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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Welcome to a new week! Here’s what you need to know in crypto today. |
- Bitcoin rises 1.3% to around $63,500.
- Digital asset funds saw $321 million of net inflows last week.
- Core Scientific given a buy rating by broker Canaccord.
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CoinDesk 20 Index: 1992.83 +1.03% Bitcoin (BTC): $63,453.28 +1.27% Ether (ETH): $2,645.83 +2.62% S&P 500: 5,702.55 +0.19% Gold: $2,622.99 +0.1% Nikkei 225: 37,723.91 +1.53% |
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The Crypto Minis from Grayscale: BTC & ETH. Considering an investment in crypto but looking to start small? How about with a Mini. A Grayscale Crypto Mini. The Trusts are not funds registered under the Investment Company Act of 1940, as amended (“1940 Act”), and are not subject to regulation under the 1940 act, unlike most exchange traded products or ETFs. An investment in the Trusts are subject to a high degree of risk and heightened volatility. Digital assets are not suitable for an investor that cannot afford the loss of the entire investment. The Grayscale Crypto Minis offer: Mini fee: BTC and ETH offer some of the lowest fees1 among Bitcoin and Ethereum spot funds (Brokerage fees and other expenses may still apply). Mini share price: BTC and ETH both have very low share prices, allowing investors to get extremely precise with their exposure. Mini commitment: You don’t need an entire Bitcoin or thousands of dollars' worth of Ethereum to get crypto exposure — as exchange-traded products, BTC or ETH allows you to allocate as much or as little as you want to crypto. Turns out, a Mini gets you a lot. Crypto investing begins with Grayscale. |
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1Low cost based on gross expense ratio at 0% for the first 6 months of trading for the first $2.0 billion. After the fund reaches $2.0 billion in assets or after 6-month waiver period, the fee will be 0.15%. Brokerage fees and other expenses may still apply. See prospectus for additional fee waiver information. Disclosures: Investing involves risk, including the loss of principal. Investments in the Trust involve a high degree of risk and heightened volatility. Digital assets are not suitable for an investor that cannot afford the loss of the entire investment. An investment in ETH or BTC is not an investment in Ethereum or Bitcoin. Foreside Fund Services, LLC is the Marketing Agent for the Trusts. Please read the ETH prospectus and BTC prospectus carefully before investing. Digital Asset Risk Disclosures Extreme volatility of trading prices that many digital assets, including Bitcoin and Ethereum, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of the Trust and the shares could lose all or substantially all of their value. Digital assets represent a new and rapidly evolving industry. The value of the Trust depends on the acceptance of the digital assets, the capabilities and development of blockchain technologies and the fundamental investment characteristics of the digital asset. Digital asset networks are developed by a diverse set of contributors and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset. Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets. |
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Major cryptocurrencies made cautious gains to start the week, with BTC around 1.3% higher over 24 hours at just under $63,500. Ether outperformed bitcoin, rising 2.7% to $2,650, while the broader digital asset market is up just under 1.1%, as measured by the CoinDesk 20 Index. Data from CoinGlass shows that in the last 12 hours, slightly more short positions than longs have been liquidated, with $64.23 million in short positions and $54.42 million in longs being liquidated. Trading is likely light in the aftermath of last week's 50 basis-point interest-rate cut in the U.S. BTC is up 9.5% in the past seven days while ETH is up over 16%. |
Digital asset investment products experienced a second straight week of inflows, adding a net $321 million, according to CoinShares. The crypto asset manager attributes the performance to the 50 basis-point interest-rate cut by the Federal Reserve. Bitcoin-linked products led the inflows with $284 million, while their ether equivalents saw outflows of $29 million. This was the fifth consecutive week that ETH products registered outflows, even as the second-largest cryptocurrency by market value led gains after the Fed's rate cut. "This is due to persistent outflows from the incumbent Grayscale Trust and scant inflows from the newly issued ETFs," CoinShares wrote. Core Scientific is on the cusp of becoming a major force in AI hosting, broker Canaccord has said in a report. Canaccord started coverage of the crypto mining company with a buy rating and a $16 price target. The shares were 1.4% higher at $12.15 in early trading. Canaccord identified three positive drivers for the stock: "Ramping revenue in AI hosting, better cash flow and potentially more site acquisitions on the way," analysts led by Joseph Vafi wrote.The company also has potential upside from mining. It still has about 230 megawatts (MW) of power that can be used for bitcoin mining, even after repurposing almost 500MW for AI hosting, the report noted. |
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Market Insight: Ether Leads Post-Fed Crypto Market Rally |
The Fed's long-awaited cut to interest rates last week brought about a significant rebound in the crypto market, with ether surging nearly 14%, highlighting a resurgence of investor risk appetite. Following the decision, several key macro assets have reacted positively. The U.S. Dollar Index (DXY) rose by 0.36%, pushing the index back above 101, a level widely regarded as vital. Meanwhile, the USD/JPY exchange rate, which had dropped to around 141 just before the Fed's announcement, has since climbed to approximately 143.5. The weakening yen has further bolstered risk-on assets, including cryptocurrencies. Additionally, chipmaker Nvidia's shares increased by just under 2%, while the S&P 500 index rose by over 1%, indicating that risk-on asset classes broadly welcomed the Fed's decision. Looking ahead, the CME Fed Funds futures are evenly split, with a 50/50 probability of either a 25 or 50 basis point rate cut at the upcoming Nov. 7 FOMC meeting, scheduled just two days after the U.S. presidential election. |
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- The chart shows notional open interest, or the dollar value locked, in the active solana call and put options trading on Deribit.
- At $47.52 million, open interest in call options is 2.5 times bigger than puts, a sign of bullish positioning in the market.
- 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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