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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. In today's newsletter: |
- Price Point: Bitcoin and ether made small gains Monday as investors and traders wait for a slew of earnings reports from big companies this week. Dogechain, a Polygon Edge-based smart contract system for popular meme token dogecoin, has surged 200% during the past week.
- Market Moves: One strategist explains a way traders can turn a profit during a market lull.
- In the News: Freeway, a relatively minor staking platform, froze withdrawals late Sunday, causing the price of its token to plunge 80%.
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Bitcoin (BTC) continued to trade in a tight range Monday, remaining at around $19,300 as investors await the next batch of earnings from some of the world's largest companies. U.S. futures declined and European markets opened higher Monday as the Conservative Party in the U.K. chooses a new prime minister. Crypto-friendly Rishi Sunak, former chancellor of the exchequer, took a step forward to becoming the new leader after former Prime Minister Boris Johnson pulled out of the contest. Sunak has said that he wants to make the U.K. a "global hub" for crypto assets. Ether (ETH) has also traded in a tight range over the last week and is up 2% on the day at $1,337. "There appears to be a growing sense of anticipation among crypto-asset watchers as prices have held firm now for multiple weeks," Simon Peters, a market analyst at trading platform eToro, wrote in a morning note. In other altcoin action, HT, the token of the Huobi exchange, dropped 5% on the day, and Polygon's MATIC gained 7%. Also, Dogechain, a Polygon Edge-based smart contract system for popular meme token dogecoin, has surged over 200% in the last seven days, according to data from CoinGeko. |
Freeway, a crypto staking platform, announced late Sunday that it had paused withdrawals, citing volatility in the crypto and forex markets and sending its token into a free fall. - The Freeway (FWT) token is down roughly 80% in the hours since the announcement.
- Freeway wasn't a significant or well-known project, with a market cap of less than $70 million before the crash. The market cap is $10 million at current trading prices.
- Freeway claimed it had $160 million in total value locked according to a figure on its website.
- On-chain data suggests that the majority of the largest of the 4,342 token holders received the tokens in an airdrop and were otherwise idle.
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Smart Money Eyes Market-Neutral Trades as ADA, AXS See Unusually Low Funding Rates | While you continue to fret over the broader market lull, remember there are always opportunities out there and they often present themselves in different ways. For instance, holding a short position (a bearish bet) in the perpetual futures market tied to Cardano's ADA and play-to-earn giant Axie Infinity's AXS token has become unusually costly, creating a window of opportunity for market-neutral traders to make attractive returns, according to Markus Thielen, head of research at strategy at Matrixport, a crypto services provider with $10 billion in assets under management. In a note sent to clients early Friday, Thielen said ADA's annualized funding rate, or the cost of keeping long (bullish)/short (bearish) positions open, has dropped to an average of -14% across major exchanges – a rare occurrence in the past eight months. As a result, traders can purchase ADA perpetual contracts and simultaneously sell ADA tokens in the spot market to safely pocket the funding rate. The funding rate is charged every eight hours. A negative rate, as in ADA's case, means positioning is skewed bearish and short sellers are paying longs to keep short positions open. Read the full story here. |
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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 Market Index is a broad-market index of digital assets, weighted by market capitalization. A full description of the methodology is here. |
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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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