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

The latest moves in crypto markets, in context

February 10, 2022

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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

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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:

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 20 is a ranking of the largest digital assets by volume on trusted exchanges.

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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.

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