The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
|
|
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 was trading down slightly at about $20,500 on Thursday, while meme token dogecoin surged 12% on news that billionaire Elon Musk is getting close to completing his purchase of Twitter. Crypto traders, meanwhile, are watching for a U.S. government report on how the economy fared in the third quarter.
- In the News: Sam Bankman-Fried, CEO of crypto exchange FTX, is working to build a stablecoin, according to a report.
- Market Moves: Traders see this week's crypto rally as lasting longer than the previous move up in August.
|
|
|
Bitcoin (BTC) was trading at around $20,500 on Thursday, down slightly, while popular meme token dogecoin (DOGE) took the center stage as billionaire Elon Musk's purchase of Twitter (TWTR) approached the finish line. Dogecoin was up 12% over the past 24 hours. Musk has been a major supporter of dogecoin, although he is being sued by a dogecoin investor for allegedly running a pyramid scheme with the coin. Dogecoin's move up follows bitcoin's rally on Wednesday when it briefly touched the $21,000 mark, reaching its highest point in over a month. Ether also reached monthly highs.
Altcoins appeared to be outperforming bitcoin on Thursday with Cosmos' ATOM up 5% and Uniswap's UNI and Huobi's token each up by 3%. In traditional markets, European stocks slipped while traders prepared for another European Central Bank rate hike. U.S. futures wavered before the release of U.S gross domestic product figures for the third quarter. Meta Platforms' shares fell around 20% during off-hours trading after the Facebook parent registered a second consecutive quarterly revenue decline. |
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. |
FTX CEO Sam Bankman-Fried (Danny Nelson/CoinDesk) Cryptocurrency exchange FTX is working on creating a stablecoin, CEO Sam Bankman-Fried told The Big Whale in an interview. Further details weren't available on the website, which is behind a paywall. A stablecoin is a crypto token whose value is tied to that of another asset. FTX now offers margin trading that allows customers to use a basket of U.S. dollar stablecoins as collateral. The basket includes trueUSD (TUSD), USD coin (USDC), pax dollar (USDP), binance USD (BUSD) and HUSD. Rival exchange Binance started issuing Binance USD in 2019. |
|
|
Traders Say Latest Crypto Bounce Looks More Constructive Than August |
Bitcoin probes key resistance amid positive macro developments and a slowdown in miner selling. (TradingView) Risk assets seem to be breaking out bullishly, with bitcoin challenging its 100-day simple moving average (SMA) that aborted the August rally. The resistance at $20,882 could be convincingly toppled this time, as prominent traders think the latest market bounce is more long-lasting than the one seen two months ago. "It's a bit more constructive than August, as we're more removed from the Three Arrows Capital and Celsius and Terra events, and many more bitcoin miners have liquidated their position," Shiliang Tang, chief investment officer at crypto hedge fund LedgerPrime, said, referring to the collapses of three crypto entities. "So supply overhang in BTC should be less, and firms a bit more comfortable redeploying capital now that the dust has settled, and the Fed has gotten a few raises out of the way since," Tang added. Read the full story here. |
|
|
Biggest Gainers Biggest Losers |
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. |
- The upper chart shows the spread between yields on the 10-year and three-month Treasury notes, going back over 20 years. The lower table shows the timeline of the Federal Reserve's previous interest rate hike cycles.
- The yield spread has turned negative for the first time since March 2020, hinting at an economic recession ahead.
- The Fed's previous tightening cycles ended with the spread turning negative, as evident from the vertical lines on the upper chart.
- If history is a guide, the Fed could soon halt rate hikes, offering relief to cryptocurrencies.
|
|
|
Consensus is the world's largest, longest-running and most influential gathering of the crypto, blockchain and Web3 communities. Join us April 26-28 in Austin, Texas, to learn, grow and build alongside innovators, brands, creators, investors and more. Use code FM15 for 15% off your pass. Register now. |
|
|
Want to receive our 5 pm ET update? Subscribe to Market Wrap below! |
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. |
|
|
|
EmoticonEmoticon