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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Happy Wednesday! Here's what you need to know today in crypto: |
- Bitcoin traders are taking a defensive stance ahead of the Fed's monetary policy meeting later today.
- The judge overseeing the SEC's case against Binance declined to approve a temporary restraining order freezing assets.
- Bitcoin supply on crypto exchanges drops to lowest level since 2018.
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CoinDesk Market Index (CMI): 1,125 −0.8%
Bitcoin (BTC): $25,960 −0.5%
Ether (ETC): $1,746 −0.1%
S&P 500 futures: 4,380.00 +0.2%
FTSE 100: 7,639.66 +0.6%
Treasury Yield 10 Years: 3.84% +0.1 |
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Bitcoin (BTC) traders are taking a defensive stance ahead of Wednesday's meeting of U.S. Federal Reserve's Federal Open Market Commitee (FOMC) meeting, with most expecting a "hawkish" pause, i.e., the central bank leaving interest rates unchanged while keeping the door open for future increases. The Fed is set to announce its interest rate decision on Wednesday at 2 p.m. ET (18:00 UTC). Puts – or bearish bets – tied to bitcoin are trading pricier than bullish calls heading into the Fed meeting, according to options risk reversals data tracked by Singapore-based crypto trading giant QCP Capital. Traders often consider put bias as showing a nervous mood in the market. Bitcoin is little-changed over the past 24 hours at around $25,900. Top performers amongst digital assets on Wednesday were Binance's BNB token, which gained 5%, and Chainlink (LINK) which was up almost 3% on the day. |
The federal judge overseeing the U.S. Securities and Exchange Commission's (SEC) case against Binance and Binance.US declined to approve a temporary restraining order freezing the U.S. trading platform's assets. The decision allows Binance.US to continue doing business while hashing out restrictions with the regulator. If the two sides can agree on limits, Judge Amy Berman Jackson of the D.C. District Court said "there's absolutely no need" for a restraining order. In the meantime, the judge ordered Binance.US to provide a list of its business expenses to the court, and ordered the parties to continue negotiating. A status update is due by close of business Thursday. Bitcoin supply on crypto exchanges has slipped to its lowest levels since February 2018, data from on-chain analytics firm Santiment shows. The decline has been particularly considerable since the SEC's lawsuits against Coinbase and Binance earlier this month, with 6.4% of supply leaving exchanges in the past week. Supply has been steadily falling since 2020, when it peaked in the depths of the then-bear market, the data shows. This action suggests traders and investors have been continually taking their bitcoin off exchanges in favor of self-custody, said Santiment. |
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Market Insight: Investors Flee Altcoins |
The dominance of bitcoin (BTC), ether (ETH) and stablecoins in the crypto market surged to its highest level since February 2021 as investors fled from smaller tokens following last week's U.S. regulatory clampdown. The combined market capitalization of the two largest digital assets and stablecoins comprise 80.5% of the current total cryptocurrency market value of around $1 trillion, digital asset research firm K33 Research noted in a report Tuesday. Altcoins – an umbrella term for cryptocurrencies other than bitcoin, ether and stablecoins – suffered a dramatic sell-off last week after the SEC deemed multiple tokens as securities in lawsuits against crypto exchanges Binance, Binance.US and Coinbase. Top 10 crypto assets such as Binance's BNB, Cardano's ADA and Solana's SOL – all tagged as securities in the lawsuits – lost as much as 30% of their value over the week. |
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- Charts show the spread between the Federal Reserve's benchmark fed funds rate and inflation metrics – the headline Consumer Price Index (CPI) and the core CPI. (edited)
- The spreads have recently turned positive.
- In other words, the fed funds rate adjusted for inflation has turned positive, denting the appeal of zero-yielding assets like gold and bitcoin, according to Singapore-based QCP Capital.
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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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