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. In today’s newsletter: Price Point: Bitcoin approaches 2022 lows, sliding below $19K for the first time in months, as fears of hawkish Federal Reserve monetary policy continue to haunt traditional markets. Market Moves: Even in a bear market, bitcoin’s share of the overall crypto market capitalization is shrinking.
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Bitcoin (BTC) was trading below the $19,000 threshold on Wednesday, down 6%, approaching this year’s lows. The world’s largest cryptocurrency by market value lost $1,000 in around four hours. There was a mixed mood in markets. Futures tied to all three major U.S. stock indexes ticked up after two days of losses and European stocks were lower as the energy crisis prevailed in the region with skyrocketing natural gas prices. Florian Giovannacci, head of trading at Covario AG, expects bitcoin’s weakness to continue in the mid to short term as he sees the energy crisis to be the leading topic for the next few months. “Right now it is really hard for investors to estimate the full impact on inflation and economic activity in general,” said Giovannacci in an interview with CoinDesk. “A lot of uncertainty is creating a very risk-off sentiment, where the first assets to be hit are high risk assets such as crypto.” According to data from CoinShares, bitcoin investment products saw redemptions totalling $11 million last week, representing a fourth consecutive week of outflows. However, short-bitcoin investment products saw a record $18 million inflows last week. Ether (ETH), which had a considerably better day than bitcoin Tuesday, appeared to be making up the difference on Wednesday: It was trading down 10% over the last 24 hours. The token for Ethereum Classic, seen as a possible destination after Ethereum’s Merge for crypto miners who want to stay on a proof-of-work blockchain, tumbled 17% over the past 24 hours. The move almost completely wiped out big gains notched earlier in the week. In the news, senior executive departures from Pantera Capital, a major cryptocurrency hedge fund and venture capital investor with $4.7 billion in assets, are wider than previously reported, according to people familiar with the matter. Curve Finance, a prominent stablecoin swap application is nearing the launch of its native stablecoin, dubbed crvUSD, as per the initial code released by its developers on Tuesday. |
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By Lyllah Ledesma, Omkar Godbole
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Bitcoin dominance reaches lowest point since January With investors’ eyes on ether as the Merge approaches, bitcoin’s dominance has dropped to levels not seen since January. Bitcoin's dominance rate, or the leading cryptocurrency's share in the broader market, declined to 39.22% early Wednesday, the lowest since January 16, according to charting platform TradingView. BTC's dominance could bounce, as pointed out by Scott Melker, popularly known as The Wolf Of All Streets. The question is whether the impending rise in BTC's dominance will stem from a market-wide collapse or a continued ether outperformance. |
ETH vs BTC reaches new high The price ratio between ether and bitcoin - tickerized as ETHBTC – is currently trading at 0.0839, a new yearly high. Last year, ether traded above the current level versus bitcoin on nine occasions, emphasizing that ether is trading at rare highs versus bitcoin, according to Arcane Research. “This shows the strength of the Merge narrative in the market,” said Arcane. |
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers There are no gainers in CoinDesk 20 today. Biggest Losers |
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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. |
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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. Laura Shin, "The Cryptopians" author, host of "Unchained" podcast Noah Hamman, CEO, AdvisorShares Jeremy Sheridan, VP of regulatory affairs, Prime Trust |
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Which institutes are most impacting the blockchain world? Tell us your thoughts in a five-minute survey. We're welcoming responses until Sept. 7. Take the survey here. |
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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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