The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
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It's Tuesday! Here’s what you need to know in crypto today. |
- BTC sits above $63,500.
- PBOC takes steps to stimulate China's economy.
- Ether ETFs recorded over $79 million of outflows on Monday.
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CoinDesk 20 Index: 2,014.90 +1%
Bitcoin (BTC): $63,558.29 +0.07%
Ether (ETH): $2,642.62 -0.1%
S&P 500: 5,718.57 +0.28%
Gold: $2,632.34 +0.23%
Nikkei 225: 37,940.59 +0.57% |
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Bitcoin is little changed in the past 24 hours after recovering from a dip to $62,750 during the Asian morning to hold above $63,500. Ether was similarly unmoved at $2,645. Other leading altcoins showed a bit more life, with SOL and DOGE higher by 1.8% and 1.2%, respectively. The crypto market at large has risen by 0.9%, as measured by the CoinDesk 20 Index. Muted activity following a rally is quite common in the cryptocurrency market, as traders take profits and prices consolidate at new footholds. |
The People's Bank of China took steps to stimulate the economy, including cutting the reserve requirement ratio for mainland banks by 50 basis points. The move drew little response from crypto prices. Asian stocks, on the other hand, rallied, with Hong Kong's Hang Seng index climbing 3.2% and the Shanghai Composite index adding 2.3%. "Bitcoin's lack of response to this news, juxtaposed against rallying Chinese indices, highlights that its current beta appears more tightly linked to Fed policy and U.S. markets, as evidenced by near two-year high correlations with US stocks, particularly following last week's FOMC meeting," Rick Maeda, a Singapore-based research analyst at Presto Research, wrote to CoinDesk in a note. Ether ETFs recorded their highest outflows since July on Monday, with over $79 million exiting the funds. The figures are the highest since July 29, when ETH ETHs recorded a cumulative $98 million, and the fourth-highest since they first went live on July 23. The outflows were almost entirely concentrated in Grayscale's ETHE, which lost $80 million. Bitwise's ETHW recorded around $1.3 million in inflows while all the others showed no activity either way. This suggests a distinct lack of institutional demand for ETH, especially as the world's second-largest cryptocurrency has enjoyed a rally of over 10% in the last week. |
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Market Insight: Bitcoin Needs to Top $65.2K to Break Downtrend |
BTC's recovery from lows of under $54,000 earlier this month has some more ground to make up before bitcoin can be considered to have broken its downtrend, Bitfinex analysts said. In a note shared with CoinDesk on Tuesday, analysts said the cryptocurrency needs to smash August's high of $65,200 to confirm the end of a prolonged slide, characterized by lower price highs since March. This level is important because since the all-time high of $73,666 was reached on March 14th, BTC has still not managed to eclipse a single local high before a local/new bottom was formed. This qualifies for the technical definition of a "downtrend," analysts said, explaining why $65,200 is the level to beat for the bulls. Since retreating from the record high, bitcoin's direction has been characterized by consistently lower highs, forming a downward pattern. It must eclipse the August high to break the trend and resume a rally that started last October. |
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- The chart shows the ratio of copper's per pound market price to the per ounce price of gold.
- The ratio has jumped 2.3% today, offering positive cues to risk assets, including cryptocurrencies, in the wake of China's large stimulus announcement.
- The ratio dropped sharply in July, signaling an impending risk aversion, which materialized in early August.
- Source: TradingView
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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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