May 26, 2022

The latest moves in crypto markets, in context

Was this newsletter forwarded to you? Sign up here.

Supported by

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: Altcoins took a hit in price this morning, with ether dropping $1,000 in an hour.
Market Moves: Bitcoin dominance over altcoins reached a seven-month high. The last time it reached this level was in October 2021.

Feature: We take a look at data showing how USD coin (USDC) has become the stablecoin of choice on the Ethereum blockchain, not the larger tether (USDT).

This newsletter was produced by Parikshit Mishra. Let us know what you think of First Mover by replying to this email.

Price Point

Bitcoin (BTC) was down 1.7% over the last 24 hours and is struggling to hold $30,000. At press time, the world's largest cryptocurrency by market capitalization was trading around $29,000.

Ethereum took a bigger hit and was trading down 6.5% on the day, around $1,800.

"With BTC's price not catching a bid to the upside the negativity comes out," said Charles Storry, head of growth at Phuture, a crypto index platform.

"The narrative around BTC and crypto, in general, goes from a futuristic store of value to a scam," said Storry. "This brings down the price till investor sentiment changes and we move back to the upside."

Altcoins appear to be suffering more than BTC, with Avalanche (AVAX) leading the drop in price. AVAX was down 12% on the day, Cosmos' ATOM down by 10.5% and Solana's SOL by 8%.

In traditional markets, Wall Street had a positive trading session overnight, but has since been mixed. Bonds gained ground as traders weighed the Fed's minutes that were less hawkish than expected. News from China overnight sent Asian markets and European futures lower.

Bitcoin (BTC)

See the latest price here

Ether (ETH)

See the latest price here

Market Moves

Despite BTC's market capitalization declining to $552 billion, bitcoin dominance over altcoins is at a seven-month high. BTC dominance – the measure of how much of the total market cap of crypto is comprised of bitcoin – has increased to 45%, the highest the metric has gone up to since October 2021.

Bitcoin Dominance Chart, 1D (TradingView)

Although, signals for BTC are still not showing signs of recovery, according to Laurent Kssis, Head of Europe at Hashdex.

"We may see further downward trends in altcoins as there are still strong signs BTC is to remain below $30,000," said Kssis, in an interview with CoinDesk.

Kssis noted that ether's drop in price Thursday was particularly significant (ether dropped by $1,000 at around 9 a.m. GMT).

"We saw large sellers dominating the market in ether this morning which was fuelled by losing interest. This is a clear absence of a bullish volatility currently witnessed in the crypto market," said Kssis.

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.

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.

Crypto Prices

The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours:

Biggest Gainers

There are no gainers in CoinDesk 20 today.

Biggest Losers

Asset	Ticker	Returns	DACS Sector
Cosmos	ATOM	−12.1%	Smart Contract Platform
Ethereum Classic	ETC	−10.0%	Smart Contract Platform
Solana	SOL	−9.7%	Smart Contract Platform

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.

Latest Headlines

Binance's Bahrain License Upgraded for More Crypto Services
Binance Bahrain was granted a preliminary license in December and full license in March.
Gaming DAO Merit Circle and YGG Caught in DAO Governance Strife
Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there's not been enough value-add by the gaming guild giant.
Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report
Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively
Solana, Dogecoin Tokens Dip as Futures Suggests Bearish Sentiment
Choppy trading in broader markets failed to temper a gradual dip in major cryptocurrencies, with some sliding as much as 8% in the past 24 hours.
After Armstrong Tweet, India's Crypto Policy Body Says No Contempt of Court Challenge vs. RBI
The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.
Portuguese Congress Rejects Two Bills Seeking to Tax Crypto
The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn't submitted a proposal so far.

iTrustCapital: Named Best Crypto IRA Platform 2022¹

Self-trade cryptocurrency, gold, and silver using your Traditional, Roth, or SEP IRA 24/7, anywhere in the US. We're putting the power to buy and sell assets in your retirement account back into your hands.

- ZERO Monthly or Annual Fees. Zero Sign Up Fees
- 24/7 Self-trading From Your Dashboard
- The Power to Set Conditions For Automated Transactions.
- Tax-Advantaged IRAs²

Get Started: $100 Funding Reward³

1. Wealth & Finance International's FinTechAwards 2022
2. Some taxes and conditions may apply
3. See Terms & Conditions here

FEATURE:

Crypto Whales Ditched Tether for USDC After Stablecoin Panic

By Krisztian Sandor

There has been a change in the thinking of the large crypto investors known as whales. Data shows USD coin (USDC) has become the stablecoin of choice on the Ethereum blockchain, not the larger tether (USDT).

In crypto, whales are the biggest cryptocurrency holders – institutional investors, exchanges, deep-pocketed individuals – who are capable of moving large amounts of tokens and swaying market prices. Analysts closely watch their activity to spot trends and anticipate large price movements.

Data from CoinMetrics, a blockchain analysis firm, shows wallet addresses on the Ethereum blockchain that hold more than $1 million USDC surpassed the number of wallets that hold USDT, still the largest stablecoin by market cap.

"In the current market condition, a lot of people view USDC as the safer, preferred stablecoin," Edward Moya, trading platform Oanda's senior market analyst, told CoinDesk.

USDC, the second-largest stablecoin, has been gaining market share since the once-$18 billion UST stablecoin collapsed and USDT's peg to the dollar wobbled.

CoinMetrics looked at blockchain data since May 9, when UST lost its peg to the U.S. dollar. The firm identified 147 Ethereum wallet addresses that increased their USDC balance by at least $1 million while decreasing their USDT balance by at least $1 million. Among them, there were 23 that added at least $10 million USDC and disposed of $10 million USDT. Many of these addresses are exchanges, custodial services or decentralized finance protocols, the report added.

The report also said USDC's advantage over Tether's USDT in so-called free float supply – the number of tokens that investors hold – on the Ethereum blockchain hit an all-time high on Tuesday among all holder groups.

"This likely reflects the fact that only large holders are generally privileged to redeem USDT and mint new USDC to capture an arbitrage," Kyle Waters, analyst at CoinMetrics, wrote in the report. "But it might also be the case that some large accounts are de-risking their holdings, turning to the perceived assurances of USDC's monthly attestations and full-reserve backing."

Read the full story: Crypto Whales Ditched Tether for USDC After Stablecoin Panic

What to watch:

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.

JJ Kinahan, chief market strategist, tastytrade Inc.
Chris Blec, decentralized finance researcher and analyst
Dana Gibber, CEO and co-founder, Flowcarbon

Consensus 2022, the must-attend crypto and blockchain experience of the year, is heading to Austin, Texas, from June 9-12. This is the only festival showcasing and celebrating all sides of the blockchain and crypto ecosystems and their wide-reaching effect on commerce, culture and communities. Register now for the lowest price.

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.