First Mover Americas: Bitcoin Turns South Toward $20K, Huobi Cuts Ties With the HUSD Stablecoin
Popular meme token dogecoin continued its rally Friday, up 7% on the day after Tesla (TSLA) CEO and DOGE supporter Elon Musk completed his $44 billion takeover of Twitter (TWTR). Crypto exchange Binance also confirmed on Friday that it was as an equity investor in Musk's acquisition.
Dogecoin has gained 33% over the last seven days, making it the top-performing crypto asset with a market capitalization of more than $1 billion.
Ether (ETH) was down 3.5% on the day at around $1,500.
Crypto exchange Huobi Global announced Thursday it is cutting ties with its closely linked stablecoin, the troubled asset HUSD. In a notice to users, Huobi, the top trading venue for the $219 million market-cap stablecoin, cited its rules for performing “regular inspection” on listed assets. In August, the stablecoin briefly lost its dollar peg and crashed 8% after its issuer closed “several accounts” because of regulatory concerns.
The stablecoin HUSD was down 8% over the last 24 hours, according to data from CoinMarketCap. The price of Huobi token (HT), an ecosystem token launched by Huobi Global, was also down 7% on the day.
In traditional markets, stocks slid along with U.S. equity futures after some disappointing earnings results from tech giants. Futures for the Nasdaq-100 led declined by 1.1%, and S&P 500 futures fell 0.6%. Amazon’s (AMZN) shares tumbled 13% in premarket trading. Late Thursday, the company gave a sales estimate for the fourth quarter below analysts’ expectations.
CoinDesk Market Index
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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 CoinDesk Market Index (CMI) is a broad-based index designed to measure the market capitalization weighted performance of the digital asset market subject to minimum trading and exchange eligibility requirements.
Chart of the Day
- The chart shows changes in ether and bitcoin's annual issuance rate since the Ethereum blockchain switched to a proof-of-stake consensus mechanism on Sept. 15.
- The annual issuance continues to slide toward 0.0%. Since the technological upgrade, ether's annual token supply change has decreased from 3.6% to 0.009%, making it more attractive than bitcoin.
- Therefore, ether may continue to outperform bitcoin.
- "Any increase in on-chain activity should bring ethereum firmly into deflationary issuance territory and may have a substantial outsized effect on ether's price," Josh Olszewicz, head of research at digital-asset fund manager Valkyrie Investments, said.