Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

Good morning, and welcome to First Mover. I’m Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off.)

  • Price point: Bitcoin heads for longest daily losing streak since mid-2016, and $1 billion of trading positions get liquidated ("rekt" in crypto-speak).
  • Market Moves: The Fed starts its two-day closed-door meeting, and Wall Street analysts are growing increasingly negative; Bybit releases its "first-ever Bear Market Guide for traders."

Price point

Bitcoin (BTC) slid for an eighth straight day, its longest losing streak since January 2016, as U.S. stocks joined cryptocurrencies in a bear market.

Some $1 billion of cryptocurrency futures contracts and derivatives were liquidated due to margin calls over just 24 hours.

The big U.S. cryptocurrency exchange Coinbase disclosed plans to lay off some 1,100 employees, or roughly 18% of its workforce, as part of a cost-cutting plan. Analysts for the Wall Street firm JPMorgan cut Coinbase's stock rating to neutral, and the shares slumped.

"This is very bad, especially for those holding their coins there, but also for the industry as a whole," wrote Mati Greenspan, founder of the cryptocurrency and foreign-exchange analysis firm Quantum Economics, wrote Monday in a newsletter. "There isn't much optimism right now. It's been a very brutal bear market."

European shares traded lower on Tuesday, but U.S. stock futures appeared to be bouncing prior to the open of trading in New York. Gold was down 0.5% to $1,823 an ounce; crude oil rose 1% to $122 a barrel.

The 10-year U.S. Treasury bond yield was down a 0.06 percentage point to 3.31%.


Market moves

The Federal Reserve's campaign to tighten monetary conditions – to help contain inflation running at its fastest in four decades – has put extreme pressure on assets across the board, from cryptocurrencies to stocks and bonds.

The U.S. central bank starts a two-day closed-door meeting on Tuesday, and traders are speculating over its likely decision, to be announced Wednesday at 2 p.m. ET.

Fed officials had telegraphed the likelihood of a 0.5 percentage point increase, but now some analysts are warning that a hike of 0.75 percentage point or even a full percentage point might be in the cards.

The "S-word" (stagflation) is on the lips of investors: "We believe we're moving toward an environment of persistent high inflation coupled with weak real growth. In other words, stagflation," Kyle Delaney, president of the giant hedge fund Bridgewater, wrote in a communiqué to investors.

Fitch, the bond-rating service, cut its estimate of global gross domestic product growth in 2022 by 0.6 percentage point to 2.9%. "Global inflation pressures continue to intensify, with increasingly adverse implications for the growth outlook," wrote Brian Coulton, Fitch's chief economist.

Underscoring the theme du jour, the crypto exchange Bybit unveiled its "first-ever Bear Market Guide for traders."

"Featuring a contemporary design that draws inspiration from popular culture, the guide shares a pool of resources that can help investors put the bear market situation into perspective," Bybit said in a press release from Seychelles.

In the current economic environment, what else is there for a trader to do?


Latest headlines

Today’s newsletter was edited by Bradley Keoun and produced by Parikshit Mishra.

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

CoinDesk - Unknown

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

CoinDesk - Unknown

Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

CoinDesk - Unknown

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

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