Flows Data Remains Encouraging, CORZ Expands Capacity
Crypto Market Update
BTC 2.07% is slightly lower on the day but rallied to over $59.5k overnight. It is currently trading just below $58k after a drawdown following the US market open. On-chain data shows that over 10k BTC 2.07% was sent from the German government to exchange and market maker partners this morning, more than was sent yesterday. ETHBTC is showing strength today, with ETH 1.59% up nearly 2% and trading around $3100. SOL 6.53% is flat as it continues its attempt to break out of the $140 range. Among the top performers in the top 50 assets by market cap are STX -0.60% and OP 2.24% , both of which have drawn down considerably in the past couple of months and are responding to the recent bullish impulse. Equity markets are moving higher on the day, with most sectors green. The DXY is slightly lower as rates are down across the curve ahead of today’s 10-year Treasury auction. There is a dearth of material macro data today outside of Fed Chair Powell’s testimony to Congress, where he may or may not provide color on the FOMC’s thinking around rate cuts. The big day for risk markets is tomorrow when the latest CPI report is released, which will undoubtedly play a large role in determining the next big move for crypto.
![Flows Data Remains Encouraging, CORZ Expands Capacity](https://cdn.fsinsight.com/wp-content/uploads/2024/07/image-42.png)
Positive Stablecoin and ETF Flows
We are seeing more encouraging flows data today. As noted in last night’s crypto comments video, ETF investors have remained resilient despite recent concerns over supply overhangs, with inflows surging. Yesterday marked the second consecutive day of aggregate inflows exceeding $200 million, with $121 million directed into IBIT. Additionally, there has been an uptick in stablecoin creations over the past few days, with the aggregate stablecoin market cap increasing by approximately $1.1 billion, or 0.70%, over the past 7 days, driven largely by a significant increase in USDC 0.00% supply. This positive data indicates that capital is buying at these levels despite the supply overhang concerns that have permeated the space.
![Flows Data Remains Encouraging, CORZ Expands Capacity](https://cdn.fsinsight.com/wp-content/uploads/2024/07/image-43.png)
CORZ Enters Massive Chip Deal With Block
Recently, developments from CORZ have focused on their HPC services business, but today they made it clear that they are determined to remain the largest publicly traded miner by hash rate. SQ and CORZ announced an agreement for Core Scientific to acquire Block’s new 3-nanometer mining ASICs, developed by Block’s Proto team, which will provide approximately 15 EH/s of hashrate. This agreement, one of the industry’s largest in terms of hashrate, includes an option for additional volume. This additional capacity will bring Core Scientific’s total hash rate to an industry-leading 35 EH/s. Proto’s stated initiative is to increase the decentralization, transparency, and resiliency of the Bitcoin network by building their chips, systems, and software solutions in an open and transparent manner and in partnership with the mining community. CORZ is up nearly 5% on the day.
Technical Strategy
Following three straight days of gains, many are wondering if Bitcoin might have bottomed out and has begun a new technical uptrend. Unfortunately, while a short-term low does appear close, technically speaking, a bottoming out likely requires a final pullback into next week before any kind of low is in place. Daily charts show the ongoing downtrend from early June which has resulted in BTC 2.07% losing more than 20% over the past month. However, until $60k can be exceeded on this bounce, its sharp downtrend remains in place. Second, counter-trend DeMark signals of downside exhaustion remain premature, requiring a move back to new monthly lows before officially complete. Finally, BTC’s daily cycle composite seems to show a cyclical low materializing around 7/15-16th which could translate into a tradable low happening next week. Downside targets look to intersect near $51.5k, which likely could allow for stabilization and a bounce attempt into early August. However, we’ll need to see meaningful strength to argue that this selloff has run its course.
![Flows Data Remains Encouraging, CORZ Expands Capacity](https://cdn.fsinsight.com/wp-content/uploads/2024/07/image-44.png)
Daily Important MetricsAll metrics as of 2024-07-10 12:00:23 All Funding rates are in bps Crypto Prices
All prices as of 2024-07-10 11:49:41 Exchange Traded Products (ETPs)
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