Sell The Fact?

The latest moves in crypto markets, in context

Edited by Omkar Godbole

October 18, 2021

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Bitcoin (BTC)

+0.10% $61,100

Ether (ETH)

-3% $3,770

(Price data as of October 18 @ 11:00 UTC)

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Good morning, Here's what's happening this morning:

Market Moves: Bitcoin Vulnerable to Profit Taking

Technician's Take: Bitcoin Faces Resistance Above $62K

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:

Pete Flint, NFX General Partner, co-founder of Trulia

– Omkar Godbole

Biggest Movers

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

Top Gainers:

Top Losers:

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 was trading sideways above $60,000 on Monday as investors eyed the long-awaited listing of an exchange-traded fund (ETF) tied to the cryptocurrency on the New York Stock Exchange.

According to the New York Times, ProShares will launch a bitcoin ETF tomorrow to invest in regulated bitcoin futures contracts like the ones trading on the Chicago Mercantile Exchange (CME).

While the futures-based ETF is widely hailed as a door opener for more mainstream money, some observers are still skeptical.

"Demand for these bitcoin futures ETFs is likely to be disappointing. These could be of interest to a limited audience of institutions that can't hold spot or derivatives directly, as well as retail investors that prefer the familiarity and convenience of ETFs," said Noelle Acheson, head of market insights at Genesis Global Trading, Inc.

"Most investors, however, are more likely to continue to access BTC exposure through spot or derivatives, or through any of the many listed securities or international funds that offer spot BTC exposure," Acheson added.

In traditional markets, futures tied to the S&P 500 traded lower as surging energy prices cemented inflation worries and reinforced bets on policy tightening. The minutes of Federal Reserve's September meeting released last week carried fewer references to inflation being transitory. Further, it showed several policymakers were in favor of rapid scaling back of stimulus.

Sell The Fact?

The downtrend in bitcoin's exchange has stalled (Source: Glassnode)

Blockchain data shows bitcoin may see some profit taking or sell-the-fact action, having rallied 40% this month on increased hopes for an ETF.

The featured chart shows the number of bitcoins held on cryptocurrency exchange recently stopped declining – possibly a sign that fewer investors are taking coins down to sock away in their own wallets or offline custody options. That's contrary to the steady decline in exchange balances observed during cryptocurrency' s rally from $10,000 to over $64,000 observed in seven months to April.

"This goes in line with the expectation that once trading goes live for a Bitcoin ETF, we will likely see a sell-off event,"Nick Mancini, research analyst at Trade The Chain said in a Twitter response.

"The reason you keep crypto on exchanges is because you plan to make use of that liquidity. Keep a lookout for a major selling event this week," Mancini added.

As long as bitcoins are held on cryptocurrency exchanges, there’s a perception in the market that those coins could quickly be liquidated, which theoretically could put downward pressure on the price. Investors typically take direct custody of coins when the cryptocurrency is expected to rally.

Also read:

CME Sees Record Open Interest in Bitcoin Futures Ahead of ETF Debut

Technician's Take

by Omkar Godbole

Bitcoin Faces Resistance Above $62K

Bitcoin ended Sunday (UTC) well above $61,000, confirming its highest weekly close and putting the lifetime price record of $64,801 on the map.

Bitcoin's 4-hour chart with relative strength index (Source: TradingView)

Read the original story here:

Bitcoin Faces Resistance Above $62K After Record Weekly Close

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BOLO

Be on the lookout for the following events today:

13:15 UTC (9:15 a.m. ET):
- U.S. Industrial Production (Sep). Est: 0.2%

ICYMI

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

SEC Will Reportedly Allow Bitcoin Futures ETFs to Launch, Bitcoin Breaks $59K

"First Mover" with breaking news: The SEC, facing a Monday deadline to act on the first bitcoin futures ETF application, will reportedly take no action, allowing the ETF to be approved automatically. Coverage includes CoinDesk's Nikhilesh De breaking down the SEC process, the reaction from Matt Hougan of Bitwise, which has Bitcoin ETF applications pending, and FTX.US president Brett Harrison. Plus, Omer Ozden of RockTree Capital with crypto markets analysis.

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

Mining has moved out of China. Is this good for bitcoin? Based on one metric at least, the answer is a resounding yes.

After years of trial and error by would-be fund sponsors, cryptocurrency investing is finally opening up to the masses with the tacit U.S. approval of a bitcoin futures exchange-traded fund.

The U.S. regulator issued an order “simultaneously filing and settling charges against Tether,” the issuer of the crypto industry’s largest stablecoin.

The firm has had a deep interest in the crypto space with previous investments in Kraken and FTX, among others.

A GitHub repository went live Thursday in a bid to make open source a proposed framework to U.S. officials.

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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