The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. - Price Point: Bitcoin has managed to regain the $20,000 level, remaining steady during the recent crash of fiat currencies against the U.S. dollar. Some analysts are predicting the cryptocurrency will decouple from stocks.
- Market Moves: Short-bitcoin investment products assets under management rose to $172 million last week, the highest on record, prompting some profit-taking with the first outflow in seven weeks totaling $5.1 million.
- Chart of the Day: The U.S. longer-duration Treasury notes now offer 4% yield, which makes risky assets look less attractive to investors.
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Bitcoin (BTC) regained ground Tuesday as equities remained weak, with the S&P 500 and Nasdaq closing down Monday. Some analysts are saying bitcoin has perhaps decoupled from broader financial markets that are on the downside, even if only briefly. The U.K.'s pound recovered somewhat, as investors digested statements from the Bank of England. Bitcoin, after hitting lows of $18,500 over the weekend, is now trading above $20,000. |
A 24-hour bitcoin price chart. (CoinDesk) |
Over the last 24 hours, the world's largest cryptocurrency by market value is up 6%, according to CoinDesk data. "Bitcoin's recent bounce came a bit out of the blue and is reinforcing the decorrelation to equities we have seen very recently," said Florian Giovannacci, head of trading at Covario AG. "It was helped a bit by a weaker dollar, but for me it shows the strong demand for BTC under $20k," Giovannacci added. "This drop of correlation needs to be confirmed before speaking about decoupling." Unus sed leo (LEO), which is issued by iFinex, the parent company of crypto exchange Bitfinex, was up 7% on the day and is up 16% year to date. Matteo Bottacini, an analyst at Crypto Finance AG, said the year-to-date performance is "a result of great tokenomics." Uniswap (UNI) rallied by 17% on the day alongside gains for other altcoins. In the news, crypto exchange FTX won the bidding war to buy the assets of bankrupt crypto broker Voyager Digital, Voyager said in a press release late Monday. FTX was bidding against Wave Financial, a digital-asset investment firm. And, financial-services firm Galaxy Digital has teamed up with Chainlink Labs to bring crypto pricing data to blockchains. |
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Crypto Fund Inflows Totaled $8.3M Last Week: CoinShares |
Weekly crypto asset flows (CoinShares) |
Digital-asset investment products witnessed inflows of $8.3 million last week, signaling investors' appetite for digital assets continues to be tepid, according to data from CoinShares. Short-bitcoin investment products assets under management rose to $172 million, the highest on record, prompting some profit-taking with the first outflow in seven weeks totaling $5.1 million. Investors dipped into ethereum, which saw $7 million in inflows last week, the first week of net inflows for the token after the Ethereum blockchain's software update called the Merge and following four weeks of outflows. The recent launch of a short-ethereum investment product saw minor inflows of $1.1 million. |
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From crypto autodidacts to student blockchain clubs and even university PhD programs, we're witnessing a sea change as the emerging technology of blockchain becomes more popular and the masses seek to understand, program, operate and use it. Follow us all week as we track the changing education opportunities in blockchain, crypto and Web3. Introducing Education Week: How to Learn About Web3 Technology moves fast. How will we keep up? Autodidacts, Welcome! Universities may teach blockchain but the crypto community will always embrace the self-taught. |
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Biggest Gainers Biggest Losers |
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 Market Index is a broad-market index of digital assets, weighted by market capitalization. A full description of the methodology is here. |
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US Long Bonds Offer 4% Yield |
This table shows yields on short- and long-duration U.S. Treasury notes. (Investing.com) |
- The U.S. longer-duration Treasury notes now offer 4% yield. That has massive implications for both traditional and crypto markets.
- The 4% yield on the 10-year note makes equities less attractive. Meanwhile, investors who poured money into the dollar-pegged stablecoins early this year, may now liquidate their holdings and switch to the relatively risk-free Treasurys.
- Stablecoins are risky compared with the Treasurys and may soon fall under the regulatory hammer.
- Recently, U.S. Securities and Exchange Commission Chairman Gary Gensler reiterated that stablecoins need more regulation.
- Meanwhile, a New York court asked Tether, the company behind the world's largest stablecoin tether (USDT) to prove 1-to-1 backing of its dollar-pegged cryptocurrency.
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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. - Mauricio Di Bartolomeo, co-founder and chief strategy officer, Ledn
- Glen Goodman, crypto consultant, eToro
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The Investing in Digital Enterprises and Assets Summit reveals the most scalable and fastest-growing market opportunities in blockchain, digital assets, Web3 and the metaverse for traditional asset managers and institutional investors. Learn directly from the founders and developers pioneering breakthrough innovations that will drive large-scale adoption. Use code FM_20 for 20% off the General Pass. Register now. |
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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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Bitcoin Regains $20K, Bucking the Swoon in Stocks