The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Tuesday. Here's what's happening in crypto today: |
- Dogecoin surges 35% as Twitter switches to Shiba Inu logo.
- Binance's market share drops 16 percentage points in two weeks.
- Voyager-Binance.US legal fight must be resolved by April 13, court says.
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CoinDesk Market Index (CMI): 1,267 +1.2%
Bitcoin (BTC): $28,206 −0.2%
Ether (ETC): $1,860 +3.0%
S&P 500 futures: 4,164.75 +0.3%
FTSE 100: 7,676.15 +0.0%
Treasury Yield 10 Years: 3.43% −0.1 |
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Dogecoin (DOGE) surged more than 35% after Elon Musk's Twitter replaced the social-media platform's familiar blue bird atop its homepage with the cryptocurrency's iconic Shiba Inu dog logo. DOGE was trading at around 10 cents on Tuesday. Before Monday, its price last exceeded 10 cents in December, according to CoinDesk data. Musk has frequently touted DOGE, suggesting the meme coin may offer better payments functionality than bitcoin. Following the logo change, Musk tweeted out a cartoon image as his first public comment. |
Binance, the world's largest crypto exchange, has seen a sizable drop in market share after a U.S. regulator accused it of fraud and the exchange eliminated zero-fee trading for some trading pairs. Its market share of trading volume has sunk to 54% from 70% two weeks ago, according to data from research platform Kaiko. That's the lowest level since Nov. 5 and the lowest sustained market share since August, Kaiko said. In the U.S., crypto exchange Coinbase's market share fell to a weekly average of 49% from 60% during the first quarter, while Binance.US picked up the slack. Its market share rose to 24% from 8% during the quarter, Kaiko said. Voyager Digital and its creditors stand to lose $100 million if legal objections brought by the U.S. government aren't resolved by April 13, according to legal documents filed late Monday night. The bankrupt crypto lender is taking urgent legal action to let a $1 billion purchase by Binance.US go ahead, fearful that quibbles over the contractual drafting could see the exchange pull out. "Consummation of the plan by April 13 is necessary to preserve massive creditor value," a filing by Voyager's creditors stated. "The evidence is uncontroverted that, if the deal is not completed, Voyager's creditors will lose roughly $100 million in value." |
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Market Insight: Bitcoin's Positive Call |
Crypto options exchange Deribit's forward-looking bitcoin volatility index (DVOL) offers clues about the market's expectations for price turbulence over the next 30 days, just as the Chicago Board Option Exchange's volatility index, VIX, does for equities. A key difference has emerged this year. While the VIX continues to serve as Wall Street's fear gauge, rising during bouts of risk aversion, the DVOL has developed a positive correlation with the cryptocurrency's price. The 30-day correlation coefficient between bitcoin's price and the DVOL index flipped positive in early January and rose to a high of 0.85 last week. At press time, the coefficient was 0.72. That has made call options tied to bitcoin more attractive than ever, according to observers. "Since the start of 2023, bitcoin has displayed a strong spot/implied volatility regime of positive correlation. That has flipped 2022 on its head," Greg Magadini, director of derivatives and crypto data provider Amberdata, told CoinDesk. "It's been rewarding call buyers with directional spot gains and increasing volatility gains." |
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- The chart shows dogecoin has rallied to a four-month high, breaking out of a "Bollinger bands squeeze."
- Bollinger bands are volatility indicators placed two standard deviations above and below the price's 20-day moving average.
- A squeeze occurs when price volatility drops and Bollinger bands tighten. A subsequent breakout represents a volatility explosion, paving the way for an extended rally, as seen in late October.
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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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