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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 and ether continued their pattern of trading in a narrow range with no big catalysts either way on the horizon this week.
- In the News: The price of digital fan tokens representing different national teams are booming ahead of next month's FIFA World Cup.
- Market Moves: The Near Foundation, which supports the Near blockchain, is urging the winding down of the blockchain's native token, USN.
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Bitcoin (BTC) and ether (ETH) continued to trade in a tight trading range Tuesday with traders expecting prices to remain unchanged for another week as there are no potentially risky events or catalysts on the horizon. Traders are focusing on next week's Federal Reserve rate decision where the Fed is expected to hike by 75 basis points again. After that, traders are expecting the consolidation phase for cryptocurrencies to remain. "Currently, I am leaning towards excluding a rally to the upside, and I expect the consolidation phase to stay," Matteo Bottacini, a trader at Crypto Finance AG, wrote in a morning note. "I wouldn't be surprised if we again test May/June lows for both BTC and ETH." Bitcoin reached lows of $18,900 in May, and ether dropped to lows of $880 in mid-June. In traditional markets, U.S. stock futures were little changed after the Dow Jones Industrial Average reached its highest closing level in six weeks on Monday. Bitcoin market share hits two-year high |
According to data from Kaiko, bitcoin's market share of trade volume has hit its highest level in over two years. The share of bitcoin volume versus volume for altcoin markets aggregated across 14 centralized exchanges climbed past 50% for the first time since 2020, according to a research report by Kaiko. "Bitcoin dominance has increased sharply since April, which suggests that sentiment has turned predominantly bearish after the collapse of Terra's ecosystem and the wave of high-profile bankruptcies over the summer," the report stated. |
Fan tokens of national football teams have chalked out double-digit gains in seven days. (CoinGecko) The 2022 FIFA World Cup, one of the world's biggest sporting spectacles, is less than a month away. The event, reputed to be a net positive for the global economy, seems to have brought excitement to the so-called soccer fan tokens – cryptocurrencies that allow holders to access a variety of fan-related perks offered by soccer teams. In the past seven days, fan tokens of the Peruvian national football team (FPFT), Spain's national team (SNFT) and Brazil's national team (BFT) have rallied 29%, 17% and 12%, respectively, according to data source CoinGecko. Fan tokens of Turkish and Argentinian teams have risen by 10% and 9%. |
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Near Foundation Urges Winding Down of USN Stablecoin, Sets Aside $40M | The Near Foundation, an organization supporting the blockchain of the same name, urged the winding down of the USN stablecoin and announced it's setting aside $40 million to fund a "USN Protection Programme." USN is a Near-native stablecoin, which was created and launched by Decentral Bank (DCB) in April, according to a statement from the Near Foundation on Monday. The foundation said that USN is an independently operated community-run project and that it had no direct financial assistance from the Near Foundation. According to the statement, DCB recently contacted the Near Foundation to advise it that USN had become undercollateralized, a condition that is "inherent" with algorithmic stablecoins, especially in "extreme market conditions." DCB further confirmed, according to the foundation, that there was also double minting of USN, which contributed to the undercollateralization. "The Near Foundation is recommending that USN should wind down. The Foundation encourages DCB to do this at the earliest opportunity in a responsible and professional manner that protects all of its users," Near wrote.
Read the full story here. |
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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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- The S&P 500's weekly chart has flipped bullish in a positive sign for risky assets, including cryptocurrencies.
- The chart tweeted by FS Insight's Matt Cerminaro shows a bullish divergence of the 14-week relative strength index (RSI), a popular technical indicator.
- Bullish RSI divergence occurs when the price makes a lower low, but the RSI makes a higher low, indicating a trend reversal higher.
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