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 Friday! Here's what you need to know today in crypto: |
- Bitcoin has dropped to a two-month low.
- Celsius is to hold a vote on its bankruptcy-escape plan after judicial approval.
- Ether futures ETFs are poised for U.S. approval, Bloomberg reported.
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CoinDesk Market Index (CMI): 1,128 −7.0%
Bitcoin (BTC): $26,389 −7.4%
Ether (ETC): $1,679 −5.9%
S&P 500 futures: 4,367.25 −0.4%
FTSE 100: 7,245.61 −0.9% |
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Treasury Yield 10 Years: 4.31% +0.0
Bitcoin (BTC) has dropped 7% over the past 24 hours, plunging to levels not seen since June as the digital-asset market witnessed one of the worst sell-offs this year. Crypto traders were hit with $1 billion worth of liquidations over the past 24 hours, according to Coinglass data. The world's largest cryptocurrency by market value was trading at around $26,400 at the time of writing, but briefly fell to $25,234 on Thursday. Altcoins performed slightly better with ether (ETH) losing 6% over the same time period and Solana's SOL losing around 5%. Traders say market structure and liquidations were a likely reason for the sudden drop instead of a singular fundamental catalyst. "We've seen BTC OI ramp up in position, with a bias to shorts," said Decentral Park Capital trader Lewis Harland, in a message to CoinDesk. "The break below $28,500 led to material volumes of longs being liquidated. This has been combined with spot selling ahead of the date (likely anticipating further delays)." |
Creditors of bankrupt crypto firm Celsius will hold a vote on the lender's plan to sell its assets to the Fahrenheit consortium, after a judge on Thursday approved disclosures that suggested creditors can expect to recover 67%-85% of holdings. Approval marks one of the final steps on Celsius' year-long march out of bankruptcy and the return of funds to customers, in a period which has seen widespread disruption in crypto markets and the arrest of former Chief Executive Officer Alex Mashinsky on fraud charges, which he has denied. Securities regulators are poised to approve ether futures ETFs for the U.S., Bloomberg reported on Thursday. Several firms have applied to list these exchange-traded funds, which would hold derivatives contracts tied to ether – rather than ether itself. But they need the U.S. Securities and Exchange Commission's blessing, something Bloomberg said might be imminent. There are already U.S. ETFs that hold crypto derivatives: bitcoin futures ETFs. The industry is anxiously awaiting word on whether ETFs that hold bitcoin itself, not derivatives, might also get approval. Wall Street giants like BlackRock are seeking to create those, too. |
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Market Insight: Funding Rates Tank |
Funding rates in bitcoin (BTC) perpetual futures listed worldwide crashed late Thursday after a sudden price slide put the recently popular short volatility bets at risk. Perpetuals are futures with no expiry with a funding rate mechanism that helps tether perpetual prices to the index price. A negative funding rate suggests the dominance of bearish short positions, with shorts paying longs to keep their bets open. Positive rates indicate otherwise. Funding rates on OKX, Deribit and Bybit crashed to -10% and more in annualized terms on Thursday, as bitcoin's average price tanked to $25,392, according to data source Velo. Bitcoin DVOL, the Deribit Implied Volatility Index gauging expected price turbulence over 30 days, jumped from an annualized 36% to 48.5%. |
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- The chart shows ether's dollar-denominated price on Binance and slippage or the difference between the price at which a trading order is executed and the price at which it was requested.
- On Thursday, max slippage or the highest daily slippage on a single market order surged to highest since September 2022.
- It shows worsening liquidity conditions in the market.
- Source: Hyblock Capital
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State of Crypto: Policy & Regulation |
It is now more important than ever to set industry standards and align on practical short-term and long-term objectives through pointed conversations with the best legal minds and Washington D.C.'s most important decision makers.
Join us at State of Crypto: Policy and Regulation on October 24 in Washington D.C. for an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy. Save 10% with code FM10. Learn more and register. |
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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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