Don’t miss CoinDesk’s Consensus 2022, the must-attend crypto and blockchain festival experience of the year in Austin, TX, June 9-12.

Hello and welcome to First Mover. I’m Lyllah Ledesma, here to bring you the latest in crypto markets, news and insights.

• Price point: Bitcoin and Ether are trading lower while Tron’s TRX is trading in the green.

• Market movements: Despite recent price developments, bitcoin holders remain fairly unfazed: data shows that the number of addresses held >1 year is at an all-time high.

• Feature:From DAVOS: Cryptocurrencies played a prominent role at the World Economic Forum’s annual meeting in Davos, despite the mainstream financial world’s apparent disdain for the sector.

price point

Bitcoin (BTC) was down 3.9% on the day, between $28,000 and $30,000.

Ethereum was down 4.8% on the day around $1,900.

Altcoins mostly lost ground overnight, with Fantom’s FTM marking the biggest loss among the top 20 coins. Over the past 24 hours, FTM is down 13.7%.

Tron, a versatile smart contract blockchain, was one of the only winners today. Its TRX token is up 6% on the day and 12% over the past seven days. The platform’s price hike comes as it announced a $10 million incentive fund to support Terra developers migrating to the Tron ecosystem.

In traditional markets, stocks and futures fell. Dow Jones futures fell 0.6%, while S&P 500 futures lost 1%. The US dollar was little changed. The euro hit a one-month high ($1.07) after European Central Bank President Christine Lagarde said interest rates in the eurozone would likely be in positive territory by now. the end of the third trimester.

Market movements

Despite the recent price action in the crypto market, bitcoin hodlers have remained fairly unfazed as the number of addresses holding less than a year is at an all-time high.

According to data from IntoTheBlock, there are now 27.65 million addresses that have held bitcoin for over a year, or some 12.66 million BTC.

The story continues

Bitcoin’s stock-to-flow ratio

The stock-flow (SF) model, popularized by a pseudonymous Dutch institutional investor who operates under the “PlanB” Twitter account, is a forecasting tool that some investors use for the price of bitcoin.

The model considers the circulating supply of BTC (stock) against its expected production of new supply (flow) to obtain a stock-to-flow ratio; a high ratio implies that a product becomes increasingly rare and has more value.

According to data from Kraken Intelligence, by superimposing the price of BTC on its stock-to-flow ratio, the price of BTC has followed the trend of the ratio over the years.

“BTC price continues to deviate less and less from its ratio, which is a 365-day average; when price trends are above the stock-to-flow ratio, the divergence is positive (>1), and therefore BTC can be considered overbought,” Kraken Intelligence said in its weekly report.

The multicolored line indicates the number of days until the next Bitcoin halving, i.e. when the mining reward for a new block will be halved. This reduction in new coins (flows) causes the ratio of BTC to increase, implying that BTC is more rare and valuable, according to Kraken.

Bitcoin’s next halving is 705 days away. The block grant will increase from 6.25 to 3.125 per block.

It should be noted that the SF model relies heavily on the assumption that cryptocurrency scarcity should generate value, which is not always the case. This is especially true due to bitcoin’s notoriously volatile short-term price swings.

Latest titles

Feature: In Davos, crypto is no longer outside

By Sandali Handagama, Hélène Braun

DAVOS, Switzerland – Even on trains, you can’t walk away from crypto.

The annual meeting of the World Economic Forum (WEF) – canceled in 2021, postponed earlier in 2022 – officially kicks off on Tuesday in Davos, Switzerland. Cryptocurrency advocates opened the festivities on Sunday with bitcoin pizza stands and blockchain pavilions with flashy banners lining the famous boardwalk.

WEF attendees were bombarded with signs advertising stablecoin issuer Circle and crypto brokerage Bitcoin Suisse as they stepped off their planes in Zurich or their trains in Davos. Casual passersby have talked about owning a shiba inu (SHIB) and an ADA. At the end of the day, the crypteratti dispersed to one of the nearby AirBnBs.

“Five years ago, we were the only crypto company on Promenade,” said Sandra Ro, CEO of the Global Blockchain Business Council (GBBC) at a launch party at a local church (dubbed “The Sanctuary”) just outside the closed. conference venue. “And watch it now,” she added.

Perhaps nothing heralded the crypto industry’s turbulent arrival at the world’s biggest business table more than the fact that the WEF itself is having serious discussions about digital money, with industry participants as key players.

Jeremy Allaire, CEO of Circle Pay and Brad Garlinghouse, CEO of Ripple, sat side by side on Monday to discuss remittances and digital money during a briefing at the media village of the WEF. The panel, titled “Remittances for Recovery: A New Era of Digital Money,” also included Asif Saleh, executive director of BRAC, a Bangladesh-based non-governmental development organization.

The forum also hosted a discussion on the future of the global economy, the US economy, and central bank digital currencies (CBDCs) themselves. This is not to say that the world leaders of the forum accept cryptocurrencies just yet, but they are not ignoring it.

Link to full story: In Davos, crypto is no longer outside

Today’s newsletter was edited by Lyllah Ledesma and produced by Parikshit Mishra and Stephen Alpher.