First Mover Asia: Does Anyone Care Anymore if Bitcoin Dips Below $20K?

The more blasé crypto analysts become about a bitcoin price in the $10,000s, the more it seems like the bottom is in. Plus: The euro on Monday approached parity with the U.S. dollar.

AccessTimeIconJul 12, 2022 at 12:15 a.m. UTC
Updated May 11, 2023 at 6:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Good morning. Here’s what’s happening:

Prices: Bitcoin dips below $20K, but crypto analysts don't seem bothered.

Insights: KuCoin denies layoff rumors while Three Arrows creditors get an emergency hearing.

Prices

Bitcoin (BTC): $20,065 −3.2%

Ether (ETH): $1,105 −4.9%

S&P 500 daily close: 3,854.43 −1.2%

Gold: $1,732 per troy ounce −0.5%

Ten-year Treasury yield daily close: 2.99% −0.1


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.

For almost a month, bitcoin (BTC) has been trading in a range between $17,000 and $23,000, and crypto analysts are wondering if the worst of this year's big sell-off might be over.

The price fell 4.4% on Monday to dip below $20,000, but drops below that crucial psychological price threshold aren't generating the same level of panic as in early June, when bitcoin seemed to be in free fall.

  • "I've heard forecasts as low as $8,000 per bitcoin, but we may have seen the bottom already," wrote Mati Greenspan, founder of the crypto and foreign-exchange analysis firm Quantum Economics. "The outlook only gets better when we realize that the absolute worst-case scenario is probably not extremely likely."
  • "The cleansing is happening," Kapil Rathi, CEO of the crypto trading platform CrossTower, told CoinDesk TV on Monday. "When we come on the other side it should be healthy and a stronger crypto market."
  • "Despite all the pessimism and negative headlines for bitcoin, the fact that it is putting up a fight at the $20,000 level is a promising sign," said Edward Moya, senior market analyst at Oanda.

In traditional markets, the big story on Monday in foreign exchange was the euro's slide toward $1 – the so-called "parity" point. CoinDesk's Omkar Godbole wrote about the implications for crypto last week.

Crypto traders are still looking ahead to Wednesday's expected release of June’s Consumer Price Index (CPI), the most widely regarded measure of U.S. inflation, for clues on how aggressive the Federal Reserve will need to be to slow the pace of consumer price rises.

Most altcoins were trading in the red today, with DOGE and SHIB losing big.

Sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.

Markets

Biggest Gainers

Asset Ticker Returns DACS Sector
Loopring LRC +6.4% Smart Contract Platform

Biggest Losers

Asset Ticker Returns DACS Sector
Gala GALA −9.0% Entertainment
Shiba Inu SHIB −8.5% Currency
Dogecoin DOGE −7.7% Currency

Featured stories

KuCoin Denies Layoff Rumors, Says It's Hiring 300 - by Shaurya Malwa

Cryptocurrency exchange KuCoin pushed back against rumors of massive layoffs, saying it actually intends to hire more than 300 employees over the coming months, CEO Johnny Lyu told CoinDesk via Telegram on Monday.

“KuCoin has not reduced staff and does not plan to do so,” Lyu said. “We are one of the few crypto platforms that continue to grow by relying on an effective business strategy, focusing on releasing new products and maintaining a healthy atmosphere in our team.”

Lyu added the company was doing everything it could to “increase the productivity and motivation of employees,” while also focusing on expanding in innovation and compliance.Important events

Read the full story here.

Three Arrows Creditors Get Emergency Hearing as Founders Fail to 'Cooperate' - by Sam Reynolds

Where in the world are Su Zhu and Kyle Davies? Lawyers involved in the liquidation proceedings of Three Arrows Capital’s British Virgin Islands fund would certainly like to know because the hedge fund founders have not been cooperating in the proceedings so far and their current location is unknown.

In documents filed late Friday in the U.S. Bankruptcy Court for the Southern District of New York, lawyers acting on behalf of the creditors said the founders of the fund “have not yet begun to cooperate with the [proceeding] in any meaningful manner.”

The lawyers said that persons identifying themselves as “Su Zhu” and “Kyle” were present on an initial Zoom call, but their video and audio was turned off and they would not respond to questions posed directly to them, with only their legal representatives answering questions.

Lawyers for the creditors that visited Three Arrows’s Singapore office found it abandoned, according to court documents.

Read the full story here.

CoinDesk TV

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

Former FDIC Chief Innovation Officer Sultan Meghji discusses the bankruptcy of crypto hedge fund Three Arrows Capital (3AC) and the ripple effects sending Celsius Network, Voyager Digital and other lenders into crisis. Did Voyager mislead customers about FDIC insurance? Kapil Rathi of CrossTower provides his markets analysis as crypto and broader markets await new inflation figures.

Headlines

Bitcoin in 'Accumulation' Phase, On-chain Indicators Suggest: Bitcoin's Puell Multiple and MVRV Z-Score indicate the cryptocurrency is undervalued. Similar readings have marked bear market bottoms in the past.

Voyager Clarifies USD Deposit Concerns in Update: The crypto exchange, which filed for Chapter 11 bankruptcy, says it remains unclear how customers will be reimbursed for their cryptocurrency investments.

CoinFlex Begins Arbitration to Recover $84M in Delinquent Debt: The trading platform also said it was speaking with depositors looking to help the business by “rolling some of their deposits into equity.”

Twitter Shares Down 7% Following Elon Musk's Scrapped Takeover: The social-media company plans to take legal action against the crypto enthusiast.

Binance Failed to Deliver on Money-Laundering Prevention Promises: Report: A Reuters report says the cryptocurrency exchange has been lax in cracking down on the financial crime.

Gryphon Mining 'Able to Take Advantage of Opportunities' in Sector: The miner produced 71 bitcoin in June, up from 62 in May.

Cross-Chain Infrastructure Protocol LI.FI Raises $5.5M: The funding will help the firm expand to more blockchains.

Celsius Reclaims $172M Collateral From Aave, Compound: The liquidity-strapped crypto lender has paid down $95 million in debt from the two decentralized finance (DeFi) platforms since Friday.

Voyager Clarifies USD Deposit Concerns in Update: The crypto exchange, which filed for Chapter 11 bankruptcy, says it remains unclear how customers will be reimbursed for their cryptocurrency investments.

Global Financial Watchdog FSB to Propose Crypto Regulations in October: The Financial Stability Board will recommend ways to oversee stablecoins and other digital assets to the G-20.

Longer reads

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Bradley Keoun

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

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.