<i><b>This article originally appeared in </b></i><a href="https://www.coindesk.com/newsletters/first-mover/"><i><b>First Mover</b></i></a><i><b>, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. </b></i><a href="https://www.coindesk.com/newsletters/first-mover/"><i><b>Subscribe to get it in your inbox every day</b></i></a><i><b>.</b></i>
Price point
<b>Bitcoin</b> (<a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3ByaWNlL2JpdGNvaW4v/6227cfd92f83586bfc191046Bc3f413c4">BTC</a>) dipped below $20,000 on Thursday as investors get a tough start to the month after a rocky August. The world’s largest cryptocurrency by market value has lost 2% on the day, following a 14% decline last month.
<b>Stocks and bonds</b> also <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cud3NqLmNvbS9saXZlY292ZXJhZ2Uvc3RvY2stbWFya2V0LW5ld3MtdG9kYXktMDktMDEtMjAyMj9tb2Q9aHBfbGVhZF9wb3Mx/6227cfd92f83586bfc191046B1897dd3a">fell</a>, along with European and Asian indexes. <b>Oil prices</b> dipped for a third day in a row.
<b>Ether</b> (<a href="https://www.coindesk.com/price/ethereum/" target="_blank">ETH</a>), the second largest cryptocurrency by market capitalization, lost 1.6% over the last 24 hours and was trading at $1,560 at the time of writing. Litecoin (<a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3ByaWNlL2xpdGVjb2luLw/6227cfd92f83586bfc191046B6786e09e">LTC</a>), <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3ByaWNlL2Vvcy8/6227cfd92f83586bfc191046B2a05aabf">EOS</a> and unus sed leo (LEO) posed small gains.
<b>Bank of America</b> <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL21hcmtldHMvMjAyMi8wOS8wMS9ib2ZhLWNyeXB0by1idXlpbmctbW9tZW50dW0tZmFkZXMtYXMtaW52ZXN0b3JzLXdlaWdoLWJlYXItbWFya2V0LWJvdW5jZS1yZWNlc3Npb24tcmlzay8/6227cfd92f83586bfc191046B7514ef00">said</a> Wednesday in a research podcast that the chance of a more hawkish Federal Reserve and the likelihood of interest rates staying higher for longer has not been fully priced into risk assets, including cryptocurrencies.
In the news, <b>the District of Columbia is </b><a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3BvbGljeS8yMDIyLzA4LzMxL3dhc2hpbmd0b24tZGMtc3VpbmctbWljcm9zdHJhdGVneXMtbWljaGFlbC1zYXlsb3ItZm9yLXRheC1mcmF1ZC8/6227cfd92f83586bfc191046B72538a8e"><b>suing MicroStrategy </b></a><b>founder Michael Saylor for tax fraud. </b>The attorney general’s office is also suing the business software company for allegedly helping him evade taxes on his earnings in the district. MicroStrategy shares were down more than 4% following the news.
<b>Crypto lender Celsius</b> is facing another group of customers who want their money back, Nikhilesh De <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL2J1c2luZXNzLzIwMjIvMDkvMDEvY3J5cHRvLWxlbmRlci1jZWxzaXVzLWZhY2VzLWFub3RoZXItZ3JvdXAtb2YtY3VzdG9tZXJzLXdoby13YW50LXRoZWlyLW1vbmV5LWJhY2sv/6227cfd92f83586bfc191046Bcb18eaf1">reports</a>.
Developers behind the Helium network have <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3RlY2gvMjAyMi8wOS8wMS9oZWxpdW0tZGV2ZWxvcGVycy1wcm9wb3NlLXNoaWZ0aW5nLW5ldHdvcmstdG8tc29sYW5hLWJsb2NrY2hhaW4tZm9yLWZhc3Rlci1zcGVlZHMv/6227cfd92f83586bfc191046Bed9b7918">proposed</a> shifting the entirety of the protocol to Solana, citing faster transaction speeds, high uptimes and more interoperability with other blockchains.
