The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know in crypto today. |
Bitcoin fell below $56,000 during the Asian morning.BTC mining profitability is stuck at record lows, says JPMorgan.Volmex Finance unveils SOL volatility index. |
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CoinDesk 20 Index: 1,786.39 −3.8% Bitcoin (BTC): $56,607.61 −4.24% Ether (ETH): $2,395.39 −4.4% S&P 500: 5,528.93 −2.12% Gold: $2,488.75 −0.17% Nikkei 225: 37,047.61 −4.24% |
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Bitcoin fell below $56,000 during the Asian morning, the lowest since Aug. 8, reversing nearly all of the past month's gains. BTC subsequently recovered some ground, trading above $56,500, still more than 4% lower in the last 24 hours. The CoinDesk 20 Index (CD20), a broad measure of the digital asset market, has fallen around 3.5%. U.S. stocks tracked by the Nasdaq 100 and S&P 500 indexes fell as much as 3.5% on Tuesday to kick off a historically bearish September as weak U.S. manufacturing data reignited concerns over an economic slowdown. The move spread to Asian markets with Japan's Nikkei 225 sliding more than 4%. |
Bitcoin mining profitability is stuck at record lows, JPMorgan said in a new research report. "We estimate bitcoin miners earned an average of $43,600 per EH/s in daily block reward revenue in August, the lowest point on record," the analysts wrote. That compares with a peak value of $342,000 in November 2021, when the BTC price was $60,000 and the network hashrate was 161 EH/s. The network hashrate, a proxy for competition in the industry and mining difficulty, increased for the second straight month in August, JPMorgan noted. "The network hashrate averaged 631 EH/s in August, up 16 EH/s from last month, and about 20 EH/s below prehalving levels," the authors wrote. Crypto derivatives protocol Volmex Finance unveiled a new implied volatility index for Solana's SOL token to measure expected price swings in the world's fifth-largest cryptocurrency. The SVIV index measures forward-looking 14-day expected volatility in SOL, Volmex said in an email to CoinDesk. Traders can track the index to see the degree of potential SOL price swings (in either direction) over the following two weeks. Volmex said it will eventually debut longer-duration SOL implied volatility indices, including the popular 30-day gauge and derivatives linked to that, allowing market participants to place bets on volatility. Perpetual futures tied to Volmex's bitcoin implied volatility index and the ether index have been trading on Bitfinex since early April. |
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Market Insight: Bitcoin ETFs See Largest Outflow in 4 Months |
U.S.-listed bitcoin ETFs saw net outflows of $287.8 million on Tuesday, the most for a single day since the start of May, according to data tracked by Farside Investors. Fidelity's FBTC led the outflows, registering $162.3 million in withdrawals. Grayscale's GBTC registered an outflow of $50.4 million and BITB and ARK lost $25 million and $33.6 million, respectively. BlackRock's IBIT drew zero for the second straight trading day. Bitcoin fell 2.7% on Tuesday after the U.S. ISM manufacturing PMI printed below 50, indicating a continued contraction in August. The data revived concern over the pace of growth in the country, which weighed on risk assets, including cryptocurrencies. "A miss in the manufacturing PMI rehashed fears of an economic slowdown, with Nvidia leading the sell-off, losing 9.54%," crypto OTC liquidity network Paradigm said in a Telegram broadcast. |
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Bitcoin's seven-day options skew has dropped to three-week lows, indicating a renewed demand for puts offering downside protection.It's a sign of traders preparing for a more profound price drop in the wake of renewed U.S. growth concerns and NVDA's sell-off.Source: Amberdata |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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