BITO Pushes Limits

The latest moves in crypto markets, in context

Edited by Omkar Godbole

October 22, 2021

Sponsored by

Bitcoin (BTC)

-3.7% $63,200

Ether (ETH)

-4.8% $4,110

(Price data as of October 22 @ 11:30 UTC)

If you were forwarded this newsletter and would like to receive it, sign up here.

Good morning, Here's what's happening this morning:

Market Moves: BITO Pushes Limits

Technician's Take: Bull Market Has Plenty Steam Left

And 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. Today's show will feature guests:

– Omkar Godbole

Biggest Movers

These are the biggest movers in the CoinDesk 20 over the past 24 hours:

Top Gainers:

Top Losers:

Litecoin (LTC): -4.2%

The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.

A message from ByBit

Get a 10 USDT Coupon
When You Deposit Any Amount
Not part of the Bybit community yet? From now until Nov. 18, 2021, 10AM UTC, join us and get a 10 USDT coupon when you make your first ever deposit. You'll also get additional bonuses of up to $3,000 when you deposit at least $500 worth of eligible assets. T&Cs apply.
More than three million traders have experienced Next Level Trading. What about you?

Market Moves

by Omkar Godbole

Bitcoin held ascending trendline support at $63,200 on Friday as investors looked forward to the first-day performance of Valkyrie Investment's bitcoin futures exchange-traded fund (ETF).

Demand for the ProShares Bitcoin Strategy ETF (stock ticker BITO) launched Tuesday has been quite strong. The ETF has amassed $1.2 billion worth of assets in the first three days and could soon hit the CME's position limits.

At the end of Thursday, the ETF held 2,133 contracts of November futures and 1,679 contacts due to expire on Oct. 29. The CME allows a single entity to own a maximum of 2,000 contracts in the front-month futures while capping the overall positions across different maturities at 5,000 contracts.

Positions limits are enforced to keep a single entity from establishing unilateral control over the market and vary from market to market.

For now, these limits would force ProShares' fund to hold more longer-dated futures contracts, raising the risk of tracking error – the difference between bitcoin's performance and actual returns from the fund. However, the situation is expected to ease as more ETFs go live.

"Position limits are less of a concern as more ETFs enter the space, because there will be large holders of these contracts, and it will be harder for one entity to control the market," Leah Wald, Valkyrie, CEO of Valkyrie Investments, said during an interview with CNBC on Thursday.

Read the full story here:

CME Takes Over as Largest Bitcoin Futures Exchange as BITO Pushes Limits

Technician's Take

by Omkar Godbole

Bitcoin Bull Market in Early Stages

Bitcoin's Mayer Multiple, which measures the spread between bitcoin’s price and the 200-day moving average (MA), suggests the cryptocurrency has plenty scope to extend its current rally.

Bitcoin's daily chart with the Mayer Multiple (Source: TradingView)

While the Mayer Multiple has risen to a five-month high of 1.39, it is well below the 2.4 threshold, hat has historically marked the final leg of the bull market.

Read the full story here:

Bitcoin Bull Market Has Plenty Steam Left, Indicators Suggest

A Message from Chainalysis

Looking for your ticket #ToTheMoon? 🚀

Market Intel by Chainalysis - the blockchain data platform - arms you with the most complete on-chain dataset for crypto research and investment decisions.

Whether you’re an Asset Manager searching for a signal...

A Quant Analyst interested in spotting market trends...

Or a VC looking to fund the next emerging crypto player...

Market Intel will help you reach your goals, utilizing 53 metrics across 10 categories—like whales, exchanges, liquidity, and supply.

To get started, head to markets.chainalysis.com.

BOLO

Be on the lookout for the following events today:

ICYMI

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Ex-CFTC Chairman Chris Giancarlo on Bitcoin Futures ETFs in the US, Bitcoin Holds Steady Above $64K While Ethereum Eyes Record High

"First Mover" hosts discuss the top stories moving the crypto markets: more bitcoin futures ETFs are set to start trading today and Monday. Ex-U.S. Commodity Futures Trading Commission Chairman Chris Giancarlo shares insights into bitcoin ETF regulation. Jacobi Asset Management wins approval to launch a physically backed bitcoin ETF in Guernsey. Jacobi Asset Management CEO Jamie Khurshid shares his insights behind the approval and his analysis on crypto markets in general. Plus, Clinique is expanding into Metaverse with its first NFT collection available for rewards members. Clinique Head of Metaverse Projects Cathy Hackl joins the discussion.

A Message from CoinDesk

What will 2022 bring? Crypto 2022 is CoinDesk’s ambitious effort to scope out what’s next. This week it's Policy Week, a week devoted to exploring the complex ways governments are interacting with the cryptocurrency ecosystem, and how policy decisions or lack thereof will affect the year ahead. Read more here.

Latest Headlines

The retail giant is offering bitcoin through 200 of its Coinstar kiosks in a tie-up with crypto ATM firm Coinme. We made sure it’s real.

Worldcoin, Now Valued at $1B, Has Grand Plans to Get You to Gaze Into the Orb

A16z and Coinbase Ventures are betting big billions of people will line up to gaze into “The Orb” in exchange for crypto. Over 130,000 already have.

Crypto options market indicates that some traders have become more bullish on ether’s price next year.

Midwest Tungsten Service will take bids on a 14 inch cube via OpenSea NFT.

The Wall Street bank is trying to pinpoint the fuel behind bitcoin’s latest rally.

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.

First Mover

A newsletter from CoinDesk

Copyright © 2021 CoinDesk, All rights reserved.

250 Park Avenue South New York, NY 10003, USA

Manage your newsletter subscriptions | Unsubscribe from all CoinDesk email