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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It's Thursday! Here’s what you need to know in crypto today. |
- Bitcoin trades above $100,000.
- BTC is leaving exchanges in batches of $10 million or more.
- Hut 8 shares jump amid speculation of a data center partnership with Meta.
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CoinDesk 20 Index: 3,913.33 +5.37% Bitcoin (BTC): $100,727.47 +2.46% Ether (ETH): $3,919.42 +5.23% S&P 500: 6,084.19 +0.82% Gold: $2,710.82 -0.37% Nikkei 225: 39,849.14 1.21% |
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Bitcoin rose as high as $101,840 before pulling back to hold above the $100,000 mark. The crypto market is looking to maintain the bullish momentum ignited by Wednesday's U.S. CPI report, which matched estimates and cleared the path for another Federal Reserve rate cut next week. Ether is eyeing another return to $4,000, trading above $3,900, higher by over 5% in the last 24 hours. The CoinDesk 20 Index, a measure of the broader digital asset market, rose more than 5%, thanks to some double-digit gains in the altcoin market from ADA and LINK. |
Bitcoin has rallied more than $30,000 since Donald Trump won the U.S. election in November, which coincided with many coins leaving exchanges, but primarily BTC leaving in large chunks. Glassnode data shows that transactions worth more than $10 million of bitcoin were removed from exchanges at a rapid rate, a sign of aggressive buying at an institutional level. Many of these transactions appear to be on Coinbase. As of yesterday, almost 12,500 BTC ($1.3 billion) left exchanges, with roughly half leaving Coinbase, according to Glassnode data. Since the U.S. election, Glassnode data show that roughly 200,000 BTC have left exchanges, which leaves roughly 2.8 million BTC on exchanges, the lowest amount in the past seven years. Shares of bitcoin miner Hut 8 jumped as much as 18% in pre-market tradingamid social media speculation that it is building a data center with Facebook owner Meta Platforms. The shares climbed to around $31 as of 12:30 UTC. The CoinShares Valkyrie Bitcoin Miners ETF, which offers broad exposure to the BTC mining sector, rose about 3%. Neither firm has announced such a partnership as yet. Hut 8 is building a data center in West Feliciana Parish, La. at an initial cost of $12 billion, local media has reported. Earlier this month, Meta said it was planning to build a $10 billion AI data center in Richland Parish, La., Reuters reported. |
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Market Insight: This Bitcoin Indicator Echoes Early November Vibe That Presaged a 40% Price Explosion
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A key technical indicator that presaged bitcoin's November price surge is positioned precisely as it was then, signaling a potential volatility explosion ahead. That indicator is the Bollinger bandwidth, a tool used to gauge impending changes in market jumpiness. For bitcoin, the bandwidth has narrowed to less than 10%, a level not seen since Nov. 4, the day before the U.S. elections. The largest cryptocurrency subsequently surged to $100,000 from $70,000 in four weeks. Volatility is typically mean-reverting, and historical data shows that when the daily bandwidth drops below 10%, it often leads to upturns followed by increased turbulence. It's important to note that volatility is price-agnostic, meaning it can manifest in either direction. For example, after the bandwidth dipped below 10% in early June, BTC prices dropped to $54,000 from $69,000 in three weeks. Seasoned traders wait for the market to confirm a direction by topping either of the two bands. A move above the upper band typically signals a bullish volatility explosion on the horizon, a dip below the lower band suggests the opposite. |
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- The number of daily transactions on Aptos, a layer-1 blockchain focused on safety and scalability, has almost tripled to 3.1 million in three months.
- The increased network usage supports the bull case in the APT token, which has increased 46% this year.
- Source: OurNetwork
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Bitcoin’s Pumping. Memes Are Minting Millionaires. The bear market’s snoozing, and the bull run is here.
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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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