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 Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off.) Price point: Bitcoin heads for longest daily losing streak since mid-2016, and $1 billion of trading positions get liquidated ("rekt" in crypto-speak). Market Moves: The Fed starts its two-day closed-door meeting, and Wall Street analysts are growing increasingly negative; Bybit releases its "first-ever Bear Market Guide for traders." This newsletter was produced by Parikshit Mishra. Let us know what you think of First Mover by replying to this email. |
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Bitcoin (BTC) slid for an eighth straight day, its longest losing streak since January 2016, as U.S. stocks joined cryptocurrencies in a bear market. Some $1 billion of cryptocurrency futures contracts and derivatives were liquidated due to margin calls over just 24 hours. The big U.S. cryptocurrency exchange Coinbase disclosed plans to lay off some 1,100 employees, or roughly 18% of its workforce, as part of a cost-cutting plan. Analysts for the Wall Street firm JPMorgan cut Coinbase's stock rating to neutral, and the shares slumped. "This is very bad, especially for those holding their coins there, but also for the industry as a whole," wrote Mati Greenspan, founder of the cryptocurrency and foreign-exchange analysis firm Quantum Economics, wrote Monday in a newsletter. "There isn't much optimism right now. It's been a very brutal bear market." European shares traded lower on Tuesday, but U.S. stock futures appeared to be bouncing prior to the open of trading in New York. Gold was down 0.5% to $1,823 an ounce; crude oil rose 1% to $122 a barrel. The 10-year U.S. Treasury bond yield was down 0.06 percentage point to 3.31%. Read More: Morgan Stanley Says Ether Underperformance Echoes Crypto Downturn of 2018 |
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The Federal Reserve's campaign to tighten monetary conditions – to help contain inflation running at its fastest in four decades – has put extreme pressure on assets across the board, from cryptocurrencies to stocks and bonds. The U.S. central bank starts a two-day closed-door meeting on Tuesday, and traders are speculating over its likely decision, to be announced Wednesday at 2 p.m. ET. Fed officials had telegraphed the likelihood of a 0.5 percentage point increase, but now some analysts are warning that a hike of 0.75 percentage point or even a full percentage point might be in the cards. The "S word" is on the lips of investors: "We believe we're moving toward an environment of persistent high inflation coupled with weak real growth. In other words, stagflation," Kyle Delaney, president of the giant hedge fund Bridgewater, wrote in a communiqué to investors. Fitch, the bond-rating service, cut its estimate of global gross domestic product growth in 2022 by 0.6 percentage point to 2.9%. "Global inflation pressures continue to intensify, with increasingly adverse implications for the growth outlook," wrote Brian Coulton, Fitch's chief economist. Underscoring the theme du jour, the crypto exchange Bybit unveiled its "first-ever Bear Market Guide for traders." "Featuring a contemporary design that draws inspiration from popular culture, the guide shares a pool of resources that can help investors put the bear market situation into perspective," Bybit said in a press release from Seychelles. In the current economic environment, what else is there for a trader to do? |
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The SEC wants to hear from investors, like you. As part of Grayscale’s filing to convert Grayscale Bitcoin Trust (Symbol: GBTC) to an ETF, the SEC provides a 240-day review period for anyone to submit comments for consideration.If you support the conversion, write to the SEC by clicking here - you have until the end of June to submit your thoughts. Your submission matters because: We can level the playing field. To date, the SEC has only permitted Bitcoin Futures ETFs, while rejecting “physically-backed” or Spot Bitcoin ETFs. The choice should be yours. If you’ve been waiting for the familiarity and protections of a Bitcoin ETF, we believe you should not be forced into a Futures-based product simply because it’s the only one that exists. You can help take GBTC to the next level, conversion to an ETF. It’s already the world’s largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Learn more here.
This information should not be relied upon as investment advice or a recommendation regarding any security. Visit here for important disclosures.
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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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We’re Cross River Crypto. We partner with today’s most innovative crypto companies to offer banking solutions, including fiat on/off ramps. Whether you are building a crypto exchange, an NFT marketplace, or metaverse, Cross River provides an API-based all-in-one platform that enables: Banking-as-a-ServiceACH & Wire transfers Push-to-Card DisbursementsReal-Time PaymentsVirtual Accounts & Subledgers Building the next big thing in crypto? Request your fiat on/off ramp solution now. |
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And 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.
Gritt Trakulhoon, investment analyst,Titan Cory Klippsten, CEO, Swan Bitcoin Sean Farrell, head of digital asset strategy, Fundstrat Global Advisors |
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Consensus 2022, the must-attend crypto and blockchain experience of the year, is heading to Austin, Texas, from June 9-12. This is the only festival showcasing and celebrating all sides of the blockchain and crypto ecosystems and their wide-reaching effect on commerce, culture and communities. Register now for the lowest price. |
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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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