Bitcoin price climbs above $20,000 as investors grow optimistic that sharp interest rate hikes will end soon

Bitcoin price climbs above $20,000 as investors grow optimistic that sharp interest rate hikes will end soon

Cryptocurrencies and other markets have responded positively to the sudden large drop in job opportunities in the United States, which provides the latest evidence of an economic slowdown.

good morning. Here’s what happens:

the prices: Bitcoin, ether and other cryptocurrencies are spending another day in the green.

ideas: The Securities and Exchange Commission’s settlement with mega-influencer Kim Kardashian is a warning to the crypto industry, CoinDesk columnist Daniel Cohn noted in Tuesday’s edition of The Node. (Writers Sam Reynolds and Shaurya Malwa have moved away from First Mover Asia.)

the prices

  • Bitcoin (BTC): $2,209 + 3.1%
  • Ether (ETH): $1,356 + 2.5%
  • CoinDesk Market Index (CMI): $986 + 2.4%
  • S&P 500 Daily Close: 3790.93 + 3.1%
  • Gold: $1,732 an ounce + 2.3%
  • Daily closing ten-year Treasury yield: 3.62% −3e + 1

Bitcoin, Ether and Gold prices are taken around 4pm New York time. Bitcoin is the CoinDesk Bitcoin (XBX) price index; Ether is the CoinDesk Ether (ETX) price index; Gold is the Comex spot price. Information about CoinDesk indices can be found at coindesk.com/indices.

Bitcoin spends more than 20 thousand dollars today

Written by James Rubin

Say hello to $20,000 again.

Bitcoin rose significantly for the second day in a row and was recently trading at around $20,200, gains of more than 3% in the past 24 hours and the highest level in a week. The largest cryptocurrency by market capitalization has crossed the psychological significance threshold several times over the past month but failed to survive amid investor concerns about inflation and the possibility of a severe recession.

On Tuesday, markets responded positively to a sudden drop in job opportunities in the US Job Opportunity and Employment Turnover Survey (JOLTS)Which gave hope that the economy was slowing enough for the US central bank to reverse course on sharp interest rate increases in the not too distant future.

Ether was recently trading above $1,350, up more than 5% from the day before, at the same time. Other major cryptocurrencies spent most of their day steadily with DOGE up more than 10% after popular meme hero Elon Musk indicated that he was willing to follow through on his original proposal to buy social media platform Twitter. SHIB, a similar dog-themed meme and LINK coin, rose more than 4% and 5%, respectively.

The CoinDesk Market Index (CMI), a broad-based market index that measures performance across a basket of cryptocurrencies, recently rose 2.4%.

Stock markets continued their buoyant week so far, with the tech-focused Nasdaq and S&P 500, which has a strong technology component, jumping 3.3% and 3.1%, respectively, and the Dow Jones Industrial Average (DJIA) up 2.8%. Investors responded positively to an unexpected slight rate hike from the Reserve Bank of Australia and the JOLTS reading indicating that the hot jobs market is finally losing steam. The stagnant jobs numbers have alarmed US central bankers who are looking for signs of an economic downtrend.

The price of Brent crude, a widely watched gauge of energy markets, is trading nearly flat but still hovering above $91 a barrel, and investors will be watching the Organization of the Petroleum Exporting Countries (OPEC) report on Wednesday, which is expected to lower its price. supplies. Bond yields and the dollar are down again, having recently jumped to multi-year highs.

The problems of bankrupt Celsius Network Bank continued with the resignation of co-founder and chief strategy officer S. Daniel Leon on Tuesday. It’s following up on former CEO Alex Mashinsky, who left the company last week. Celsius filed for Chapter 11 bankruptcy protection in New York in July and is now facing an inquiry from an investigator appointed by the US trustee’s office and authorized by the Bankruptcy Court for the Southern District of New York.

Japanese Prime Minister Fumio Kishida said in a policy speech on Monday that Japan’s plans to expand its digital presence will include non-fungible tokens (NFTs) and metaverse services.

In an email to CoinDesk, Mark Connors, chief researcher at Canadian digital asset firm 3iQ, wrote that despite this month’s early gains across risky assets, markets remain unstable. Connors described the S&P 500’s 5.3% increase in October as “a price action…more indicative of an option or order than the $32 billion+ large stock index,” and said currency and Treasuries volatility were “more exotic.”

“Assets with low volume and high leverage show the highest relative volatility,” he said, adding, “What you don’t see is unusual moves in BTC or ETH. This is because monetary policy is causing problems with securities-based plumbing. Asset prices are dropping rapidly.” big “.

“This story is not over yet.”

Biggest Winner

Origin ribbon yields DACs sector
Dogecoin dog + 10.1% Currency
chain link Link + 5.8% computing
Tera color + 5.1% smart contract platform

Biggest loser

There are no losers on CoinDesk 20 today.

ideas

Kim Kardashian, EthereumMax and SEC’s Publication Grab

Written by Daniel Kon

On Monday, before the market opened, the US Securities and Exchange Commission (SEC) announced that it had settled famous influencer Kim Kardashian for $1.26 million in connection with her paid endorsement of a cryptocurrency called EthereumMax. Just like when Kardashian first tokenized in June 2021 (and failed to reveal the $250,000 she paid to do it), the news raises the question…why? Why did Kardashian get involved in the first place, and why is the SEC fined her now?

The Securities and Exchange Commission, chaired by Chairman Gary Gensler, is looking to send a message: Celebrities should think twice before approving cryptocurrencies. The Kardashian, a celebrity who has built her reputation on being famous and ubiquitous, is a high-profile target. With a federal agency constantly underfunded and pursuing such a grand goal, the settlement serves as a warning to the crypto industry in general.

Influencers ‘easier to pick’ than token issuers: Kim Kardashian’s ex-SEC official

But the news also comes amid a deep market rout, as each day brings more news of crime that has swept the rug during a FOMO-fueled market rebound during the COVID-19 pandemic. Three Arrows Capital, once thought to be one of the smartest hands in the game, is found to have built its fortune largely by redistributing borrowed money. Alex Mashinsky, founder and former CEO of the bankrupt Celsius “neo-bank” network, has been found to be taking money from Celsius.

Personalities like Mashinsky, Kyle Davies, and Su Zhu of Three Arrow have promised more than Kardashian and other crypto celebrities. Celsius’ unofficial motto was “Free yourself from the banks.” Hedge fund Three Arrows operates under the idea of ​​an unstoppable “giant cycle” of cryptocurrency. Until the company collapses under the weight of bad debts and bad bets, Celsius promised users a return of up to 20% on their crypto holdings. Mashinsky now sells T-shirts bearing the words “Free yourself from bankruptcy.”

Read the full story here.

important events

8:30am HKST/Singapore time (12:30am UTC): Gibbon Bank Services PMI (September)

9 a.m. HKST/Singapore time (1 a.m. UTC): RBNZ rate decision and statement

4pm HKST (8am UTC): OPEC meeting

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