The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk Markets Reporter Was this newsletter forwarded to you? Sign up here. |
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Good morning. Here's what's moving in crypto today: |
- The price of dogecoin doubled in October following DOGE supporter Elon Musk's takeover of Twitter.
- Coinbase came out in support of Ripple in the SEC's lawsuit alleging Ripple sold the XRP token as an unregistered security.
- All crypto eyes will be on the Fed Wednesday on the hopes the central bank might signal it will tap the brakes on its jumbo interest rate hikes.
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● CoinDesk Market Index (CMI): 1,033.77 +1.2% ● Bitcoin (BTC): $20,519.7 −1.01% ● Ether (ETH): $1,590.71 −1.86% ● S&P 500 Futures: 3,920.75 +1.0% ● FTSE 1000: 7,209 +1.6% ● Ten-year Treasury yield daily close: 4.08% +0.1 Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices. |
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Meme token dogecoin finished October with 17 times bitcoin’s gain for the month as DOGE supporter Elon Musk’s $44 billion Twitter deal drove speculation in the coin, whose price more than doubled during the month, rising 104%. Bitcoin rose 5.5%, and ether gained 18%. |
Crypto exchange Coinbase has filed to support Ripple Labs against the U.S. Securities and Exchange Commission, which sued Ripple at the end of 2020 on allegations it sold XRP as an unregistered security. Coinbase joins a trade group and others in arguing the SEC's case threatens the broader industry. India's central bank is introducing a pilot program for a central bank digital currency on Tuesday, and a retail version will start within a month. In a statement, the Reserve Bank of India said the use case for the wholesale digital rupee is the "settlement of secondary market transactions in government securities" because it would reduce transaction costs. |
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Market Insight: All Eyes on the Fed |
Fed Chairman Jerome Powell (Anna Moneymaker/Getty Images) |
Risky assets, including cryptocurrencies, have recently found a footing on hopes that the Federal Reserve will pivot away from jumbo interest rate hikes in December, ending the so-called liquidity tightening sooner than expected. It may even signal this at its meeting on Wednesday. The Fed has raised the borrowing cost by 300 basis points (bps) this year, roiling risk assets like crypto. The central bank is expected to deliver yet another 75 bps hike on Wednesday (its fourth), lifting the borrowing cost to the 3.75%-4% range. It could signal a 50 bps step down in December. The markets appear to have run ahead of themselves in pricing a slowdown in terms of both frequency and magnitude of rate hikes starting from December. Major investment banks, however, believe the Fed could keep the doors open for continued jumbo rate hikes, and a potential switch to smaller rate hikes wouldn't necessarily imply an early end of liquidity tightening. Read the full story by Omkar Godbole. |
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Chart of the Day: A Crypto Headwind? |
(TradingView, Decentral Park Capital) |
- The above chart provided by Decentral Park Capital's Lewis Harland shows bitcoin has closely tracked the Fed net U.S. dollar liquidity indicator since 2021.
- The dollar liquidity is again falling, a headwind for risk assets, including cryptocurrencies.
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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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