Bitcoin Non-Deliverable Forward Is Here

U.S. Inflation Data Eyed

The latest moves in crypto markets, in context Edited by Omkar Godbole November 10, 2021 Sponsored by     Bitcoin (BTC) -1.8%  $66,350 Ether (ETH)  -1.6%  $4,700 (Price data as of November 10 @ 13:00 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: B2C2 Executes Non-Deliverable Forward   Technician's Take: Litecoin's Golden Crossover   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. Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Top Gainers: Liteccoin (LTC): +14%% Bitcoin cash (BCH): +5%  Stellar (XLM): +4% Top Losers:  The Graph (GRT): -5.4% Aave (AAVE): -3.2% Cardano (ADA): -3% 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 Not part of the Bybit community yet? From now until Nov. 18, 2021, 10AM UTC, join us and get a 10 USDT coupon when you make your first ever deposit. You'll also get additional bonuses of up to $3,000 when you deposit at least $500 worth of eligible assets. T&Cs apply. More than three million traders have experienced Next Level Trading. What about you? Market Moves by Omkar Godbole Bitcoin and ether appeared to be taking a breather, having refreshed record highs early this week. Litecoin extended the two-day rally, nearing $300, while Loopring's LRC token surged another 50%.    Amid the mixed action, crypto liquidity provider and over-the-counter trader B2C2 and QCP Capital announced the execution of what appears to be the crypto market's first non-deliverable forward (NDF) transaction denominated in U.S. dollars and involving bitcoin as the underlying asset.    As the name suggests, an NDF allows investors to gain exposure to the underlying asset without the need to take physical delivery and could be a viable option for institutions looking to participate in the market without having to buy and hold the actual cryptocurrency.    "QCP views NDFs as a gateway to crypto markets for traditional financial institutions, such as investment banks, that are currently unable to handle the underlying assets. We are delighted to participate in this innovative product alongside B2C2, opening up a new crypto derivatives market," Darius Sit, CEO of QCP Capital, said.   In the past, traditional market participants have mostly gained exposure to bitcoin via the Grayscale Bitcoin Trust and the regulated futures listed on the Chicago Mercantile Exchange. Last month, U.S. regulators approved a bitcoin futures-based exchange-traded fund (ETF).     NDFs are quite popular in foreign exchange markets and especially suitable for clients operating in countries with a non-convertible or partial convertible currency like the Indian rupee. Partial convertibility refers to the freedom of converting domestic currency into foreign currency and vice versa for restricted purposes.    "NDFs are particularly suitable for clients who operate in countries with a non-convertible currency. They make it possible to hedge the exchange rate risk," Credit Suisse's explainer says.  U.S. Inflation Eyed "Consensus is looking at a jump from 5.4% to 5.9% in the headline rate, with core expected to advance from 4.0% to 4.3%," ING analysts said in a blog post published early Wednesday. "Inflation at 6% is set to offer more ground to the Fed's hawkish members to keep raising concerns about the risks of acting too late or doing too little on monetary tightening."   Bitcoin is widely perceived as a store of value asset and may pick up a strong bid if the U.S. inflation data scheduled for release at 13:30 coordinated universal time bolsters fears of price pressures moving out of control.   However, gains may remain elusive if the higher inflation number revives fears of faster interest rate hikes by the Fed, sending equity markets lower. The S&P 500 futures were pointing to mild risk aversion at press time with a 0.3% drop.   With falling open interest in the CME-listed bitcoin futures indicating reduced institutional participation, the cryptocurrency looks vulnerable to potential risk-off in traditional markets.  Read the original story here: Large Bitcoin Investors Take a Breather After Frantic October, U.S. Inflation Data Eyed Technician's Take by Omkar Godbole Golden Cross on Litecoin Litecoin's daily chart (Source: TradingView) Litecoin is trading higher for the third straight day, drawing a price of $287 on major exchanges, the highest since May.    The 50- and 200-day moving averages (MAs) producing a golden crossover, a long-term bull market indicator.  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: 13:30 UTC (08:30 a.m. ET): U.S. Consumer Price Index (Oct) ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   Bitcoin Hits New All-Time High Above $68K as Ether Also Sets New Record   "First Mover" hosts speak to Customers Bank CEO & Co-Founder Sam Sidhu for his market insights as both bitcoin and ether jumped to new all-time highs. The Financial Action Task Force (FATF) publishes crypto anti-money laundering guidance. ACAMS Executive Director Rick McDonell provides his take on the guidance and implication for cryptocurrency. Plus, an update on the rollout of Nigeria's central bank digital currency eNaira from Nestcoin CEO & Founding Partner Yele Bademosi.      A Message from CoinDesk CoinDesk's "Most Influential" recognizes individuals who've had a big impact on the cryptocurrency and blockchain industry in a calendar year. Chosen by readers and editorial staff, the list features 50 people from across the space, including entrepreneurs, traders, coders, regulators, celebrities and the odd surprise. To have your say on who should make this year's list, check out the form here. The results will be announced on Dec. 6, 2021.  Latest Headlines The Social (Token) Network: Rally, Friends With Benefits and the Future of Branding Music producers and sports stars are monetizing themselves with social tokens. Brands are next, and marketers should take notice. Coinbase's Q3 Crypto Trading Volumes to Be Key for Investors, Analysts Say The largest U.S. cryptocurrency exchange has said investors should expect lower trading volume in the third quarter, given the decline in crypto prices during that period. What FATF's Latest Guidance Means for DeFi, Stablecoins and Self-Hosted Wallets Launching a truly "global" stablecoin is likely to get more difficult in the coming year as a result of the guidance, which advises regulators to keep such projects on a short leash. Apple CEO Tim Cook Reveals Crypto Holdings as BTC and ETH Hit New All-Time Highs What on-chain analysts and the community at large thinks is driving the move. DEXs Have Grown the Most as Competition Among Crypto Exchanges Intensifies: Chainalysis The majority of DEX users are professional crypto traders looking for "new sources of alpha," said one analyst. 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