And finally, in <b>Latin America</b>, CoinDesk’s Marina Lammertyn <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL2J1c2luZXNzLzIwMjIvMDgvMzEvcGVydXZpYW5zLWFyZS1idXlpbmctY3J5cHRvLXRvLWhlZGdlLWFnYWluc3QtaW5mbGF0aW9uLWFuZC1wb2xpdGljYWwtaW5zdGFiaWxpdHkv/6227cfd92f83586bfc191046B6cf01278">unpacks</a> how the political turmoil in Peru has led citizens to turn to crypto as a safe haven.
<div style="text-align: center; width: 100%;"><h3 style="margin-right:auto; margin-left:auto;">Biggest Gainers</h3></div> <table style="table-layout: fixed;text-align: center;width: 95%;border: 1px solid black;border-collapse: collapse;padding: 4px;vertical-align: middle;margin-right:auto;margin-left:auto;"> <thead> <tr style="border: 1px solid black;"> <th style="border: 1px solid black;text-align: center;">Asset</th> <th style="border: 1px solid black;text-align: center;">Ticker</th> <th style="border: 1px solid black;text-align: center;">Returns</th> <th style="border: 1px solid black;text-align: center;">DACS Sector</th> </tr> </thead> <tbody> <tr style="border: 1px solid black;"> <td style="border: 1px solid black;">Terra</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/price/luna/">LUNA</a></td> <td style="border: 1px solid black;color:#1ea25b;">+20.4%</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/indices/dacs/">Smart Contract Platform</a></td> </tr> <tr style="border: 1px solid black;"> <td style="border: 1px solid black;">Cosmos</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/price/atom/">ATOM</a></td> <td style="border: 1px solid black;color:#1ea25b;">+0.4%</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/indices/dacs/">Smart Contract Platform</a></td> </tr> </tbody> </table> <div style="text-align: center; width: 100%;"><h3 style="margin-right:auto; margin-left:auto;">Biggest Losers</h3></div> <table style="table-layout: fixed;text-align: center;width: 95%;border: 1px solid black;border-collapse: collapse;padding: 4px;vertical-align: middle;margin-right:auto;margin-left:auto;"> <thead> <tr style="border: 1px solid black;text-align: center;"> <th style="border: 1px solid black;text-align: center;">Asset</th> <th style="border: 1px solid black;text-align: center;">Ticker</th> <th style="border: 1px solid black;text-align: center;">Returns</th> <th style="border: 1px solid black;text-align: center;">DACS Sector</th> </tr> </thead> <tbody> <tr style="border: 1px solid black;"> <td style="border: 1px solid black;">Solana</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/price/sol/">SOL</a></td> <td style="border: 1px solid black;color:#FF0000;">−4.9%</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/indices/dacs/">Smart Contract Platform</a></td> </tr> <tr style="border: 1px solid black;"> <td style="border: 1px solid black;">Avalanche</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/price/avax/">AVAX</a></td> <td style="border: 1px solid black;color:#FF0000;">−4.5%</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/indices/dacs/">Smart Contract Platform</a></td> </tr> <tr style="border: 1px solid black;"> <td style="border: 1px solid black;">Loopring</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/price/lrc/">LRC</a></td> <td style="border: 1px solid black;color:#FF0000;">−4.0%</td> <td style="border: 1px solid black;"><a style="color: rgb(26, 137, 23);text-decoration: underline;" href="https://www.coindesk.com/indices/dacs/">Smart Contract Platform</a></td> </tr> </tbody> </table>
Market Moves
<b>Potential Ethereum Hard Fork Token ETHPOW Could Trade at 1.5% of Ether Price, Futures Suggest</b>
<b>By Omkar Godbole</b>
If you have been following the crypto market for some time, you probably have heard that Ethereum, the world's largest smart-contract blockchain, could <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL3RlY2gvMjAyMi8wOC8yNC9ldGhlcmV1bS1wcm9vZi1vZi13b3JrLWZvcmtzLWdpZnQtb3ItZ3JpZnQv/6227cfd92f83586bfc191046Ba71d16a3">undergo a hard fork</a> later this month, splitting into a <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL2xlYXJuLzIwMjAvMTIvMzAvd2hhdC1pcy1wcm9vZi1vZi1zdGFrZS8/6227cfd92f83586bfc191046B1b9aff51">proof-of-stake</a> (PoS) chain and a <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL2xlYXJuLzIwMjAvMTIvMTYvd2hhdC1pcy1wcm9vZi1vZi13b3JrLw/6227cfd92f83586bfc191046B66472d5e">proof-of-work</a> (PoW) chain.
