Major cryptocurrencies traded flat over the weekend, with alternative tokens showing muted price movement as markets seemed to stabilize following one of the largest liquidation events in recent months. Bitcoin remained steady at around $26,000 with ether little changed from Sunday’s $1,670. “So long as bitcoin continues to hold above $25,000 on a weekly close basis, we suspect we will see renewed demand and a push back to the topside in the days ahead,” crypto exchange LMAX Digital said in a morning note. “If this happens, ether and the rest of the crypto space should follow along.” Meme coin shiba inu (SHIB) slid 2%, increasing losses to more than 21% in the past week following the botched launch of its Ethereum layer 2 network, Shibarium. Transactions stalled in the hours after the network went live last Wednesday, with over $1.7 million worth of tokens in a bridge – a tool used to transfer tokens between two blockchains – said to be stuck owing to a bug in the code.
Ethereum co-founder Vitalik Buterin deposited 600 ether (ETH), which is around $1 million worth of the cryptocurrency, to crypto exchange Coinbase on Monday, according to data from Ethereum blockchain scanning website, etherscan. The move comes as ether, the second-largest cryptocurrency by market capitalization suffered a 10% decline over the last seven days, amid a broad market downturn that saw traders witness $1 billion in liquidations. On Sunday, Buterin repaid 250,000 RAI and withdrew $1.6 million worth of ether, according to on-chain tracker, lookonchain. RAI is a non-pegged stablecoin backed by ETH. It is not clear why the Ethereum co-founder transferred the ether to Coinbase.
Bitcoin miners are moving into new business areas, including offering high performance computing (HPC) services to the fast growing artificial intelligence (AI) market, to reduce their dependence on crypto, JPMorgan (JPM) said in a research report Wednesday. The cost of the new investments has been funded in part by miners selling coins in recent quarters, the report said. Some bitcoin mining firms have rebranded to reflect the diversification, with Hive Blockchain Technologies (HIVE) becoming Hive Digital Technologies, and Riot Blockchain (RIOT) changing its name to Riot Platforms.
Market Insight: BTC and U.S. Real Yield See Strong Inverse Correlation
TradingView/CoinDesk
Bitcoin (BTC) and the U.S. inflation-adjusted bond yield are again moving in opposite directions, exhibiting the strongest negative correlation in four months.
The 30-day correlation coefficient between bitcoin and the 10-year U.S. inflation-indexed security turned negative this month, declining from +0.28 to -0.72, a level last seen in April, according to charting platform TradingView. A reading of 1 implies assets are moving in lockstep, and -1 suggests the opposite.
The current reading indicates the renewed influence of traditional finance and macro factors on the bitcoin price. The negative correlation broke down in July amid optimism over the possible approval of a spot ETF.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
