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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Welcome to a new week! Here’s what you need to know in crypto today. |
Bitcoin nudges above $55,000.Trump victory could see BTC hit $90,000, Bernstein says.BTC is "grossly undervalued," according to traders at Presto Research. |
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CoinDesk 20 Index: 1,774.87 +1% Bitcoin (BTC): $55,372.84 +1.4% Ether (ETH): $2,319.53 +0.63% S&P 500: 5,408.42 −1.73% Gold: $2,494.24 −0.11% Nikkei 225: 36,215.75 −0.48% |
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Bitcoin nudged above $55,000 during the European morning, after holding between $54,000 and $55,000 over the weekend. It has added 1.45% in the last 24 hours while the broader crypto market has risen 1.15%, as measured by the CoinDesk 20 Index. This week, traders will be eyeing the U.S. release of August's CPI and PPI data on Wednesday and Thursday respectively. Before then, on Tuesday, Donald Trump goes head to head with Kamala Harris in the first debate between the presidential candidates ahead of November's election. Trump has said he aims to make the U.S. the “crypto capital” of the world, and Harris aides are also reportedly considering policies to bolster the industry. |
A Trump victory in November could see bitcoin surge to an all-time high of $90,000, broker Bernstein said in a research report. A Harris victory, on the other hand, could see it test the $30,000-$40,000 range. Bernstein noted Trump's vocal support for BTC, wishing to make the U.S. the "bitcoin and crypto capital of the world," and having mentioned cryptocurrency in every policy speech he has made. "After the last three years of regulatory purge, a positive crypto regulatory policy can spur innovation again and bring the users back to financial products on the blockchain," analysts led by Gautam Chhugani wrote. "Elections remain hard to call, but if you are long crypto here, you are likely taking a Trump trade," the report added. BTC is "grossly undervalued," due to the market overlooking Bitcoin's network security, according to trading firm Presto Research. Bitcoin's hashrate, a measure of the computational power that secures the network, has hit an all-time high of 679 EH/s, the firm said in a note. “If you believe that trend will continue (in fact, the availability of spot ETF means we are in a much better setup than ever before), BTC seems grossly undervalued at the moment,” analysts Peter Chung and Min Jung said. Bitcoin miners are expanding their capacity again since August amid all-time highs in hashrate, which has typically marked price bottoms for the asset. Elsewhere, some traders said lower-than-expected U.S. payroll figures indicated a weaker labor market, while the lower unemployment figure has lessened the concerns of an imminent recession. |
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Market Insight: Bitcoin Bottom In? |
Bitcoin order books, which show the supply and demand dynamics for the largest cryptocurrency, are signaling a potential price bottom and a bullish shift on the horizon. Market depth – the collection of buy and sell orders – both close to the going market rate and further away, dried up over the weekend, according to data tracked by Hyblock Capital. That's a pattern usually observed at market turning points. "By analyzing the combined spot order books, particularly at the 0%-1% and 1%-5% spot order book depth, we see a pattern where low liquidity in the order book often coincides with market bottoms," Shubh Verma, co-founder and CEO of Hyblock Capital, said in an interview with CoinDesk. "These low order book levels can be early indicators of a price reversal, frequently preceding a bullish trend." The 1% market depth shows the total volume of buy and sell orders within 1% of the current mid-market price. The 5% depth represents liquidity 5% away from the current mid-price. Hyblock tracks market depth across multiple exchanges, including Binance and Coinbase. |
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The FedWatch tool uses prices for the fed funds futures to predict the size of Fed interest-rate cuts on Sept. 18.Traders currently assign less than a 30% probability to the Fed cutting rates by 50 basis points next week.Source: CME's FedWatch |
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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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