Good morning. Here’s what happens:
the prices: Reports of jobs and services sent bitcoin below $30,000 before, though the cryptocurrency later regained that threshold. Sentiment has been increasingly bullish, one market observer wrote to CoinDesk.
ideas: Large bitcoin holders are increasing, but bitcoins being sent to exchanges are sinking. Is the trend up?
Bitcoin broke from its recent rally
Crypto investors inferred more from the unexpectedly volatile ADP private payrolls report and the surprisingly strong ISM services index than from the less smooth job openings survey.
They sent Bitcoin dropping below $30,000 for the first time in nearly two weeks. The largest cryptocurrency by market cap recently jumped to $30,100, down 1.3% over the past 24 hours. The drop came just hours after bitcoin hit a new three-month high above $31,500, and is a continuation of an investor’s bullish rally caused by multiple Bitcoin ETF deposits last month.
Markets are becoming increasingly hopeful that the US Securities and Exchange Commission (SEC) will reverse its pattern of rejecting applications by some of the world’s most prominent financial services firms. But on Thursday, worries about economic growth, a precursor to inflation, trumped any euphoria.
Ether followed a similar path lower, falling quickly from a high above $1950 after the ADP report, which showed that the private sector added 497,000 jobs, more than double expectations. The ISM Services Index rose to 53.9 in June, above the consensus estimate of 51.2 and the May reading of 50.3. These reports are new fuel for the US central bank to justify additional interest rate cuts in its effort to tame inflation. This hawk often weighs in on cryptocurrency and other asset markets, fearing that the Federal Reserve will plunge the economy into a severe recession.
Investors were less impressed by the May Job Vacancies and Employment Turnover Survey (JOLTS) report, which showed job vacancies fell to 9.82 million, down from 10.3 million in April.
ETH, the second largest cryptocurrency by market cap, was recently trading at $1,853, down 3.1% from Wednesday, at the same time. Most other major cryptocurrencies plunged deeply into the red before regaining some ground. Litecoin and the popular memecoin SHIB are still down more than 6% and 3%, respectively. SOL, the Solana blockchain token, rose over 11% at one point and was still above 4%. The CoinDesk Market Index, which is a measure of the overall performance of cryptocurrency markets, recently fell by 1.7%.
Asian stock markets fell in early trade, with the Hang Seng and Nikkei down about 1% and 0.5%, respectively. They followed declines in US indices as the technology-focused Nasdaq and S&P 500 fell 0.8%. Meanwhile, US 2- and 10-year Treasury yields rose, and gold rose as a safe haven.
In an email to CoinDesk early Thursday, Richard Miko, CEO of US cryptocurrency payment and compliance infrastructure provider Banxa, indicated support for Bitcoin at $30,000 amid instant BTC applications and a host of positive signals, technical and otherwise. .
“We could still hike or hike twice, but it looks like the Fed is definitely getting close to peak rates if they haven’t already been reached,” Miko wrote. “We will probably wait for next year’s Bitcoin halving to experience a full bull situation, but we are getting closer by the day and many are keen to manage what they expect to be a sustained uptrend.”
“The market reflects a growing sense of optimism and the next 18 months will be very exciting,” he added.
Pisces activity is a bullish sign?
Despite the recent increase in bitcoin whales, large bitcoin holders are still reluctant to move assets to centralized exchanges, glass Data appears.
Bitcoin whales and whales moving assets to exchanges have taken separate paths, as large investors appear wary of moving their assets out of cold storage.
Bitcoin investors will likely be wary about exchange risks, regulatory hurdles, or a combination of the two.
The combination of large entities holding a growing supply of bitcoins and a diminishing supply on exchanges points to a bullish trend among investors.
This article was written and edited by CoinDesk journalists with the sole purpose of informing the reader of accurate information. If you click on a link from Glassnode, CoinDesk may earn a commission. For more information, see our Ethics policy.
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