First Mover Americas: Bitcoin Starts Week in the Red

This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

Bitcoin is down to start the week, dropping to around $29,300, a decrease of 1.92% in the last 24 hours. The CoinDesk Market Index (CMI), which measures the performance of the broader digital asset market, is also in the red, down 2.38% at 1,266.87. BTC’s trading range is still relatively narrow, reflecting the cautious stance of investors. “Although market dynamics in summer months can tend toward volatility with lower trading flows, the recent period has been remarkably calm for top crypto assets in the market,” Simon Peters, a market analyst at eToro said. “The softening of the price we’re watching currently suggests investors are looking for positivity to cling to, but with little forthcoming for now it is very much wait and see.”

Elon Musk is rebranding Twitter to X, prompting surges in scores of X tokens as traders jumped on the potential opportunity to eke out some small profits. One token, related to a project that shut in May, jumped as much as 1,200% while the new “AI-X” token opportunistically issued over the weekend following Musk’s announcement jumped 10-fold. “Meme coins are huge parts of the crypto trading landscape, whether we like it or not,” James Wo, founder at crypto fund DFG, told CoinDesk at the heights of one such meme obsession. “While the biggest currencies like bitcoin and ether have very low volatility, it’s only natural that traders will look for opportunities elsewhere.”

Worldcoin, the crypto project of ChatGPT founder Sam Altman, has gone live with its token WLD surging 62% to $2.60, according to data from CoinGecko. Crypto exchanges Binance, Huobi, Bybit and OKX have listed WLD, with spot trading of WLD/USDT, WLD/USDC and WLD/BTC available. The aim of the project, which raised $115 million in May, is to establish a decentralized digital identity system in order to preserve personal privacy. More than 2 million people were onboarded while the project was still in beta. WLD is not currently available in the U.S. owing to regulatory uncertainty.

The chart by Marex shows U.S. investors can express their bullish view on bitcoin either through long positions in Grayscale Bitcoin Trust Shares or via long BTC positions in the spot and futures markets.
The long position in GBTC is often paired with a short position in BTC spot/futures markets when traders bet on narrowing the GBTC discount relative to the trust’s net asset value. The so-called spread trade has recently become popular thanks to spot bitcoin-ETF optimism.
The short position of the spread trade puts downward pressure on BTC’s price, according to Marex. If and when the discount evaporates, the spread will be squared off, putting upward pressure on bitcoin’s price.
Source: Marex

Edited by Sheldon Reback.

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