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First Mover Americas: Bitcoin Retreats as Mt. Gox Moves $3B of BTC
The latest price moves in crypto markets in context for July 16, 2024.
Updated Jul 16, 2024, 12:01 p.m. Published Jul 16, 2024, 12:01 p.m.
This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
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Bitcoin dipped below $63,000 as Mt. Gox selling pressure reared its head again. BTC had tested a return above $65,000 during Asian trading hours before slipping 3% as a wallet associated with Mt. Gox moved nearly $3 billion worth of bitcoin, likely as part of its creditor repayment plan. The defunct crypto exchange began repaying its debt on July 4, with traders concerned that recipients will immediately dump their coins, dragging BTC's price down. Bitcoin fell to around $62,500 in the mid-European morning before recovering to over $63,500, 1.6% higher than 24 hours before. The broader crypto market as measured by the CoinDesk 20 Index rose about 1.55%.
Spot ether ETFs could begin trading in the U.S. next Tuesday, a source familiar with the matter told CoinDesk on Monday. SEC officials told one issuer that the regulator had no further comments on the recently submitted S-1 filings and that the final versions needed to be submitted by Wednesday, another source said, adding that the funds could then be listed on exchanges on July 23. Ether saw gains of 7.3% on Monday, outpacing bitcoin. ETH is sitting at around $3,410 at the time of writing, an increase of 2.2% in the last 24 hours.
Ether ETFs could see inflows of around 30%-35% the level that bitcoin products experienced, according to a research report by Citi. That level gives a range of $4.7 billion to $5.4 billion of net inflows over six months, the report said. The inflows and the beta of ether returns relative to such flows could be lower than the analysis suggests, the bank said. “One reason is that while ETH may offer diversification benefits in the long-term, given its different and more extensive set of use-cases, this is currently not the case,” analysts wrote. They added that investors may split their prospective allocations for crypto investment between bitcoin and ether ETFs, rather than allocate additional funds specifically for ether. The lack of staking in the ETFs could also hamstring inflows.
Chart of the Day
- Bitcoin's seven-day options skew, which measures the richness of call options relative to puts trading on Deribit, remains negative despite the cryptocurrency's price rebound.
- The negative print indicates persistent demand for puts, or downside protection.
- Longer duration skews remain above zero, indicating a bullish bias.
- Source: Amberdata
- Omkar Godbole
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Jamie Crawley
Jamie joined CoinDesk as a news reporter in February 2021 after writing widely about crypto and blockchain for two years in other roles. Away from crypto, Jamie runs a lot and loves all things sport. He holds small amounts of BTC, ETH, ADA and LTC.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
