Bitcoin rises slightly with stocks
Bitcoin and other crypto assets rose along with US stocks, which snapped a three-day losing streak on Wednesday as investors’ appetite for riskier assets returned.
“Bitcoin is enjoying a slight risky session on Wall Street as stocks attempt to end a three-day decline,” said Edward Moya, senior market analyst at Oanda.
The S&P 500 rose 0.22% and the Nasdaq Composite gained 0.52%.
Moving in sync, bitcoin and ether have recently risen 1% and 2%, respectively, according to data from CoinDesk. Other blockchain-affiliated assets, including Solana’s SOL and Cardano’s ADA, rose by around a full percentage point.
Investors have been hesitant to commit in the final days ahead of the U.S. Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, where Fed Chairman Jerome Powell could offer clues about upcoming monetary policy in a Friday speech.
“We are stuck in consolidation mode ahead of Jackson Hole and that should keep bitcoin above the $20,000 level,” Moya said. “Risk assets may be rangebound even after Powell’s speech on Friday, as little will deter the Fed’s hawkish stance until we get mild inflation. [data].”
Powell is scheduled to deliver a speech Friday at 10 a.m. ET that will clarify the central banker’s outlook for inflation over the next two months. Traders are also hoping to know 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 falling.
New research from the Federal Reserve Bank of New York released on Wednesday showed that strong demand driven by the coronavirus pandemic was the main driver of higher US inflation in July, and that without the bottlenecks in the supply chain, the inflation rate would have been 6% instead of 9% at the end of 2021.
“In the absence of any new energy or other shocks, it is therefore possible that the ongoing easing of supply bottlenecks will lead to a substantial decline in inflation in the near term,” the report said.
●Bitcoin (BTC): $21,705 +0.8%
●Ether (ETH): $1,681 +1.6%
●S&P 500 daily close: 4,140.77 +0.3%
●Gold: $1,765 per troy ounce +1.1%
●Daily close of the 10-year Treasury yield: 3.11% +0.05
Bitcoin, Ether, and Gold prices are taken at around 4 p.m. PT. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk indices is available at coindesk.com/indices.
CoinShares is a good way to play crypto recovery, says BTIG analyst
European digital asset management firm CoinShares (CNSRF) is one of investment firm BTIG’s picks for investors to play the recovery in the crypto markets alongside the growing adoption of digital assets, a 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 retains an edge over its peers given the company’s proprietary technology infrastructure, Palmer said.
Palmer says that while stocks have lagged since the spring, CoinShares management is focused on building its exposure to physical holdings in exchange-traded funds (ETFs) with attractive yields and no management fees.
Sweden-listed CoinShares had about $1.65 billion in assets under management as of June 30, according to its second-quarter report.
BTIG gave CoinShares a buy rating and a price target of $5.63 (SEK 60). The shares were trading down 4.6% at $3.76 (SEK 39.85) on Wednesday and are down more than 50% since the start of the year.
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The Corner Desk 20 is a ranking of the largest digital assets by volume on trusted exchanges.