Crypto Market Update
This article originally appeared in First Mover, CoinDeskâs daily newsletter, providing insights into the latest movements in the cryptocurrency market.
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Latest Prices
Asset | Price | Change |
---|---|---|
CoinDesk 20 Index | $1,868.26 | -3.74% |
Bitcoin (BTC) | $60,722.20 | -0.88% |
Ether (ETH) | $2,366.16 | -3.13% |
S&P 500 | 5,709.54 | -0.01% |
Gold | $2,647.23 | -0.49% |
Nikkei 225 | 38,552.06 | +1.97% |
Top Stories
Bitcoin’s price has remained relatively stable during the Asian and European market hours, trading approximately 0.8% lower over the last 24 hours and hovering around the $60,750 mark. This stagnation is largely attributed to geopolitical tensions, particularly Iran’s air strikes on Israel, which have fostered uncertainty and risk aversion among investors. Such events often lead to a decline in risk assets, including cryptocurrencies.
Other significant cryptocurrencies are experiencing more pronounced declines than Bitcoin. For instance, Ethereum (ETH) has seen its value drop by over 4.5%, currently priced at $2,350. The overall digital asset market, as reflected by the CoinDesk 20 Index, is down roughly 4.2%. Among the hardest-hit assets is XRP, which has plummeted by 11% following the U.S. Securities and Exchange Commission’s (SEC) decision to appeal a favorable ruling for Ripple Labs in their ongoing legal dispute.
Despite the bearish trends in cryptocurrency prices, there is a notable trend among large investors, often referred to as “whales.” According to Ki Young-Ju, the founder of CryptoQuant, whales are continuing to accumulate Bitcoin at unprecedented rates. Whales are defined as entities or individuals who hold substantial amounts of a particular asset, and their behavior can heavily influence market dynamics. On-chain data indicates that new Bitcoin whales are making significant purchases as they anticipate a potential bull run in the near future.
Key Insights:
- Whales have the potential to impact market prices through their trading activities, especially in spot and over-the-counter (OTC) markets.
- Older whales have not seen particularly high returns, which could suggest a shift in market dynamics as newer investors enter the space.
In a related development, Tokyo-listed Bitcoin holder Metaplanet Inc. has opted to utilize Bitcoin options to enhance its Bitcoin holdings. The company recently announced the sale of 223 contracts of Bitcoin put options at a strike price of $62,000, with a maturity date set for December 27. This strategic move involved a partnership with Singapore-based QCP Capital, resulting in a premium of 23.972 BTC, equivalent to approximately $1.44 million.
Metaplanet has posted $13.826 million as margin collateral for this transaction, with each contract yielding a premium of 0.1075 BTC, which Metaplanet received upfront. The transaction is projected to generate a nominal yield of 10.75%, with an annualized yield of around 45.63%. The company plans to utilize the premium received from this transaction to acquire additional Bitcoin, further increasing its holdings, which are currently valued at approximately $32 million.
Chart of the Day
– Jamie Crawley