Bitcoin Eyes Continued Recovery as Dollar Slides

Double Bottom on Monero

The latest moves in crypto markets, in context Edited by Omkar Godbole January 13, 2022 Sponsored by     If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning, and welcome to First Mover. Here's what's happening this morning: Market Moves: Bitcoin eyes continued recovery as the U.S. Dollar Index (DXY) slides. Technician's Take: Monero price chart reveals "double bottom." And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. Today's show will feature guests: David Chaum, founder, Elixxir James Burnham, partner, Jones Day Market Moves Bitcoin looked poised for a continued recovery rally early Thursday, with the U.S. Dollar Index falling to a two-month low of 94.72.    "The greenback often softens after the first rate hike, which is increasingly looking like it will happen in March," Marc Chandler, chief market strategist at Bannockburn Global Forex, said in his daily analysis blog. A weakening dollar is considered bullish for bitcoin and asset prices, in general.    The DXY, which tracks the greenback's value against major currencies, has penetrated the 9-month bullish trendline, signaling scope for an extended drop.    That said, bitcoin traders need to keep an eye on reasons for continued DXY weakness, if any. The greenback could lose further ground on potential pricing out of the Federal Reserve's recent hawkish bias, which would be positive for bitcoin.   However, dollar weakness borne out of coordinated global tightening may not help bitcoin that much.   So far, the likes of European Central Bank, Swiss National Bank, and Bank of Japan have been in a wait-and-watch mode. With inflation already elevated across the globe, these central banks may turn hawkish if the Fed tightening weighs over their respective currencies. Currency depreciation is inflationary.    CME bitcoin futures premium remains low Bitcoin's entity-adjusted dormancy flow (Glassnode) While bitcoin has bounced in the wake of the U.S. inflation data released Wednesday, there are few signs of renewed institutional commitment to the cryptocurrency, as evident from the still-depressed futures premium on the Chicago Mercantile Exchange (CME).   The annualized rolling three-month basis or premium on the CME remains below 4%, according to data tracked by the crypto derivatives research firm Skew. The CME is considered a proxy for institutional activity.     Meme tokens rally   Meme coins were among the biggest 24-hour gainers at press time, with shiba inu (SHIB) trading 7% higher. The price bump in the dog-themed cryptocurrency came after rumors of a listing on the trading platform Robinhood did the rounds on Twitter.   "Shiba Inu Robinhood listing said to come as early as Feb," a tweet by business news handle ZeroHedge read. Robinhood did not return requests for comment.   Read more: Shiba Inu Surges 16% After Rumors of Robinhood Listing     A Message from Grayscale As the world's largest digital currency asset manager, Grayscale offers the world's largest Bitcoin investment vehicle, Grayscale® Bitcoin Trust (symbol: GBTC) -- a secure and convenient way for investors to gain exposure to Bitcoin right from their brokerage accounts.   In lieu of a spot Bitcoin ETF, GBTC is a great option for investors looking to diversify their portfolio into the most popular cryptocurrency. Access Grayscale® Bitcoin Trust by typing symbol: GBTC into your brokerage account. Learn more at https://grayscale.com/gbtc/.  Crypto Prices Bitcoin (BTC) See the latest price here Ether (ETH)  See the latest price here The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: Biggest Gainers: Asset Ticker Returns Sector Dogecoin DOGE +12.9% Currency Solana SOL +7.9% Smart Contract Platform Stellar XLM +6.6% Smart Contract Platform Biggest Losers:  Asset Ticker Returns Sector Internet Computer ICP −2.1% Computing Algorand ALGO −1.9% Smart Contract Platform Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.  A Message from Brave Brave Wallet is the first secure crypto wallet built natively in a web3 browser. No extensions required.   Store, manage, and grow your portfolio, get NFT & multi-chain support. Even connect other wallets and DApps. All from the security of the best privacy browser on the market.    Whether you're new to crypto, or a seasoned pro, it's time to ditch those risky extensions. It's time to switch to Brave Wallet.  Download Brave today, and click the Wallet icon to get started. Latest Headlines Funds Lost to DeFi Hacks More Than Doubled to $1.3B in 2021: Certik BIS, Swiss National Bank, SIX Exchange Complete Wholesale CBDC Trial Cardano Jumps 7% After Coinbase Fixes Withdrawal Bug Shiba Inu Surges 16% After Rumors of Robinhood Listing Visa Partners With ConsenSys to Help Bridge CBDCs With Traditional Finance China-Backed BSN to Release Infrastructure This Month to Support NFTs: Report House of Lords Committee Sees 'No Convincing Case' for UK CBDC New Year, New Money New Money, a new series by CoinDesk, explores what it means to be part of the new "creator economy." In the talk show hosted by Spencer Dinwiddie and Solo Ceesay, we hear from pro athletes, celebrities and social media influencers who are on the cutting edge of interacting directly with fans and developing new ways to generate revenue from their own celebrity. Learn more here. Technician's Take By Omkar Godbole Double bottom on Monero  ADA's 4-hour chart with relative strength index (Source: TradingView)  The privacy-focused monero (XMR) token has again bounced from a long-held support around $175, hinting at a potential "double bottom" formation – when the price twice dips to the same or similar level, creating a pattern on the chart that resembles the letter "W."   A move above the Jan. 1 high of $254 is needed to confirm a double bottom breakout, a bullish reversal pattern.   ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   US Economy Sees Highest Inflation in 4 Decades, Is Bitcoin Still an Inflation Hedge? "First Mover" hosts speak to PwC Global Crypto Leader Henri Arslanian for his analysis on the crypto markets as the U.S. December consumer price indexes increased 7% from a year ago, the highest level in four decades, and he shares his top crypto prediction for 2022. Plus, former SEC Branch Chief Lisa Bragança shares insights into the current state and outlook for SEC crypto regulation. 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.  First Mover A newsletter from CoinDesk Were you forwarded this newsletter? Sign up here.  Copyright © 2021 CoinDesk, All rights reserved.  250 Park Avenue South New York, NY 10003, USA Manage your newsletter subscriptions  |  Unsubscribe from all CoinDesk email