Is Bitcoin Still a Risk Asset?

The latest moves in crypto markets, in context

Edited by Omkar Godbole

November 15, 2021

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Bitcoin (BTC)

+1.7% $65,750

Ether (ETH)

+2.6% $4,760

(Price data as of November 15 @ 12:50 UTC)

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Good morning, and welcome to First Mover. Here's what's happening this morning:

Market Moves: Bitcoin still a risk asset

Technician's Take: Ether shows signs of indecision

And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time.

– Omkar

Biggest Movers

These are the biggest movers in the CoinDesk 20 over the past 24 hours:

Top Gainers:

Litecoin (LTC): +6.7%

Top Losers:

Aave (AAVE): -1.4%

Algorand (ALGO): 1.2%

Dogecoin (DOGE): -0.10%

The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.

Market Moves

by Omkar Godbole

Bitcoin was in consolidation near $66,000 early Monday amid increased demand for coins associated with lesser-known gaming sector protocols like Dvision Network and PLA and decentralized exchange (DEX) aggregator UMA protocol's UMA token.

Exchange aggregator ParaSwap announced the launch of its utility plus governance token PSP, which can be claimed for some 20,000 eligible Ethereum addresses. The token allows users to stake in liquidity pools in exchange for platform rewards, and participate in its newly formed decentralized autonomous organization (DAO) governance.

In traditional markets, the futures tied to the Dow Jones Industrial Average rose 100 points, signaling risk-on sentiment. Wall Street snapped a five-week winning run last week as hotter-than-expected U.S. inflation data sparked fears of an early interest rate hike by the Federal Reserve (Fed).

Bitcoin Still a Risk Asset

The “bitcoin is an inflation hedge” drumbeat is growing louder, as the cryptocurrency tapped fresh record highs near $69,000 last Wednesday, after the U.S. reported inflation at a three-decade high.

That was perhaps the first time the decade-old cryptocurrency traded as a store of value asset in response to economic data bolstering fears of price pressures moving out of control. However, traditional finance experts are still not convinced about its growing acceptance as digital gold, a safe haven.

“Bitcoin’s reaction to inflation was seemingly more aligned to the stock market’s reading into the implications for a perhaps stretched speculative exposure rather than the dollar’s value erosion,” said John Kicklighter, chief strategist at forex research portal DailyFX. “The cryptocurrency’s use seems to be less as a utility (like an anti-fiat) rather than a speculative vehicle to diversify into.”

The comments suggest that the cryptocurrency needs to develop resilience to stock market sell-offs to cement its position as a risk-off asset and attract more safe haven demand from traditional market investors.

Read the full story here:

Bitcoin Still a Risk-Asset Despite Last Week’s Inflation-Led Rally, TradFi Experts Say

Technician's Take

by Omkar Godbole

Ether's Doji Candle

ETH's weekly chart (Source: TradingView)

Ether carved out a doji candle last week, indicating indecision at record highs.

The candle has neutralized immediate bullish bias, establishing $4,450 as the support to defend for buyers.

A Message from Oasis

Are you interested in DeFi?

Oasis is the leading privacy-enabled, layer-1 blockchain network. Ideal for DeFi due to its instant finality, 99% lower gas fees versus Ethereum, high throughput, privacy protection and defense against MEV. Oasis has many key backers including a16z, Polychain, Pantera, Dragonfly and more and an established partner ecosystem with companies like Genetica, Nebula, BMW, Binance and more.

YuzuSwap, the first DEX built on Oasis will launch soon with major benefits. Stay tuned to learn more here

BOLO

Be on the lookout for the following events today:

ICYMI

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A Message from CoinDesk

Consensus 2022, the must-attend crypto and blockchain experience of the year, is heading to Austin, Texas, from June 9-12, 2022. This is the only festival showcasing and celebrating all sides of the blockchain and crypto ecosystems, and their wide-reaching effect on commerce, culture and communities. Register now for the lowest price.

Latest Headlines

Tether, Bitcoin and Chinese Commercial Paper at Scale

For critics of Tether, the new economy of digital assets is based on the world’s oldest profession: real estate speculation.

How Crypto Becomes Money

By soaring 4.4% to new record highs Wednesday after the release of a report that showed U.S. inflation hit its highest level in 31 years and then losing all of that in the day, bitcoin played straight into the hands of mainstream economists who pooh-pooh its potential as a currency.

Taproot gives developers an expanded toolbox to work with as they continue to ideate, iterate and build on Bitcoin.

The decision did not come as a surprise given SEC chair Gary Gensler’s preference for a bitcoin futures ETF.

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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