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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Happy Wednesday! Here's what you need to know today in crypto: |
- Chainlink's LINK and Render's RNDR tokens rallied on Wednesday as bitcoin traded flat.
- Fidelity's Jurrien Timmer doesn't expect bitcoin's sell-off to continue much longer.
- Sam Bankman-Fried's parents ask the court to dismiss FTX's lawsuit seeking to recover funds.
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CoinDesk 20 Index: 1,727 +0.5%
Bitcoin (BTC): $42,671 −0.4%
Ether (ETC): $2,541 +0.5%
S&P 500: 4,765.98 −0.4%
Gold: $2,029 +0.2%
Nikkei 225: $2,029 +0.2% |
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Altcoins took the spotlight on Wednesday as bitcoin (BTC) traded flat in the wake of the recent debut of spot ETFs in the U.S. Chainlink, the decentralized oracle network that connects blockchains, saw its LINK token climb 6% on the day. LINK climbed after the company announced its cross-chain interoperability protocol (CCIP) integrated with Circle's cross-chain transfer protocol on Tuesday. Bitcoin remained around the $42,700 mark. Other altcoins that saw significant gains included Render's RNDR, which climbed 12%. Render is a platform that lets users contribute unused GPU power (A GPU, or graphics processing unit, is responsible for the digital rendering in a computer system) from their home devices to help projects render motion graphics and visual effects. Solana's SOL was also up 5% over the same time period. |
While many contrarian bets about the price of bitcoin after the ETF approval have been proven right, Fidelity's Jurrien Timmer doesn't expect the sell-off to continue much longer. In a thread on X, Timer, Fidelity's Director of Global Macro, said current trends in bitcoin's price are suggestive of a short-term positioning adjustment rather than a long-term trend reversal. While some have forecasted that bitcoin might drop and find support anywhere between the $32K to $38K mark, Timmer expects consolidation of recent gains. "The short-term question is whether this a sell-the-news moment. My guess is that it will take a little time to consolidate the recent gains, now that the big moment has arrived," Timmer posted on X. "There were more than a few participants who 'equitized' future spot positions through either the futures market or bitcoin-sensitive equities." Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried, have asked a court to dismiss a lawsuit by the bankrupt cryptocurrency exchange FTX seeking to recover funds it alleges were fraudulently transferred. FTX sought to "recover millions of dollars" from Bankman and Fried in Sept. 2023. Less than two months later, their son, Bankman-Fried, was found guilty on all seven charges of defrauding customers and the U.S. His sentencing is expected in March. Bankman and Fried, both professors at Stanford Law School, argued that Bankman did not have a fiduciary relationship with FTX and did not serve "as a director, officer, or manager," and even if a fiduciary relationship existed with FTX to plausibly allege a breach, according to a Jan 15. court filing. |
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Market Insight: BTCSees Its First Ever Weekly 'Golden Cross' |
Market enthusiasts call it a "golden cross," indicating a positive shift in asset prices, and now this marker has finally appeared on the bitcoin (BTC) weekly price chart. The 50-week simple moving average (SMA) on bitcoin has crossed over the 200-week SMA for the first time on record, confirming the golden cross. The phrase and its counterpart, "the death cross," in which the short-duration SMA dips below the long-duration SMA, originated in Japan, per some technical analysis textbooks. Many traders see crossovers as forward-looking indicators, with the golden version signaling a long-term bull market ahead. The bullish interpretation could be challenged because averages are based on past data and tends to lag prices. In other words, averages represent what happened in the past, and the first golden cross on the weekly chart is the result of bitcoin rallying over 70% to $42,700 in four months. |
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- The chart shows trends in bitcoin and the U.S. dollar index (DXY), which gauges the greenback's exchange rate against major fiat currencies.
- The DXY rose to a four-week high of 103.58 early Wednesday, offering bearish cues to stocks and bitcoin.
- The cryptocurrency's Q4 rally coincided with the downtrend in the dollar.
- Source: TradingView
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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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