Bitcoin Accumulation Stalls, Traders Await Payrolls Data

The latest moves in crypto markets, in context

Edited by Omkar Godbole

December 3, 2021

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Good morning, and welcome to First Mover. Here's what's happening this morning:

Market Moves: Bitcoin Accumulation Stalls, Axie Infinity's Revenue Drops

Technician's Take: SAND's Bullish Consolidation

Be on the lookout for the following events today:

And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time.

– Omkar

Market Moves

by Omkar Godbole

Bitcoin remains confined to the recent range of $55,800 to $59,300, with dips supported by a renewed bid in ether. The native token of Ethereum's blockchain is trading 2% higher on the day above $4,600.

LUNA, the native token of the Terra blockchain, tapped new record highs near $69 early Friday, extending a six-week winning run powered by increased demand for the network’s UST stablecoin and multiple incentive programs.

Tokens associated with other programmable blockchains also traded higher, with cosmos leading the pack with an over 10% rise. Privacy coins BEAM, PIVX, were other notable gainers, along with Stellar's XLM token.

DeFi tokens traded mixed while play-to-earn leader Axie Infinity's AXS rose 3%. The monster-battling game's revenue declined 12% to $173 million in November, marking a third straight monthly decline, data provider Axie World reported this week.

Nonfarm payrolls eyed

The U.S. nonfarm payrolls data scheduled for release at 13:30 UTC on Friday is forecast to show the world's largest economy added 550,000 jobs in November after 531,000 additions in October. The unemployment rate is expected to fall to 4.5% from 4.6%, while the average hourly earnings is forecast to increase 0.4% month-on-month, according to FXStreet.

A weak payrolls and wage growth figure would raise questions on the Fed's ability to taper more quickly, perhaps pushing bitcoin and other risk assets higher.

The cryptocurrency's bullish momentum has weakened recently, courtesy of the U.S. Securities and Exchange Commission's rejection of a spot-based exchange-traded fund and heightened fears of an early Fed rate hike.

Blockchain data shows renewed selling by large holders. The supply held by addresses owning 1,000 BTC to 10,000 BTC has decreased by 69,000 BTC in the past two days, according to Glassnode.

In the past two weeks, the balance held by accumulation addresses has declined by more than 100,000 BTC. Accumulation addresses are those that have at least two incoming non-dust transfers (tiny amounts of bitcoin) and have never spent funds. The metric excludes addresses active more than seven years ago to adjust for lost coins and those belonging to miners and exchanges.

Also read:

Bitcoin Confined to Familiar Range as Stocks Rise Ahead of Payrolls Data

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Biggest Movers

These are the biggest movers in the CoinDesk 20 over the past 24 hours:

Top Gainers:

Chainlink (LINK): +3%

Top Losers:

Cardano (ADA): -3.7%

Uniswap (UNI): -1.9%

The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.

Technician's Take

by Omkar Godbole

SAND's Bullish Consolidation

SAND's daily chart (Source: TradingView)

A Message from Amber

Amber Group is an integrated digital asset platform serving retail and institutional clients by providing deep liquidity, attractive yields, and sophisticated portfolio management tools. With 12 offices on three continents, and nearly a trillion dollars in volume traded, Amber Group offers clients personalized, compliant, and secure service across dozens of digital assets.

Find out more at www.ambergroup.io

ICYMI

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Square Changes Name to ‘Block,’ Crypto Bosses to Testify on Capitol Hill Next Week

"First Mover" hosts speak to I/O Fund Founder & CEO Beth Kindig for her insights into Square's rebranding and her pick of the next big tech stock. Bitwise Asset Management Chief Investment Officer Matt Hougan shares insights into the crypto markets as analysts maintain bitcoin's bullish trajectory remains intact. The House Financial Services Committee plans to hold a hearing with the CEOs of several major crypto exchanges and startups. CoinDesk's Managing Editor for Global Policy & Regulation, Nikhilesh De, has the scoop. Plus, for CoinDesk's "Future of Money" Week, Cato Institute VP for Monetary Studies Jim Dorn speaks about the relation between the free market and money tech.

Latest Headlines

The average trade size on Curve Finance ranges from $500,000 to $1 million, according to Kaiko.

Lawmakers, likely seeking support from young voters, decided to postpone the virtual assets tax.

The Massachusetts senator sent a letter to the bitcoin miner asking for more details about the environmental impact of its mining operation.

Michael Saylor Calls Bitcoin the World’s Reserve Asset but Not So Good for Buying a Cup of Coffee

The billionaire founder of the business intelligence company MicroStrategy said in a CoinDesk TV interview that bitcoin is the best inflation hedge.

The miner expects to complete its merger with Ikonics Corp. and go public during the week of Dec. 13.

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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