Layer 1 blockchain Aptos’ token, which has been surging since the start of the year, broke an all-time high on Wednesday.
This article originally appeared in Crypto Markets Today, CoinDesk’s daily newsletter diving into what happened in today’s crypto markets. Subscribe to get it in your inbox every day.
The token, APT, hit new record highs and is up 427% since Jan. 1, according to CoinDesk data.
APT was more recently changing hands at $18.30, a more than 46% gain over the past 24 hours.
The token’s rally has outsized recent moves from the two largest cryptocurrencies by market cap, bitcoin and ether. Bitcoin is up 30% in 2023 while ether has gained 34%.
The funding rates for the token are still negative, however, suggesting traders are expecting the rally to be short-lived.
“If traders are willing to open short positions with highly negative funding rates, they must have belief the token will decline,” Christopher Newhouse, a crypto derivatives trader at crypto market maker GSR, said. “Despite the surge, this suggests shorts think the rally may have gone too far.”
Bitcoin (BTC): The largest cryptocurrency by market value rebounded from a late Tuesday swoon to recently trade at around $22,950, roughly flat over the past 24 hours. BTC sank below $22,500 the previous day along with most other major cryptos as many investors likely took profits after a four-day upsurge. Bitcoin has risen more than 35% in value this year.
Equities traded sideways with the tech-heavy Nasdaq Composite, S&P 500, which has a hefty technology component, and Dow Jones Industrial Average (DJIA) all down a few smidgens of a percentage point. Investors chewed over the latest cascade of fourth-quarter earnings, including those of Boeing and Microsoft.
Ether (ETH): ETH had yet to recover as much ground as bitcoin from the Tuesday crypto fall. The second-largest crypto in market value was recently changing hands at about $1,580, off roughly 2.1%.
Popular meme coins dogecoin (DOGE) and shiba inu (SHIB) tumbled about 2.6% and 3.3%, respectively.
Axie infinity (AXS): Play-to-earn giant Axie Infinity’s AXS cryptocurrency, which reached a four-month high of $13.94 earlier Monday and was up 13% at one point Tuesday, continued its surge. AXS was recently up about 2%.
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S&P 500 daily close
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BTC/ETH prices per CoinDesk Indices; gold is COMEX spot price. Prices as of about 4 p.m. ET
By Glenn Williams Jr.
Derivatives markets are signaling positive sentiment for bitcoin..
Bitcoin’s current term structure is in “contango,” a condition that exists when the price of bitcoin futures exceeds the price of bitcoin in spot markets.
Contango is represented by an upward-sloping futures curve. The opposite condition is “backwardation,” where futures prices are lower than spot prices, and represented by a downward-sloping price curve.
In traditional markets, where supply, demand and physical storage are significant factors, contango is often a bearish sign because the difference between the futures and spot price is based largely on the cost of transporting and storing that asset.