The Toronto-based crypto lender is the second high-profile crypto firm to do so in July.
By Jimmy He
Jul 7, 2022 at 2:39 a.m.
0 seconds of 1 minute, 34 seconds
Hi, I'm Jimmy He, here to take you through the day's crypto market highlights and news.
Bitcoin (BTC) leveled off to around $20,000 in Wednesday trading, down 1% from its high of $20,720 the previous day. The oldest cryptocurrency has changed hands largely in the $18,000 to $21,000 range for most of the past month as investors gauge the impact of rising inflation and macroeconomic uncertainty.
The majority of alternative currencies (altcoins) were in the green on Wednesday, with Avalanche's A VAX leading the charts, up 5.5% in the last 24 hours. Ether (ETH), the second-largest cryptocurrency by market capitalization after bitcoin, was up 0.7%.
An increasingly correlated asset
For much of its short history, bitcoin has been uncorrelated to traditional markets, which served as a desirable quality for recession-conscious investors. However, according to data from Coin Metrics, bitcoin’s correlation to U.S. equities, specifically the S&P 500, has strengthened since March 2020.
“The correlation hit a new all-time high in Q2 2022 with BTC and U.S. equities moving almost in lockstep,” Coin Metrics wrote in a newsletter. “At the same time, BTC moved increasingly against risk indices like the VAX.”
The release of the June consumer price index next week may show whether the recent hawkish monetary policies of the U.S. Federal Reserve have been effective. If prices decline and other economic indicators also continue their recent descent, investors may feel more confident that the U.S. is solving the dual problems of inflation and potentially steep economic contraction. If the CPI continues to increase, markets could be discouraged.
The correlation between bitcoin and the S&P 500 reached an all-time high in the second quarter of 2022. (Coin Metrics)
Latest prices
●Bitcoin (BTC): $20,328 −1.2%
●Ether (ETH): $1,157 −0.0%
S&P 500 daily close: 3,845.08 +0.4%
Gold: $1,738 per troy ounce −1.3%
Ten-year Treasury yield daily close: 2.91% +0.1
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the Coin Desk Bitcoin Price Index (XBX); Ether is the Coin Desk Ether Price Index (RTX); Gold is the COMEX spot price. Information about Coin Desk Indices can be found at coin desk.com/indices.
Relevant insight
Listen 🎧: Today’s Coin Desk Markets Daily podcast discusses the latest market movements and takes a look at crypto job satisfaction.
Voyager Digital Faces Delisting From Toronto Stock Exchange Following Bankruptcy Filing: The exchange has suspended trading of the stock as it looks at whether the shares meet its listing requirements.
Binance Extends Zero-Fee Bitcoin Trading Globally: The crypto exchange is rolling out a program that started in the U.S. last month to its global client base.
Is Maker Becoming ‘a Company Run by Politics’?: A series of recent votes prompted the largest governance participation in Maker’s history, with VCs on one side and the founding team on the other.
Riot Blockchain Starts Move Away From New York Hosting Site: The crypto miner continued to sell its bitcoin, along with peers feeling the squeeze of the bear market.
UK to Introduce Legislation on Stablecoins by August: BOE’s Cunliffe: There has been at least a bit of delay in the framework thanks to recent resignations from Prime Minister Boris Johnson's government.
Polygon Joins Solano in Bringing Web3 to Smartphones: Tech startup Nothing has tapped the Polygon network to offer non-fungible tokens (NFT) on its new phone.
Hut 8 Has Added 5,800 Mining Rigs at Its Ontario Site: The company said it will hold all the bitcoin it mines, as other crypto miners sell their coins.
Ethereum DeFi Service Porter Finance Shutters Bond Platform, Citing Lack of 'Lending Demand': The venture capital-backed firm said the lack of “institutional fixed income [decentralized finance] adoption” drove its decision.
Belgium Regulator Ponders Crypto as a Security: The European Union’s landmark crypto law won’t take effect for a couple of years, but existing stock-trading rules may still apply, financial regulator FSMA says.
Here's What Still Needs to Happen Before the EU's Mica Bill Becomes Law: Coin Desk looks at what EU crypto companies can expect after the bloc sealed deals of the political shape on anti-money-laundering and licensing laws.
Other markets
Biggest Gainers
Asset Ticker Returns DACE Sector Avalanche A VAX+5.5%Smart Contract Platform Decentraleyes MANA+3.0%Entertainment XRPXRP+0.2%Currency
Biggest Losers
Asset Ticker Returns DACE Sector Terra LUNA−5.8%Smart Contract Platform Polygon MATIC−3.5%Smart Contract Platform CosmosATOM−2.7%Smart Contract Platform
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