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 today in crypto. |
- Bitcoin drops toward $66,000.
- ETHE outflows weighed on ether ETFs in their debut week.
- BTC's near-term price is likely tied to the U.S. election, Jefferies says.
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CoinDesk 20 Index: 2,282 −3.4% Bitcoin (BTC): $66,634 −4.4% Ether (ETC): $3,338 −1.2% S&P 500: 5,463.54 +0.1% Gold: $2,435 +2.4% Nikkei 225: $2,435 +2.4% |
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Bitcoin has inched toward $66,000, paring all gains from last week, with sentiment dented as a significant amount of the asset was moved from U.S. government-linked wallets, raising concerns of looming selling pressure among traders. BTC lost as much as 5%, before slightly recovering, in the past 24 hours as the U.S. Marshals Service shifted $2 billion worth of BTC to two new wallets. Tracking service Arkham estimated that at least one of the wallets was likely to be a custodial service. Bitcoin was trading around $66,550 at the time of writing, a drop of 4.3% from 24 hours ago. The wider crypto market, as measured by the CoinDesk 20 Index, is 3.5% lower. |
Spot ether ETFs saw negative net flows in their first week as massive outflows from the incumbent Grayscale Ethereum Trust (ETHE) overwhelmed interest in the competing products. The equivalent bitcoin funds, which debuted in January, raked in $1 billion in net inflows during the first four days, even as they too suffered sizable outflows from a previously existing Grayscale fund. Overall, the spot ETH ETFs lost $340 million in net outflows with more than $1.5 billion exiting from the Grayscale Trust, according to Farside Investors. Ether has outperformed the wider digital asset market following Monday's slide. ETH is priced at $3,330, a drop of 1.67% compared with the CD20's 3.5%. Donald Trump's crypto pledges may mean the near-term bitcoin price is tied to the likely outcome of November's presidential election, investment bank Jefferies said. Trump promised to maintain a strategic bitcoin reserve and never sell the government’s seized bitcoin (BTC) at BTC 2024 in Nashville on Saturday. “His overtures to the industry to install crypto-friendly regulators may have the effect of near-term BTC price being tied to the outcome of the U.S. presidential election,” analysts Jonathan Petersen and Joe Dickstein wrote. Jefferies notes that Trump pledged to pick crypto-friendly regulators, to create a crypto industry presidential advisory council, and to make the country the “crypto capital of the planet.” |
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Market Insight: Analysts Warn of Further Losses Ahead |
Market observers said macroeconomic decisions, as well as the lack of newer catalysts, could serve as market headwinds, pushing down prices in the near term. “The market received a boost last week with anticipation of Trump’s speech at the Nashville Conference, where he was expected to mention BTC as a strategic reserve asset,” Alice Liu, research lead at CoinMarketCap, told CoinDesk in an email. Donald Trump promised to fire SEC head Gary Gensler and create a strategic bitcoin reserve if elected. He also said he would be a "pro-Bitcoin" president and would not allow any of the 213,239 BTC seized by authorities and held in U.S. government wallets to be sold. The U.S. will become the world's cryptocurrency capital on his watch, Trump said. However, Liu said optimism peaked on the 27th and led to a “sell the news” phase, adding that “there is no new sauce of optimism in the market now.” Liu further cautioned that interest-rate decisions from three central banks – the Bank of Japan, Federal Reserve and Bank of England – on Wednesday and Thursday could further increase volatility in the crypto market. |
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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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