  The latest moves in crypto markets, in context Edited by Omkar Godbole November 1, 2021 Sponsored by  (Price data as of November 1 @ 12:20 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
Good morning, Here's what's happening this morning:
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Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:
Top Gainers: Top Losers:
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.
A message from Bybit  What if you could win 0.1 BTC or 1 ETH from performing trades? At Bybit, we value our traders — and we show it.
Market Moves by Omkar Godbole It's raining record highs in risk assets even as bond markets and interest rate futures price in the faster unwinding of stimulus by the Federal Reserve (Fed).
The S&P 500, Nasdaq, and Dow Jones Industrial Average finished October at lifetime highs, recording their biggest monthly gains in a year. Bitcoin chalked up a 40% rally last month, hitting a new high of $66,975. Ethereum's ether token and coins like dog-themed shiba inu and Decentraland's metaverse token MANA also set new price peaks last week.
The action may indicate investor confidence that the Fed and other central banks will largely keep the policy accommodative – liquidity tap flowing – to avoid asset price deflation. The Fed is widely expected to announce the beginning of the unwinding of its crisis-era $120 billion-a-month asset purchase program later this week. Rising Open Interest Does Not Imply Correction  Bitcoin futures open interest (Source: Glassnode) The amount of dollars locked in bitcoin futures contracts trading on major exchanges is nearing record highs around $27.5 billion reached in April. A high level of open interest is widely taken to represent excess leverage and often portends correction.
However, this time may be different, as bitcoin's use as collateral in the derivatives market has declined over the past several months.
"The difference between now and April (previous OI all-time-high) is that the percentage of open interest holding BTC as collateral has decreased from 70% to 45% approximately," Marcus Sotiriou, sales trader at the U.K.-based digital asset broker GlobalBlock, told CoinDesk. "If bitcoin is being used as collateral, there will be an increased chance of a mass-liquidation event, as the price drops lower in tandem with long trading positions."
Technician's Take by Omkar Godbole  BTC a Lead Indicator for AUD/JPY? Bitcoin seems to be evolving into an advanced indicator for AUD/JPY traders.
The chart below shows bitcoin bottomed out and began rising four weeks before AUD/JPY carved out a bottom in mid-August this year, repeating the pattern observed in September-October 2020.
The currency pair peaked in mid-May or four weeks after bitcoin topped out in mid-April.  Bitcoin and AUD/JPY daily charts (Source: TradingView)
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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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