First Mover Asia: Bitcoin Slides; Mixed Crypto Legacy in Hong Kong for the FCA's Incoming CEO

CoinDesk · Jeffrey Coolidge

In This Article:

Good morning. Here’s what’s happening:

Prices: Bitcoin (BTC) slides for a third day, once again threatening to fall below the crucial $20K mark.

Insights: Ashley Alder's mixed crypto legacy in Hong Kong does not bode well for the industry in the U.K.

Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis. And sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.

Prices

Bitcoin (BTC): $20,824, -3.5%

Ether (ETH): $1,165, -4.2%

Biggest Gainers

Asset

Ticker

Returns

DACS Sector

Terra

LUNA

+0.2%

Smart Contract Platform

Biggest Losers

Asset

Ticker

Returns

DACS Sector

Polkadot

DOT

−6.1%

Smart Contract Platform

XRP

XRP

−5.7%

Currency

Chainlink

LINK

−5.4%

Computing

The week ahead: U.S. inflation report due; economists assess impact of Abe assassination

Crypto markets weakened over the weekend, with bitcoin sliding for a third straight day and falling back toward $20,000 as of press time on Sunday.

Some analysts are now pinning $17,000 as a key market support level.

"We continue to expect choppy price action," said Joe DiPasquale, CEO of BitBull Capital, in an email. "More strong bidding around the $17K level, if bitcoin falls there again, will be a strong signal for the bulls and may indicate the formation of a potential bottom around that price."

Traders this week will be watching for the latest U.S. consumer price index reading, expected Wednesday. The report could influence market expectations over the Federal Reserve's next move, at a meeting later this month; as of the last reading, inflation was at its fastest in four decades.

One point of consideration: This past Friday's report on U.S. jobs growth in June has alleviated some concerns that the country is already in a recession; that should make it easier for the Federal Reserve to proceed with interest-rate increases of 75 basis points (0.75 percentage point), or three times as fast as in past rate-hiking cycles.

As CoinDesk's George Kaloudis wrote Sunday in his "Crypto Long & Short" column: "A 75 basis point increase to interest rates in July is basically a foregone conclusion at this point."

And Oanda Senior Market Analyst Ed Moya wrote last week: "If inflation delivers another upside surprise, the September meeting could see expectations fully priced in a half-point rate increase but that could easily go up to 75 basis points."

Bank of Japan watchers are assessing what the assassination of former Japanese Prime Minister Shinzo Abe might imply for the nation's monetary policy, according to Bloomberg. Abe had been a strong advocate for ultra-easy financial conditions in the face of the country's economic stagnation.