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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Welcome to Tuesday. Here’s what you need to know about crypto today: |
- Goldman Sachs seeks to invest tens of millions in crypto.
- Mining new blocks of bitcoin is becoming easier.
- Gridless raises $2 million for bitcoin mining in Africa.
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Investment bank Goldman Sachs is looking to spend tens of millions of dollars on crypto firms whose valuations have been hit after the implosion of crypto exchange FTX. Goldman sees a need for trustworthy and established players in the crypto market. "We do see some really interesting opportunities, priced much more sensibly," Mathew McDermott, Goldman's head of digital assets, told Reuters. |
Bitcoin mining difficulty has dropped the most since July 2021. Miners are caught between rising costs and the declining price of bitcoin. The difficulty of mining a bitcoin block fell by 7.32% Tuesday. The adjustment at block height 766,080 is the biggest downward change since July 2021, data from mining pool BTC.com shows. That was when hordes of miners dropped off the network following China’s ban on the industry. Gridless, a bitcoin mining company, has raised $2 million in a seed funding round led by Twitter co-founder Jack Dorsey’s payment company Block and venture firm Stillmark. Gridless helps generate new sources of energy in East African rural communities. The investment will support the company’s expansion of bitcoin mines across African markets. In its first year, Gridless has contracted five project pilots in rural Kenya with African hydroelectric energy company HydroBox. |
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Market Insight: Bitcoin's Stagnant Ratio |
Bitooins dominance surged early this year as the tightening by the Federal Reserve and Terra's collapse weighed over the crypto market. (TradingView/CoinDesk) |
There is plenty of fear in the crypto market since Sam Bankman Fried's digital-assets exchange, FTX, went bust, so much so that digital assets have decoupled from the risk revival in traditional markets. Yet bitcoin's dominance rate or the top cryptocurrency's share in the total crypto market has held steady at around 40%, contradicting its record of rising sharply during times of stress. According to observers, the stagnant dominance rate represents several developments, including an exodus of investors from the market. "BTC has not outperformed the downside in recent months, so investors no longer view it as a safe haven," Wes Hansen, director of trading and operations at crypto fund Arca, said in an email. |
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Source: TradingView/CoinDesk |
- The chart shows the yield on the U.S. 10-year Treasury inflation-indexed security going back to July 2021.
- The so-called real or inflation-adjusted yield has pulled back to the bullish trendline representing the rally since March.
- A potential turn higher from the trendline might lead to renewed risk aversion to traditional markets and add to the gloom and doom in the crypto market.
- Like gold, bitcoin moved in the opposite direction to the real yield early this year.
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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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