Rally Stalls

The latest moves in crypto markets, in context

Edited by Omkar Godbole

October 13, 2021

Sponsored by

Bitcoin (BTC)

-4% $54,850

Ether (ETH)

-0.5% $3,450

(Price data as of October 13 @ 11:30 UTC)

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

Market Moves: Bitcoin Dips Ahead of U.S. CPI

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. Today's show will feature guests:

Rob Catalanello, co-CEO of B2C2

Ming Wu, CEO at Strips Finance

Fred Schebesta, CEO of Finder.com

– Omkar Godbole

Biggest Movers

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

Top Gainer:

Top Loser:

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.

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Market Moves

by Omkar Godbole

Bitcoin's bullish move has stalled in the past 24 hours. While the exact reason for the dour price action is not apparent, investors may be reassessing the supposedly bullish impact of the highly anticipated futures-based exchange-traded fund (ETF). These products have a downside and often underperform the underlying asset, as CoinDesk reported Monday.

Binance's latest decision to delist the Chinese Yuan from its consumer-to-consumer trading platform may have led to some selling.

In traditional finance, the futures tied to the S&P 500 are trading 0.2% higher, and the dollar index is seen at one-year highs ahead of the U.S. inflation number for September. Worst of the low base effects have run their course. As such, if the consumer price index (CPI) stays above 5%, markets may price a higher probability of a faster Federal Reserve taper – scaling back of crisis-era stimulus – by selling risk assets, including bitcoin.

The recent surge in energy prices has already boosted fears of stagflation.

Later Wednesday, the focus would be on the minutes of Federal Reserve's September meeting.

Lesser Bitcoin Price Volatility Ahead?

Days of extreme price volatility during market downturns may be behind us as traders are increasingly using stablecoins or fiat currencies as collateral to trade futures contracts – an obligation to buy or sell the underlying at a later date at an agreed-upon price.

Since May, the percentage of futures contracts open interest margined in the native coin has been on decline and recently fell below 50%, according to Glassnode data quoted by Delphi Digital in its daily analysis on Monday.

“The largest implication of that is likely to be less volatility around selloffs,” Web Begole, CTO at Exante Data, told CoinDesk.

That’s because, in coin-margined futures, losses are compounded during market downturns, which leads to exaggerated price declines.

Read the original story here:

Declining Interest in Bitcoin-Margined Futures Promises Lesser Price Volatility

Technician's Take

by Omkar Godbole

Bitcoin Hovers Near 200-Hour MA

Bitcoin remains on the offer following Tuesday’s 2.58% drop. The cryptocurrency trades near the 200-hour moving average at $54,500.

Bitcoin's hourly chart with relatively strength index (Source: TradingView)

Acceptance under the 200-hour MA would expose support at $50,000.

Read the original story here:

Bitcoin Hovers Near 200-Hour MA Support; Resistance at $56.6K

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BOLO

Be on the lookout for the following events today:

ICYMI

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

Bitcoin Eyes $60K, Price Chart Shows Impending Bull Cross

"First Mover" team digs into the top stories impacting the crypto markets today: China's real estate crisis ensnaring yet another developer, Modern Land is struggling to pay its debt--could this cause a domino effect in global financial system? A couple received $100,000 in privacy coin monero before they were arrested by the FBI and NCIS, according to a criminal complaint. Justin Ehrenhofer, a monero community member, shares his take on the arrest. Mannik

A Message from CoinDesk

While the pandemic has stunted some industries, fintech development and adoption have accelerated. Join executives from across the financial and technology sectors at Accelerate Finance: Money in a Mobile World on Oct. 13 to understand what's next in tech and how consumer expectations are driving change. Register now.

Latest Headlines

Global Finance Watchdog Says $133B Stablecoin Sector Remains Niche

The Financial Stability Board, a G20 entity that provides recommendations for the global financial system, found stablecoins are not being used at any significant scale for payments at present.

Coinbase Follows FTX.US Into NFT Trading

The exchange’s marketplace will support Ethereum-based NFTs and comes a day after the release of an NFT marketplace from rival exchange FTX.US.

What Jamie Dimon Doesn’t Understand About Bitcoin

The JPMorgan CEO thinks the bitcoin supply cap is changeable. He ain’t wrong, but he definitely ain’t right.

Crypto-Focused Equities ETF Could Begin Trading in Australia in Coming Weeks

The ETF will offer exposure to crypto-focused companies, such as Coinbase and Riot Blockchain.

SEBA Bank Introduces Program for Clients to Earn Yield on Crypto

The Swiss regulated firm is tapping into demand from institutions for income from digital assets.

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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