Market Update
- Equities are flat as investors digest the Israel-Hamas conflict that erupted over the weekend. Oil prices gained 4.5% while Bond markets are closed for the holiday. Beyond the geopolitical uncertainty investors will be looking to releases on inflation data from PPI and CPI, in addition to FOMC minutes later this week. BTC is trading at $27.5k after retracing from $28k, where confluence of both the 200 day and weekly MAs have continued to hold as resistance. ETH is trading at $1.58k, extending its underperformance against BTC as ETHBTC reached new yearly lows of 0.0572. DYDX is the only token among the top 100 moving higher today, gaining 2.6% likely in anticipation of its appchain launch, which could potentially revamp tokenomics for the decentralized derivatives project.
- Last week, Solana ETPs witnessed their largest inflows since March 2022, securing $24 million. Digital-asset investment products saw their highest weekly inflows since July, totaling $78 million. Flows were driven predominantly by Solana and Bitcoin, with Bitcoin accounting for $43 million. Regionally, Europe was the frontrunner, accounting for 90% of the inflows, while the combined contribution of the U.S. and Canada was just $9 million. Trading volumes for exchange-traded products experienced a 37% spike, hitting $1.13 billion, and Bitcoin trading on major exchanges increased by 16%. Meanwhile, the recent introduction of six ether futures ETFs in the U.S. only garnered just under $10 million in flows, a modest amount when juxtaposed with Bitcoin futures ETFs' $1 billion in their 2021 debut, highlighting subdued interest in digital assets.
- Over the past month, the global Ethereum (ETH) supply has increased by nearly 30,000 ETH, approximating a value of $47.9 million. This growth is primarily attributed to decreased transaction activity on the network, specifically fewer NFT sales and DeFi activity. Historically, Ethereum's transition from proof of work to proof of stake resulted in a 90% reduction in ETH issuance and combined with its fee-burning mechanism, was projected to position ETH as a deflationary asset. However, with current low Ethereum gas fees—averaging around $0.24 per transaction—the amount of ETH being "burned" has significantly reduced, increasing the overall ETH supply in the last 30 days. Although there's growing concern among some crypto enthusiasts regarding this inflationary trend, Ethereum core developers remain largely unfazed, emphasizing that the current inflation is still below peak levels and is considerably lesser than inflation observed in other chains and economic sectors.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Despite the inflows to Solana last week, Monday's 4%+ decline is happening across the cryptocurrency space given the uptick in geopolitical tension which is affecting risk assets around the globe on Monday. Overall, this appears to be a minor pullback only, following the strength in recent weeks. It's likely technically speaking that strong support should materialize near $20.65-$21.25 in the days to come which might provide stabilization followed by a rally back to new monthly highs. Given the recent uptick in momentum since early September, i feel that this weakness should prove temporary and makes SOL an attractive risk/reward for a push higher to test initial resistance targets at $23.11 then 24.80. At a current price near $22, both of the recent pullbacks from 10/7 and 10/2 are equal in price points lost, but any close near lows of the session argues for a bit more decline could near $21 before finding a more sustainable bottom. Overall, SOL looks appealing technically and would be a better risk/reward on any further weakness over the next few trading sessons.
Daily Important Metrics
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All metrics as of October 9, 2023 1:19 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $537B | $27,531 | ↓ -1.37% | ↑ 66% | |
 ETH | $190B | $1,578 | ↓ -3.41% | ↑ 32% | ↓ -34% |
 SOL | $9.2B | $22.11 | ↓ -5.60% | ↑ 123% | ↑ 57% |
 ADA | $8.8B | $0.2513 | ↓ -2.32% | ↑ 1.80% | ↓ -64% |
 DOGE | $8.3B | $0.0587 | ↓ -3.96% | ↓ -16% | ↓ -82% |
 MATIC | $4.9B | $0.5267 | ↓ -6.74% | ↓ -31% | ↓ -97% |
 DOT | $4.8B | $3.84 | ↓ -4.73% | ↓ -12% | ↓ -78% |
 LINK | $4.1B | $7.31 | ↓ -4.97% | ↑ 32% | ↓ -35% |
 NEAR | $1.0B | $1.04 | ↓ -5.17% | ↓ -18% | ↓ -85% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -21% | $20.50 | ↓ -1.09% | ↑ 147% | ↑ 81% |
| BITW | ↓ -49% | $11.35 | ↓ -2.53% | ↑ 111% | ↑ 45% |
| ETHE | ↓ -28% | $11.02 | ↓ -2.62% | ↑ 132% | ↑ 65% |
| BTCC | ↑ 0.31% | $5.13 | ↑ 1.38% | ↑ 69% | ↑ 3.11% |
News
MARKET DATA
The Block Solana investment products see largest week of inflows since March 2022 Solana led interest among altcoin funds last week, registering its largest inflows since March 2022, adding $24 million. |
CryptoSlate Bitcoin’s exchange balance plummets to five-year low Quick Take The balance of Bitcoin on exchanges has recently plummeted to a new record low for the year, with just 2.291 million BTC on exchanges. Data reveals t... |
Decrypt.co The Ethereum Foundation Just Sold $2.76 Million in ETH It’s magnitudes smaller than previous transfers, but historically when the Ethereum Foundation moves ETH it’s been bearish. |
Decrypt.co Ethereum Inflation? ETH Supply Has Grown by $47 Million in 30 Days The growth has largely been driven by a corresponding lack of transaction activity on the blockchain network. |
THOUGHTS AND OPINIONS
Coin Telegraph Sam Bankman-Fried FTX fraud trial continues: What to expect in the second week In the second week of his fraud trial Sam Bankman-Fried will face testimonies against him from witnesses including for... |
HACKS, EXPLOITS, AND SCAMS
CryptoSlate Stars Arena, an Avalanche-based social media dApp, has responded to a recent $2.9 million security breach by securing the necessary resources to cover the assoc... |
