The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Thursday! Here’s what you need to know today in crypto: |
- Bitcoin could extend the recent price decline, according to analysts.
- dYdX becomes the largest decentralized exchange (DEX) by daily trading volume.
- Donald Trump promised to ban the creation of CBDCs during a campaign.
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CoinDesk 20 Index: 1,698 −1.7%
Bitcoin (BTC): $42,475 −0.5%
Ether (ETC): $2,516 −1.0%
S&P 500: 4,739.21 −0.6%
Gold: $2,016 +0.6%
Nikkei 225: $2,016 +0.6% |
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Headwinds for bitcoin (BTC)continue to linger and could contribute to prices falling lower in the coming days, despite the apparent early successes of several U.S.-listed spot exchange-traded funds (ETFs). Bitcoin prices fell as low as 15% after the much-awaited ETF listing last week, with outflows from Grayscale’s Bitcoin Trust product said to contribute to the downward pressure. ETF volume data provided by BlackRock (BLK), Fidelity and Bitwise cumulatively crossed the $500 million mark earlier this week – indicating demand from regulated funds and professional traders. Coinbase (COIN), the custodian for several ETF providers, saw record-high OTC desk transfer volumes. “Several on-chain metrics and indicators still suggest the price correction may not be over or at least that a new rally is still not on the cards,” CryptoQuant analysts said. “Short-term traders and large bitcoin holders are still doing significant selling in a context of “risk-off” attitude. |
Decentralized exchange dYdX, which recently migrated from Ethereum to Cosmos, has replaced one of Uniswap's markets as the largest DEX by daily trading volume, according to data from CoinMarketCap. The Cosmos-based v4 version of dYdX just saw $757 million of volume over a 24-hour period, topping Uniswap v3, which had $608 million, the data shows. dYdX's v3 market, which still operates, had $567 million, enough for third place. According to dYdX, the total trade volume so far for its v4 market since launch is $17.8 billion. In 2023, dYdX's v3 saw a total of over $1 trillion in trading volume, with several days exceeding $2 billion of trading volume. Former President and front-runner in the Republican leadership race, Donald Trump, has promised to ban the creation of a central bank digital currency (CBDC) during a campaign stop in New Hampshire. "As your president, I will never allow the creation of a central bank digital currency,” Trump said on stage, joined by crypto-friendly former candidate Vivek Ramaswamy, who recently suspended his campaign. “This would be a dangerous threat to freedom, and I will stop it from coming to America,” Trump continued. “Such a currency would give a federal government absolute control over your money. They could take your money, and you wouldn’t even know it was gone.” |
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Market Insight: Market Sentiment Remains Optimistic Despite BTC Weakness |
Crypto traders’ outlook for the broader market remains constructive even though bitcoin (BTC), the leading digital asset by market value, has over 10% in market value since the debut of spot ETFs in the U.S. a week ago. That’s the message from the Bullish exchange’s perpetual futures market tied to the CoinDesk 20 index (CD20), where funding rates were positive early Thursday. Bullish is the owner of CoinDesk. Perpetuals are futures with no expiry, with a funding rate mechanism that involves periodic payments between long (buy) and short (sell) traders to ensure the price of perpetual aligns with the underlying index price. |
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- The chart shows the S&P 500 in inflation-adjusted terms, the spread between U.S. 10 and two-year Treasury bond yields, and the Fed funds rate (the benchmark borrowing cost) since 1999.
- Fed's pivot to rate cuts or renewed liquidity easing typically comes from the point of economic weakness, coinciding with a bearish trend reversal and a sell-off in the S&P 500, as observed in 2000, 2008, and late 2019.
- The market expects the Fed to cut rates by over 100 basis points this year.
- Source: ByteTree Research, Bloomberg
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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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