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 Friday! Here’s what you need to know in crypto today. |
- Bitcoin trades just above $100,000.
- World Liberty Financial increases its holdings of LINK.
- Miners are adopting MicroStrategy's BTC accumulation strategy, JPMorgan says.
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CoinDesk 20 Index: 3,830.21 -1.01% Bitcoin (BTC): $100,312.53 -0.46% Ether (ETH): $3,918.30 -0.95% S&P 500: 6,051.25 -0.54% Gold: $2,670.09 -0.57% Nikkei 225: 39,470.44 -0.95% |
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Bitcoin traded little changed, holding around 0.35% higher than at 4 p.m. ET on Thursday. The rally from Wednesday's CPI data appeared to have hit a roadblock when Thursday's PPI came in hotter than expected prompting investors to tighten their stances and keep a bid for the dollar. Still, Fed fund futures remain confident of a 25 basis-point interest-rate cut next week, with traders remaining in bullish mode. The sentiment is reflected in the $64.8 million open interest for active BTC call options on Derive, the leading on-chain options protocol. That's six times larger than the open interest in put options. Ether traders are also leaning heavily toward calls, figures from Amberdata show. |
Donald Trump-backed World Liberty Financial increased its holdings of Chainlink’s LINK token. The project purchased another $1 million worth of LINK late Thursday for the second straight day, increasing its stash to $2 million worth. It also bought $246,000 worth of Aave’s AAVE, taking total token holdings to $1.2 million. LINK prices are up 22% in the past 7 days and more than 130% since World Liberty Financial first bought the token, helping it reach price levels last seen in early 2021. LINK neared $30 in Asian morning hours Friday, data shows, with open interest on the token’s futures zooming to record highs above $860 million. Crypto miners are adopting the accumulation strategy set by Michael Saylor's MicroStrategy, JPMorgan said in a research report. The shift to building up bitcoin holdings is driven by growing pressure on profitability, which stems from the reward halving in April and a rising network hashrate, the report said. "This likely prompted miners to hoard or seek further investments into bitcoin or diversify into AI/HPC businesses," analysts led by Nikolaos Panigirtzoglou wrote, referring to artificial intelligence and high-performance computing. Miners such as MARA Holdings have adopted a similar bitcoin-buying strategy to MicroStrategy, called BTC yield, in response to these challenges, JPMorgan said. MARA now owns 35,000 tokens ($3.5 billion) and is the second-largest publicly listed corporation in terms of bitcoin holdings. |
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Market Insight: Larger Cohorts Than U.S. ETFs or MicroStrategy Are Dictating Bitcoin Price
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Bitcoin remains in a key trading range around $100,000, rising above and dropping below the key psychological number on multiple occasions. A lot of this has to do with the enormous selling pressure from long-term holders (LTH) or investors who have held bitcoin for longer than 155 days. Since September, LTHs have sold 843,113 BTC while short-term holders (STHs) have accumulated 1,081,633 BTC. To show the difference in trading volumes between long-term and short-term holders, we compare them to other big players in the industry, such as MicroStrategy, which holds 423,650 bitcoin. In addition, U.S. ETFs now hold over 1 million bitcoin. For context, since September, MicroStrategy has accumulated 197,250 BTC, which works out to roughly 2,168 BTC a day. The U.S. ETFs have accumulated approximately 205,000 BTC, or 2,253 BTC a day. The U.S. ETF BTC balance has grown from 916,000 BTC to 1.12 million BTC. In order for bitcoin to conclusively break higher of $100,000, LTHs will need to dial down on offloading their tokens or have bigger cohorts enter the space and pick up the buys. |
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- The chart shows the upside in Avalanche's AVAX being capped at around $55, the resistance level seen earlier this month.
- A renewed decline from here would translate into a double-top bearish reversal pattern. Keep an eye on this.
- 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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