Crypto Shrugs Off Hot CPI, Asia to Get Bitcoin ETFs Soon
Market Update
- Headline CPI came in at 3.5%, surpassing the anticipated 3.4%, while the core CPI matched last month's figure at 3.8%, also above the expected 3.7%. This surge was largely attributed to increases in auto insurance and shelter prices. Consequently, rates experienced a sharp rise, with the 10-year Treasury yield climbing by 20 basis points, a situation further intensified by a poor auction outcome today. The DXY has risen above 105, as major equity indices experienced declines, with the SPX down by 1.3% and the QQQ down by 1.2%. In contrast, the crypto market is quickly rebounding from the initial dip following the CPI release, with $BTC, $ETH, and $SOL all recovering their losses. Notably, $ENA, Ethena Labs' native governance token of the popular synthetic dollar protocol, has emerged as a significant outperformer among cryptocurrencies. Bitcoin has turned positive for the day, with altcoins also starting to rise. In the meantime, COIN and MSTR have both seen gains from the market open, with mining stocks showing notable advances.
- Hong Kong is on the verge of approving its first applications for spot bitcoin exchange-traded funds (ETFs), with the potential for trading to begin as early as April, reports Reuters. This development marks Hong Kong as a leader in Asia for the introduction of spot bitcoin ETFs, propelled by an expedited approval process from Hong Kong regulators. Among the applicants are the Hong Kong branches of China Asset Management, Harvest Fund Management, and Bosera Asset Management, who have approached the Securities and Futures Commission (SFC) for approval. This advancement may facilitate easier wealth transfer for mainland citizens from domestic equity and real estate markets into bitcoin and could be a real needle-mover.
- EigenLayer, an Ethereum restaking protocol that has garnered over $13 billion in total value locked (TVL), launched its mainnet yesterday. Alongside, EigenLayer introduced EigenDA, a data availability solution functioning as an actively validated service (AVS). While the full suite of EigenLayer's capabilities is expected to roll out later in the year, this initial launch allows for the delegation of restaked balances to operators for running AVSs. This development leverages Ethereum's security model by enabling further restaking of ETH, enhancing the utility and yield potential for ETH holders. It will be interesting to see how restaking affects ETH demand.
Source: DefiLlama, Fundstrat
- Studio 369’s "MetalCore," an open-world shooter game set in a futuristic outer space where factions battle for resources, launched in its second closed beta on the blockchain Immutable zkEVM ($IMX), marking it as the first playable game on this platform. The beta period, running from April 9th to April 22nd, restricts player numbers, with a full open beta expected by the end of 2024. Available on PC via the Epic Games Store, "MetalCore" is free-to-play, offering players the option to engage with or bypass web3 elements. The game utilizes its own native asset, MCG, which can be converted into NFTs, and another in-game currency, "Marks," earned through various activities.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Despite the consolidation which has occurred throughout the Crypto space in recent weeks, the Dominance chart for Bitcoin has been growing increasingly stronger.
This chart which captures the market capitalization of $BTC relative to other Coins has been forming a bullish ascending triangle pattern which began four months ago back in early December.
Since that time, BTC’s dominance chart had made an equivalent level of highs at the same level near the highs of this triangle, while the lows have occurred at an increasingly higher level since January.
Normally, these consolidation patterns following a former advance are resolved by a breakout in the direction of the initial rally that preceded the triangle formation. Thus, it’s thought that a move back up above 55.14% in this Dominance chart is forthcoming and should lead to Bitcoin extending its dominance and continuing to show excellent relative strength vs. other cryptocurrencies. Given that the dominance chart for BTC will typically peak and lead to a sharp rally in Altcoins (and has not really taken place on a weekly nor monthly basis) should translate into continued outperformance by Bitcoin in the weeks and months ahead vs. most other coins. However, the technical catalyst for outperformance should arise on the breakout of this triangle pattern and this is expected following the upcoming Halving.
