The latest moves in crypto markets, in context By Omkar Godbole, CoinDesk Markets Reporter Was this newsletter forwarded to you? Sign up here. |
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It's Friday! Here’s what you need to know today in crypto. |
- Powell’s speech is likely to move BTC by 2.5%.
- Trump is promoting a decentralized-finance platform.
- The DeFi sector is making a comeback, according to Steno Research.
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CoinDesk 20 Index: 1,987 +1.0% Bitcoin (BTC): $60,841 −0.5% Ether (ETC): $2,660 +0.9% S&P 500: 5,570.64 −0.9% Gold: $2,534 +2.2% Nikkei 225: 38,364 +0.4%
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Meet ETHA, The iShares Ethereum Trust ETF. ETHA enables investors to access Ethereum, the second-largest cryptocurrency, within a traditional brokerage account.1Learn More 1 Source: The Block, as of May 21, 2024. Ethereum’s market capitalization, which stands at $450 billion is measured using its native token, ether. For an ETHA prospectus, click here iCRMH0824U/S-3782218 |
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Bitcoin traded between $60,000 and $62,000, keeping the broader crypto market steady with observers split on what the Federal Reserve Chair Jerome Powell will say at Friday's Jackson Hole meeting. "Given the good CPI reading last Wednesday, we're likely to get a dovish Powell tone Friday," Amberdata said in the weekly newsletter, hinting at a potential favorable development for risk assets, including cryptocurrencies. Meanwhile, the crypto-options-focused tech platform SignalPlus said Powell might be cautious. Over at Deribit, the options market isn't anticipating a Powell-induced volatility explosion. "Single-day BTC options indicate a 2.5% price swing [in either direction]," Martin Cheung, head of options trading at Pulsar, told CoinDesk. Markus Thielen, founder of 10x Research, said the setup looks good, with the ascending triangle pointing to a minor rally. |
Republican presidential candidate Donald Trump is promoting a decentralized-finance platform called "The DeFiant Ones" in his latest move to win over crypto voters ahead of the Nov. 4 elections. "For too long, the average American has been squeezed by the big banks and financial elites,” Trump said on Truth Social. “It’s time we take a stand—together. #BeDefiant.” Crypto believers have long said that digital assets and blockchain technology can help unbanked people access the financial services industry. As of now, little is known about Trump's new platform, including its launch date. Decentralized finance (DeFi) is making a comeback, and the total value locked in these projects focused on democratizing finance is expected to hit an all-time high next year, according to Steno Research. The DeFi Summer of 2020 came about as the U.S. Federal Reserve lowered interest rates to near zero. "Interest rates are the most critical factor influencing the appeal of DeFi, as they determine whether investors are more inclined to seek out higher-risk opportunities in decentralized financial markets," analyst Mads Eberhardt wrote, adding that lower interest rates also reduce the incentive to hold dollar-pegged stablecoins and spur more risk-taking in the broader crypto market. |
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Market Insight: The Catalysts Behind AAVE’s Market-Beating 45% Price Surge |
AAVE, the native token of the decentralized crypto lending platform Aave, has rallied over 45% to $135 in four weeks, outperforming every other of the top 100 cryptocurrencies by market value, including market leaders bitcoin (BTC) and ether (ETH). AAVE's price rally began in late July after the Aave-Chan Initiative founder Marc Zeller proposed a fee switch to distribute some of the platform's net excess revenue to the critical actors in the ecosystem and buy back tokens from the secondary market. "There has been speculation that AAVE could activate their 'fee switch' to redistribute excess revenue generated by the platform to stakers. This follows a proposal aimed at seeking governance feedback on the protocol's potential to buy back tokens using surplus revenue and redistribute them to AAVE stakers and the minters of their stablecoin, GHO," Joshua de Vos, research lead at London-based digital assets data and index provider CCData told CoinDesk. |
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- The chart shows ether's 30- and 60-day options skews remain negative, a sign of puts offering downside protection trading at a premium to calls.
- Some traders seem to be taking protective puts ahead of Powell's speech.
- Source: Amberdata
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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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