Bitcoin Rises for Fifth Day, Ahead of U.S. Inflation Report ~ CEOM Coin

The latest moves in crypto markets, in context

February 10, 2022

Supported 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: Crypto traders prep for U.S. inflation report as bitcoin rises for a fifth straight day. Price-chart indicators show the cryptocurrency is still far from the overbought zone and may run further, according to analysts.
Featured story: A new play-to-earn mobile game on Flow lets players into the Olympics action from the ongoing Winter Games in Beijing.

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:

Brandon Buchanan, founder and managing partner, Meta4 Capital
Matthieu Jobbé-Duval, head of financial products, Dapper Labs

Today's newsletter was edited by Bradley Keoun and produced by Parikshit Mishra.

Market Moves

By Shaurya Malwa

Bitcoin broke above resistance $40,000 and continues to surge. (TradingView)

Crypto markets extended gains on Thursday with prices of bitcoin and ether rising by a marginal 3% in the past 24 hours.

Major cryptocurrencies saw little movement as XRP increased 3.3%, while Shiba Inu's SHIB gained 6%.

The move showcased a recovery in the markets, which started last weekend, after a plunge last month. Total market capitalization crossed $2.12 trillion, adding 2.1% in the past 24 hours. Altcoins outpaced the growth of major cryptos which led to a decrease in the Bitcoin dominance index by 0.4% to 39.6%.

Crypto traders were awaiting the U.S. government's latest report on inflation, with economists estimating that the Consumer Price Index rose 7.3% in January – the fastest in four decades. Bitcoin is seen by many investors as a hedge against inflation, so if prices are accelerating, it might mean the Federal Reserve will move faster to tighten monetary policy, seen as a negative for the cryptocurrency's price.

"Another reading above here could spook the markets once more," Craig Erlam, senior market analyst for the foreign-exchange brokerage Oanda, wrote early Thursday.

Some analysts said bitcoin saw institutional demand as prices recovered from under $35,000 to over $45,000 in the past week.

"The benchmark cryptocurrency continues to be in demand after strengthening above the 50-day moving average," FxPro analyst Alex Kuptsikevich said in an email to CoinDesk. "This confirms the breaking of the downtrend of the previous three months."

Moving averages (MA) are price-chart indicators that use past prices to calculate and identify the trend direction of an asset. Bitcoin crossed its 50-day MA earlier this week at the $42,500 price level and stayed above it since. Continuation of this price movement would imply strength and set bitcoin for a move towards the $49,000 level.

Full Story: Crypto Markets Remain Flat as Bitcoin Sees Institutional Buying

The future of finance is inherently digital.

As digital assets, technology, and finance continue to merge, we believe the resulting digital economy offers a more equitable, accessible, and inclusive financial future.

Grayscale® Future of Finance (symbol: GFOF) is an ETF that seeks to invest in the companies and technologies that are integral in evolving the financial system.

Backed by an index that combines the expertise of Grayscale, a leader in the digital asset ecosystem, and Bloomberg, a trusted authority in finance, GFOF seeks to define the "future of finance" in one thematic fund.

What better way to plan for tomorrow than by investing in the future?

Search GFOF in your brokerage account to start investing. Learn more here.

Investing involves risks and the possible loss of principal. GFOF is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser. For a copy of the latest prospectus, head to the GFOF landing page. Risks: Future of Finance companies rely heavily on the success of the digital currency industry, and other developing technologies that seek to disrupt or displace established financial institutions.

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
Ethereum Classic	ETC	+6.2%	Smart Contract Platform
Bitcoin Cash	BCH	+5.0%	Currency
XRP	XRP	+4.8%	Currency

Biggest Losers:

Asset	Ticker	Returns	Sector
Cosmos	ATOM	−1.4%	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.

It's never been easier to earn interest on Bitcoin and Tether with BitMEX EARN. Enjoy up to 10% APR on Tether and 4% on Bitcoin, fully backed by the BitMEX Insurance Fund.

With new products, reliable security, and responsive customer service, there's never been a better time to join BitMEX. Start earning interest today by subscribing to EARN here.

BitMEX products and services are not available to US Persons and in other specified jurisdictions.

Latest Headlines

The OGs of NFTs get animated with the biggest stars from around the world in this entertaining new series from CoinDesk TV. Tune in Tuesdays in February at 4 p.m. ET.

FLOW Rises After Olympics Deal

By Shaurya Malwa

Flow's FLOW tokens surged 11% in the past 24 hours as a new, officially licensed mobile game showcasing the ongoing Beijing 2022 Olympics Winter Games was launched on the network this week.

As per a press release, nWayPlay's "Olympic Games Jam: Beijing 2022" is a play-to-earn mobile game that was created in collaboration with the International Olympic Committee. Players compete in a series of arcade-styled winter sports to earn Olympic NFT digital pins as they compete for the gold.

FLOW tokens surged as high as $9 on Wednesday from the previous day's $6.97 level. Prices have been in a steady uptrend since last week's $5.50 level. However, FLOW saw resistance at $8.50 as prices tumbled to $7.94 in early Asian hours.

NFTs, short for non-fungible tokens, are blockchain-based representations of tangible or intangible objects. The sector grew from a niche in 2019 to a multi-billion dollar giant today, with players from both crypto and traditional companies issuing or using NFTs.

Full Story: FLOW Tokens Surge on Beijing 2022 Olympics Winter Games License

ICYMI

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Who Are the Couple That Got Arrested for Alleged Conspiracy to Launder $4.5B in Stolen Bitcoin? Could UK Soon Get Its Own CBDC?

"First Mover" hosts speak to CoinDesk Managing Editor for Global Policy and Regulation Nikhilesh De for his insights into the arrest of two New Yorkers who are charged with conspiring to launder $4.5 billion in bitcoin stolen from Bitfinex. California pro-bitcoin congressional candidate Aarika Rhodes (D) discusses the role of cryptocurrency in her campaign. Kene Ezeji-Okoye, co-founder and president of Millicent, shares his firm's plan for CBDC research in the U.K. Plus, crypto market insights from Don Kaufman, co-founder, TheoTrade.

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.