First Mover Americas: Bitcoin Turns South Toward $20K, Huobi Cuts Ties With the HUSD Stablecoin
The latest price moves in crypto markets in context for Oct. 28, 2022.
This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
Dogecoin has gained 33% over the last seven days, making it the top-performing crypto asset with a market capitalization of more than $1 billion.
Ether (ETH) was down 3.5% on the day at around $1,500.
Crypto exchange Huobi Global announced Thursday it is cutting ties with its closely linked stablecoin, the troubled asset HUSD. In a notice to users, Huobi, the top trading venue for the $219 million market-cap stablecoin, cited its rules for performing “regular inspection” on listed assets. In August, the stablecoin briefly lost its dollar peg and crashed 8% after its issuer closed “several accounts” because of regulatory concerns.
The stablecoin HUSD was down 8% over the last 24 hours, according to data from CoinMarketCap. The price of Huobi token (HT), an ecosystem token launched by Huobi Global, was also down 7% on the day.
In traditional markets, stocks slid along with U.S. equity futures after some disappointing earnings results from tech giants. Futures for the Nasdaq-100 led declined by 1.1%, and S&P 500 futures fell 0.6%. Amazon’s (AMZN) shares tumbled 13% in premarket trading. Late Thursday, the company gave a sales estimate for the fourth quarter below analysts’ expectations.
CoinDesk Market Index
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Chart of the Day
- The chart shows changes in ether and bitcoin's annual issuance rate since the Ethereum blockchain switched to a proof-of-stake consensus mechanism on Sept. 15.
- The annual issuance continues to slide toward 0.0%. Since the technological upgrade, ether's annual token supply change has decreased from 3.6% to 0.009%, making it more attractive than bitcoin.
- Therefore, ether may continue to outperform bitcoin.
- "Any increase in on-chain activity should bring ethereum firmly into deflationary issuance territory and may have a substantial outsized effect on ether's price," Josh Olszewicz, head of research at digital-asset fund manager Valkyrie Investments, said.
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