The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
|
|
Happy Friday! Here's what you need to know today in crypto: |
- A technical chart pattern shows altcoin season may be on the way.
- Crypto exchange Bittrex settles registration suit with the SEC.
- Coinbase's new blockchain draws muted response on its first day.
|
|
|
CoinDesk Market Index (CMI): 1,225 −0.4%
Bitcoin (BTC): $29,362 −0.5%
Ether (ETC): $1,847 −0.3%
S&P 500: 4,468.83 +0.0%
Gold: $1,950 +1.9%
Nikkei 225: 32,473.65 +0.8% |
|
|
A bullish inverse head-and-shoulders price pattern is building in the combined market capitalization of altcoins. The term "altcoin" is short for "alternative coin" and, in this case, refers to cryptocurrencies other than bitcoin, ether and top stablecoins. A potential completion of the pattern would signal "alt season," or outperformance of alternative cryptocurrencies relative to bitcoin and ether, according to technical analysis by Josh Olszewicz, a crypto trader and former researcher at Valkyrie Investments. Olszewicz analyzed the charts of altcoins, excluding ether and prominent stablecoins. The inverse head-and-shoulders, one of the most trusted bullish technical analysis patterns in the market, forms when an asset chalks out three price troughs, with the middle one being the lowest. A breakout or a bearish-to-bullish trend change is confirmed once prices rise above the trendline (neckline), connecting the peaks between the lows. |
Crypto exchange Bittrex on Thursday settled charges that it offered U.S. investors access to unregistered securities, agreeing to pay a $24 million fine within two months of filing a liquidation plan for the exchange. The SEC sued Bittrex, which filed for bankruptcy in May, earlier this year, saying it simultaneously operated a securities exchange, broker and clearinghouse without registering itself as such. The SEC has brought similar charges against crypto exchanges Coinbase (COIN) and Binance.US. The SEC further alleged that Bittrex directed crypto issuers to delete public statements that could suggest their tokens might violate securities law. Inflows to Coinbase's new Base blockchain were muted on the first day after its official launch, failing to meet the expectations of some crypto traders that massive amounts of capital would flow in. Just over $10 million was transferred to the new blockchain, according to data in a Dune Analytics dashboard, with just over 15,000 new users and 40% fewer transactions than Wednesday. Wallet analysis shows most Base users transferred between $500 to $1,000 worth of ether on average. |
|
|
Market Insight: Bitcoin Keeps Failing at $30K |
After a quick surge to start the year resulted in a near doubling of its price, bitcoin has traded mostly in a tight range for the past few months, struggling to hold above $30,000 for a sustained period of time. Since April, and in particular since mid-June, bitcoin's has reversed abruptly anytime it has attempted a breakout above $30,000. The most dramatic occasion came on July 13 when the cryptocurrency surged to a one-year high above $31,800 following a favorable court ruling for XRP in the SEC's case against Ripple, the firm that sells XRP. Within hours, bitcoin gave up not just the $31,000 level, but also the $30,000 one, and within days slid below $29,000. The most recent example came this week, when the price climbed throughout the day on Tuesday to top $30,100 late that afternoon. Before news stories about the rally could even be published, bitcoin slipped back more than 1% to about $29,700. Its price at press time was $29,400. Analysts are pointing to a number of reasons behind the rallies struggling to hold, one of them being the wait for a spot bitcoin exchange-traded fund. |
|
|
Source: Crane, Wall Street Journal |
- The chart shows the average yield on 100 of the largest money-market funds has jumped to over 5%, reaching its highest level since 2007.
- The attractive yield offered by the so-called cash-equivalents means macro traders have less incentive to add exposure to risky assets like tech stocks and cryptocurrencies.
|
|
|
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. |
|
|
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. |
|
|
|
Bitcoin Has a $30K Problem