The Ethereum chain with the PoS consensus mechanism will retain the seven-year-old ether (ETH), currently trading at $1,570, as its native token. The PoW chain, representing a group of miners opposing the impending <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL2xlYXJuL3doYXQtaXMtdGhlLW1lcmdlLWFuZC13aHktaGFzLWl0LXRha2VuLXNvLWxvbmcv/6227cfd92f83586bfc191046B386e3992">Merge</a>, or switch to PoS, would have a new token called ETHPOW.
We know that if the chain splits, ETH holders will receive ETHPOW free of cost, much as corporate shareholders receive additional units on a stock split. What's not known is the value of the ETHPOW token.
One way to gauge the potential value is to look at the difference between spot ether and futures prices, according to Paradigm, which focuses on over-the-counter trading for institutions.
As of Wednesday, ether Sept. 30 expiry contracts listed on major exchanges traded at a discount of $18 to the spot price, indicating the market is expecting the ETHPOW token to draw a price of at least $18 at inception.
"We can infer how much the market estimates ETHPOW will be worth from simply looking at spot-future basis, since spot = PoS + PoW, while future is just PoS," Paradigm said in a Merge-focused blog post <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cucGFyYWRpZ20uY28vYmxvZy9ldGhlcmV1bS1tZXJnZS1jcnlwdG8tZGVyaXZhdGl2ZXM_dXRtX2NhbXBhaWduPXEzXzIyX2V0aF9tZXJnZSZ1dG1fc291cmNlPXR3aXR0ZXImdXRtX21lZGl1bT1zb2NpYWw/6227cfd92f83586bfc191046B1de6ac0f">published</a> Wednesday. "Currently, the basis is implying ETHPOW to be priced ~$18, which is ~1.5% of ETH market cap."
Trading giant Cumberland <a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly90d2l0dGVyLmNvbS9jdW1iZXJsYW5kc2F5cy9zdGF0dXMvMTU2MjA2OTg5OTQxNzEwODQ4MD9zPTIxJnQ9ODFqVld1S0pDczZ3RVZQLWZKcEtI/6227cfd92f83586bfc191046B92b8c784">voiced</a> a similar opinion last month, saying, "we can infer how much the market estimates ETHPOW will be worth from the spot-future basis."
The logic behind considering the negative $18 basis as a possible ETHPOW price is that the discount represents the risk-free cost of collecting the potential forked tokens. So, if traders are willing to pay $18, they must expect the token to be priced at $18 or higher.
<i><b>Read the full story </b></i><a href="https://link.coindesk.com/click/28915775.169324/aHR0cHM6Ly93d3cuY29pbmRlc2suY29tL21hcmtldHMvMjAyMi8wOS8wMS9wb3RlbnRpYWwtZXRoZXJldW0taGFyZC1mb3JrLXRva2VuLWV0aHBvdy1jb3VsZC10cmFkZS1hdC0xOC1ldGhlci1mdXR1cmVzLXN1Z2dlc3Qv/6227cfd92f83586bfc191046Bdc9ba187"><i><b>here</b></i></a><i><b>.</b></i>
Chart of the Day
<b>Bitcoin Exchange Inflows Rise</b>
<b>By Omkar Godbole</b>
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