The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto. |
BTC falls to $60,000 after ETFs snap five-day inflow streak.U.S. election meme coins take a hit.Crypto industry is outperforming the internet at an equivalent stage, says Architect Partners. |
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CoinDesk 20 Index: 2,075 −3.7% Bitcoin (BTC): $60,215 −3.8% Ether (ETC): $3,299 −4.2% S&P 500: 5,509.01 +0.6% Gold: $2,355 +1.4% Nikkei 225: $2,355 +1.4% |
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Bitcoin (BTC) fell to $60,000 during the European morning on Wednesday, a drop of 4% in the last 24 hours. BTC was the worst affected amidst a decline across crypto majors. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), has fallen nearly 3.3%. The declines came after U.S. spot BTC ETFs snapped a five-day streak of inflows, recording $13 million of outflows on Tuesday. There are also concerns of further selling pressure from distributions by defunct crypto exchange Mt. Gox. "The Mt Gox release is also slated to happen this week," QCP Capital said. "This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now." |
U.S. election-themed meme tokens are taking a hit, with several down nearly 95% from peak prices. Solana-based Jeo Boden (BODEN), a play on Joe Biden, has dropped 70% in the past week, CoinGecko data shows. BODEN is now down 80% in the last 30 days, and back to levels last seen in early March, when it was just issued. Even Donald Trump-themed tokens have dropped, despite Trump's electoral chances surging post-debate. The political finance (PoliFi) sector has contracted by 11% in the last 24 hours, contrary to expectations of a rally following the June 27 debate. Austin Freimuth, a research analyst at Messari, has said that the significant event could be Trump's selection of his running mate, should it trigger the creation of new meme coins. The crypto industry is beginning a major growth phase and is in a far better place than it was two years ago, investment bank Architect Partners said in a quarterly report published last week. The value of the crypto industry climbed more than $750 billion in the first half, the company said. The report described crypto as "the stepchild of the internet" and said it "exceeds the internet's value at the same portion of their respective life cycles." Crypto and the internet, both of which are disruptive technologies, have very similar characteristics, the report said, noting that the cryptocurrency market is recovering from the so-called crypto winter much faster than the internet rebounded after the dot-com bubble burst in 2000. |
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Market Insight: Pre-ETF Ether Options Trend Mirrors BTC Except for One Key Difference |
Trends in the ether options market closely mirror the sentiment in the bitcoin market in the lead-up to BTC ETFs listing six months ago, except for one key difference. Ether's 30-day options skew, which measures what traders are willing to pay for an asymmetric payout in the upward or downward direction, holds around 3%, according to Amberdata. Ether calls expiring in six months also traded at a premium relative to puts, with the skew hovering at around 5%, which is broadly in line with that of BTC in January. The one difference in how ether options are currently priced suggests the ether market is not as euphoric as BTC was seven months ago. That perhaps weakens the case for a sell-the-fact pullback of the like BTC experienced. BTC's seven-day skew showed a stronger bias for calls than the 30-day skew several times ahead of the ETF debut, a sign of heightened optimism or expectations of a price increase soon. Usually, investors expect higher uncertainty or volatility in the distant future compared to the near term, ensuring longer duration skews return a higher value than shorter ones. That's the case in the ether market, where the 7-day skew remains below the 30-day skew, exhibiting a relatively measured bullish bias. |
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The chart shows renewed selling in BTC after the bulls failed to establish a foothold above the descending trendline, which characterizes the pullback from $72,000.The horizontal line from the late April low of $56,500 is the next significant support.Source: TradingView |
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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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