Crypto Market Update

Tuesday is off to a strong start for the bulls, with robust bounces across the crypto market. Among the majors, SOL -1.54% is leading the way, approaching its 200-day moving average around $146, while ETH -0.11% has climbed back above $2,500 and BTC 0.51% has surpassed the $55k mark. Notable outperformers within the ETH -0.11% and SOL -1.54% ecosystems include AAVE -0.17% , which benefitted fundamentally from massive liquidations yesterday, with over $200 million in collateral liquidated. Additionally, SOL-adjacent tokens like RNDR and JUP are both up over 10% on the day. This recovery follows a strong 10% overnight bounce in the Nikkei 225 and bounce in USDJPY. Equities are also rebounding, with major indices up over 1%, led by the tech sector in a broad-based bounce. Rates are higher as investors presumably shift out of treasuries and back into risk assets. Although the VIX remains elevated at over 27, it is down nearly 30% from yesterday.

ETF Flows Mixed, Coinbase Premium Holds Steady

ETF flows were mixed yesterday, with Bitcoin ETFs experiencing $168 million in aggregate net outflows, including over $50 million from FBTC 0.43%  and ARKB 0.46% . In contrast, BlackRock’s IBIT 0.40%  saw no net flows, which is impressive given the weekend’s volatility. Ethereum ETFs, however, attracted nearly $50 million in aggregate inflows, largely driven by $47 million into BlackRock’s ETHA -0.21% . Significantly, Grayscale’s ETHE -0.20%  recorded its lowest daily outflows since launch, with $47 million, marking the third consecutive trading day with outflows under $50 million. This suggests that the worst of the outflows are likely behind us. Despite these net outflows, there remains a consistent spot bid on Coinbase relative to Binance, indicating that recent flows are more reflective of Coinbase’s native volume rather than ETF-driven activity.

CORZ Exercises CoreWeave Option

Core Scientific announced that CoreWeave has exercised its option for an additional 112 MW of infrastructure, expanding their total contracted high-performance computing (HPC) infrastructure to 382 MW across five sites. This new agreement increases the potential cumulative revenue to over $6.7 billion over the next 12 years. Core Scientific plans to modify its infrastructure, funded by CoreWeave, with operations expected within 18 months. The company is also seeking additional sites to expand its HPC hosting capacity beyond the initial 500 MW, enhancing its position as a major data center operator in the U.S. CORZ 2.22%  is up over 11% on the day thus far, outperforming most other miners on the news. Notably, CORZ 2.22%  will report earnings tomorrow after the market close.

Technical Strategy

BONK has made an encouraging price reversal today that gives some optimism that a near-term technical low has been established.  Monday’s decline managed to sweep under prior June 2024 lows and volume rose to five-month highs.  This looked to be a sign of flushing out weak longs before prices managed to recover to regain prior June lows of $.000018 in today’s session.  The ability to push higher to a three-day high close looks important towards signaling a likely low, and rallies look likely up to $.0000236 initially, then $0.0000313 before this finds much resistance.  To have confidence of an intermediate-term low in place BONK -2.70% would require a move back over $0.00003391 which appears premature at this time.    Overall, the pattern appears largely neutral since March 2024, but the recent pullback towards the lows of this larger range makes this attractive from a risk/reward perspective.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 1.99T +$65B (3.38%) BTC Dominance 55.78 % (0.01%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$115B (0.00%) In Exchanges +$19B (0.52%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$3.0M (0.17%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.3029 (-0.0125) Binance -0.2695 (0.1447) Bitfinex 0.0000 (0.0000) Bitmex +0.5118 (-0.0064) ByBit +0.0755 (-0.1527) Deribit -0.0252 (0.1539) Huobi +1.0000 (1.0000) Kraken -0.2750 (-0.2152) Mean +0.3029 (-0.0125) OKex -0.0850 (0.1610) Sentiment BMI : 41 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $56,725 (3.47%) Spot Basis +$355 (0.63%) Volume 3.0M (286.37%) Open Interest 279,481 (-10.54%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 101,515 (292.14%) Open Interest 279,876 (12.26%) Vol. Put/Call Ratio 1.07 (30.70%) OOI Put/Call Ratio 0.4844 (8.28%) All metrics as of 2024-08-06 16:07:37 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.12T $56,685 3.95% 34.22% ETH $303B $2,521 2.30% 10.81% -17.44% SOL $68B $147 10.19% 44.23% 7.46% DOGE $169,329 $0.0002 0.91% -99.81% -99.86% All prices as of 2024-08-06 13:37:17 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -24.71% $32 4.49% 35.88% 1.24% ETHE -0.70% $21 4.03% 9.18% -18.65% News Quick Bits CoinDesk Crypto Bank Anchorage Adds Custody for Solana-Based Tokens Anchorage began adding custody support for Solana-based tokens in 2022 and only added staking support last year The Block Starknet Foundation CEO Diego Oliva steps down James Strudwick will take over as executive director of Starknet Foundation while Oliva stays on briefly to aid with the transition. Dose of DeFI The Block Ethena’s USDe sees nearly $100 million in redemptions this week in ‘stress test’ for synthetic dollar Since Monday, Ethena's USDe stablecoin has seen nearly $100 million in redemptions amid significant market turbulence. CoinDesk Defi Giant Aave Rakes in $6M in Revenue as Crypto Market Plunges The founder of decentralized finance protocol Aave said the platform generated $6 million worth of revenue during Monday's crypto market sell-off. Regulation CoinDesk Binance Challenges $86M Indian Tax Showcause Notice: Source Binance, the world's largest cryptocurrency exchange, has challenged a nearly $86 million tax notice from India's Directorate General of Goods and Services Tax Intelligence (DGGI). Fundraising and M&A The Block Web3 game studio Curio raises $5.7 million in seed funding OKX Ventures participated in the seed round, bringing Curio's total funding raised to $8.7 million. Mining The Block Bitcoin miner Core Scientific to deliver additional 112 megawatts to CoreWeave Core Scientific will deliver approximately 112 incremental megawatts of HPC to host CoreWeave’s NVIDIA GPUs. Web 3.0 CoinDesk Ronin Bridge Paused After $9M Drained in Apparent Whitehat Hack “The bridge currently secures over $850M which is safe,” co-founder @Psycheout86 said in an X post.