  The latest moves in crypto markets, in context By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets August 27, 2021 Sponsored by  (Price data as of August 27 @ 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:
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And check out the CoinDesk TV show "First Mover," hosted by Emily Parker and me at 9:00 a.m. U.S. Eastern time. Today the show will feature guests:
- Nate Chastain, OpenSea
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Andrei Poliakov, Coinberry
– Lawrence Lewitinn
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Biggest Movers
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Market Moves
by Omkar Godbole
Ether's Daily Issuance Drops Below Bitcoin, IntoTheBlock Says
Ether, the native token of Ethereum's blockchain, looks to have become more scarce than bitcoin since the activation of Ethereum Improvement Proposal (EIP) 1559.
Data tweeted by Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, shows ether's daily annualized net issuance fell to 1.11% earlier this week versus bitcoin's 1.75%.
Daily issuance refers to the number of coins mined. In the case of ether, the figure is adjusted for the amount of ether burned.
Bitcoin and ether issuances, annualized (Source: IntoTheBlock)
EIP 1559, which went live on Aug. 5, burns a portion of fees paid to the miners, removing a notable chunk of coins from circulation. Since activation, the upgrade has eliminated over 100,000 ETH, representing 36% of the new coins issued over the same period, according to data source Etherchain.
The amount of ether burned is tied to network usage, which has surged in the past two weeks, thanks to the boom in the non-fungible tokens (NFT) space. According to Dune Analytics, NFT marketplace OpenSea is the biggest ether burner to date, having destroyed 15,697 ETH, an equivalent of $49 million at ether's current price of $3,120. Other top contributors are decentralized finance protocol Uniswap, stablecoin tether, and NFT game Axie Infinity.
Such has been the frenzy that ether became a deflationary asset, with the number of coins burnt being higher than issued, on several occasions in the past two weeks.
Bitcoin put-call skews (Source: Skew)
If the trend continues, ether could attract store-of-value demand, which until now has been concentrated mainly toward bitcoin. The pace of bitcoin's supply expansion is reduced by 50% every four years by a programmed code called mining reward halving.
"Ether's decreasing issuance raises questions about how it is valued," Outumuro tweeted. "Previously closer to digital oil, ETH's value moved in tandem with its usage; now that its issuance is probably lower (and potentially deflationary), it is likely to develop a monetary premium like BTC."
Ether is currently priced at $3,110, and bitcoin is changing hands near $47,200, according to CoinDesk 20 data. The ether-bitcoin (ETH/BTC) exchange rate is 0.065 on Binance, having rallied from 0.057 to 0.073 in the days leading up to the EIP 1559 release.
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Technician's Take
by Damanick Dantes, CMT
Bitcoin Holds Short-Term Support; Upside Limited to $50K
Bitcoin (BTC) is holding initial support around $47,000 and is roughly flat over the past 24 hours. The cryptocurrency appears to be oversold on intraday charts, although slowing momentum suggests buyers are still exhausted from the $50,000 resistance level.
So far, price is still above the 200-day moving average around $46,000. Lower support is seen at the upward sloping 50-day moving average between the $40,000-$42,000 breakout zone.
Bitcoin four-hour price chart with RSI. (Source: TradingView)
- The relative strength index (RSI) is approaching oversold levels on the four-hour chart, similar to August 19 which preceded a near 10% price bounce.
- However, the RSI is still declining from overbought levels on the daily chart. This typically signals limited upside, especially given low volume and upside exhaustion on the charts.
- Buyers will need to defend lower support levels this weekend in order to avoid a series of lower price highs since April.
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BOLO
Be on the look out for some of these upcoming events:
- 14:00 UTC (10:00 a.m. ET):
Federal Reserve Chair Jerome H. Powell speech at the Jackson Hole Economic Policy Symposium: The Economic Outlook
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A Message from CoinDesk
Our Bitcoin for Advisors event is back for the second year to equip investment advisors with the tools to best understand how bitcoin, ethereum and other digital assets can successfully impact their clients' portfolios.
CoinDesk works with the leading investment professionals in crypto, blockchain and traditional markets including Tyrone Ross, Morgen Rochard and Adam Pokornicky to design a series of keynotes, interactive roundtables and priority-driven workshops that are relevant, valuable and actionable for the advisor community.
Join us for the first time in person at Bitcoin for Advisors on Oct. 6 to connect with over 300 investment advisors who are leading the way toward the future of investing. For accredited advisors on an application basis. Register today.
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ICYMI
In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:
Bitcoin Options Expiry, Altcoins Breakout, Tiny Oklahoma-Based Bank With Big Crypto Plans
"First Mover" dives into today's top stories and the crypto markets as a $2 billion bitcoin options expiration nears. CoinDesk's markets reporter Damanick Dantes also takes a look at Cardano and Avalanche and what's behind their surge. Plus, Vast Bank CEO Brad Scrivner on the small Oklahoma-based bank's big move into crypto.
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A Message from CoinDesk
Introducing Crypto for Advisors, a weekly newsletter built specifically for financial advisors (FAs) and registered investment advisors (RIAs).
Crypto for Advisors, delivered every Thursday, is designed to inform and educate financial professionals who seek to incorporate this rapidly moving asset class into their work. Subscribe to Crypto for Advisors today.
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Latest Headlines
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How Bitcoiners Should Watch the Fed's Jackson Hole Symposium
Fed Chair Jerome Powell is expected to address whether the U.S. central bank will taper its $120 billion-a-month of bond purchases.
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2 New Bills Ask CFTC to Clarify Crypto Regulation, Prevent Price Manipulation
Crypto-friendly congressman Darren Soto (D-Fla.) is the sponsor of both bills.
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DeFi Protocol Tranchess Surpasses $1B Total Value Locked in Two Months
The project has also been rising quickly in the rankings over at DeFi Llama.
- India Could Launch CBDC Trials Later This Year, According to Central Bank Governor: Report
Deputy Governor T. Rabi Sankar has previously said that a CBDC would protect citizens from the volatility of cryptocurrency.
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Binance Removes Norwegian Krone Trading Pairs, Payment Options
The announcement extends Binance's updates and changes to its offering to tackle regulatory challenges.
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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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