The latest moves in crypto markets in context for June and 9, 2022.Read MoreFeedzy
Good morning, and welcome to First Mover. I’m Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off.)
Price point: Bitcoin’s price holds steady – defending $30K – as the European Central Bank moves to raise interest rates for the first time in more than a decade.
Market Moves: Mixed-up address snafu leads to $15M theft of Optimism’s OP tokens, Sam Kessler reports.
Featured story: The Osmosis Chain will remain halted for at least 48 hours following a liquidity pool exploit that resulted in an estimated loss of $5 million, Oliver Knight reports.
As flagged in CoinDesk’s Market Wrap newsletter on Wednesday, bitcoin’s price this year has traded around expectations of central-bank monetary policy tightening – since the liquidity-sucking exercises also appear to influence cryptocurrencies.
For most of this year, the U.S. Federal Reserve’s actions have attracted most of the focus. Now that the ECB is also moving to rein in soaring inflation, crypto traders are paying attention.
“The globalization of markets means that this would affect all economies, so equities and crypto could suffer as a result in the short term,” Marcus Sotiriou, analyst at UK-based digital-asset broker GlobalBlock, wrote Thursday in an email.
After a 3% drop on Wednesday, the bitcoin price was flat to slightly higher on Thursday around $30,200.
For now, crypto bulls appear to have defended the crucial $30,000 price threshold. But some crypto analysts have warned that a deeper sell-off remains in the cards.
“We still believe that the bear market for bitcoin and the entire cryptocurrency market has yet to play its final act, and that should be expected before the end of the year,” said Alex Kuptsikevich, senior market analyst at FxPro.
For the past four weeks, bitcoin has traded in a tight range between roughly $32,300 and $28,000.
Such action resembles the U.S. stock market lately, where commentators have described the situation as “boring.”
As more central banks follow the Fed’s lead, markets might get more interesting again. Or maybe the central banks will simply suppress the volatility.
Wintermute concedes “serious error” leading to $15 million theft of Optimism’s OP tokens
Ethereum scaling solution Optimism announced Wednesday that $15 million in OP governance tokens have been stolen by attackers, Sam Kessler reports.
Optimism intended to send the funds to a crypto market maker, but they fell into the wrong hands when the market maker, Wintermute, provided Optimism’s team with an incorrect blockchain address.
In a statement, Wintermute CEO Evgeny Gaevoy took responsibility for allowing the theft: “We made a serious error.”
By Oliver Knight
The Osmosis Chain will remain halted for at least 48 hours following a liquidity pool exploit that resulted in an estimated loss of $5 million.
In a series of updates on Twitter and in a Discord post at 17:32 UTC on Wednesday, the Osmosis team said it will cover all losses using its strategic reserves.
The bug was an issue with the JoinPoolNoSwap function, in which liquidity providers received 50% more than they should have done when withdrawing from liquidity pools.
The bug was exploited by a “small number of individuals,” Osmosis said. Four individuals have been identified as being responsible for 95% of the exploited amount.
Link to full story: Osmosis to Cover Possible $5M Exploit Loss; Chain to Remain Halted for 2 Days
Today’s newsletter was edited by Bradley Keoun and produced by Parikshit Mishra and Stephen Alpher.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.