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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Happy Wednesday! Here’s what you need to know in crypto today. |
- Bitcoin trades little changed just above $62,000.
- ETFs bleed money as China stimulus hopes wane.
- Bitcoin options trade anticipates heightened price swings.
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CoinDesk 20 Index: 1,918.40 -0.63%
Bitcoin (BTC): $62,086.59 -0.68%
Ether (ETH): $2,431.18 -0.10%
S&P 500: 5,751.13 +0.97%
Gold: $2,621.91 -0.01%
Nikkei 225: 39,277.96 +0.87% |
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OKX is a technology company with a mission to organize the world's blockchains and make them more accessible and useful. We want to create a future that makes our world more efficient, transparent and connected. OKX began as a crypto exchange giving millions of people access to trading and over time became among the largest platforms in the world. In recent years, we have developed one of the most connected onchain wallets used by millions to access decentralized applications (dApps). OKX is trusted by hundreds of large institutions seeking access to crypto markets on a reliable platform that seamlessly connects with global banking and payments. Our most well-known products include: OKX Exchange, OKX Wallet, OKX Explorer, OKX OS, OKX Ventures and OKX Institutional. To learn more about OKX, download our app or visit: okx.com |
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The crypto market was little changed following a hotly awaited HBO documentary that promised to shed new light on the identity of Satoshi Nakamoto. "Money Electric: The Bitcoin Mystery" identified Bitcoin developer Peter Todd as the cryptocurrency's pseudonymous creator, a claim Todd had denied even before the broadcast. Positive developments in revealing Satoshi's true identity could, in theory, be a volatility-boosting event for crypto markets. However, HBO's attempt, like all previous ones, proved unfruitful. Bitcoin trades at around $62,150, a drop of about 0.45% in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index, was also little changed. |
Spot bitcoin ETFs in the U.S. recorded a cumulative outflow of over $18 million on Monday, SoSoValue data show. Ether ETFs recorded over $8 million in withdrawals. Low volatility in BTC came after a lack of new measures and announcements of new stimulus at a Chinese briefing on Tuesday pared hopes of a long-drawn stimulus package, which had contributed to a bitcoin run in the past few weeks. Stocks in China are deep in the red, with the Shanghai Composite Index down 3.9% and Shenzhen’s Component Index down 4%. Traders, meanwhile, look toward upcoming notes from the September Federal Reserve meeting for clues on where BTC might move next. A large bitcoin options trade anticipates a shift from the present low-volatility regime to a period of heightened price swings, potentially exceeding the $53,000-$87,000 range. The trade saw the entity pay a net premium of over $1 million to purchase 100 contracts of the $66,000 strike call and put options expiring on Nov. 29, according to data confirmed by Lin Chen, head of business development Asia at Deribit. A long straddle is preferred when the market is expected to move far enough in either direction to make the call or the put option worth more than the cumulative premium paid. For the strategy to turn profitable and overcompensate for the premium paid, the bitcoin price needs to move either above $87,000 or below $53,000 by the end of November, Chen told CoinDesk. |
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Market Insight: Record Stablecoin Liquidity Could Fuel Bitcoin Price Surge |
A record amount of dollar-backed stablecoins and a spike in large bitcoin transactions could form the bedrock for a broader BTC rally in the coming weeks. Stablecoin liquidity has continued to grow to a record $169 billion in late September, data from CryptoQuant shows, a 31% increase this year. Most crypto spot and futures trading are conducted against stablecoin pairs and an increase in the stablecoin liquidity signals dry powder that can potentially be deployed for crypto purchases. Historic movements show a clear correlation between the number of stablecoins held on crypto exchanges, which has grown 20% this year, and higher bitcoin prices. “Larger balances of stablecoins on exchanges are positively correlated with higher bitcoin and crypto prices,” CryptoQuant head of research Julio Moreno said. “Since January 2023, when the current bull cycle officially started, the total amount of USDT (ERC20) on exchanges has grown from $9.2 billion to $22.7 billion (+146%).” “Notably, these balances have grown by 20%, even as Bitcoin’s price has remained flat." |
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- The chart shows the total amount of outstanding loans provided by prime brokerages to hedge funds.
- The tally has risen to over $2 trillion, posing a risk to financial stability, according to Apollo's Chief Economist Torsten Sløk.
- Source: Data for the U.S. Office of Financial Research, Apollo Chief Economist
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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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