Market Wrap: Bitcoin Rises Slightly Along With Stocks

U.S. equity indexes snapped a three-day losing streak on Wednesday, dragging along crypto assets.

AccessTimeIconAug 24, 2022 at 8:50 p.m. UTC
Updated May 11, 2023 at 3:54 p.m. UTC
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Price Action

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.

This article originally appeared in Market Wrap, CoinDesk’s daily newsletter diving into what happened in today's crypto markets. Subscribe to get it in your inbox every day.

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.

Latest Prices

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.

Featured Story

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.

Altcoin Roundup

  • The Ethereum Merge Has an Official Kick-Off Date: The Bellatrix upgrade that begins the final countdown is set to activate on Sept. 6. The Merge itself will be completed at some point between Sept. 10-20. Read more here.
  • Tether Sticks to Decision Not to Bar Tornado Cash Addresses: The stablecoin issuer sees a freeze of secondary Tornado Cash addresses as premature, and awaits more clarity from U.S. authorities. Read more here.
  • Crypto Lender Voyager Can Pay Employees 'Retention' Bonuses, US Judge Rules: Judge Michael Wiles also agreed to withhold the names and titles of the employees who may receive the bonuses. Read more here.

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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 offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Helene Braun

Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.

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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


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