Bitcoin and other major cryptos were mostly flat on Tuesday, even as investors maintained their worrying watch ahead of Federal Reserve Chairman Jerome Powell’s scheduled statements on Friday about the central bank’s direction on monetary policy.
Bitcoin was recently trading at around $21,200, up from about 24 hours ago. The largest crypto by market cap has lost nearly 10% over the past week, amid a widespread crypto sell-off that has brought the total capitalization of the digital asset below $1 trillion.
Ether was changing hands Tuesday and recently at around $1,600, roughly flat from the same time in a day. The second largest crypto by market cap has fallen about 12% during the past seven days. Many of them mixed other major cryptos after spending a good part of the day in the green.
AVAX and DOT were up more than a percentage point recently. But EOS and YGG are down more than 6% and 4%, respectively. EOS’s decline follows a week-long surge after the EOS Network Foundation (ENF) announced last week that Antelope would be used as the underlying protocol for the EOSIO-based blockchain.
Nevertheless, as Coinbase CEO Brian Armstrong outlined in a CNBC interview, the mood in the industry remains at its best. “We’ve been in a down cycle, but that’s not unusual for us,” Armstrong said. “It coincides with the broader macro environment coming down. We all expect it to be 12-18 months and a good recovery. You have to plan for it to be long.”
equities are flat
Shares traded sideways, with the tech-heavy Nasdaq, S&P 500 and Dow Jones Industrial Average falling 0.1%, 0.2% and 0.5%, respectively, amid tepid trading. Equity markets also await Powell’s cues at the annual Jackson Hole, Wyoming, economic symposium.
Is the Fed still concerned enough about inflation, but comfortable with the pace of the current economic slowdown, to maintain its aggressive monetary course of 75-basis point rate hikes? Or will it slack off and announce a more moderate 50-point hike? Investors’ expectations have fluctuated back and forth in the past few days.
Celsius’ challenges returned at least part of the crypto industry headlines as it sued crypto custodian Prime Trust in an effort to recoup $17 million in crypto the bankrupt lender alleged to its former business partner. . Filed in federal bankruptcy court, the 54-page lawsuit stems from a dispute over assets belonging to Celsius’s produce product customers in Washington and New York.
Meanwhile, debate continued about the Ethereum merge that would move the blockchain platform’s protocol from proof-of-work to a faster, more environmentally friendly proof-of-stake. Some observers believe that the change will have little effect on crypto pricing, despite Ether’s dramatic gains earlier this month.
But Katie Talati, head of research at crypto asset manager Arka, was cautiously optimistic, highlighting energy efficiency and other improvements as a result of The Merge in comments to CoinDesk TV’s First Mover program. “From a technical point of view, this is as advanced and important as it gets,” Talati said, adding, “We’re going to potentially emit a lot less of Ethereum, but still benefit like the potential for anyone who has that staking.” A validator or node on the network to earn a share of the yield.”
He continued that Ethereum is “really hard to price in general because it acts like a currency,” and that Arka will be monitoring data about yields after combining it with other information “for the better.” Valuation is expected (Ethereum).”
|Terra||LUNA||+4.8%||Smart Contract Platform|
|Avalanche||AVAX||+1.8%||Smart Contract Platform|
|Polkadot||DOT||+1.5%||Smart Contract Platform|
|Cosmos||ATOM||−1.3%||Smart Contract Platform|
IMF sees rising crypto-Asian stock correlation and is concerned
by James Rubin
Are Cryptocurrency Prices Related to Asian Equity Markets?
In a recent blog post, the International Monetary Fund (IMF) highlighted the growing interrelationship between crypto and stocks traded on regional exchanges, reiterating its concerns that crypto can increase financial instability, even if it is environmental. Profit and lead to greater financial inclusion.
The IMF entry comes as many crypto observers see less correlation between digital and more traditional assets, although others believe the two are linked, particularly crypto and tech stocks. However, the latter group has focused largely on the relationship between major US equity markets and crypto globally.
Measured in tone, the post coincides with IMF positions that often seem unfriendly to crypto, with Argentina earlier this year “discouraging” the use of cryptocurrencies as a condition of a $45 billion loan from the IMF. had agreed to.
Growth of Crypto in Asia
Given the growing popularity of crypto in Asia among consumers and institutional investors, Washington D.C. The organization said that “while the financial sector appears to be untouched by these sharp movements, it may not in future boom-bust cycles.”
“The infection can spread through individual or institutional investors who may hold both crypto and traditional financial assets or liabilities,” the IMF said. “Large losses on crypto could prompt these investors to rebalance their portfolios, potentially leading to financial-market volatility or even defaulting on traditional liabilities.”
The IMF saw a sharp increase in the correlation between the returns and volatility of Asian equity markets, and bitcoin and ether, since 2020. It said the return correlation between bitcoin and the Indian stock markets had risen “10x since the pandemic” and the volatility correlation had climbed threefold.
“Key drivers of the growing interconnectedness of crypto and equity markets in Asia may include increasing acceptance of crypto-related platforms and investment vehicles in the stock market and over-the-counter markets, or crypto adoption more generally by retail and institutional. investors in Asia,” the IMF said.
Based on the methodology that the IMF highlighted in a paper earlier this year, the organization noted that “crypto-equity volatility spillovers in India, Vietnam and Thailand” as “crypto-equity correlations in Asia increase” There was a sharp increase” which could have been a shock. financial markets.
The IMF noted increasing efforts across the sector to regulate crypto that has resulted in increased adoption and called for intensifying efforts to build on these initiatives. Those efforts will include “filling in the data gap that prevents domestic and international regulators from fully understanding the ownership and use of crypto and its intersection with the traditional financial sector,” and for financial institutions to “protect retail investors.” Clear guidelines for
7 p.m. HKT/SGT(11 a.m. UTC): Mortgage Bankers Association mortgage applications
10 p.m. HKT/SGT(2 p.m. UTC): Pending home sales (July MoM/YoY)