First Mover Americas: Bitcoin Slips Below $39K

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Bitcoin slipped below $39,000 during the European morning, its lowest level since the start of December, as institutional sales tied to recently launched ETFs continue to weigh down BTC. CoinDesk 20, a liquid index that tracks the highest tokens by capitalization, fell nearly 6%, indicative of average declines in the broader crypto market. Analysts at crypto exchange Bitfinex said in a Tuesday note that the recent slump in bitcoin prices had wiped out gains for short-term investors – with realized losses increasing, adding to a market drop. “Many holders, especially those who acquired BTC less than a month ago, are now exiting the market at a loss,” the analysts said. “Such a substantial decrease in average profits for short-term holders, who tend to react more acutely to short-term market fluctuations, can be a precursor to selling pressure or exit liquidity.”

FTT, the native token of bankrupt crypto exchange FTX, bucked the trend of the wider market to rise as much as 11% after CoinDesk reported that FTX’s bankruptcy estate had dumped 22 million shares of Grayscale’s GBTC bitcoin ETF. These were worth nearly $1 billion and accounted for almost half of all GBTC sales since the product went live early this month. FTT tokens have been largely a speculative instrument since FTX's collapse, but plans of an FTX restart or creditor repayments have previously caused brief price spikes. FTT trading volumes jumped to $90 million from Sunday’s $22 million, CoinGecko data shows.

Donald Trump reiterated his opposition to central bank digital currencies (CBDCs) at a rally in Laconia, New Hampshire Monday Night, crediting former Republican candidate Vivek Ramaswamy for the policy. “Vivek wanted this: I will never allow the creation of a Central Bank Digital Currency,” Trump said. He had previously called a digital dollar a dangerous threat to freedom…[giving] a federal government absolute control over your money." Digital assets have not been a central issue in the 2024 U.S. presidential race but have kept reappearing in the spotlight as a peripheral topic by Republican candidates. Still, with recent candidate dropouts, its prominence in discussions may further diminish.

Chart of The Day

• The chart shows a seven-day call-put skew for ether since October.
• The metric has dropped to -7%, the lowest in three months, indicating a bias for puts or options allowing buyers to profit from or hedge against price slides.
• Source: Amberdata

- Omkar Godbole

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