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 appeared unaffected by the news of the Bank of England announcing its biggest interest rate rise in 27 years. The pound dropped against the dollar. Market Moves: Omkar Godbole looks at a rare signal hinting bitcoin could be at market bottom and why this might be the best time to add exposure to the cryptocurrency. Chart of The Day: The ether-bitcoin ratiobreaks 8-month bearish trendline. Also, check out our Market Wrap newsletter which drops today, and every weekday, at 5 PM EST. This end of day recap, written by Glenn Williams, covers all the most important things that happened in crypto markets. Sign up to receive Market Wrap here. |
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There hasn’t been a lot of exciting news this week for bitcoin (BTC) – a possible explanation for its six-day losing streak through Wednesday. But it’s not falling out of bed, either. Over the course of the slide, the price of the notoriously volatile cryptocurrency has only lost about 4%. BTC appeared unaffected by the news that the Bank of England (BOE) raised key interest rates by half a percentage point on Thursday, amid concern U.K. inflation will be over 10% next year. The bank raised its key rate to 1.75% from 1.25%, the largest single step in more than a quarter-century. The sterling dropped heavily against the dollar following the statement. |
British Pound/U.S. Dollar (TradingView) |
Ether (ETH) was also trading down 3% on the day while other altcoins were all mostly in the red. Exceptions included Tezos, Fantom and NEAR Protocol which were all up by 2% over the last 24 hours. In other news, asset management giant BlackRock has partnered with the publicly traded crypto exchange Coinbase to make crypto directly available to institutional investors. Mutual customers of Coinbase and BlackRock’s investment management platform, Aladdin, will have access to crypto trading, custody, prime brokerage and reporting capabilities, according to a blog post Thursday. Saylor puts full focus on bitcoin MicroStrategy (MSTR) stock was up nearly 15% on Wednesday, after news broke the prior evening that Michael Saylor is stepping down as CEO to become executive chairman with a sole focus on the company’s bitcoin strategy. A new report from blockchain analytics company Chainalysis estimates that $2 billion worth of crypto has been siphoned out of cross-chain bridges this year alone, which includes this week's $190 million Nomad bridge exploit. Developers behind Solana blockchain are saying the closed-source Slope wallet may be responsible for the ongoing exploit this week that has resulted in millions of dollars’ worth of crypto tokens being stolen from more than 9,000 hot wallets. A crypto warning for Turkey Finally check out this opinion piece from Burak Tamac, senior researcher at CryptoQuant, and economist Erkan Oz on lessons from the Turkish government’s hasty attempt to regulate cryptocurrencies. The authors believe that the government’s views on crypto is a restriction on freedom, and is not only ethically and constitutionally wrong but also would worsen the country’s capital outflow problem rather than solving it. |
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Rare Signal Hinting at Bitcoin Price Bottom Emerges |
By Omkar Godbole Predicting a bear market bottom is like catching a falling knife. Even so, traders often attempt to predict one based on how the price behaved relative to critical indicators during previous bear runs. The assumption here is that history will repeat itself. One such rare signal has emerged, suggesting bitcoin's decline may be flattening and now is the best time to add exposure to the cryptocurrency. The bitcoin mining difficulty ribbon, comprising short and long-duration simple moving averages on the mining difficulty, has compressed for the first time in over a year, indicating miner capitulation. The previous bear markets, including the one seen in 2014, ended with the ribbon compression, data provided by analytics firm Glassnode show. "The bitcoin ribbon data set has historically proven to be an optimal entry point indicator and I believe this time it will show its predictive power again," Markus Thielen, chief investment officer at British Virgin Islands-based IDEG Asset Management (IDEG), said in an email. "We are also entering the 18-months pre-bitcoin-halving period (Sep '22) - a time window where bitcoin prices tended to boom out." Miner capitulation occurs when those responsible for minting coins shut down operations, resulting in a decline in the hashrate and mining difficulty. That reduces the selling pressure, allowing for price stability and an eventual bull revival. Miners often sell coins mined to fund operational costs, adding to bearish pressures in the market. |
The ribbon includes 9-, 14-, 25-, 40-, 60-, 90-, 128- and 200-day simple moving averages on mining difficulty, a measure of how difficult it is to mine a block and verify transactions in bitcoin's blockchain. Recently several miners have capitulated to stay solvent. Mining difficulty is adjusted every two weeks. The number of participants in the mining network and their total mining power determines whether the difficulty is adjusted lower or higher. Read the full story here. |
Chart of The Day by Omkar Godbole: ETH/BTC's Breaks 8-Month Bearish Trendline |
| The ether-bitcoin (ETH/BTC) ratio's breakout indicates the eight-month bear market has ended and suggests continued ether outperformance ahead. |
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With nearly a decade-long track record of being the world’s largest digital currency asset manager, Grayscale is an industry leader for secure and regulated exposure to crypto. Grayscale Digital Large Cap Fund (Symbol: GDLC) is designed to capture the market capitalization weighted performance of some of the largest and most liquid digital assets. As with all of Grayscale’s publicly-traded funds, investors can access the fund directly through brokerage or retirement accounts they already have - the same way they would for other asset classes like stocks and bonds. Simply type GDLC into an investment account, such as in Fidelity or Robinhood, to get started today. Learn more about Grayscale’s publicly-traded products here. Investing involves risks and the possible loss of principal. |
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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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Join 2,000+ attendees from the NEAR and Web3 ecosystem along with hundreds of hackers in the stunning coastal city of Lisbon for NEARCON, “Building Beyond the Hype,” September 11-14. Part conference, part festival, and part IRL hackathon, for 3.5 days NEARCON will bring together authors, economists, artists, politicians, builders, multi-chain collaborators, and makers across many industries. NEARCON will be a welcoming, collaborative atmosphere for all. Promocode COINDESK for 35% off tickets! |
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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. Charles Allen, CEO, BTCS IncAlex Zinder, global head, Ledger Enterprises |
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Where innovators, changemakers, investors and leaders present their best ideas for investing in the future of the Web 3, digital assets, blockchain and crypto ecosystems. 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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