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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Welcome to a new week! Here’s what you need to know today in crypto. |
Bitcoin sits below $60,000.Traders await cues during a busy week for economic data.Former BOJ official says the central bank will defer additional rate increases to 2025. |
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CoinDesk 20 Index: 1,925 −2.1% Bitcoin (BTC): $59,616 −1.9% Ether (ETC): $2,675 +0.5% S&P 500: 5,344.16 +0.5% Gold: $2,481 +2.0% Nikkei 225: 35,025 +0.56% |
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Meet ETHA, The iShares Ethereum Trust ETF. ETHA enables investors to access Ethereum, the second-largest cryptocurrency, within a traditional brokerage account.1 Learn More 1 Source: The Block, as of May 21, 2024. Ethereum’s market capitalization, which stands at $450 billion is measured using its native token, ether. For an ETHA prospectus, click here RO code: iCRMH0824U/S-3782218 |
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Bitcoin slid toward $58,000 leading to a wider crypto market sell-off as traders looked for cues ahead of a busy data week. BTC is down around 2.15% in the last 24 hours, sitting just below $59,500, while the wider digital asset market has lost nearly 2.9%, as measured by the CoinDesk 20 Index (CD20). Solana's SOL led the losses, falling nearly 3% to $149. Data for U.S.-listed ETFs are also muted, with bitcoin funds seeing $89 million of outflows on Friday and their ether equivalents losing $15.7 million. |
Some market watchers warned of a further BTC decline in the coming weeks citing technical weakness while pointing to forthcoming economic reports that could provide upward pressure. “Crypto prices will likely be rangebound with a bias to the weak side,” Augustine Fan, head of insights at SOFA.org told CoinDesk in a Telegram message. “Crypto markets lack a clear anchor and are susceptible to continued position adjustments. We continue to see muted ETF inflows for BTC and ETH over the past few sessions." Both the U.K. and the U.S. release July CPI readings on Wednesday. Australia’s consumer confidence, which tracks sentiment around family finances, and Japan’s PPI, a measure of price developments of goods traded within the corporate sector, are scheduled for a Tuesday release. A former Bank of Japan official said the central bank will defer additional interest rate hikes to next year. "They won’t be able to hike again, at least for the rest of the year,” Makoto Sakurai said Friday, according to Bloomberg. “It’s a toss up whether they can do one hike by next March.” The BOJ raised its key interest rate to about 0.25% from a range around zero on July 31, the first increase in over a decade. The shift away from the zero interest rate policy pushed the yen higher, triggering an unwinding of the "risk-on" yen carry trades. The resulting slide in traditional risk assets weighed heavily over BTC, crashing the cryptocurrency from roughly $65,000 to $50,000 in less than seven days. |
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Market Insight: XRP Bullish Options' Popularity Jump May Be Due to ETF Speculation |
Deribit's nascent options market for XRP is experiencing a surge in activity, particularly in the $1.10 call option that represents a bet that prices for the payments-focused cryptocurrency will double by the end of the month. The increased activity in the $1.10 call likely reflects a net long positioning, according to Griffin Ardern, head of options trading and research at BloFin. "From the gamma distribution, it feels like a net long position expiring on Aug. 30. If the resistance level of $0.75 from the past two weeks can be broken, the price of XRP is likely to rise above $1.10," Ardern told CoinDesk in an interview. "Perhaps institutions will likely apply for an XRP ETF in the U.S., which may be an important factor driving a sharp rise in prices," Ardern added. XRP rose over 30% to 62 cents last month and has since pulled back to just over 57 cents, according to CoinDesk data. |
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The chart shows bitcoin's price drawdowns in percentage terms since late 2022.The recent decline from $70,000 to $50,000 was the largest."As is typical with these drawdowns: weak hands were shaken out, and seasoned veterans bought the dip," Blockware said in an email.Source: Blockware, Glassnode |
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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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