The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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It's Thursday! Here's what you need to know today in crypto: |
- Bitcoin falls below $61,000.
- VanEck's MarketVector starts a meme coin index.
- BODEN surges after Donald Trump said he didn't like it.
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CoinDesk 20 Index: 2,131 −1.7%
Bitcoin (BTC): $61,013 −2.0%
Ether (ETC): $2,974 −0.6%
S&P 500: 5,187.67 −0.0%
Gold: $2,320 +0.3%
Nikkei 225: $2,320 +0.3% |
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| Bitcoin fell below $61,000 on Thursday as the crypto market continued its downward movement that has persisted throughout the week. BTC dipped to $60,815 at around 11:00 UTC, trading about 2.25% lower than 24 hours before. The CoinDesk 20 Index (CD20), which measures the performance of the broader digital asset market, meanwhile has sunk by about 2%. Ether is trading just below $3,000, down 0.9%, while SOL has declined by nearly 3%. The crypto market could also soon be faced with a wave of supply events delaying a return to upward movement, with nearly $11 billion worth of BTC set to be distributed to creditors of Gemini's Earn program and the long-defunct Mt. Gox, according to cryptocurrency analysts K33. |
VanEck subsidiary MarketVector has started an index based on the performance of the top six meme coins. The MarketVector's Meme Coin Index, which trades under the symbol MEMECOIN, is up 195% on a yearly basis. For comparison, the CD20 is up 97% during the same period. MEMECOIN tracks Dogecoin, Shiba Inu, Pepe, dogwifhat, Floki Inu and BONK, which account for nearly $47 billion of the total meme coin market cap of $51 billion, according to CoinGecko. While they unashamedly represent the lighter side of the cryptocurrency market, some commentators believe that meme coins could continue to show impressive returns due to low fees on Solana allowing traders to make small bets for potentially large profits. The 'Boden' meme coin surged on Wednesday following a throwaway comment from former President Donald Trump. Jeo Boden (BODEN), the joke crypto token referring to a misspelling of President Biden's name, jumped after Trump said he didn't like it as an investment. The Republican challenger for the White House was hosting an impromptu Q&A session at the Trump Cards NFT Gala in Florida when he was asked about BODEN. The token jumped as high as $0.42 before retreating below $0.40 over the ensuing hours. At the time of writing, it is priced at around $0.36, up nearly 16% in the last 24 hours. Trump also said he intends to start accepting donations for his presidential campaign in cryptocurrency. |
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Market Insight: Trading Volume Sank for First Time in Seven Months in April |
Crypto trading volume registered its first decline in seven months in April as risk assets bore the brunt of an unsettled macroeconomic picture. From a record high of $9.12 trillion in March, the combined spot and derivatives trading volume fell by 43.8%, according to digital assets data provider CCData. Bitcoin snapped a seven-month winning streak in April, declining nearly 15% as an overheated bull market ran into broad-based risk aversion characterized by renewed tensions in the Middle East, the dwindling probability of rapid Fed rate cuts this year and strength in the dollar index. Binance, the world's largest crypto exchange by trading volume, saw its spot activity tank 39.2% to $679 billion, its first decline since September 2023. The drop coincided with founder Changeng "CZ" Zhao being sentenced to four months in prison for violation of U.S. money laundering laws. |
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- The table shows bitcoin and ether's correlation with major equity indices, the dollar index and the VIX index.
- The correlation has declined to nearly zero, meaning the two cryptocurrencies have decoupled from the broader market.
- Their uncorrelated nature could potentially attract macro traders looking to lower their portfolio volatility while improving risk-adjusted returns.
- Source: IntoTheBlock
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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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