The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. Price point: Altcoins lead, BTC recovers from weekend lows and fights to stay above $21,000. Market Moves: A large wallet at the center of the governance drama at Solana lending protocol Solend started to move millions of dollars of cryptocurrencies this morning.
This newsletter was produced by Parikshit Mishra. Please let us know what you think of First Mover by replying to this email. |
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Altcoins are taking the lead Tuesday, with Polygon's MATIC up 11%, Solana (SOL) by 9.5% and NEAR Protocol (NEAR) by 9%. Bitcoin was 2.6% up on the day and hovering around the $21,000 mark. The world's largest cryptocurrency by market capitalization is 20% higher compared to the 2022 lows around $17,000 reached over the weekend. This short and sharp downward movement was triggered by liquidations and some miners selling positions around $20,000 to re-enter at a lower price, according to Pablo Jodar, financial products manager at Storm Partners, a systems provider for the cryptocurrency space in Europe. Although bitcoin is seeing some consolidation towards $23,000, it still needs to break that resistance to start considering a higher movement towards $30,000, said Jodar. The $19,000 level is still the key support level. "If the $23K level is broken, we might have a bull summer for cryptos and potentially a good end of the year, but volatility remains quite high to make such an assumption," Jodar said. Another reliable metric to test market sentiment is the in-and-out transfers from exchanges to private wallets, according to Jodar. The metric provides insight into what whales (individuals or entities that hold large amounts of cryptocurrency) are doing with their funds. Over the last month, there were many inflows in exchanges from whales liquidating their positions, but this has started to change, with big outflows spotted Monday from exchanges to private wallets, according to data from Glassnode. "You see tremendous outflows when BTC came down to $17.6K, and then netflows being less negative now," said Jodar. |
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Chart shows bitcoin: net transfer volume from/to exchanges - all exchanges.(Glassnode) |
"This means that some big investors have bought back again and expect to hodl the coins," said Jodar. "Hodl" is crypto jargon for the practice of holding assets for the long term with no intent to sell even if the price crashes. |
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Market Moves By Shaurya Malwa |
A large wallet at the center of the governance drama at Solana lending protocol Solend started to move millions of dollars of cryptocurrencies this morning, Solend said in a tweet. The move potentially averts the risk of contagion in case of a liquidation that could have caused hundreds of millions of dollars in losses. The anonymous wallet had deposited 95% of Solend's pool of SOL tokens and represented 88% of USDC borrowing, but came close to a margin call last week as the SOL price dropped more than 40% to as low as $27. The protocol would have automatically liquidated up to 20% of the whale's collateral if SOL hit $22.30, and potentially led to damage in the broader Solana ecosystem. A governance vote was floated by protocol developers to take control of the account and take adequate risk management steps. The wallet's actions Tuesday came as the SOL price rose by 12% over 24 hours to hit $37. This means the liquidation levels are far below current levels, allowing the wallet's user to take necessary steps to prevent unforeseen damages in the case of liquidation. |
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The SEC wants to hear from investors, like you. As part of Grayscale's filing to convert Grayscale Bitcoin Trust (Symbol: GBTC) to an ETF, the SEC provides a 240-day review period for anyone to submit comments for consideration.If you support the conversion, write to the SEC by clicking here - you have until the end of June to submit your thoughts. Your submission matters because: We can level the playing field. To date, the SEC has only permitted Bitcoin Futures ETFs, while rejecting "physically-backed" or Spot Bitcoin ETFs. The choice should be yours. If you've been waiting for the familiarity and protections of a Bitcoin ETF, we believe you should not be forced into a Futures-based product simply because it's the only one that exists. You can help take GBTC to the next level, conversion to an ETF. It's already the world's largest Bitcoin fund and regularly reports to the SEC on a voluntary basis as an SEC-reporting company. Learn more here.
This information should not be relied upon as investment advice or a recommendation regarding any security. Visit here for important disclosures.
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers Biggest Losers There are no losers in CoinDesk 20 today. |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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And check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time.
- Steve Aoki (TAPED), DJ, Producer, Entrepreneur
- Sebastien Borget, co-founder and COO, The Sandbox
- Matthew Tuttle, CEO and CIO, Tuttle Capital Management
- Oliver Knight, News reporter Europe, CoinDesk
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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