  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets August 2, 2021 Sponsored by  (Price data as of August 2 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
Good morning, and welcome to First Mover. Here's what's happening this morning:
And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and me at 9:00 a.m. U.S. Eastern time. Today the show will feature guests:
– Lawrence Lewitinn
Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:
Gainers: 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.
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Market Moves by Omkar Godbole Bitcoin Logs Biggest Weekly Price Gain in 3 Months as Illiquid Supply Hits Record High Bitcoin posted its steepest weekly gain in three months last week, and blockchain data hinting at renewed supply-side weakness indicates further advances may be in the offing.
The top cryptocurrency added 12.4% in the seven days through Aug. 1, the most since the final week of April, according to Bitstamp data. It advanced 18.4% in July, snapping a three-month losing streak, and was last changing hands near $40,000.  Bitcoin's weekly and monthly charts (Source: TradingView) Data tracked by Glassnode show bitcoin (BTC)'s illiquid supply, or the balance held by illiquid entities, decoupled from prices in May, signaling renewed holding sentiment. The measure reached a record high 14.447 million over the weekend.
"Amount of bitcoin held by the strongest holders has retraced the whole dump and surged to ATH. This is very bullish," Lex Moskovski, chief investment officer at Moskovski Capital, tweeted.
The figures show investors are again holding for the long term, or HODLing, reducing the supply of coins available for sale in the market.
Bitcoin supply currently is 18.77 million, or 89% of the 21 million cap. However, according to Glassnode, the actual number of coins available for trading is much lower due to increased hoarding by investors and permanent loss of mined BTC over the years.  Bitcoin: Illiquid supply (Source: Glassnode) While bitcoin moved in tandem with illiquid supply from October 2020 to May 2021, it diverged in mid-May. As the chart shows, the link may now be reestablishing. A similar split occurred for several weeks before bitcoin began its meteoric rise from $10,000 in October 2020. If the illiquid supply continues to rise, a supply-side crisis may emerge, and last price year's surge may be repeated.
Other blockchain indicators also signal an impending supply squeeze, as tweeted by analysts Willy Woo and Will Clemente.
From a technical analysis perspective, the bull case would strengthen once bitcoin establishes a foothold above a three-month descending trendline.  Bitcoin's daily chart (Source: TradingView) The trendline hurdle is $42,464 at press time. That's also the 38.2% Fibonacci retracement of the sell-off from April's high to May's low. Read the original story here: Bitcoin Logs Biggest Weekly Price Gain in 3 Months as Illiquid Supply Hits Record High
 The CoinDesk DeFi Index (DFX), benchmarking the investable DeFi sector, is now available for investors watching decentralized finance, the first true "sector" in cryptocurrencies. It is the latest index by CoinDesk Indexes, the market standard for crypto assets since 2014. The DFX provides a market-cap-weighted benchmark for a representative basket of DeFi-sector cryptocurrencies, composed of assets suitable for long-term holding. |
Find out more at coindesk.com/indexes/dfx, or email indexes@coindesk.com.
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Technician's Take
by Damanick Dantes, CMT
Bitcoin Slips Below $40K; Support Around $34K
Bitcoin (BTC) buyers are taking profits after a rally toward $42,000 over the weekend. The cryptocurrency appears overbought and could find support around $34,000, which is the midpoint of a two-month range.
The intermediate-term uptrend is improving after a near 30% rally from the July 20 low around $29,000. Buyers could remain active at lower support levels given the loss of downside momentum over the past month.
Bitcoin was trading around $39,500 at press time and is down 4% over the past 24 hours.
Bitcoin four-hour price chart shows short-term support and resistance levels with RSI (Source: TradingView)
- The relative strength index (RSI) on the four-hour chart registered a series of lower highs, which suggests the short-term uptrend is weakening.
- The RSI is not yet oversold and could encourage further profit taking towards initial support around $34,000.
- Bitcoin returned below the 100-day moving average after overbought signals appeared for the first time since April, which preceded a sell-off.
- The weekly chart is holding support and could signal a return of positive momentum this month.
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A message from Worldpay
Worldpay from FIS and Forter have teamed up to explore the evolution of the adoption of digital assets in the eCommerce industry, and how 21st century security measures can tackle the threat of fraud in card-to-crypto payments.
Read the insights now
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BOLO
Be on the look out for some of these upcoming events:
- No major economic data expected.
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The cryptocurrency movement has never been so sprawling, reaching every corner of the planet.
Crypto State by CoinDesk aims to connect with local communities to explore this movement of financial disruption and how it trickles down to every corner of the globe, from DeFi investment opportunities to alternative ways to transact and store wealth.
We're making virtual stops with audiences in Nigeria, the Middle East and Southeast Asia this year. Register for the Crypto State virtual tour.
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ICYMI
In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:
New House Bill to Regulate 'Dangerous' Crypto Market, CBDC Update, Robinhood IPO and More
"First Mover" dives into today's top stories: House Rep. Don Beyer introduces legislation to provide a "comprehensive legal framework" to regulate the digital asset market and possibly grant the government the ability to ban some stablecoins. CoinDesk's Nikhilesh De with the latest developments in Congress. Plus, the latest crypto markets and CBDC news. Guests include former SEC Branch Chief Lisa Braganca, Julia Friedlander of the Atlantic Council, and Jesse Proudman of Makara.
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The dynamic crypto mining industry has been even more active following China's crackdown. The global hashrate has largely shifted to North America, making the U.S. a key mining hub where institutions now take central stage.
In this sponsored webinar on Aug. 10, Foundry CEO Mike Coyler explains how this new demographic of miners have special requirements, which the company has been catering to through its rapidly growing Foundry USA Pool and other services. Register for free.
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Latest Headlines
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Square's Cash App Q2 Bitcoin Revenue Rose 200%; $45M Bitcoin Impairment Loss Taken
Cash App's bitcoin gross profit rose to $55 million, Square said in its Q2 letter to shareholders.
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Updated US Infrastructure Bill Narrows Crypto Reporting Requirement
An updated draft of a controversial crypto reporting requirement clarifies that brokers "effectuate" transfers of digital assets, but stops short of explicitly excluding miners or other parties that don't provide customer transactions.
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Bitmain Spin-Off Matrixport Gets $100M in Series C Funding, Valuation Over $1B
Funding will go toward furthering research for its product offerings while enhancing the platform's user experience.
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PBoC Says It Will Keep High Pressure on Crypto Trading
China's central bank holds that crypto trading brings financial risk to the economy, and said it will continue a crackdown on the industry.
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Blockchain Association Singapore Welcomes Former Regulator as Latest Board Member
Teng, who has become a member of the board, brings a wealth of experience from the financial and fintech sectors across multiple countries.
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Bitcoin Price Slumps 5% as Recent Rally Begins to Cool
The pullback from Saturday's top to current prices is likely to do with uncertainty around the U.S. infrastructure bill, one expert said.
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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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