BTC dipped by 3% following Brainard's statements, but stabilized later in the New York trading day.
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A more aggressive approach to tightening central bank policy sent jitters through the market as investors reduced their exposure to speculative assets. Stocks declined while the 10-year Treasury yield spiked to its highest level since May 2019.
In crypto markets, dogecoin (DOGE) rallied as much as 17% over the past 24 hours following Twitter’s (TWTR) announcement of Tesla (TSLA) CEO Elon Musk joining its board of directors. Meanwhile, SHIB, another dog-themed meme coin, was up 4% on Tuesday compared with a 13% decline in WAVES and flat performance in BTC over the same period.
●Bitcoin (BTC): $45923, +0.22%
●Ether (ETH): $3456, −0.77%
●S&P 500 daily close: $4525, −1.25%
●Gold: $1925 per troy ounce, −0.20%
●Ten-year Treasury yield daily close: 2.56%
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.
Balanced demand for bitcoin
The dispersion in crypto returns on Tuesday indicates some uncertainty among traders, which is particularly evident in the bitcoin futures market.
"However, since BTC broke out above $45,000 last week, funding rates have normalized around neutral territory, suggesting that there is balanced demand for long and short positions at the moment," Arcane wrote in a Tuesday report.
And for ether, FundStrat noticed that funding rates have been positive for 10 consecutive days. That suggests traders are more bullish on ETH than BTC, which typically occurs during an up market.
Further, blockchain data shows that short-term bitcoin holders have been accumulating positions since BTC's recent price low set on Jan. 22, according to Glassnode.
Still, the average volume of BTC supply held in long-term holder (whale) addresses has plateaued. "This generally suggests that this wallet cohort are contributing the least to the current accumulation trends," Glassnode wrote in a blog post.
- Dogecoin rallies again after Elon Musk joins Twitter board: Dogecoin (DOGE) rallied on Musk joining the Twitter board. As part of the deal to join the board, Musk agreed to not bring his stake any higher than 14.9% from the current 9.2%, which still makes him Twitter's biggest stockholder. Read more here.
- Universal Music Group files four trademarks for its Bored Ape Band leader: Universal Music Group (UMG) could be ramping up plans for its non-fungible token (NFT) band, filing four trademarks tied to the Bored Ape Yacht Club NFT it announced as the band’s leader in March. The trademarks indicate plans for crypto tokens, utility tokens, application tokens and non-fungible tokens. Read more here.
- Digital Euro may get easier AML rules than Bitcoin, EU commissioner says: The European Union’s potential digital euro will face money laundering checks – but not necessarily ones as strict as those currently planned for regular cryptocurrencies like bitcoin, the European Commission’s Mairead McGuinness told CoinDesk Tuesday. Read more here.
- Bitcoin's 'Reserve Risk' Suggests Opportunity for Long-Term Accumulation: The indicator trades at low levels when there is heavy investor accumulation and HODLing is the preferred market strategy, a blockchain analytics firm said.
- Marathon to Relocate Mining Rigs Away From Coal-Powered Montana Site: The firm wants its bitcoin mining operations to be 100% carbon neutral by the end of the year.
- Treasury's Yellen to Deliver First Speech on Crypto in US Economy: Janet Yellen will discuss policy and regulation in a speech in Washington, D.C., on Thursday.
- Coinbase’s NFT Strategy Questioned by Mizuho Analyst: Dan Dolev is skeptical about the exchange getting into the NFT business at this time, citing a decline in NFT internet searches.
- MicroStrategy Buys $191M Worth of Bitcoin: The software company now holds 129,218 bitcoins.
Most digital assets in the CoinDesk 20 ended the day higher.
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.