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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It's Tuesday! Here’s what you need to know in crypto today. |
- BTC advances to about $57,000.
- Crypto options show lingering downside concerns.
- Nansen buys staking platform StakeWithUs.
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CoinDesk 20 Index: 1,817.62 +2.4% Bitcoin (BTC): $57,160 +3.54% Ether (ETH): $2,349.98 +1.54% S&P 500: 5,471.05 +1.16% Gold: $2,504.83 −0.07% Nikkei 225: 36,159.16 −0.16% |
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Bitcoin fluctuated around $57,000 during the European morning having gained about 3% in the last 24 hours. Still, it remains around 3% lower in September and more than 20% below the all-time high of $73,000 in March. The broader digital asset market has risen about 2.35%, as measured by the CoinDesk 20 Index. Bitcoin ETFs registered net inflows for the first time in over a week on Monday, gaining $28.7 million. Despite the rally, NYDIG has noted that bitcoin's "near-term catalysts … are sparse." The firm wrote on Monday that September is a notoriously weak month for bitcoin prices but, on the bright side, October is generally one of the strongest. |
BTC and ETH options trading on derivatives exchange Deribit shows a bias for bearish puts over bullish calls, suggesting traders remain concerned about crypto price weakness in the short term. "Given the velocity of last week's dip, the market is still very cautious about downside risk," QCP's market insights team said in a Telegram broadcast. "Risk reversals until October are still skewed towards puts in both BTC and ETH." The cautious sentiment perhaps stems from historical data, which shows recessions and risk aversion tend to follow the start of a Fed rate-cutting cycle. The central bank is widely expected to cut rates by 25 basis points next week. Price rallies could, therefore, be fleeting until the Fed meeting. Blockchain data provider Nansen bought staking platform StakeWithUs as CEO Alex Svanevik looks to expand beyond data provision into offering investment services for institutions and retail traders. While the purchase price was not disclosed, a spokesperson for the company said it was a seven-figure sum. StakeWithUs, which is backed by the Singapore government's innovation project SGinnovate, provides staking across multiple blockchains. Following its integration, Nansen will offer non-custodial staking for over 20 assets, including SOL, SUI, OSMO and ATOM. "By enabling staking within Nansen, we are not only expanding our service offerings but also enhancing our support for the blockchain ecosystems we integrate with," Svanevik said in a statement. |
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Market Insight: Bitcoin Trading Volume Surged to $2.8T in January to August Period |
The bitcoin market reached unprecedented activity in the first eight months of 2024, surpassing the record notional trading volume seen during the bull market of 2021. The cumulative trading volume, or the dollar value of the number of BTC bought and sold, on centralized exchanges amounted to $2.874 trillion in the period, according to Paris-based data provider Kaiko. That's nearly 20% higher than the $2.424 billion registered in the first eight months of 2021 and the highest since 2012. "The rise in crypto volatility has been accompanied by increased market participation, at least in the bitcoin market," Kaiko said in the weekly report, discussing the record-setting trading volume. Data from charting platform TradingView show bitcoin's 10-day realized or historical volatility surged to an annualized 100% in April as strong inflows into the U.S.-listed spot ETFs and expectations for Fed rate cuts drove the cryptocurrency's price to record highs above $70,000. |
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- The chart shows ether's session-wise price performance over the past four weeks.
- Ether has dropped over 12% in one month, with most losses happening during the U.S. trading hours.
- The Asia-Pacific hours have been a source of bullish pressures for the cryptocurrency.
- Source: Velo Data
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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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