First Mover Americas: BTC Dips Below $24K as Ether Holds Strength

The latest price moves in bitcoin (BTC) and crypto markets in context for August 16, 2022.Read MoreCoinDesk

Price Point: Ether makes gains as BTC struggles and dogecoin surges overnight ahead of its “dogechain” launch. Huobi Global announced it will stop offering derivatives trading services to users in New Zealand.

Market Moves: Could a BTC bottom indicator have marked a price bottom for the cryptocurrency?

Chart of The Day: A risk reset in equities contributes to ether rally.

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.

After attempting to maintain the $25,000 mark yesterday, bitcoin (BTC) dropped to lows of $23,788 overnight. Perhaps this is an indication that the world’s largest cryptocurrency by market value’s two-month rally has come to an end.

Bitcoin 24-hour price chart. (CoinDesk and

Meme-token dogecoin was up 15% over the last 24 hours. One analyst said that the token is rallying ahead of its launch of “Dogechain,” which requires wrapped doge for trading.

Unlike BTC, ether (ETH) was up slightly on the day, trading at around $1,900. According to a report from research firm FSInsight, ether has a good chance of exceeding bitcoin in market cap over the next 12 months because the Ethereum blockchain’s switch to a proof-of-stake (PoS) mechanism will reduce both the production of the tokens and selling pressure from miners.

A report from CoinShares showed that crypto funds had $17 million in outflows in the seven days up to Aug. 12, ending six consecutive weeks of inflows. Bitcoin (BTC) investment products saw $21 million in outflows, and short bitcoin positions, which bet on a price decline of the largest cryptocurrency by market capitalization, had $2.6 million in inflows.

Cryptocurrency exchange Huobi Global announced it will stop offering derivatives trading services to users in New Zealand starting next week, just a couple of months after expanding operations to the country. The Seychelles-based cryptocurrency exchange cited “local compliance policies” as the reason for withdrawing margin trading services, options and ETPs as of next week.

Celsius Network, the crypto lender that filed for bankruptcy in July, appears to be in even worse financial straits than previously signaled. A new court filing Monday from Kirkland & Ellis, a law firm the crypto lender hired to lead its restructuring efforts, included financial projections that Celsius will run out of cash by October.

In Latin America, Brazil’s largest brokerage, XP, launched bitcoin and ether trading. The company, which has 3.6 million customers, hopes to reach 200,000 active crypto users by the end of 2022.

Biggest Gainers

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Is This The Most Reliable BTC Bottom Signal?

Historical relationship between Puell multiple and BTC price since 2014 (Glassnode and TradingView)

Puell Multiple, a bottom signal for bitcoin, currently sits at 0.54, and values under 0.50 have historically marked price bottoms and are considered to be good accumulation zones.

The indicator fell to 0.34 in July – the lowest it has gone since 2019 according to data from Delphi Digital.

The Puell multiple is the daily issuance of BTC (in USD) divided by the 365-day moving average of the daily issuance of BTC (in USD). It compares the short-term revenue of BTC miners to its longer term trend. A lower score equates to lower revenue for miners.

Since 2014, the Puell multiple has gone below 0.50 only four times: during the previous market bottoms of 2015 and 2019, the Covid-induced crash of Spring 2020, and most recently in July 2022, according to Delphi Digital.

Delphi Digital notes that even as the Puell multiple seems to indicate a market bottom, other indicators must be used in tandem to conduct a meaningful analysis.

Risk Reset in Equities Contributes to Ether Rally

by Omkar Godbole

Ethereum/TetherUS four-hour chart (TradingView)

Chart tweeted by pseudonymous analyst Cantering Clark shows ether’s recent rally has been accompanied by an uptick in the S&P 500, Wall Street’s benchmark equity index.

Perhaps, the Merge is not the only factor driving ether higher, and the native token of Ethereum’s blockchain may find it hard to continue gaining ground in the weeks ahead if stocks turn lower.

Bitcoin Miner PrimeBlock Cancels Listing Plans, Terminates $1.25B Merger With 10X Capital: The two firms terminated their agreement, which would have allowed Prime Blockchain to go public, by mutual consent on Aug. 12.

Huobi to End Crypto Derivatives Trading in New Zealand: The Seychelles-based cryptocurrency exchange cited “local compliance policies” as the reason for withdrawing margin trading services, options and ETPs as of next week.

Former CFTC Commissioner Dawn Stump Joins Crypto Risk Monitoring Firm Solidus Labs as Advisor: The appointment reflects the broader trend of former top government officials taking roles at crypto firms after departing from their public service roles.

Crypto Traders Bet on Ether Staking Yields Jumping to 8% Post Merge: Yields on staked ether are projected to double to 8% and higher from the current 4%. Traders are using Voltz’s interest rate swaps to profit from an expected bump in staking yields.

FSInsight: Ether May Well Surpass Bitcoin’s Market Cap in Next 12 Months: If the blockchain’s Merge occurs as planned, the ether issuance rate will drop and daily selling pressure will reduce, the research firm said.

DeFi Firms Iron Bank, Yearn Finance Join Layer 2 Protocol Optimism: Developers of the DeFi protocols said that layer 2 networks offer improved security and capital efficiency for users.

Acala Stablecoins Nears $1 Peg After Community Burns 1.2B aUSD Minted by Exploiters: Developers said trace reports were underway to identify the transactions performed by the 16 wallet addresses connected to the exploit.

Crypto Lender Hodlnaut Applies For Creditor Protection in Singapore: Hodlnaut is looking to appoint a judicial manager to avoid liquidating customer assets at a loss.


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