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.
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%.
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.
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.
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
- 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
- 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.
- Ken Moelis' Investment Bank Creates Group to Focus on Blockchain Deals, Bloomberg Reports: The New York bank, founded by Ken Moelis in 2007, is looking at crypto deals with more intent.
- Memecoin Teddy Doge 'Soft' Rug Pulls $4.5M Worth of Tokens, PeckShield Says: Prices of the Dogecoin-inspired token fell 99.7% in the past 24 hours.
- How Attackers Stole Around $1.1M Worth of Tokens From Decentralized Music Project Audius: The sophisticated exploit involved attackers passing a malicious governance proposal by exploiting smart contracts.
- Bitcoin Drops Even as Wall Street's 'Fear Gauge' Indicates Calm Ahead of Fed Decision: "I don't think the hawkish Fed trade has peaked," one observer said.
This web version of today's First Mover newsletter was produced by Sage D. Young.
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.