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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Welcome to a new week! Here's what you need to know today in crypto: |
- Bitcoin hit $72,000 for the first time since March and crypto-related stocks look set to start the week on a positive note.
- According to analysts, bitcoin could rally to new highs after its Monday break out.
- BlackRock added five authorized participants to the iShares Bitcoin Trust.
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CoinDesk 20 Index: 2,694 +4.1%
Bitcoin (BTC): $72,265 +4.3%
Ether (ETC): $3,621 +6.9%
S&P 500: 5,204.34 +1.1%
Gold: $2,358 +1.4%
Nikkei 225: $2,358 +1.4% |
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U.S. crypto-related stocks looked set to start the week on a positive note after bitcoin (BTC) climbed through $72,000 for the first time since mid-March as its reward halving draws closer. Coinbase (COIN), the only U.S. traded crypto exchange, gained 4.9% in pre-market trading, MicroStrategy (MSTR), the largest corporate holder of bitcoin, rose 10% and BlackRock's bitcoin exchange-traded fund (IBIT), added around 6.5%. Bitcoin advanced 4.4% over 24 hours while the CoinDesk 20 Index, a measure of the broader crypto market, rose 4.1%. Other tokens rising on Monday included meme coins dogwifhat, which gained 18%, and pepe, which rose 10%. According to trader Michaël van de Poppe, there is still a lot of momentum to be gained for altcoins as bitcoin dominance continues to peak pre-halving. "They [altcoins] are super undervalued," van de Poppe said in a post on X. |
Bitcoin could soon rally to new record highs after breaking through a so-called triangle resistance, according to technical analysis by 10x Research. On its way to $72,000, BTC passed through a triangular consolidation pattern identified by a resistance line connecting March 15 and March 27 highs and a support line connecting March 20 and April 3 lows. "If the breakout is bullish, which we suspect, bitcoin could climb above 80,000 during the next few weeks – if not earlier. Buying at $69,280 and setting a stop loss at $65,000 appears appropriate," Markus Thielen, founder of 10X Research, said in a note sent to clients early Monday. BlackRock (BLK) added five authorized participants (APs) to the iShares Bitcoin Trust (IBIT), bringing the total number to nine as the exchange-traded fund continues to attract billions of dollars from investors. The new APs include Wall Street banking giants Goldman Sachs, Citadel Securities, Citigroup and UBS alongside clearing house ABN AMRO, according to a prospectus filed with the U.S. Securities and Exchange Commission (SEC). They join Jane Street Capital, JPMorgan, Masquarie and Virtu Americas. CoinDesk reported in January that Goldman Sachs was looking to play a key role for the bitcoin ETFs and was in talks with issuers about becoming an AP. |
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Market Insight: Bitcoin Halving Is Not a Volatility Event |
Bitcoin's fourth mining-reward halving is due on April 20, when the blockchain's code will reduce the per-block bitcoin (BTC) issuance to 3.125 BTC from 6.25 BTC. In the run-up, implied volatility (IV) on the largest cryptocurrency by market value has ticked higher, suggesting increased price turbulence in the days surrounding the quadrennial event. Still, one observer does not favor placing bullish bets on volatility. "From a qualitative perspective, I continue to believe paying a volatility premium for a highly predictable outcome (the BTC halving) isn't worth a volatility event premium," Greg Magadini, director of derivatives at Amberdata, said in a newsletter on Monday. |
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- The chart shows the ratio between bitcoin and gold's dollar-denominated prices.
- While bitcoin recently set new record highs in fiat currency terms, it is yet to do so against gold. The bitcoin-to-gold ratio stays below the 2021 high.
- Gold's price has risen nearly 5% this month, thanks to the massive buying spree by top Asian central banks. Bitcoin, meanwhile, has gained just 1%.
- 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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