The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Friday! Here’s what you need to know today in crypto: |
- Bitcoin drops below $70,000 after hitting fresh highs earlier this week.
- El Salvador moves $400 million of bitcoin into a cold wallet.
- Galaxy Digital should be a core holding for equity investors, investment bank Stifel says.
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CoinDesk 20 Index: 2,573 −8.4%
Bitcoin (BTC): $66,834 −8.3%
Ether (ETC): $3,624 −8.4%
S&P 500: 5,150.48 −0.3%
Gold: $2,172 +0.4%
Nikkei 225: $2,172 +0.4% |
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Bitcoin (BTC) fell to as low as $66,800 on Friday, dropping 8% in 24 hours after soaring above $70,000 earlier in the week. The CoinDesk 20 index, a measure of the largest and most liquid digital assets, fell 6%. Data from CoinGlass shows that over $100 million in long positions were wiped out over 12 hours, and $167 million in longs liquidated in 24 hours. Other assets like gold and Wall Street's tech-heavy index Nasdaq also came under pressure this week. Some analysts described BTC's pullback from record highs as a typical bull breather seen after sharp rallies. Adrian Wang, the founder and CEO of Metalpha, said the market could be adjusting to uncertainties ahead of the next month's mining reward halving. |
Bitcoin-forward Central American nation El Salvador this week moved $400 million of bitcoin (BTC) – "a big chunk" – into a cold wallet, President Nayib Bukele said in a post on X (formerly Twitter). Bukele referred to the new setup as "our first #Bitcoin piggy bank." El Salvador stored the cold wallet "in a physical vault within our national territory," he said, including a photo of a wallet that held 5,689.68 BTC, worth $411 million at Thursday's prices. A bitcoin treasury of that size places El Salvador's holdings far higher than previously thought. Even on Thursday, public trackers placed the nation's trove at less than 3,000 BTC ($205 million). Earlier this week, Bukele teased that the country was not only buying BTC but also getting it by selling passports, through currency conversions for businesses, from mining and from government services. Galaxy Digital (GLXY) should be a core holding for equity investors looking to gain exposure to the digital asset ecosystem, investment bank Stifel (SF) said in a research report on Wednesday. Stifel resumed coverage of Michael Novogratz’s crypto financial services firm with a buy rating and a price target of C$20. Galaxy closed 4.7% lower on Thursday at C$13.11. “The company offers an asymmetric return profile with significant principle exposure to bitcoin and ether; a diverse group of revenue-producing businesses across trading, investment banking and asset management; and longer-term outsized growth potential through its infrastructure solutions arms, which focuses on core technologies that power decentralized networks,” analysts Bill Papanastasiou and Suthan Sukumar wrote. |
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Market Insight: Gold Investors Aren't Switching Into BTC |
Institutional investors and individuals have been buying both gold and bitcoin (BTC) this year, not switching between the two, as some analysts have postulated, JPMorgan (JPM) said in a research report on Thursday. Outflows from gold exchange-traded funds (ETFs) and a surge in bitcoin ETF inflows raised the possibility that investors were shifting from the precious metal into the cryptocurrency, the report said. The bank said it disagreed. “Private investors and individuals have propagated both gold and bitcoin year-to-date rather than shifting from the former to the latter,” analysts led by Nikolaos Panigirtzoglou wrote. |
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- The chart shows the dollar value of the number of crypto perpetual futures positions liquidated across major exchanges in the past 24 hours.
- Bitcoin's overnight drop to $67,000 has liquidated over $800 million worth of positions.
- These liquidations represent a healthy cleansing of over-leveraged positions, according to Swiss One Capital.
- Source: CoinGlass
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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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