The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Thursday! Here's what you need to know today in crypto: |
- Bitcoin has become more dominant as a result of the impending halving.
- Binance is looking to re-enter India.
- USDe holders should monitor Ethena's reserve fund to avoid risk.
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CoinDesk 20 Index: 2,134 −1.1%
Bitcoin (BTC): $62,819 −0.5%
Ether (ETC): $3,058 −0.5%
S&P 500: 5,022.21 −0.6%
Gold: $2,395 +1.0%
Nikkei 225: $2,395 +1.0% |
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Bitcoin (BTC) has become more dominant in the crypto market because of the impending halving and risk aversion in the broader market. The largest cryptocurrency by market value was trading below $61,400 during Asian hours on Thursday, according to CoinDesk Indices data, as the sell-off in risk assets, fueled by difficult macroeconomic conditions, raged. The CoinDesk 20, a measure of the world's most liquid digital assets, fell 3.3% to 2,125. While bitcoin might be having a challenging moment, layer-1 blockchains and altcoins are doing worse. Top layer-1 tokens like Solana's (SOL) are down over 20% in the past week. Avalanche's (AVAX) has fallen 26%, Cardano's (ADA) 23% and Filecoin (FIL) 30%. |
Binance, the cryptocurrency exchange that was removed from India some months ago, is looking to re-enter the country by paying a $2 million fine, the Economic Times reported on Thursday. Earlier this year, Binance and some other exchanges were removed from the Apple Store in India after India's Financial Intelligence Unit (FIU) sent them compliance "show cause" notices. OKX, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex were the other firms that were sent notices at the time. USDe holders should monitor the project's reserve fund to avoid risks related to the potential of a negative funding rate, according to data provider CryptoQuant. Ethena Labs, the firm behind the stablecoin, currently offers an annual yield of 17.2%, a rolling average over the past seven days, to investors that stake USDe or other stablecoins on the platform. The yield is created from a tokenized "cash and carry" trade that involves purchasing an asset whilst simultaneously shorting that asset to rake in funding payments. Funding is a way of keeping the asset prices on derivatives exchanges close to the underlying assets. In a bullish market, holders of long positions pay short positions and the opposite is true in a bearish market. |
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Market Insight: Bearish Flip in Crypto Crowd Sentiment Hints at Coming BTC Price Bounce |
"The masses are always wrong. Wisdom is doing everything the crowd does not do," American poet and novelist Charles Bukowski said. That holds true for crypto too, and the crypto crowd is beginning to lean bearish on bitcoin (BTC) – a sign the current BTC price sell-off may soon run out of steam. "Historically, prices move in the opposite direction of mass traders' expectations," blockchain analytics platform Santiment said in a market insights post, adding the market could bottom out right before the halving – expected in the next two days – or shortly after. Data tracked by Santiment shows that the number of "bull market" or "bull cycle" mentions on crypto social media has been declining since late March. At the same time, the number of "bear market" or "bear cycle" mentions steadily increased. |
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- Past bitcoin halvings have led to substantial price gains for bitcoin in the subsequent 12 months.
- The chart shows prices soared 1000%, after the first halving, 200% after the second and 600% following the third.
- Source: Glassnode
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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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