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 was trading slightly up on Monday after hitting lows over the weekend on recession fears.
- Market Moves: The Grayscale Bitcoin Trust has sunk to new lows as institutional interest wanes.
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Bitcoin (BTC) was trading up slightly on the day after reaching lows of $18,635 over the weekend as concerns over a potential global recession triggered by higher interest rates and energy shortages heightened. The British pound crashed to a record low against the U.S. dollar on Monday as fears grew about the stability of U.K. government finances. British government officials said that the Bank of England may need to step in with an emergency rate increase to calm market nerves about the government's economic plans. Ether (ETH), the second-largest cryptocurrency by market capitalization, was down 1% on the day to about $1,300 after hitting lows of $1,200 over the weekend. Altcoins also struggled Monday with Algoorand's ALGO down 7% and Chainlink's LINK down by 3.5%. |
Bitcoin price chart over past week. (CoinDesk) |
In the news, Bank of America said in a research report that cryptocurrencies continue to act as risk assets. The report said that positive signs of an eventual recovery include stablecoin inflows. Last week, those inflows jumped 58% from the previous week to $490 million, the report said, as "real-world use cases like payments/remittances are adopted and real-world data providers like decentralized oracle networks increase functionality." And the Reserve Bank of Australia is expecting to complete its central bank digital currency (CBDC) pilot by mid-2023, according to a white paper published on Monday. The purpose of the pilot is to "explore innovative use cases" that could be supported by the issuance of a CBDC, a media release said. |
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Grayscale Bitcoin Trust Hits Lows on Less Institutional Interest |
The so-called Grayscale discount has sunk to a record low. (YCharts) |
The Grayscale Bitcoin Trust (GBTC) discount, a key crypto market metric, has sunk to a record low as institutional interest in Greyscale wanes. The trust, often referred to by its stock-trading symbol GBTC, is a type of investment vehicle that allows U.S. investors to gain exposure to price movements of BTC. On Monday, GBTC was trading at a 35.18% discount compared with the value of its underlying assets. GBTC began trading at a discount after the first North American bitcoin exchange-traded fund in Canada in February 2021 launched. Grayscale, whose parent company Digital Currency Group owns CoinDesk, attempted to convert its fund into an ETF in June 2021, but the U.S. Securities and Exchange Commission rejected the application. Grayscale filed a lawsuit against the regulatory agency shortly after that. |
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With nearly a decade-long track record of being the world's largest digital currency asset manager, Grayscale is an industry leader in offering investors secure and regulated access to crypto. Grayscale's suite of 14 publicly traded products helps investors gain exposure to crypto while removing the operational burdens of buying, storing, and safeguarding cryptocurrencies directly. Many of Grayscale's products are SEC-reporting, which means exceeding standard reporting practices and offering heightened disclosures to provide investors with more information when making investment decisions. Investors can access our products directly via a ticker symbol in their existing investment or retirement accounts, allowing them to diversify their portfolios into crypto with ease. Learn more about Grayscale's publicly-traded products here and search for a Grayscale ticker symbol to get started today. Investing involves risks and the possible loss of principal. |
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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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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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