The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I’m Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. Price point: Bitcoin trades flat and Polygon's MATIC surges 25%. We take a look at why MATIC is outperforming BTC. Market Moves: A dive into how Fed Chair Powell was challenged by senators on Wednesday on inflation and crypto regulation.
This newsletter was produced by Parikshit Mishra. Please let us know what you think of First Mover by replying to this email. |
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Bitcoin (BTC) has been trading flat over the last 24 hours, currently around $20,500. Altcoins outperformed BTC overnight with MATIC, ATOM and AVAX all gaining ground. Polygon’s MATIC rallied 25% on the day after a series of announcements and product launches. On Wednesday Polygon announced the launch of Polygon ID integration. Polygon ID is a self-sovereign identity solution powered by ZK cryptography that brings huge potential for DAO governance, according to the company. Polygon, an Ethereum layer-2 scaling solution, has also recently claimed to have obtained a major carbon neutrality (a balance between emitting and absorbing carbon) milestone, which could be contributing to the price uptick. Polygon announced earlier this week that it had partnered with KlimaDAO (a decentralized collective of environmentalists, developers, and entrepreneurs) as part of its environmental initiative. |
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Polygon’s 7-day price chart. (Messari) |
Polygon’s MATIC has been trading in an upward trajectory over the past 7 days. Some analysts are also attributing MATIC’s recent rally to a few weeks of whale accumulation. Santiment, the on-chain data provider, tweeted that sharks and whales holding MATIC have been in a large accumulation trend for the last six weeks. “The tiers of holders ranging from 10K to 10M coins held have collectively added 8.7% more to their bags in this timespan,” tweeted Sanitment. |
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Matthew Dibb, COO and co-founder of Stack Funds, told CoinDesk that the rallies for MATIC, ATOM and AVAX are being held up on low volume. “Because of this we would expect that any decent drop in equities will lead to a selloff in alts,” said Dibb. He also noted that bitcoin dominance (BTC.D) has dropped considerably in the past few days from its high at +48%. Dibb explained that this is because there has been relative strength in ether as well as litecoin vs. bitcoin which has led to BTC dominance losing some ground. “Our expectation is that should a further selloff occur, we will see BTC.D continue to head north to short term highs,” added Dibb. “We see this as a temporary situation." |
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Market Moves By Helene Braun |
Fed Chair Powell Says Soft Landing Will Be 'Challenging,' Calls for Crypto Regulation Federal Reserve Chair Jerome Powell told Congress that the U.S. central bank must "go ahead" and keep raising interest rates to get inflation down, even if that means that the economy faces higher unemployment and a potential recession. During a hearing before the Senate Banking Committee on Wednesday, Powell said that a soft landing “is going to be very challenging,” and that a recession is “certainly a possibility.” Sen. John Kennedy (R-La.) called Powell the “most powerful man” in the world right now. Three senators, including Sen. Cynthia Lummis (R-Wyo.), Sen. Kyrsten Sinema (D-Ariz.) and Sen. Sherrod Brown (D-Ohio), challenged Powell with questions on crypto, specifically regulation, accounting treatment of digital assets and the current crash in the crypto market. “We are tracking those events very carefully,” said Powell, but the central bank is “not really seeing significant macroeconomic implications, so far." He also repeatedly highlighted that there’s a need for a better regulatory framework for crypto. Read the full story here: Fed Chair Powell Says Soft Landing Will Be 'Challenging,' Calls for Crypto Regulation. |
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The SEC wants to hear from investors, like you. As part of Grayscale’s filing to convert Grayscale Bitcoin Trust (Symbol: GBTC) to an ETF, the SEC provides a 240-day review period for anyone to submit comments for consideration.If you support the conversion, write to the SEC by clicking here - you have until the end of June to submit your thoughts. Your submission matters because: We can level the playing field. To date, the SEC has only permitted Bitcoin Futures ETFs, while rejecting “physically-backed” or Spot Bitcoin ETFs. The choice should be yours. If you’ve been waiting for the familiarity and protections of a Bitcoin ETF, we believe you should not be forced into a Futures-based product simply because it’s the only one that exists. You can help take GBTC to the next level, conversion to an ETF. It’s already the world’s largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Learn more here.
This information should not be relied upon as investment advice or a recommendation regarding any security. Visit here for important disclosures.
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers Biggest Losers |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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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.
- Martin Leinweber, digital asset product strategist, MV Index Solutions
- Chris Blec, host of "Proof of Decentralization" podcast
- Nikhilesh De, managing editor policy, CoinDesk
- Pascal Gauthier (taped), chairman and CEO, Ledger
- John Darsie, partner, SkyBridge Capital
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Take the Crypto Work Survey
The latest U.S. jobs data is showing a massive shift of people in jobs, thought to be pandemic-driven, as workers seek better pay and flexibility. Technological innovations, particularly blockchain-based smart contracts, are also changing the way people earn money and organize. Together, these trends are changing the concept of work. CoinDesk is seeking your input to gain insights about the Future of Work.
Help CoinDesk gain insights into the working world of crypto by filling out our anonymous Crypto Work Survey by June 27. Take the survey.
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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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