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| The latest moves in crypto markets, in context March 11, 2022 Supported by Was this newsletter forwarded to you? Sign up here.
Good morning, and welcome to First Mover. Here’s what’s happening this morning: Market Moves: Ether-bitcoin implied volatility spread suggests investors are focused on macro factors. Bitcoin shorts surge on Bitfinex. Featured stories: U.S. yield curve signals recession.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: David Gan, founder and general partner, OP Crypto Pavel Kravchenko, co-founder, Distributed LabToday’s newsletter was edited by Omkar Godbole and produced by Parikshit Mishra.
Market Moves By Omkar Godbole Major cryptocurrencies traded in familiar price ranges while traditional risk assets picked up a bid early Friday after Russian President Vladimir Putin reportedly said there were some "positive shifts" in talks between Russia and Ukraine.
While bitcoin bounced 1.3% to nearly $40,000, it remained locked in a six-week triangle pattern identified by Jan. 24 and Feb. 24 lows and Feb. 10 and March 2 highs. Ether, the second-largest cryptocurrency, also traded similarly.
The spread between the six-month ether and bitcoin implied volatilities fell to a two-year low of 13%, perhaps indicating that the cryptocurrencies' fortunes are more strongly tied to each other than before. Implied volatility refers to investors' expectations for price turbulence over a specific period. Ether-bitcoin six-month implied volatility spread (Source: Skew) Perhaps, the common force driving the two could be the next week's Federal Reserve meeting. The central bank is expected to lift borrowing costs by 25 basis points and offer more clues on when and how it plans to shrink its balance sheet.
The long-short ratio on Bitfinex, one of the top 10 crypto exchanges by trading volumes, tanked nearly 70% to the lowest since July 2021, as the number of bearish bets surged.
Some investors took it as a warning of an impending drop, while others anticipated a potential short squeeze that would send bitcoin higher. Bitcoin's long-short ratio on Bitfinex (Source: TradingView)
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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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Latest Headlines UK FCA Orders Operators to Shut Down Crypto ATMsOnlyFans Donated 500 ETH to DAO Supporting Ukraine Vitalik Buterin Asks Court For Leniency in Upcoming Sentencing of Virgil Griffith Bessemer Commits $250M to Web 3, Launches DAO
US Treasury Yield Curve Close to Signaling Recession By Omkar Godbole The U.S. Treasury yield curve has collapsed, with the spread between yields on 10-year and two-year notes sliding to a two-year low and just 26 basis points short of inversion – a recession signal.
A curve inversion is when short-term borrowing costs rise above long-term borrowing costs.
In a note published Thursday, Goldman Sachs warned of a U.S. recession next year, putting the probability at 35%, according to Bloomberg. Further, the investment bank downgraded their growth forecast for 2022, citing soaring oil prices and economic fallout from the ongoing Russia-Ukraine military conflict.
Recession fears may bode well for assets with a safe-haven appeal. While bitcoin's link with the real economic activity is still relatively weak, the cryptocurrency tends to move or less in tandem with risk assets, mainly high-beta stocks, as discussed in Tuesday's First Mover edition. U.S. Treasury yield curve, or spread between the 10- and two-year yields (Source: TradingView)
ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:
Expanding Role of Crypto in Russia-Ukraine Conflict, Inflation Hits a New 4-Decade High, Bitcoin Price Analysis and More
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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