Daily Important Metrics
|
All metrics as of April 10, 2024 12:28 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $1.36T | $69,266 | ↑ 0.72% | ↑ 64% | |
 ETH | $422B | $3,517 | ↑ 0.66% | ↑ 55% | ↓ -9.45% |
 SOL | $76B | $171 | ↓ -2.83% | ↑ 68% | ↑ 4.13% |
 DOGE | $28B | $0.1948 | ↑ 3.46% | ↑ 119% | ↑ 55% |
 ADA | $21B | $0.5808 | ↓ -3.68% | ↓ -2.01% | ↓ -66% |
 DOT | $12B | $8.36 | ↓ -5.47% | ↑ 3.10% | ↓ -61% |
 LINK | $10B | $17.26 | ↓ -1.54% | ↑ 15% | ↓ -49% |
 MATIC | $8.7B | $0.8820 | ↓ -2.35% | ↓ -8.14% | ↓ -72% |
 NEAR | $7.3B | $6.91 | ↓ -6.04% | ↑ 92% | ↑ 28% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| BITW | ↓ -32% | $34.63 | ↑ 1.58% | ↑ 49% | ↓ -15% |
| ETHE | ↓ -23% | $25.63 | ↑ 0.31% | ↑ 32% | ↓ -32% |
News
QUICK BITS
CoinDesk Hong Kong Likely to Approve Spot Bitcoin ETFs Next Week: Reuters Hong Kong regulators are likely to approve the first set of applications for spot bitcoin exchange-traded funds next week, making it possible that the products ... |
MARKET DATA
CoinDesk Crypto Miners Run Down Bitcoin Inventory to 3-Year Low in a Strategic Pre-Halving Move Bitcoin miners have been running down inventory in a rising market, moving away from the accumulation strategy seen ahead of prior halving in May 2020. |
The Block Crypto fund Brevan Howard Digital rises 34.5% to $1.7 billion in Q1: report BH Digital gained 44% in 2023 and increased a total of 51% since it started trading in March 2022, Bloomberg reports. |
REGULATION
CoinDesk New Zealand Crypto Policy Should Support Industry, Minister for Commerce Says The country's "wait and see" approach to regulating crypto could risk New Zealand missing out on the benefits of industry developments, a government inquiry fou... |
CoinDesk Binance is “working as collaboratively as we can” with the Nigerian government to secure the release of its jailed financial crimes investigations chief, Tigran... |
FUNDRAISING AND M&A
The Block Sapien raises $5 million for data labeling with AI applications Data labeling company Sapien has raised $5 million in a seed funding round. |
The Block Bitcoin miner manufacturer Auradine raises $80 million Series B ahead of halving Auradine, a web infrastructure startup that also manufactures bitcoin miners, has raised $80 million in a Series B funding round. |
The Block SocialFi app Tomo raises $3.5 million in seed funding, plans points revamp The Web3 social app also unveiled a new TomoID wallet feature and a planned revamp of its points rewards system. |
Reports you may have missed
Risk markets were selling off before today's FOMC meeting where it was unanimously voted to keep interest rates steady. The Fed announced it would be reducing the speed of its balance sheet taper from $60 billion per month to $25 billion per month, a larger than expected reduction. Following the announcements and Chair Powellâs comments, yields turned sharply lower with the US10Y falling 9 basis points while equity indices rose....
We are witnessing a continuation of the recent weakness in crypto markets today, with BTC -4.29% now testing $60k, ETH -1.90% just below $3k, and SOL 3.62% dipping under $130. The broader altcoin market is experiencing even more pronounced declines, with very few names posting a green candle today. The market was pushed lower in the overnight hours following a disappointing debut from the Hong Kong ETFs (more on that below). However, this...
Investors will have a lot to digest this week, including various data releases such as consumer confidence, ADP Employment, JOLTS, and non-farm payrolls. Likely more important is the FOMC meeting and Treasury Quarterly Refunding Announcement (QRA), both set for Wednesday. Equities are gaining to start the week with the $SPY and $QQQ both up approximately 0.30% as the DXY 0.00% (-0.44%) slides after the BOJ intervened to support the Yen against the dollar. Crypto assets are struggling so...
Major equity indices are rallying on the back of solid earnings, with both the $SPX and $QQQ up over 1%. Meanwhile, crypto markets are churning lower, which is understandable as we should not expect crypto to rally alongside equities during an earnings-driven market. Crypto remains an apparently undecided market ahead of next week's FOMC meeting and the Quarterly Refunding Announcement (QRA), evidenced by another day of ETF outflows and a...
