Latest Updates on Bitcoin and the Crypto Market
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.
Current Market Prices
| Asset | Price | Change |
|---|---|---|
| CoinDesk 20 Index | $1,774.87 | +1% |
| Bitcoin (BTC) | $55,372.84 | +1.4% |
| Ether (ETH) | $2,319.53 | +0.63% |
| S&P 500 | 5,408.42 | −1.73% |
| Gold | $2,494.24 | −0.11% |
| Nikkei 225 | 36,215.75 | −0.48% |
Market Insights
Bitcoin has recently surpassed the $55,000 mark during European trading hours, following a weekend where it fluctuated between $54,000 and $55,000. This upward movement of approximately 1.45% in the last 24 hours reflects a broader increase in the cryptocurrency market, which has risen by about 1.15% according to the CoinDesk 20 Index. Traders are keenly anticipating the release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data for August, scheduled for Wednesday and Thursday, respectively. These indicators are vital as they provide insights into inflation trends which can significantly impact market sentiment.
On the political front, a pivotal event is set to take place on Tuesday, where Donald Trump and Kamala Harris will engage in their first debate as presidential candidates leading up to the November elections. Trump’s commitment to making the United States the “crypto capital” of the world has raised expectations among crypto investors. In a recent research report by broker Bernstein, it was suggested that a Trump victory could potentially propel Bitcoin to an all-time high of $90,000. Conversely, a victory for Harris could lead to Bitcoin testing the $30,000 to $40,000 range, highlighting the stark contrast in their proposed policies regarding cryptocurrency.
Regulatory Landscape and Market Predictions
Bernstein’s report emphasizes Trump’s proactive approach towards cryptocurrency, noting that he has consistently mentioned digital currencies in his policy speeches. Analysts believe that after years of stringent regulations, a favorable crypto regulatory environment could stimulate innovation in the sector and attract users back to blockchain-based financial products. They further highlight that the current market conditions could be viewed as a strategic “Trump trade” for investors who are long on crypto assets.
In addition, Presto Research has pointed out that Bitcoin appears to be “grossly undervalued” at present, attributing this to the market’s oversight of Bitcoin’s network security features. The firm’s analysis reveals that Bitcoin’s hashrate—the measure of computational power securing the network—has reached an all-time high of 679 EH/s. This surge in hashrate typically indicates a robust foundation for price stability and potential growth. Analysts Peter Chung and Min Jung from Presto Research suggest that if the upward trend in hashrate continues, the current valuation of Bitcoin may not accurately reflect its potential, especially with the imminent availability of spot ETFs, which are expected to improve market conditions significantly.
Moreover, Bitcoin miners are reportedly expanding their operational capacity, a trend that has resumed since August, coinciding with the all-time highs in hashrate. Historically, such increases in hashrate have often marked significant price bottoms for Bitcoin, suggesting a potential bullish outlook for the coming months. Meanwhile, some traders are interpreting recent lower-than-expected U.S. payroll figures as indicative of a weakening labor market, although a decrease in unemployment rates has alleviated fears of an impending recession.
Chart of the Day
– Omkar Godbole
