Grayscale Request Sweeping ETF Approval, Unprecedented CME Crypto Open Interest

After a shaky afternoon yesterday, US stocks rebounded with vigor this morning. Leading headline indexes are up by 1% – 2% after a better-than-expected Core PCE reading for the second consecutive month. The Core PCE holds significant importance in influencing the Fed’s policy decisions. Consequently, US yields have declined across the yield curve in response, and the markets are currently indicating an approximately 80% likelihood of the Fed pausing at the September FOMC meeting. Crypto markets seem unaffected by the bullish news, with BTC and ETH flat since yesterday. Our weekly Crypto Strategy note highlighted that Bitcoin’s 30-day realized volatility has reached levels not seen since July 2020. Bitcoin’s price crossing into unusually low realized volatility has coincided with positive price action following what can be seen as a “floor-setting” period.