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Bitcoin bulls are back and so is the price volatility. BTC was trading 6.8% higher, at $62,992, at the time of publication. It has already gained 21% in one week. CoinDesk 20 Index is a more general market indicator. It traded 7.5% higher, at $2,326. The 30-day realized volatility of the cryptocurrency, which is the standard deviation for the daily percentage change over the past 30 days, has risen to 46% annualized from 30% within a week. The crypto derivatives market is gaining momentum. The Swiss data tracking platform Laevitas reports that $374 billion in crypto futures, permanent futures and option contracts changed hands over the last 24 hours. This is the highest single-day total since November 2021. The renewed demand for leveraged financial products that magnify profits or losses suggests an increased risk appetite, and the possibility of price volatility due to liquidations.

The number of bitcoins held by miners in their wallets has decreased by 8 426 BTC (530 million dollars) since the beginning of the year, to 1 812 482 BTC. The decline started in the second half October, when miners had over 1.83 millions BTC. Analysts at FRNT Financial say that the impending halving in miners’ rewards, and the dry season currently occurring in China, have fueled the sales.

According to two sources with knowledge of this matter, Morgan Stanley will decide if it offers spot bitcoin ETFs for its large brokerage platform. On Jan. 10, the U.S. Securities and Exchange Commission approved 11 spot bitcoins ETFs. Since then, investors have invested billions in these products that closely track the price of bitcoin and allow them to gain exposure to it without actually owning it. The floodgates of liquidity would however open when big registered investment advisor (RIA) networks, broker-dealer platforms, like Merrill Lynch and Morgan Stanley and Wells Fargo, offer ETFs. Morgan Stanley is a leader in alternative investments and the private market. It has more than $150 billion under management. In 2021, Morgan Stanley was the first U.S. major bank to provide its wealthy clients with access to bitcoin funds.

Chart of the Day

The daily trading volume of Pendle reaches a record. (Pendle) (Pendle)

  • The trading volume for Pendle Finance’s yield tokenization protocol reached a new record on Wednesday.
  • Pendle allows traders the option to split yield-bearing assets like staked Ether into a principal token, and a yield token. The liquidity pool then provides a trading platform for these tokens.
  • Source: Pendle

– Omkar Godbole

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Sheldon Reback is the editor.