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Interest rate market could have the biggest impact on bitcoin in the near term, says asset manager

Happy Late Thanksgiving! Welcome to Distributed Ledger, our weekly crypto newsletter, which usually arrives in your inbox on Thursdays. This installment will premiere on a holiday Friday.

I’m Frances Yue, crypto reporter at MarketWatch, and I’ll guide you through the latest and greatest on digital assets this week so far. Find me on Twitter at @FacesYue_ to send feedback or chat about anything crypto.

Cryptocurrency in a snap

Major Cryptocurrencies Are Down for Another Week and Friday plunge amid widespread sell-off in risk assets, after A new variant of COVID-19 has been detected in South Africa.

Bitcoin
BTCUSD,
+ 2.29%

fell more than 7% on Friday, with a 1.1% loss over the past seven days, according to CoinDesk data. The cryptocurrency was recently trading at $54,460 in early New York hours. Ether
ETHUSD,
+ 2.62%

fell more than 9% on Friday, while it recorded a gain of 2.3% over the past seven days. Dogecoin
DOGEUSD,
+1.95%

recorded a loss of 9% in the past seven days, while Shiba Inu fell about 10% in the past seven days.

Cryptocurrency Index
The biggest scorer

Price

% Profit in 7 days

Gala

$0.68

201.5%

Sandbox

$6.99

64.1%

Zcash

$253.2

60.1%

Basic Attention Token

$1.51

37.4%

Crypto.com Coin

$0.68

32.3%

Source: CoinMarketCap.com since November 26

Biggest Rejecter

Price

% Profit in 7 days

Nexo

$2.37

-21.2%

ICON

$1.7

-24.5%

loTeX

$0.15

-19.1%

OMG Mạng Network

$7.99

-19.05%

WAX

$0.73

-18.9%

Source: CoinMarketCap.com as of November 26

Macro uncertainty

Ben McMillan, founder and chief investment officer at crypto asset management firm IDX Digital Assets, said that over the past few weeks, the company has been “very cautious with crypto” and has “repositioned itself” portfolio more defensively” as major cryptocurrencies have higher volatility.

“Bitcoin just hit an all-time high. So there’s always a little pause,” McMillan told MarketWatch in an interview. On November 10, bitcoin hit a record high of $68,991, according to CoinDesk data. “As it tests the all-time high, you start to see market participants taking profits. That’s not a surprise,” according to McMillan.

McMillan said global macroeconomic uncertainty also added to recent selling pressure. While the narrative that bitcoin can be used as an inflation hedge has contributed to the cryptocurrency’s previous bull run, bitcoin has recently begun to exhibit some interest rate sensitivity. , according to McMillan.

“A good example is when you look at the record high CPI numbers that came out a few weeks ago, what is interesting is that Bitcoin was initially traded on that news which aligns with the idea of ​​Bitcoin as a hedge. inflation, but it actually sold. McMillan added.

McMillan said he expected continued volatility through the end of the year. “That’s not to say bitcoin can’t hit all-time highs. It just means we are expecting more weakness ahead in the short term,” said McMillan.

Bitcoin leaves the exchange

As of Wednesday, the number of bitcoins held by exchanges has dropped to around 2.3 million, the lowest level in more than three years, according to CryptoQuant.

This sign is often interpreted as a long-term uptrend. “A dwindling supply on exchanges usually means that market participants are moving BTC into cold storage as they see incremental increases in the near future,” a recent report by the cryptocurrency exchange said. Kraken electronics wrote.

However, there are still exceptions. Market participants can “move funds into lending platforms, perform peer-to-peer sales, or tokenize their BTC on other blockchains,” according to the report.

Potential Cryptocurrency Ban of India

Follow Newsletter of Indian Parliament on Tuesday, the government plans to introduce a bill aimed at building a framework for the creation of India’s official digital currency, during the “Winter Session” of the parliament starting November 29.

The bill also seeks to ban all private cryptocurrencies in India, but would allow “certain exceptions to promote the underlying technology of cryptocurrency and its use,” according to the statement. believe.

John Kicklighter, chief strategist at research website DailyFX wrote to MarketWatch in an email that “the text of the bill is not particularly clear, but the density of long-term speculative interests would naturally read those risks associated with any regulation.”

Mikkel Morch, managing director at crypto hedge fund ARK36 wrote that “what is interesting is that this situation underscores the fact that global adoption of cryptocurrencies has been so rapid, and it has also fueled growth.” presents a new set of challenges for governments and financial regulators. ”

Cryptocurrency companies, funds

In crypto-related company news, Coinbase shares
COIN,
-2.94%

fell 4% to $299.6 on Friday morning. It has dropped 7% in the past five trading days. Michael Saylor’s MicroStrategy Inc.
MSFT,
-2.44%

fell 4.7% to $669 on Friday morning. It has dropped 8% in the past five days.

Mining company Riot Blockchain Inc.
THE RURGE,
-5.62%

the stock is down 4.4% to $35, while it’s up 4.3% in the past five days. Shares of Marathon Digital Holdings Inc.
MARA,
-6.09%

fell 7.4% to $48.5, contributing to a 5.4% drop over the past five days. Another mining company Ebang International Holdings Inc.
EBON,
-9.52%

down 9.8% to $1.51, with a loss of 15.8% over the past five days.

Overstock.com Inc.
OSTK,
-0.67%

up 1.6% to $94.3, while down 11.5% over the past five days.

Square Inc.
SQ,
-1.66%
‘NS
shares fell 1.4% to $213.1, with a 7.3% drop in the past five days. Of Tesla Inc.
TSLA,
-3.05%

The stock is down 2.8% to $1,086, with a 1.07% drop over the past five days.

PayPal Holdings Inc.
PYPL,
-0.49%

inched up 1.3% to $191, while recording a loss of 4.8% over the past five days, while NVIDIA Corp.
NVDA,
-3.58%

fell 1.62% to $321.5, with a gain of 1.38% over the past five days.

Advanced Micro Devices Inc.
AMD,
-1.89%

fell 0.53% to $157 and recorded a 1.8% return over the past five days.

In the fund space, ProShares Bitcoin Strategy ETF
BITO,
-6.13%

dropped 5% to $34.7 on Friday morning, while the Valkyrie Bitcoin Strategy ETF
BTF,
-5.80%

fell 5.2% to $21.4. VanEck Bitcoin Strategy ETF
XBTF,
-5.96%

down 5.5% to $54.2.

Grayscale Bitcoin Trust
GBTC,
-4.50%

fell 4.6% to $44.3, with a loss of 4.2% over the past five days.

Must read



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