Bitcoin Is Now Beating the S&P 500 in 2022 (Or Losing Less)

The latest moves in crypto markets, in context

February 9, 2022

Supported by

If you were forwarded this newsletter and would like to receive it, sign up here.

Good morning, and welcome to First Mover. Here's what's happening this morning:

Market Moves: After trailing for most of this year, bitcoin has now passed the S&P 500 on year-to-date returns. (Er... the cryptocurrency has lost less.)
Also: For bitcoin miners, capitulation finally came this past weekend, blockchain data shows.

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:

Aarika Rhodes, California 32nd District Congressional Candidate (D)
Kene Ezeji-Okoye, co-founder and president, Millicent

Today's newsletter was edited by Bradley Keoun and produced by Parikshit Mishra.

Market Moves

By Shaurya Malwa and Bradley Keoun

Bitcoin (BTC) was higher for a fourth straight day – extending a gradual climb that has pushed the largest cryptocurrency's price over $44,000 from as low as $32,900 just a few weeks ago.

"The trend is relatively stable, but whether it can be maintained is uncertain," Du Jun, co-founder of the crypto exchange owner Huobi Group, said in an email. "In the short term, focus on the direction of price adjustment and the pressure level of $45,500 above."

The recent gains have narrowed bitcoin's losses in 2021 to 4% – a smaller deficit than the 5.1% year-to-date loss for the Standard & Poor's 500 Index. For most of the year, bitcoin's returns had trailed the stock benchmark, so the reversal could draw eyeballs from investors who monitor these track records.

Analysts for Bank of America, the second-biggest U.S. bank, published a report finding that bitcoin has increasingly traded in sync with stocks over the past six months.

Despite the high price volatility of bitcoin, "individuals living in inflationary environments may view bitcoin as an inflation hedge," according to the report.

Meanwhile, blockchain data show that bitcoin miners – after collectively continuing to accumulate holdings through most of the January sell-off across crypto markets – finally started to dispose of some positions over the past weekend.

Chart based on blockchain data showing bitcoin miners finally capitulating over the past weekend after holding on for most of the January price slump. (Glassnode)

The future of finance is inherently digital.

As digital assets, technology, and finance continue to merge, we believe the resulting digital economy offers a more equitable, accessible, and inclusive financial future.

Grayscale® Future of Finance (symbol: GFOF) is an ETF that seeks to invest in the companies and technologies that are integral in evolving the financial system.

Backed by an index that combines the expertise of Grayscale, a leader in the digital asset ecosystem, and Bloomberg, a trusted authority in finance, GFOF seeks to define the "future of finance" in one thematic fund.

What better way to plan for tomorrow than by investing in the future?

Search GFOF in your brokerage account to start investing. Learn more here.

Investing involves risks and the possible loss of principal. GFOF is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser. For a copy of the latest prospectus, head to the GFOF landing page. Risks: Future of Finance companies rely heavily on the success of the digital currency industry, and other developing technologies that seek to disrupt or displace established financial institutions.

Crypto Prices

Bitcoin (BTC)

See the latest price here

Ether (ETH)

See the latest price here

The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours:

Biggest Gainers:

Asset	Ticker	Returns	Sector
Ethereum Classic	ETC	+8.5%	Smart Contract Platform
Litecoin	LTC	+2.4%	Currency
EOS	EOS	+1.6%	Smart Contract Platform

Biggest Losers:

Asset	Ticker	Returns	Sector
Filecoin	FIL	−3.1%	Computing
Dogecoin	DOGE	−1.5%	Currency
Internet Computer	ICP	−1.0%	Computing

Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.

It's never been easier to earn interest on Bitcoin and Tether with BitMEX EARN. Enjoy up to 10% APR on Tether and 4% on Bitcoin, fully backed by the BitMEX Insurance Fund.

With new products, reliable security, and responsive customer service, there's never been a better time to join BitMEX. Start earning interest today by subscribing to EARN here.

BitMEX products and services are not available to US Persons and in other specified jurisdictions.

Latest Headlines

The OGs of NFTs get animated with the biggest stars from around the world in this entertaining new series from CoinDesk TV. Tune in Tuesdays in February at 4 p.m. ET.

ICYMI

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Ava Labs Co-Founder and CEO on DeFi, US House Committee on Financial Services to Hold Hearing on Digital Assets, Canada's Truckers Turn to Bitcoin for Fundraising

"First Mover" hosts speak to Emin Gun Sirer, founder and CEO, Ava Labs for a look at the state of DeFi development. Anthony Di lorio, Jaxx founder and CEO and Ethereum co-founder shares his take on Canada's truckers turning to bitcoin as Gofundme ceases $9 million in donations. Plus, entrepreneur Iddris Sandu shares details behind the partnership with music mogul Jay-Z to bring Hip-Hop to the metaverse.

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.