First Mover Americas: BTC and ETH Outperform Traditional Markets in July Despite the Dollar's Strength

The latest price moves in crypto markets in context for July 25, 2022.

AccessTimeIconJul 25, 2022 at 2:35 p.m. UTC
Updated Jul 25, 2022 at 3:18 p.m. UTC

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Omkar Godbole was a senior reporter on CoinDesk's Markets team.

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

In today’s newsletter:

  • Price Point: Bitcoin trades down slightly on the day but outperforms traditional markets over the month of July. Also: FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital.
  • Market Moves: Digital asset investment funds saw inflows of $30 million last week, suggesting investor confidence is slowly growing.

Price Point

Bitcoin (BTC) was trading down 3% on Monday as stock futures edge up ahead of the U.S. Federal Reserve’s monetary-policy meeting this week and corporate earnings reports.

On Wednesday the Fed is expected to deliver another 0.75% point interest rate increase as it attempts to cool rising inflation. BTC is still trading up 3% on the month at about $22,000.

Ether (ETH) is down 5% over the last 24 hours to $1,540.

“Clearly ETH has outperformed due to EthCC in Paris last week, but I wonder if it has now run out of steam since we tested $1,600,” Laurent Kssis, head of Europe at Hashdex, a crypto asset management firm, referring to the Ethereum Community Conference.

“A bearish stance is not to be dismissed for the next two weeks as the crypto market is still not out of the woods, but last week's rally has offered optimism to many retail investors,” he added.

Other cryptocurrencies were in the red on Monday, with Cosmos’s ATOM down 8%, AVAX down 7% and Cardano’s ADA down 6%.

In other news, crypto trading platform FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital. The proposal comes two weeks after Voyager filed for Chapter 11 bankruptcy.

Lawyers representing Voyager Digital called the proposal a "low-ball bid dressed up as a white knight rescue" that benefits only FTX.

Across the Atlantic, U.K. bank Barclays is expected to be among the investors in cryptocurrency custody firm Copper's funding round this week, according to a report by Sky News.

Additionally, CoinDesk’s chief insights columnist, David Z. Morris, wrote about Tesla CEO Elon Musk’s influence over the crypto market and whether markets are still fazed by Tesla’s moves.

Biggest Gainers

There are no gainers in CoinDesk 20 today.

Biggest Losers

Asset Ticker Returns DACS Sector
Avalanche AVAX −7.2% Smart Contract Platform
Cosmos ATOM −7.1% Smart Contract Platform
Cardano ADA −6.0% Smart Contract Platform

Market Moves

Crypto funds saw inflows totaling $30 million last week, according to a report from CoinShares. The prior week saw inflows corrected from $12 million to $343 million, marking the largest single week of inflows since last November when BTC and ETH hit all-time highs.

CoinDesk - Unknown

Weekly crypto asset flows (CoinShares)

BTC saw inflows of $19 million last week and ETH had inflows of $8 million. The prior week, Ethereum had $120 million in inflows.

“These inflows imply a turning point in sentiment after a recent 11-week run of outflows,” James Butterfill, head of research at CoinShares, wrote in the weekly report.

“It also suggests that as the Merge progresses to completion, investor confidence is slowly recovering,” Butterfill said. The Ethereum network’s software update knowns as the Merge is set to take place in September.

Digital-asset fund inflows are $294 million so far in July.

Chart of the Day: Crypto Shines Despite Dollar Strength

By Omkar Godbole

CoinDesk - Unknown

Macro assets' current year returns (Skew)

  • Bitcoin and ether have outperformed traditional markets by a big margin this month.
  • The top cryptocurrencies have chalked up double-digit gains despite the dollar's strength, deviating from its record of moving in the opposite direction of the greenback. The dollar index, or DXY, which gauges the greenback's strength against major fiat currencies, was up 2.5% for the month at press time. Still, it may be too early to say bitcoin has decoupled from the dollar. The 90-day correlation coefficient between the two stood at -0.65 at press time, indicating a negative or inverse relationship.
  • The dollar may reassert its dominance if the Federal Reserve downplays the "inflation-has-peaked" narrative later this week, forcing markets to reprice continued aggressive monetary tightening for the rest of the year.
  • "Things have to get far more critical before that [Fed pivot] event occurs. This allows room for dollar dominance," Francis Hunt, founder and director at The Market Sniper, said during an interview with Real Vision Crypto.

Ether-Bitcoin Rally Stalls at Trendline From December Peak

CoinDesk - Unknown

Ethereum/bitcoin (TradingView)

  • The ether-bitcoin (ETH/BTC) ratio is struggling to penetrate a valid resistance line drawn from December and May peaks.
  • A break higher may allow smooth sailing toward the May 11 high of 0.076. The daily chart indicators, notably the RSI (relative strength index) and the EMA (exponential moving average) ribbon, have flipped bullish.
  • Ether picked up a strong bid early this month after Ethereum developers announced Sept. 19 as the tentative date for the completion of the supposedly bullish and long-awaited transition from a proof-of-work to proof-of-stake consensus mechanism.

Latest Headlines

This web version of today's First Mover newsletter was produced by Sage D. Young.



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CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Omkar Godbole was a senior reporter on CoinDesk's Markets team.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Omkar Godbole was a senior reporter on CoinDesk's Markets team.

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