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 today in crypto. |
Bitcoin recovered to $64,500 following Thursday's late slide.ARK Invest sold $14.8 million of Coinbase shares.Hong Kong-based Futu introduces BTC, ETH trading. |
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CoinDesk 20 Index: 2,145 −1.5% Bitcoin (BTC): $64,696 +0.2% Ether (ETC): $3,158 −0.9% S&P 500: 5,446.68 −1.4% Gold: $2,509 +3.0% Nikkei 225: $2,509 +3.0% |
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Bitcoin was little changed during the European morning, sitting around $64,500 following a slump to $62,500 on Thursday. That's near its 50-day moving average, which remains a tactical support line for traders. “If the decline develops, dynamics around the $63K and $61K levels, near where the 50 and 200-day moving averages are, will be important,” Alex Kuptsikevich, an FxPro senior market analyst, told CoinDesk in an email. “A failure of this support will open the way to $55K, which is quite frightening.” August has been a losing month for BTC eight times and a winning one five times, he added. "The average decline was 15.4% and the average rise was 26%." |
Cathie Wood's ARK Invest sold $14.8 million of COIN shares on Thursday, the biggest single-day divestment since May 7, ahead of Coinbase's second-quarter earnings announcement. The sale means the fund-management company sold more Coinbase shares on the first day of August than in the previous two months combined. After the market closed, Coinbase reported second-quarter revenue that beat Wall Street analysts' expectations. Profit, however, came in lower than the consensus. The exchange's shares, which fell 5.2% to $212.64 during regular trading, rallied briefly after the report and were little changed in pre-market trading. ARK sold a total of 69,069 COIN shares across two of its ETFs. Hong Kong stock broker Futu Securities has introduced bitcoin and ether trading, and is offering shares in Alibaba and Nvidia as rewards to new clients. The company, which calls itself Hong Kong’s largest tech broker, is working on "expanding our crypto offerings in the near future," according to a report by the South China Morning Post. Futu is offering the crypto trading services through a partnership with cryptocurrency exchange HashKey Exchange, one of only two licensed in Hong Kong. It is also seeking a license to offer the same services for its subsidiary, Panthertrade. The entity is currently deemed-to-be-licensed by Hong Kong's regulator, the Securities and Futures Commission, which allows it to offer crypto services while it awaits full approval. |
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Market Insight: Bitcoin Risk-Reward Remains Compelling |
While BTC's price has more than doubled in the past year, bitcoin continues to offer an appealing risk-reward ratio for those eyeing an investment, according to one indicator that successfully predicted the bull run in early 2023. Bitcoin's "reserve risk," a measure of the confidence of long-term holders based on their willingness to defer spending coins, remains entrenched in the so-called green zone below 0.002, according to data tracked by CryptoQuant. The gauge can range between 0 and 1. The low reading is a sign long-term holders are motivated to hold at bitcoin's going market rate rather than sell, implying favorable demand-supply dynamics and an attractive risk-reward ratio for those looking to make additional or fresh investments. "The reserve risk continues to remain in the green zone, which means buying BTC at the current levels still offers an extraordinary reward to risk. Investing in bitcoin during periods where the reserve risk in the green zone has produced outsized returns over time," MintingM, a crypto research firm based in India, told CoinDesk. |
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The chart shows the U.S. Conference Board's leading, coincident and lagging economic indicators.Leading indicators trend lower as the other two rise, indicating economic weakness and a potential recessionary phase ahead.Crypto analysts said a Fed rate cut implemented against the backdrop of an economic swoon may not help bitcoin.Source: MacroMicro |
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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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