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 Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is on assignment.) - Price Point: Bitcoin slips to about $19,200 on fears of higher interest rates.
- Market Moves: Cosmos's ATOM token gains on the hope of more uses for the Cosmos blockchain – bucking the overall bearish mood that appears to have taken hold in crypto markets following last week's Merge on the Ethereum blockchain. Omkar Godbole reports.
- Chart of the Day: Ether's supply growth has slowed dramatically since the Ethereum blockchain's Merge last week.
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Bitcoin (BTC) was lower at around $19,200, as traders in traditional markets prepared for a big interest-rate hike by the Federal Reserve. The U.S. central bank's two-day, closed-door meeting is set to start Tuesday and culminate Wednesday with a statement at 2 p.m. ET (18:00 UTC). For much of this year, bitcoin, the largest cryptocurrency, has traded in sync with U.S. stocks, which have come under pressure from the Fed's efforts to tighten monetary policy in the face of soaring consumer prices. In traditional markets, European equity indexes fell and U.S. stock futures pointed to a drop when New York exchanges open. "Given the aggressive stance that the Fed has taken in terms of raising interest rates, I think that we are probably in the middle innings of a recession," Adam Sze, head of digital assets at Global X ETFs, told CoinDesk TV on Monday. Ether (ETH), the second-largest cryptocurrency, was changing hands at about $1,350, still well off last month's high above $2,000, despite all indications that last week's historic Merge on the Ethereum blockchain went smoothly. Citigroup analysts estimate that the change will reduce ETH issuance by 90%. In the news, the cryptocurrency market maker Wintermute was hacked for $160 million, and the failed crypto lender Voyager Digital asked a bankruptcy court in New York for an order to unwind a loan it made to Alameda Research, a trading firm. |
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Cosmos' ATOM Gains, Bucks Post-Merge Lull on Outlook for New Uses, Better Security |
Investors starved for bullish catalysts seem to be parking their money in ATOM, the native coin of Cosmos Hub, the blockchain acting as an intermediary between all independent blockchains created within the Cosmos network. Observers say they are doing so in expectation that a Sept. 26 conference will see the announcement of additional uses for the token and better security for the network. ATOM has risen 10% to about $15.30 since Thursday, bucking the broader market weakness caused by the "sell-the-fact" response to the successful implementation of Ethereum's technological upgrade, the Merge, according to CoinDesk data. The token's ether and bitcoin-denominated prices have increased by 32% and 14%, respectively. |
Daily chart for Cosmos' ATOM token. (TradingView) |
ATOM has risen 10% to $15.3 since Thursday, bucking the broader market weakness caused by the "sell-the-fact" response to the successful implementation of Ethereum's technological upgrade, the Merge, according to CoinDesk data. The token's ether and bitcoin-denominated prices have increased by 32% and 14%, respectively. "The market is looking for assets with a catalyst right now and ATOM happens to have one, which is why it is outperforming," said Katie Talati, director of research at Arca. "Cosmos is holding its annual conference next week, where it is expected to release a tokenomics white paper detailing more use cases for ATOM." "Some potential announcements could relate to the release of interchain security, a feature that allows projects to rely on the Cosmos basechain for their security, which might increase the usage and staking of ATOM," Talati said. Read the full story here. |
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Ether's Supply Growth Has Slowed Drastically Since Merge |
- Ether's supply has increased by 3,688 ETH since the Merge, which took effect on Thursday, according to data source Ultra Sound Money.
- The transition to the proof-of-stake consensus mechanism of verifying transactions has reduced the issuance by 95%.
- Had Ethereum continued to use a proof-of-work consensus mechanism of verifying transactions, the supply would have increased by over 65,000 ETH.
- The reduced supply might help ether absorb macroeconomic shocks better than bitcoin.
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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 Market Index is a broad-market index of digital assets, weighted by market capitalization. A full description of the methodology is here. |
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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. - Marek Olszewski, co-founder, Celo Foundation.
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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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