest stablecoin in the world, tanked on May 12, spurring panic selling in other dollar-pegged cryptocurrencies. Tether's peg broke and fell as low as $0.92 on some exchanges following UST's crash and averaged about $0.99 in June. Tether's market capitalization has declined by $16 billion to $65 billion in two months, a sign of large redemptions by holders. This means that the company behind USDT, Tether Ltd, honored billions of dollars worth of redemptions following UST's meltdown. Tether Ltd has long been criticized for the lack of transparency about the nature of assets backing the stablecoin. In other words, tether has passed the market's stress test, withstanding redemptions in volatile conditions and eventually reclaiming the peg. "The past two months have definitely been a stress test for stablecoins following the collapse of UST and sharp contraction in USDT's market cap," Clara Medalie, research director at Kaiko, said. "Tether proved it's ability to process billions in redemptions, despite lingering questions over the makeup of its reserves." It remains to be seen if tether's recent resilience bolsters investor confidence in the stablecoin, and trader and analyst Alex Kruger is still skeptical about the stablecoin's resilience. Tether is heavily used in the bitcoin (BTC) market and decentralized finance (DeFi). Read the full story here: Tether Finds Stable Dollar Peg After Terra's Collapse |
Chart of The Day by Omkar Godbole: |
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- Ether's options market has turned cautious ahead of expected Federal Reserve rate increase on Wednesday.
- The put-call skews have turned positive, indicating renewed demand for puts or options offering protection against price drops.
- Traders appear worried that macroeconomic factors may overpower the merge optimism, yielding a fresh decline in ether.
- The put-call skews fell below zero last week, indicating a bullish bias as updated deadline for the ETH Merge saw investors pile into call options.
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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. - Paul Eisma, head of trading, XBTO Group
- David Gan, founder and general partner, OP Crypto
- Tom Dunleavy, senior cryptocurrency research analyst, Messari
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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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