Crypto Market Update

Despite being the launch day for ETH 3.38% ETFs, crypto broadly moved lower in the early morning hours today, possibly due to movement out of the Mt. Gox trustee wallets. Mt. Gox sent approximately $130 million in BTC -0.62% to Bitstamp, leaving about 90k BTC -0.62% remaining in the trustee wallets. This move lower was likely also influenced by a rise in the DXY. Currently, BTC -0.62% is trading around $66.5k, ETH 3.38% is just below the $3500 level, and SOL -2.37% has slipped back to around $175. Although ETHBTC rallied premarket, it now sits just 2% higher on the day. Many investors are likely waiting to see the pace and severity of ETHE N/A% outflows before increasing allocations. On the Bitcoin side, BTC -0.62% ETFs experienced a massive day of inflows yesterday, totaling over $500 million, the highest since June 4th. In traditional markets, major equity indices are slightly higher today, with financials showing relative outperformance. Small caps are also continuing their strong performance, outpacing large caps so far today. The major focus for markets this week will likely be on GDP data on Thursday and Core PCE on Friday, as well as key earnings reports from #GOOGL -7.35% , TSLA -4.01% , and V 1.24% , among others.

ETH ETFs Go Live, Volumes Impress

Nine ETFs holding ETH began trading on U.S. exchanges today, including products from BlackRock, Fidelity, Grayscale, VanEck, Bitwise, 21Shares, Franklin Templeton, and Invesco. The launch, two months after the SEC approved the 19b-4 rule change application, marks another significant milestone for crypto. The muted price reaction to the ETH 3.38% ETFs likely stems from expectations around ETHE 1.70%  outflows, a lesson learned from the launch of the BTC -0.62% ETFs. We believe there is good reason to think that ETHE 1.70%  outflows will slow faster than GBTC -1.94% , which would be a bullish surprise for many. While volumes differ significantly from flows, they are the best proxy we have until final inflow numbers are posted after close. They are quite impressive thus far today, with total volumes surpassing $400 million before 12 PM ET.

Crypto Looks to Punch Above Its Weight This Election Cycle

Pro-crypto group Fairshake has emerged as the largest super PAC of this election cycle, raising nearly $203 million. In June alone, it raised over $25 million, with significant contributions from crypto firms like Coinbase, a16z crypto, and Ripple. Fairshake has made more than $83 million in disbursements and holds almost $120 million in cash on hand. The super PAC supports pro-crypto political candidates and regulatory efforts for clearer crypto regulatory frameworks in the U.S., with substantial donations also coming from Gemini co-founders Cameron and Tyler Winklevoss.

Technical Strategy

Following Avalanche’s recent breakout of the recent downtrend from Spring highs, prices look to have found initial resistance near $33, a level that marks Ichimoku resistance and serves as an initial area where AVAX -1.86% might stall out. Following its second day of consolidation from this level, the price is approaching attractive levels for buying dips on this minor pullback.  The area at $29.85 is attractive as support, followed by $28.30, which both mark areas of importance on this minor weakness.  Overall, given the success in achieving a large breakout of this multi-month downtrend, there are legitimate reasons to respect the stabilization in AVAX and trust that a larger rally might be forthcoming. Movement back over $33 into August should lead this up to $43.50, then $48.65.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.43T $-28.0B (-1.14%) BTC Dominance 54.22 % (-0.06%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$114B (0.14%) In Exchanges +$19B (-0.66%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$3.0M (-0.06%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.4140 (-0.6332) Binance +0.9988 (-0.0001) Bitfinex +1.2602 (0.3626) Bitmex +0.2324 (-0.6851) ByBit +0.6225 (-0.3775) Deribit +0.5572 (-2.0465) Huobi +0.2020 (0.2020) Kraken -0.4249 (-1.9885) Mean +0.4140 (-0.6332) OKex +0.4038 (-0.6871) Sentiment BMI : 59 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $66,855 (-1.12%) Spot Basis $-33 (-0.05%) Volume 461,991 (-5.37%) Open Interest 294,838 (0.12%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 32,000 (92.02%) Open Interest 268,072 (3.62%) Vol. Put/Call Ratio 0.4821 (6.28%) OOI Put/Call Ratio 0.4469 (-0.53%) All metrics as of 2024-07-23 12:00:28 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.29T $65,560 -3.92% 55.23% ETH $417B $3,468 -0.92% 52.40% -1.82% SOL $80B $172 -5.76% 69.26% 9.04% DOGE $356,045 $0.0004 -5.34% -99.60% -99.74% All prices as of 2024-07-23 16:00:22 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -27.82% $37 -0.56% 60.04% 3.10% ETHE 1.56% $29 -1.83% 50.44% -3.09% News Quick Bits The Block On-chain platform on Base network now lets US politicians receive crypto donations A new on-chain donations platform called Engage Raise allows U.S. politicians to accept crypto donations via the Layer 2 Base network. CoinDesk Solana Sees Arrival of Nomura, Brevan Howard-Affiliated Tokenization Firm Libre Libre is unveiling a new tokenized offering, the blockchain-based Hamilton Lane SCOPE senior credit fund, which will be available on Solana and Ethereum-compatible chains. CoinDesk Ethereum-Based Protocol Alkimiya Creates Market for Hedging Bitcoin Fees One question is whether the protocol can pull in loyal bitcoin users – or if it will eventually end up on an Ethereum-compatible layer-2 network atop Bitcoin. The Block Pro-crypto group Fairshake becomes largest super PAC of election cycle, raising over $200 million Fairshake raised over $25 million in June, contributing to a total of nearly $203 million for the 2023-2024 period. CoinDesk U.S. Government Moves $4M Bitcoin to Coinbase, Arkham Data Show An address labeled "U.S. Government: Ryan Farace Seized Funds" moved BTC worth nearly $4 million to Coinbase 10 hours ago. Market Data CoinDesk BlackRock's Spot Bitcoin ETF Draws $526M in Net Inflows BTC failed to take out key price resistance despite huge inflows into BlackRock's IBIT. Fundraising and M&A CoinDesk Bitcoin Layer-2 Chain Bitlayer Raises $11M Led by ETF Issuer Franklin Templeton Bitlayer's layer 2 is based on the BitVM paradigm, which was unveiled last October and laid out a path for Ethereum-style smart contracts on the original blockchain. Product Updates and Partnerships The Block Avail DA launches on mainnet as native AVAIL token goes live The Avail DA mainnet has gone live, designed to optimize data availability for highly scalable and customizable rollups.