Bitcoin Rises Slightly Along With Stocks
Bitcoin and other crypto assets rose along with U.S. stocks, which broke a three-day losing streak on Wednesday, as investors' appetite for riskier assets returned.
“Bitcoin is benefitting from a slight risk-on session on Wall Street as stocks try to end a three-day slide,” said Edward Moya, senior market analyst at Oanda.
The S&P 500 rose 0.22% and the Nasdaq Composite gained 0.52%.
Moving in sync, bitcoin and ether were recently up 1% and 2%, respectively, according to CoinDesk data. Other blockchain-affiliated assets, including Solana’s SOL and Cardano’s ADA rose by about a percentage point.
Investors have been hesitant to commit over the past few days before the U.S. Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, where Fed Chair Jerome Powell may offer clues about upcoming monetary policy in a Friday speech.
“We are stuck in consolidation mode before Jackson Hole and that should keep bitcoin supported above the $20,000 level,” Moya said. “Risky assets may be stuck in a range even after Powell's speech on Friday, as not much will be able to deter the Fed's hawkish stance until we get soft inflation [data].”
Powell is expected to give a speech on Friday at 10 a.m. ET that will clarify the central banker’s outlook on inflation over the next couple of months. Traders are also hoping for hints of whether the Fed will hike interest rates by 75 basis points at its next meeting in September, or by 50 basis points. The amount depends on signs inflation is lessening.
New research by the Federal Reserve Bank of New York published Wednesday showed that coronavirus pandemic-induced strong demand was the main driver behind higher U.S. inflation in July, and that without supply chain bottlenecks the inflation rate would have been 6% instead of 9% at the end of 2021.
“In the absence of any new energy or other shock, it is therefore possible that the ongoing easing of supply bottlenecks will cause a substantial drop in inflation in the near term,” the report said.
●Bitcoin (BTC): $21,705 +0.8%
●Ether (ETH): $1,681 +1.6%
●S&P 500 daily close: 4,140.77 +0.3%
●Gold: $1,765 per troy ounce +1.1%
●Ten-year Treasury yield daily close: 3.11% +0.05
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.
CoinShares a Good Way to Play the Crypto Recovery, BTIG Analyst Says
By Michael Bellusci
Europe-based digital asset management firm CoinShares (CNSRF) is one of investment company BTIG’s picks for investors to play the recovery across crypto markets along with the growing adoption of digital assets, analyst Mark Palmer told clients in a note Wednesday.
CoinShares, which is Europe's largest digital asset management company, according to BTIG, continues to develop crypto-focused financial products and maintains an edge over peers given the company’s proprietary technology infrastructure, Palmer said.
Palmer says while shares have lagged since the spring, CoinShares’ management is focused on boosting its exposure to physical stakes in exchange-traded funds (ETF) with attractive yields and no management fee.
Sweden-listed CoinShares had about $1.65 billion in assets under management as of June 30, according to its Q2 report.
BTIG gave CoinShares a buy rating and $5.63 price target (SEK60). Shares were trading on Wednesday down 4.6% to $3.76 (SEK39.85), and have declined more than 50% year to date.
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