Bitcoin Vulnerable To Rate Hike Fears

ETF Optimism Fades

The latest moves in crypto markets, in context Edited by Omkar Godbole October 27, 2021 Sponsored by     Bitcoin (BTC) -6%  $59,100 Ether (ETH)  -4.5%  $4,030 (Price data as of October 27 @ 11:30 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning, Here's what's happening this morning: Market Moves: Bitcoin Drops As Risk Sentiment Sours Technician's Take: Bitcoin Faces H&S Breakdown And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. Today's show will feature guests: Andrew Durgee, Head of Crypto and Tokenization Republic Sam Bankman-Fried, CEO of FTX Graham Jenkin, CEO at CoinList – Omkar Godbole Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Top Gainers: Aave (AAVE): +10.7% Top Losers:  EOS (EOS): -12% Ethereum Classic (ETC): -11.4% The Graph (GRT): -10.5% The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. A message from Bybit We're giving away up to $3,000 in bonuses to each Bybit user! All you have to do is join the community and make a first ever deposit. The more you deposit, the higher your rewards.    Plus, stand a chance to win 0.1 BTC or 1 ETH when you trade at least $100,000 in Spot and Derivatives combined. T&Cs apply.    Event ends Nov. 18, 2021, 10AM UTC.  Market Moves by Omkar Godbole Bitcoin dropped below $59,000 early Wednesday, as risk sentiment in traditional markets soured, with Australia's core consumer price index reaching a six-year high in September.   The data strengthened fears that advanced-nation central banks may raise interest rates faster to contain inflation.    While bitcoin is widely perceived as a store of value asset, it tends to attract hedging bids mainly during "risk-on" episodes in traditional markets.   Bond Traders Price In Aggressive Rate Hikes U.S. two-year yield (Source: TradingView) The yield on the two-year U.S. Treasury bond, which is more sensitive to rate hike/inflation expectations than the 10-year, rose above 2% early today, the highest since the coronavirus-induced crash of March 2020. The spike is perhaps indicative of bond traders anticipating aggressive rate hikes by the Federal Reserve.    Money markets are pricing in a rate hike by the Bank of England at its Nov. 4 meeting.    According to analysts at FXStreet, the Bank of Canada is expected to continue tapering its liquidity-boosting asset purchases when it concludes its meeting later Wednesday. The bank may reiterate that the first rate hike could happen in the second half of 2022. Traders will scan the statement for more hints of more aggressive tightening.    With optimism from the recent launch of bitcoin futures exchange-traded funds waning, bitcoin looks vulnerable to potential risk aversion due to rate hike fears. The S&P 500 formed a "Doji" candle with a long upper wick on Tuesday, signaling indecision at record highs and scope for a pullback.  Also read: Bitcoin Dips Below $59K as Leverage Ratio, SHIB Rally Signal Excess Speculation` Technician's Take by Omkar Godbole Bitcoin's Head & Shoulders (H&S) Breakdown Bitcoin's hourly chart shows a head-and-shoulders breakdown (H&S), a bearish reversal pattern. Support is seen near $54,000 Bitcoin's hourly price chart (Source: TradingView) A Message from Chainalysis Looking for your ticket #ToTheMoon? 🚀   Market Intel by Chainalysis - the blockchain data platform - arms you with the most complete on-chain dataset for crypto research and investment decisions.   Whether you're an Asset Manager searching for a signal...   A Quant Analyst interested in spotting market trends...   Or a VC looking to fund the next emerging crypto player...   Market Intel will help you reach your goals, utilizing 53 metrics across 10 categories—like whales, exchanges, liquidity, and supply. To get started, head to markets.chainalysis.com. BOLO Be on the lookout for the following events today: 14:00 UTC (10:00 a.m. ET): Bank of Canada Rate Decision ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   Public Debut Today, Solana Hits Fresh All-Time High, Economist Now Auctioning Cover as NFT and More   "First Mover" hosts take a look at the crypto markets as VanEck is launching its bitcoin strategy ETF today Meanwhile, Solana's hitting a new all-time high, Economist is now on the NFT auction block, and it's selling "Down the rabbit hole: The promise and perils or decentralised finance" cover as an NFT. Economist reporter Alice Fulwood joins to discuss.  A Message from CoinDesk What will 2022 bring? Crypto 2022 is CoinDesk's ambitious effort to scope out what's next. This week it's Policy Week, a week devoted to exploring the complex ways governments are interacting with the cryptocurrency ecosystem, and how policy decisions or lack thereof will affect the year ahead. Read more here. Latest Headlines Robinhood Shares Fall as Crypto Trading Revenue Declines Sharply The popular trading platform said reduced crypto trading activity led to significantly fewer new funded accounts and lower revenue in the third quarter. London Commuters Face Ad 'Assault' by New Musk-Inspired Coin: Report                                                                                  A coin named after Elon Musk's Shiba inu dog is being advertised to public transport users in the U.K. capital with the slogan "Missed Doge? Get Floki" DBS Becomes First Southeast Asian Bank to Join Hedera Governing Council The Singapore lender joins heavy hitters such as Google, IBM, LG and others, whose stated goal is to bringing stability and continued decentralization to the public network companies. 29 Blockchain Gaming Companies Pen Open Letter to Valve: 'Don't Ban Web3 Games' "Web3 games are a fast-moving and exciting category of games that have a place within the Steam ecosystem," the companies said Tuesday. Blockchain Data Indexer The Graph Launches on NEAR Blockchain The service expands beyond blockchains that are compatible with the Ethereum network. 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.  First Mover A newsletter from CoinDesk Copyright © 2021 CoinDesk, All rights reserved.  250 Park Avenue South New York, NY 10003, USA Manage your newsletter subscriptions  |  Unsubscribe from all CoinDesk email