First Mover: Bitcoin Plunges Below $55K Amid Weak Institutional Inflows, Profit Taking

PLUS: Story from Markets Bitcoin Finding Support at $54K After Failing to Hold Above $60K

March 15, 2021 Everything you need to make sense of the crypto markets and beyond Sponsored By: By the CoinDesk Markets Team Edited by Lawrence Lewitinn If you were forwarded this newsletter and would like to receive it, sign up here.  Bitcoin (BTC) -6.3%  $56,428 Ether (ETH)  -4.9%   $1,782 (Price data as of Mar. 15  @12:00 UTC) Good morning. Here's what we're writing about: Market Moves by Omkar Godbole: Bitcoin Plunges Below $55K Amid Weak Institutional Inflows, Profit Taking Technician's Take by Damanick Dantes: Bitcoin Finding Support at $54K After Failing to Hold Above $60K Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker, at 9 a.m. U.S. Eastern time. Today the show will feature guests: Kevin O'Leary, chairman of O'Shares Investments and "Shark Tank" co-host Jonathan Dunsmoor, founder and principal at Dunsmoor Law Metakovan, cofounder of Metapurse and buyer of Beeple's $69.3 million "Everydays: The First 5,000 Days" NFT. MARKET MOVES by OMKAR GODBOLE Bitcoin Plunges Below $55K Amid Weak Institutional Inflows, Profit Taking Bitcoin is losing altitude on Monday amid weak buying pressure from institutional investors.    The crypto market leader fell as low as $54,790.33 Monday morning, having reached a record high of $61,556.59 on Saturday, according to CoinDesk 20 data. At press time, a small bounce to $55,786 was seen.   "The failure to establish a foothold above $60,000 and the decline is likely the result of the flat-to-negative Coinbase premium – a major bellwether for institutional demand," according to Ki Young Ju, CEO of blockchain analytics firm CryptoQuant.    CryptoQuant's Coinbase premium indicator measures the spread between Coinbase's BTC/USD pair and Binance's BTC/USDT pair. A positive spread implies increased demand from high-net-worth investors and institutions, as these entities prefer to trade via regulated exchanges with over-the-counter desks such as Coinbase.   The premium was negative over the weekend when bitcoin broke above $60,000 and remains marginally positive at press time, implying weak institutional demand.  Coinbase premium compared to Binance (CryptoQuant) The spread has been significantly higher previously as prices surged above the major psychological levels of $20,000, $30,000, $40,000, and $50,000. Bitcoin has charted a six-fold rally over the past six months mainly on the back of increased institutional participation   "I think [we'll see bitcoin] short-term bearish or going sideways until there's significant institutional spot inflows in Coinbase," Ki said.   "Whale addresses holding 1,000 or more bitcoin have been selling, this does not mean the bull run is over, it just means that profit taking is happening," according to market analyst Lark Davis.   Meanwhile, Patrick Heusser, head of trading at the Swiss-based Crypto Finance AG, says the latest pullback is healthy, as the breakout above $60,000 was mainly driven by leveraged traders. "The perpetual futures funding rate and futures premium was super stretched," Heusser told CoinDesk.    And Joel Kruger, currency strategist at LMAX Digital, told CoinDesk an overextended market has pulled back on the back of more reports of a possible cryptocurrency ban in India.   Bitcoin may suffer a deeper drawdown in the short-run if the U.S. bond yields continue to rise, destabilizing stock markets. Technical studies such as the weekly chart relative strength index are also warning of a notable price pullback.   However, the broader outlook remains bullish with the likes of Diginex CEO Richard Byworth predicting a rally to $175,000 by the end of 2021. --Omkar Godbole   Read the original story here: Bitcoin Plunges Below $55K Amid Weak Institutional Inflows, Profit Taking SPONSORED BY NEXO Your digital assets deserve a savings account in their BEST INTEREST. 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Bitcoin daily chart has lower support around the 50-day volume weighted moving average (Source: TradingView) Initial support is around $54,000 on intra-day charts. On the daily chart, the uptrend remains intact, with lower support around $45,000. Upside momentum is slowing, defined by lower highs on the 14-day relative strength index (RSI). --Damanick Dantes Original story found here: Bitcoin Finding Support at $54K After Failing to Hold Above $60K: Technical Analysis BIGGEST MOVERS These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Algorand (ALGO): +12.0%   Losers:  Ethereum Classic (ETC): -8.0% Bitcoin Cash (BCH): -7.1% EOS (EOS): -6.6%   The CoinDesk 20 filters from the larger universe of thousands of cryptocurrencies and digital assets to define a core group of 20. These assets constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. ICYMI In case you missed it, here is Friday's episode of First Mover:   Beeple on his $69.3 M NFT Sale; Ethereum's Future The digital artist known as "Beeple" discusses the record-smashing $69.3 M sale of his NFT at Christie's; Ethereum Co-Founder Anthony Di Iorio on Ethereum's evolution; and Hunter Merghart of Bitstamp with the latest news from one of the largest and oldest crypto exchanges in the industry. SPONSORED BY NEM GROUP Symbol from NEM, the next-generation public blockchain, launched March 15th, marking a milestone in NEM's vision for a new economic and digital system. Boasting enterprise-grade security and programmability, Symbol smooths business friction and increases the flow of data  to supercharge the creation, exchange and protection of assets. NEM Group - comprising NEM Software, NEM Trading, and NEM Ventures - nurtures a strong and healthy ecosystem to shape the development and future of blockchain technology for generations to come. LATEST HEADLINES   Indian Government Officials Give Mixed Signals Over Planned Crypto Legislation As one government official says the planned legislation would completely ban cryptocurrency use, another stresses that is not the case.     Diginex Anticipating Bitcoin Rise to $175K by End of 2021, CEO Says "Things are going to get a lot more heated from here," said Richard Byworth.     Oakland Athletics Baseball Team Accepting Bitcoin for Private Suites "The price of a season suite may fluctuate depending on when it's purchased, which adds to the excitement," said the A's president.     OSL, Hong Kong's First Regulated Crypto Exchange, Commences Live Trading The launch of live trading comes after the exchange was granted Securities and Futures Commission licenses last August. Now Robots Are Making Digital Art NFTs A new collaboration with Andrea Bonaceto sees Sophia the robot put "her" interpretation on the NFT artworks.   Introducing Coin Toss, debating the future of money on CoinDesk TV   From the world leader in crypto news and events, the all-new CoinDesk TV covers the rapidly evolving world of digital finance and its role in the global economy.   Hosted by CoinDesk Podcasts Managing Editor Adam B. Levine, Coin Toss sets the stage for debate between guests with opposing views on policy and regulation, privacy and data integrity, fraud and crime and more.   Watch Coin Toss Wednesdays at 10:30 a.m. ET on YouTube or CoinDesk.com. 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.  ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. 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