ALSO: The crypto volatility meltdown continues
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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. In today's newsletter: |
- Price Point: Bitcoin fell to $18,600 ahead of the Consumer Price Index data release Thursday, with some traders predicting a further drop downwards after the data is released.
- Market Moves: Crypto exchange Huobi's HT token rose to a four-month high of $7.60 early Thursday as Tron founder Justin Sun called for "empowering" the exchange's token.
- Chart of the Day: The crypto volatility meltdown continues.
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Bitcoin (BTC) was trading down 3% to about $18,600 ahead of the Consumer Price Index (CPI) data release on Thursday. The Labor Department is expected to report that the CPI rose 6.5% in September, up from August's 6.3% increase, according to FactSet. A sudden price drop – in the span of about 30 minutes – took the bitcoin price down by $500, to about $18,575, right around 6:30 am ET (10:30 UTC). |
Bitcoin dipped around $500 in the 30 minutes pictured. (Messari) |
"I believe we are likely to continue with further pressures around these levels or even if leverage builds up see further lower levels," said Laurent Kssis, crypto trading adviser at CEC Capital. Equities extended declines as they were under pressure ahead of the highly anticipated U.S. inflation data. European stocks fell for a seventh day, their longest losing streak since February 2018.
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CPI data could push BTC to break out of its recent range
Bitcoin is performing similarly to 2018, when in the period of March-November bitcoin's price remained at around $6,000 and observers thought the market had already bottomed, according to Pablo Jodar, a crypto analyst at investment firm GenTwo.
"Soon after, it dropped another 50% to $3,000," Jodar said. "It stayed at that level for several months until the bull market started again."
"If the CPI data is strong, which I think it will be, bitcoin will see another drop to $17,000," he said.
Conversely, any decrease in the CPI's growth could generate a big rally for the crypto market.
Ether (ETH) fell 2% to about $1,270. Apart from Huobi's token, which gained 10% over the last 24 hours, the rest of the crypto market was trading in the red.
Yuan notes (moerschy/Pixabay) |
China's central bank digital currency reached the milestone of 100 billion yuan ($13.9 billion) in total transactions from December 2019 to the end of August amid a slowdown in uptake, South China Morning Post (SCMP) reported Thursday, citing People's Bank of China (PBOC) data. Ether reached a "post-Merge milestone" this week as it became deflationary for the first time since the Ethereum blockchain switched to proof-of-stake, crypto exchange Coinbase said in a report Thursday. And October has become the worst-ever month for crypto-related crimes with over $718 million in overall losses, and that's with two more weeks to go before the month ends. Chainalysis on Thursday noted that the amount was stolen from several decentralized finance (DeFi) protocols across 11 different attacks. Also: |
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Huobi Token Surges 75% as Tron Founder Justin Sun Calls for "Empowering" the Exchange Token |
Investors who bargain-hunted Huobi token (HT) at 21-month lows a week ago may be laughing their way to the bank. The native coin of China's once-popular crypto exchange Huobi Global has rallied over 70% since Monday, reaching a four-month high of $7.60, according to data sourced from charting platform TradingView. Considering the broader market lull and lingering macroeconomic uncertainty, that's an impressive performance. And it has put HT on the pedestal as the best-performing above $1 billion market cap cryptocurrency of the past seven days. The token has decoupled from the broader market, seemingly on optimism that it will play a central role in a plan to revitalize the Huobi exchange. "We know that the key to revitalizing Huobi is to empower HT, and HT can only thrive on Huobi," Tron founder Justin Sun tweeted Monday, announcing his membership on Huobi's global advisory board. "In the future, there will be many big moves around HT, including brand upgrade, heavy empowerment, and business cooperation." |
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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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Crypto Volatility Meltdown Continues |
BitMEX's ether volatility index has dropped to its lowest level since 2018. Source: BitMEX, Decentral Park Capital |
- "The volatility index shows pressure is building up," Decentral's researcher Lewis Harland said. " The more it builds, the more it needs to be released and reset (either direction)."
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Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9 a.m. U.S. Eastern time. |
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- Michael Hsu, OCC, acting comptroller of the currency
- Hany Rashwan, co-founder, 21Shares
- Bob Iaccino, co-founder, Path Trading Partners
- Valerie Dahiya, managing partner, Perkins Coie LLP
- Samir Ghosh, head of product, FalconX
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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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