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 today in crypto. |
BTC trades little changed below $60,000.Bitcoin metrics indicate weak demand.Institutions are still buying bitcoin ETFs, says Bitwise. |
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CoinDesk 20 Index: 1,915 −1.8% Bitcoin (BTC): $59,471 −1.9% Ether (ETC): $2,586 −2.5% S&P 500: 5,597.12 −0.2% Gold: $2,547 +1.4% Nikkei 225: 37,951.80 −0.29% |
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Meet ETHA, The iShares Ethereum Trust ETF. ETHA enables investors to access Ethereum, the second-largest cryptocurrency, within a traditional brokerage account.1Learn More 1 Source: The Block, as of May 21, 2024. Ethereum’s market capitalization, which stands at $450 billion is measured using its native token, ether. For an ETHA prospectus, click here iCRMH0824U/S-3782218 |
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Bitcoin metrics indicate weak demand, reflecting increased selling amid weeks of muted price action. CryptoQuant's demand indicator, which tracks the difference between the daily total bitcoin block rewards and the daily change in the number of bitcoin, has not moved in a year or more. Inflows to spot bitcoin ETFs have also waned from a monthly pace of 6% in March to just 1% now, CryptoQuant has said. Still, a few metrics have remained strong. Long-term holders – or wallets that hold the for more than six months – have continued accumulating bitcoin at “unprecedented levels,” with the total balance reaching a record-high monthly rate of 391,000 BTC earlier this week. The aggregate number of institutional investors holding bitcoin ETFs in the second quarter rose 14% from the first quarter, according to Bitwise. These investors' share of total assets under management (AUM) of bitcoin ETFs grew to 21.15% from 18.74%, Bitwise said, adding that institutions ended the quarter holding $11 billion in BTC ETFs. This took place amid a 12% slide in the price of bitcoin during the quarter. Bitwise noted criticism that bitcoin ETFs are predominantly owned by retail investors, an assertion it says is simply untrue. It observed that these ETFs have been adopted by institutions "at the fastest rate of any ETF in history." |
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Market Insight: Goldman Says Wednesday's U.S. Jobs Report Is Likely to Overstate Weakness |
Wednesday could be busy for financial markets, including cryptocurrencies, as the U.S. Bureau of Labor Statistics' preliminary revision of jobs growth is expected to reveal a lower than previously estimated figure for the year to March. Still, bitcoin bears might want to exercise caution as the data could be misleading and overstate weakness, according to Goldman Sachs. "Nonfarm payroll growth averaged 250K/month over April 2023-March 2024. While next week's [Wed] revision could revise the pace down to 165-200k/month, we believe that a portion of that revision will be erroneous and that the 'true' pace of employment growth during that period was probably closer to 200-240k/month, Goldman Sachs' Economics Research team said in a note to clients on Aug. 16. Therefore, the data could prove to be a trap should there be a bearish response in the cryptocurrency market. |
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The chart shows the combined market capitalization of the top two stablecoins, tether (USDT) and USD Coin (USDC), has increased nearly 3% to a record $152 billion this month.The increase in the so-called dry powder often breeds bullish trends in the broader market.Source: TradingView |
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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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