The latest moves in crypto markets, in context By Lyllah Ledesma, 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 dropped after surging last week to yearly highs.
- Goldman Sachs brought forward its estimate for the Fed's first interest-rate cut.
- Cathie Wood's ARK sold the most Coinbase shares since July after the price of the stock rose.
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CoinDesk Market Index (CMI): 1,649 −3.1%
Bitcoin (BTC): $42,239 −3.5%
Ether (ETC): $2,246 −4.1%
S&P 500: 4,604.37 +0.4%
Gold: $2,011 +0.7%
Nikkei 225: $2,011 +0.7% |
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Bitcoin, the world's largest cryptocurrency by market value, lost ground on Monday after reaching yearly highs last week. Bitcoin fell 3% in the last 24 hours to trade around $42,400 after hitting $45,000 last week. There are a number of factors for the drop in price, with some analysts attributing it to macroeconomic fundamentals. Friday's economic data from the U.S. came in strong, with better-than-expected nonfarm payrolls and lower employment. The dollar rallied and bitcoin dropped slightly immediately after. The pullback could also stem from investors taking profits after last week's gains. Looking ahead, LMAX Digital said in a note to investors that the outlook for crypto assets into year-end "remains bright." "We suspect these dips in bitcoin and ether will be eaten up rather quickly, in favor of higher lows and bullish continuations to new yearly highs," the note said. |
Investment banking giant Goldman Sachs brought forward its estimate for the Federal Reserve's first interest-rate cut to third-quarter 2024 from a previous forecast of the fourth quarter, Reuters reported Monday. The shift comes as bitcoin (BTC) and the broader crypto market has surged in recent weeks on a bullish cocktail of an expected spot ETF launch in the U.S., the impending Bitcoin mining reward halving and the decline in the 10-year U.S. Treasury yield, the so-called risk-free rate. The Fed's benchmark interest rate is currently 5.25% to 5.5%, with traders of the Fed funds futures anticipating a decline to a range starting at 4% by the end of the next year. Cathie Wood's ARK Invest sold another 335,860 shares in cryptocurrency exchange Coinbase (COIN) on Friday, its largest sale since July. ARK offloaded COIN shares across three exchange-traded funds (ETFs). The bulk came from the Innovation ETF (ARKK). The sale would have raised $49.2 million at Coinbase's closing price. The St. Petersburg, FL-based investment manager has been making consistent sales of Coinbase stock in recent weeks as the exchange's shares have appreciated alongside bitcoin's rally. Friday's is the largest since July, when it sold 480,000 shares worth $50.5 million at the time. |
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Market Insight: Tether Freezes 41 Crypto Wallets Tied to Sanctions |
Stablecoin issuer Tether froze 41 wallets controlled by people on the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) List on Saturday. Tether described the actions as "precautionary measures" in a blog post. On-chain data shows that several of the wallets had been using coin-mixing service Tornado Cash in the past six months. One is also associated with the $625 million Ronin Bridge attack, which, according to the U.S. Treasury Department, was executed by North Korean hacking group Lazarus Group. "By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users," said Tether CEO Paolo Ardoino. |
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- The chart shows the best-performing cryptocurrencies of the past 24 hours.
- Smaller coins like INJ, BONK, BIGTIME, JOE and others have risen over 10%, showing resilience amid bitcoin's price drop.
- It's a sign the recent bull market in bitcoin is spreading to the smaller altcoin sector.
- Source: Velo Data
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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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