The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
|
|
Happy Wednesday! Here's what you need to know today in crypto: |
- Bitcoin gains 8% on the day and bitcoin cash is up 21% following EDX Markets exchange offering trading for both assets.
- GBTC's share price continued to soar on Tuesday.
- Invesco reapplies for a spot bitcoin ETF.
|
|
|
CoinDesk Market Index (CMI): 1,217 +6.9%
Bitcoin (BTC): $28,895 +7.9%
Ether (ETC): $1,818 +5.2%
S&P 500 futures: 4,430.75 −0.1%
FTSE 100: 7,558.22 −0.1%
Treasury Yield 10 Years: 3.73% −0.0 |
|
|
Bitcoin, the world's largest cryptocurrency by market value, rallied over the past 24 hours after various traditional finance firms announced moves into the crypto market, indicating bullish sentiment. Bitcoin jumped 8% on the day, pushing it to $28,800, after trading flat for the last few days at around $26,800. Altcoins also surged, with bitcoin cash (BCH) rallying over 20% in the same time period. Banking giant Deutsche Bank announced Tuesday that it had applied for a digital asset custody license in Germany and crypto exchange EDX Markets (which is backed by the likes of Citadel Securities and Fidelity,) started offering trading for BTC, ether (ETH), litecoin and bitcoin cash. Just last week, BlackRock filed for a spot BTC exchange-traded fund (ETF) too. "This move towards crypto by major financial institutions reflects a significant shift in their stance on the industry's potential, especially given the timing," Mark L. Newton, head of technical strategy at FundStrat, said in a note. |
Grayscale Bitcoin Trust's (GBTC) share price continued to soar on Tuesday on optimism about converting the fund into an ETF after BlackRock filed for a spot bitcoin ETF. The shares rose past $16 on secondary markets for the first time since May 10, according to TradingView data, and have gained some 24% since Thursday, the day of BlackRock's filing. The discount on GBTC's share price relative to net asset value narrowed to as little as 33% Tuesday morning, according to CoinDesk's calculation. This is the lowest level since last September, and lower than the 34% it recorded in early March. Investment management company Invesco, which has $1.4 trillion assets under management, reapplied for a spot bitcoin ETF. In 2021, Invesco first filed for a bitcoin ETF in conjunction with Galaxy Digital. It also filed for a bitcoin futures ETF, but dropped the effort in October 2021 after a futures ETF by ProShares was approved and began trading first. In its filing, Invesco argued that the lack of a spot bitcoin ETF pushes investors toward riskier alternatives, as seen in insolvencies like FTX, Celsius Network, BlockFi and Voyager Digital Holdings. Invesco also emphasized the need for investor protection, saying that approval for such a spot bitcoin ETF hinges on a surveillance sharing agreement with a significant, regulated market, not on the regulation of the spot bitcoin market itself. |
|
|
Market Insight: BTC to $30K? |
Bitcoin has rallied nearly 10% this week, pushing through a trendline characterizing a two-month downtrend and the 50-day simple moving average of the price. The so-called trendline breakout has now opened doors for the cryptocurrency to head toward $30,400, according to FxPro's senior market analyst Alex Kuptsikevich. "In terms of technical analysis, this is an important bullish signal as the price closed above its 50-day moving average and above previous local highs in a sharp move on Tuesday. The move confirms the breakdown of the downtrend that has been in place for the past two months," Kuptsikevich said in an email. |
|
|
- The chart shows annualized rolling three-month basis in bitcoin futures listed on the Chicago Mercantile Exchange and offshore exchanges since January. Basis refers to the spread between prices in futures and spot markets.
- The CME basis or premium has jumped to a yearly high of 12%, indicating a bullish action on the global derivatives giant.
- Basis on offshore exchanges lags at 5.88%.
|
|
|
By the way, want to claim DESK, our social token, which is a mechanism for returning the value of engagement directly to the users who create it? Read this newsletter every day and earn. |
|
|
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