August 29, 2023

The latest moves in crypto markets, in context

By Lyllah Ledesma, CoinDesk reporter

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Welcome back! Here's what you need to know today in crypto:

Bitcoin dropped back below the $26,000 mark amid a lack of positive catalysts.
DCG reached an in-principle deal with Genesis creditors.
Sam Bankman-Fried's proposed expert witnesses should be barred from testifying, the Department of Justice said.

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Bitcoin (BTC) has fallen back below $26,000, losing 0.73% on the day, reflecting generally bearish sentiment among crypto traders and a lack of bullish catalysts to rally markets. BTC fell as low as $25,886 on Monday after rallying briefly last week to $26,200, but has since dropped back close to where it started last week. Institutional crypto exchange LMAX Digital said in a note that bitcoin is getting closer to a breakout from the current range due to how tight the contraction has gotten in recent sessions. "Whenever ranges get too tight, it's often a warning sign for a surge in volatility," the exchange said in a note. Etoro analyst Simon Peters said softness in the market is also being seen in other asset classes, such as equities. He said in a morning note that this comes as investors "pay close attention to the discussions at Jackson Hole …The indication from Wyoming is that central bankers are intent on keeping rates at higher levels to prevent a resurgence in inflation – which is not being taken well by risk assets across the board."

Digital Currency Group (DCG) has reached an in-principle deal with Genesis creditors to resolve the claims brought up in Genesis' bankruptcy, according to a court filing on Tuesday. The plan could result in the recoveries of 70%-90% in USD equivalent for unsecured creditors and 65%-90% recovery on an in-kind basis depending on the denomination of the digital asset. All the estimated recoveries are subject to market pricing and definitive documentation. DCG is also the parent company of CoinDesk.

All of FTX founder's Sam Bankman-Fried's proposed witnesses should be disqualified from testifying because their disclosure filings are insufficient, their experience may be misleading or their planned testimony may not be relevant, prosecutors said in a late Monday filing. Bankman-Fried's team, for its part, wants to exclude a financial analysis expert proposed by the Department of Justice because his proposed testimony may not be allowed under the rules. The filings, part of the so-called Daubert motions due Monday, laid out the two teams' views on why their opponents should not be able to call certain witnesses to the stand when Bankman-Fried goes on trial for fraud and conspiracy charges in a little over a month. The DOJ moved to discount all seven of the expert witnesses proposed by Bankman-Fried's team, saying that some of the disclosures they filed did not detail their opinions, while others "are inappropriate subjects for expert testimony" or possibly confusing for a potential jury.

Market Insight: Matrixport Bullish on BTC

Crypto services provider Matrixport, which has more than $3 billion in assets under management, has turned cautiously bullish on bitcoin (BTC) after the largest cryptocurrency by market value's August slide, preferring to buy the recent price dip with a tight stop loss.

Bitcoin fell over 10% on Aug. 15, testing the former resistance-turned-support level at $25,000.

Since then, prices have been around $26,000, with many traders anticipating continued losses in the coming weeks.

Matrixport's head of research and strategy, Markus Thielen, suggests otherwise.

Read the full story by Omkar Godbole

Chart of the Day

The table shows bitcoin's monthly performance since 2010.
September has consistently produced negative returns since 2017. It's also the most bearish month on average.
Source: Bitcoinmonthlyreturn.com

- Omkar Godbole

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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.