Flows Data Remains Positive, TRX Finding Technical Support
Market Update
- Equities, initially in the red, have rallied with the QQQ up by around 20 basis points and the SPX nearing breakeven. The DXY is trending downwards, aiming for its lowest close since August amid another day of lower rates, which is easing the burden on crypto-related equities like COIN, now trading around $120 and nearing another year-to-date high. The recent Binance crackdown also benefits Coinbase, potentially boosting its market share abroad. Meanwhile, $BTC is slightly lower but holding strong support at $37k, as $ETH defends the $2k level. Most altcoins are seeing some profit-taking, with larger caps down by 3-5%. $DYDX is notably lower, likely due to dilution concerns ahead of an upcoming unlock. $TIA is displaying notable strength, up 5% today, continuing to perform robustly just weeks after its launch. Meanwhile, the aggregate stablecoin market cap continues to move higher, up 1.2% over the past week, signaling a resurgence of investor confidence and capital inflow into the crypto ecosystem, a sign of returning market optimism (Source: DefiLlama).
- In line with the stablecoin data noted above, ETP flow data continues to be encouraging. Last week, digital asset investment products experienced significant inflows of $293 million, driving the total for the past seven weeks beyond the $1 billion threshold and elevating YTD inflows to $1.14 billion. Consequently, the total Assets under Management (AUM) have surged to $44.3 billion, a 9.6% increase within just a week and nearly double since the start of the year. According to CoinShares, Bitcoin Exchange-Traded Products (ETPs) accounted for as much as 19.5% of total Bitcoin trading volumes, signifying an increased engagement from ETP investors compared to previous years. Bitcoin itself attracted $240 million in inflows last week, bringing its YTD inflows to $1.08 billion, while short-bitcoin products saw $7 million in outflows, indicating a potential retreat among bearish traders. Ethereum products experienced their largest inflows since August 2022, totaling $49 million, which could signal a shift in market sentiment. Solana also continued to attract investment, recording inflows of $12 million for the week. Blockchain equity ETFs witnessed their largest inflow since July 2022, at $14 million, bringing the YTD flows to a positive $11 million.
- $ATOM is notably underperforming among larger-cap cryptoassets today, largely due to Cosmos' founder's advocacy for splitting the Cosmos blockchain into two distinct chains. This proposal for a hard fork, named AtomOne, comes in response to the community's decision to reduce ATOM's inflation rate from 14% to 10%. This reduction, driven by concerns that high inflation was hindering ATOM's use in DeFi and constituted an overpayment for security, is expected to lower the annualized staking yield from approximately 19% to 13.4%. Cosmos founder Jae Kwon, unhappy with this outcome, envisions the fork supporting both the original ATOM and a new token, ATOM1. While it remains to be seen whether this move could resolve longstanding disputes and benefit ATOM holders, it may at least present a potential trading opportunity, particularly around a community airdrop.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
TRON's early week pullback likely creates a buying opportunity following its breakout and subsequent consolidation in recent weeks. Weekly charts show the rally up to $TRX 50% retracement of its prior decline from November, and anniversaries of prior peaks and troughs tend to be important to watch for the potential for changes of trend. Given that TRX made lows in November of 2020, and 2022 and peaks in 2021 and also this year in mid-November 2023, many might suspect this recent high might have been more important as a key high for TRX. However, the recent minor consolidation doesn't suggest anything more than a temporary stopping point thus far. Movement back over 0.1102 should result in gains back to $0.136, which could also offer resistance to further gains. While momentum has gotten overbought given the extent of October's technical breakout on a daily and weekly basis, TRON has not shown evidence of any real price deterioration that would suggest its consolidation has been damaging. Support lies at $0.0955 up to $0.10 and should create an attractive risk/reward for buying dips ahead of yet another push back to new 2023 highs.
Daily Important Metrics
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All metrics as of November 27, 2023 2:02 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $721B | $36,869 | ↓ -1.46% | ↑ 123% | |
 ETH | $239B | $1,991 | ↓ -3.45% | ↑ 66% | ↓ -56% |
 SOL | $23B | $53.89 | ↓ -5.82% | ↑ 444% | ↑ 322% |
 ADA | $13B | $0.3729 | ↓ -3.23% | ↑ 51% | ↓ -71% |
 DOGE | $11B | $0.0773 | ↑ 0.15% | ↑ 10% | ↓ -112% |
 LINK | $7.8B | $13.96 | ↓ -4.74% | ↑ 151% | ↑ 29% |
 MATIC | $6.8B | $0.7323 | ↓ -3.70% | ↓ -3.91% | ↓ -126% |
 DOT | $6.3B | $5.06 | ↓ -5.21% | ↑ 16% | ↓ -106% |
 NEAR | $1.8B | $1.75 | ↓ -4.93% | ↑ 37% | ↓ -85% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -7.73% | $30.11 | ↓ -3.52% | ↑ 263% | ↑ 141% |
| BITW | ↓ -25% | $22.50 | ↓ -2.51% | ↑ 319% | ↑ 196% |
| ETHE | ↓ -12% | $16.73 | ↓ -4.29% | ↑ 251% | ↑ 129% |
| BTCC | ↑ 0.19% | $6.74 | ↓ -2.60% | ↑ 122% | ↓ -0.11% |
News
QUICK BITS
Coin Telegraph Binance CEO outlines plan for crypto exchange after CZ steps down Richard Teng became CEO of crypto exchange Binance after Changpeng Zhao agreed to step down as part of a settlement wi... |
MARKET DATA
Coin Telegraph $750M in locked crypto tokens to be released by December DYdX, Optimism, 1inch and Aptos are expected to release over $750 million in locked tokens by December, according to d... |
CoinDesk Crypto Funds Attract Largest Weekly Inflow in 2023 as Bitcoin 'Short-Sellers Capitulate': CoinShares Crypto investment funds last week attracted their largest inflow this year, extending their strongest run since the 2021 bull market as anticipation for a spot ... |
DOSE OF DEFI
The Block KyberSwap recovers $4.7 million after exploit Decentralized exchange protocol KyberSwap has recovered approximately $4.67 million in funds following a recent security attack. |
CRYPTO INFRASTRUCTURE
CoinDesk Ripple Excites XRP Army as Metaco Acquisition Brings Banks Closer Earlier this month, Ripple-owned infrastructure provider Metaco said it was working with banking powerhouse HSBC. |
REGULATION
Coin Telegraph Crypto exchange grace period to remain unchanged in Hong Kong despite scandals The recent JPEX and Hounax exchange scandals have resulted in losses exceeding $100 million. A on... |
NFTS
Decrypt.co Magic Eden Launches Cross-Chain NFT and Crypto Wallet for Bitcoin, Ethereum, Solana, and Polygon The Magic Eden Wallet is now in closed beta and promises a range of features for NFT collectors. |
HIRING
The Block Argo Blockchain appoints former CBOE Digital head Thomas Chippas as CEO Thomas Chippas was the founder and CEO of crypto trading platform ErisX, acquired by CBOE in October 2021. |
WEB 3.0
Decrypt.co ATOM Slips 4% as Founder Pushes for Cosmos Fork After Inflation Vote The passing of a proposal to slash inflation on Cosmos Hub’s ATOM token has seen Jae Kwon pushing to “coordinate a split.” |
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