Bitcoin rises slightly along with stocks
Bitcoin rises slightly along with stocks
Bitcoin and other cryptoassets rose along with U.S. stocks, which snapped a three-day losing streak on Wednesday, as investors’ appetite for riskier assets returned.
“Bitcoin is benefiting from a small risk-off session on Wall Street as stocks try to end a three-day slide,” said Edward Moya, senior market analyst at Oanda.
The S&P 500 rose 0.22% and the Nasdaq Composite rose 0.52%.
Moving in sync, bitcoin and ether recently gained 1% and 2%, respectively, according to CoinDesk data. Other blockchain-related assets, including Solana’s SOL and Cardano’s ADA, rose by about a percentage point.
Investors have been hesitant to commit in recent days ahead of the U.S. central bank’s annual economic symposium in Jackson Hole, Wyoming, where Fed Chairman Jerome Powell may offer clues about future monetary policy in a speech on Friday.
“We are stuck in consolidation mode before Jackson Hole and that should keep bitcoin supported above the $20,000 level,” Moya said. “Risky assets could be stuck in a range even after Powell’s speech on Friday, as not much will deter the Fed’s hawkish stance until we get soft inflation [data].”
Powell is expected to give a speech Friday at 10 ET which will clarify the governor’s views on inflation in the next couple of months. Traders are also hoping for hints on whether the Fed will raise interest rates by 75 basis points at its next meeting in September, or by 50 basis points. The amount depends on signs that inflation is on the way down.
New research from the Federal Reserve Bank of New York published on Wednesday showed that strong demand caused by the coronavirus pandemic was the main driver behind higher US inflation in July, and that without supply chain bottlenecks the inflation rate would have been 6% instead of 9% at the end of 2021.
“In the absence of new energy or other shocks, it is therefore possible that the ongoing easing of supply bottlenecks will lead to a significant fall in inflation in the near term,” the report said.
●Bitcoin (BTC): $21,705 +0.8%
●Ether (ETH): $1681 +1.6%
●S&P 500 daily close: 4,140.77 +0.3%
●Gold: $1,765 per troy ounce +1.1%
●Ten-year Treasury yield daily close: 3.11% +0.05
Bitcoin, Ether and Gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the spot price for COMEX. Information on CoinDesk indices can be found at coindesk.com/indices.
CoinShares a good way to play Crypto Recovery, says BTIG analyst
Europe-based management company CoinShares (CNSRF) is one of investment firm BTIG’s picks for investors to play the recovery across crypto markets along with the growing use of digital assets, analyst Mark Palmer told clients in a note on Wednesday.
CoinShares, which is Europe’s largest digital asset management company, according to BTIG, continues to develop crypto-focused financial products and maintains an edge over peers given the company’s proprietary technology infrastructure, Palmer said.
Palmer says that while the shares have lagged behind in the spring, CoinShares’ management is focused on increasing exposure to physical holdings in exchange-traded funds (ETFs) with attractive returns and no management fees.
Sweden-listed CoinShares had about $1.65 billion in assets under management as of June 30, according to its Q2 report.
BTIG gave CoinShares a buy rating and a $5.63 price target (SEK60). Shares traded down 4.6% to $3.76 (39.85 SEK) on Wednesday, and have fallen more than 50% so far this year.
Sector classifications are provided via Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
