Plus, oil is a leading indicator for U.S. inflation.
April 3, 2023
The latest moves in crypto markets, in context
By Lyllah Ledesma, CoinDesk reporter
Was this newsletter forwarded to you? Sign up here.
Welcome to Monday. Here’s what’s happening in crypto today:
Bitcoin’s flat on Monday, but not far from $30,000.
New York judge casts doubt on Binance.US-Voyager Digital deal.
Japanese regulator says some crypto exchanges are operating illegally.
Clarification: The U.S. Securities and Exchange Commission argues Ripple issued XRP, but Ripple disputes that assertion. Friday’s newsletter didn’t make that distinction.
Bitcoin has been testing the $30,000 mark, as it traded between $27,500 and $28,900 over the weekend. The world’s largest cryptocurrency by market value was flat on Monday, while ether was down slightly. Simon Peters, an analyst at investment firm eToro, wrote in a morning note that as stock markets move back toward “bull territory,” the crypto market appears to be moving in a similar direction. “While bitcoin will continue to test the $30K line, we might need a stronger push to see it higher,” he wrote. “Important labor market updates from the U.S. are inbound this week which could influence prices in the short term.”
Bitcon’s weekly price chart
The U.S. government has a “substantial case on the merits” in its bid to quash a $1 billion deal by Binance.US to buy the assets of bankrupt crypto lender Voyager Digital, a New York judge said Friday. District Judge Jennifer Rearden said she would try to move quickly to settle a dispute, given that delays could cost as much as $10 million per month for the estate. U.S. Bankruptcy Judge Michael Wiles approved the sale early last month, but last week, Rearden said she would put that on hold while she considered objections from the U.S. attorney that the contract effectively rendered Voyager immune by exculpating it from breaches of tax or securities law.
Japan’s Financial Services Agency said in a warning letter published on Friday that foreign crypto exchanges Bybit, BitForex, MEXC Global and Bitget are operatingin the country without proper registration and thus violating the country’s fund settlement laws. The regulator also said the list of unregistered traders “does not necessarily indicate the current state of unregistered business.”
Market Insight: April Showers, BTC Powers
Matrixport
Bitcoin and U.S. stocks have entered one of their strongest seasonal periods of the year.
The top cryptocurrency by market value has chalked up gains in April in six out of the past 10 years, averaging a return of more than 17%, according to data tracked by crypto-services provider Matrixport. Over the past 10 years, April has been the best month in the year’s first half and the third-best month for the full year for bitcoin.
Wall street’s benchmark equity index S&P 500 has averaged a return of 2.6% in April in the past 10 years, gaining eight out of 10 times.
The chart shows oil prices lead the U.S. Consumer Price Index by six months.
Oil prices need to stay low for central banks to pivot away from liquidity tightening that roiled asset markets, including cryptocurrencies, last year.
Oil, however, surged early Monday on the Organization of the Petroleum Exporting Countries’ unexpected decision to cut output by 1.16 million barrels per day.
Consensus is less than a month away! Join us to hear from some of the industry’s most sought-after thought leaders, including Yuga Labs CEO Daniel Alegre, CFTC Commissioner Christy Goldsmith Romero, Circle CEO Jeremy Allaire, Edward Snowden and hundreds more. Don’t have a ticket yet? Register today and take 15% off with code FM15. Learn more and register.
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.
