Crypto Market Update

CPI came in slightly cooler than expected, with core CPI at 0.17% month-over-month, compared to the consensus estimate of 0.19%. In our view, this is the best-case scenario, as it temporarily removes the “Fed policy error” trade from the market. This is evidenced by Fed funds futures, which have priced out cuts for this calendar year following the CPI release. Initially, crypto rallied alongside other risk assets, with BTC 5.75% nearly reaching $62k. However, it has since retreated, with BTC 5.75% currently trading just over $59k, ETH 4.79% around $2,650, and SOL 6.97% just under $145. Despite this pullback, there are a couple of bright spots in the crypto market today: TON 20.88% is back above $7 following the announcement of a new TON 20.88% ecosystem venture fund to support projects on the network, and AAVE 1.86% continues to demonstrate strength as momentum builds behind proposed changes that would return fees to token holders. Equities are mixed, with the ^SPX -0.21%  moving slightly higher, with all but a few sectors in the green, while QQQ -0.71%  is lower on the day. As expected, rates are moving lower, with the 10Y nearly back to 3.8%, and the DXY is slightly down. The next key macro data release is retail sales, scheduled for tomorrow.

EigenLayer to Allow All ERC-20 Tokens to be Restaked

EigenLayer is s[et to introduce Permissionless Token Support](https://www.blog.eigenlayer.xyz/permissionless-token-support/), a significant update that will allow any ERC-20 token to be added as a restakable asset within its protocol. This feature enables Autonomous Validator Services (AVSs) to choose from a broad range of ERC-20 tokens to secure their networks, enhancing the cryptoeconomic security landscape by incorporating a diverse array of assets, including native AVS tokens, stablecoins, and BTC-denominated tokens. AVSs can now fully customize their security profiles, utilizing these tokens to distribute work and rewards, fostering cross-ecosystem partnerships and increasing alignment within the decentralized ecosystem. At the protocol level, new strategies can be created to define which tokens can be restaked, with these tokens used in AVS quorums for security and operator task distribution. The feature is currently in a permissioned testing phase on the testnet, with EigenDA being the first AVS to implement this support. This development is particularly interesting because EigenLayer was initially pitched as a way to enable applications to bootstrap network security by leveraging a time-tested asset like ETH 4.79% . However, it now seems that EigenLayer is looking to expand the range of assets that applications can leverage to provide security to the network. EigenLayer TVL peaked in June at around $20 billion but has since retreated to just under $13 billion due to both token price declines and outflows.

USG Bitcoin Moved to Coinbase Prime Wallets

10,000 Bitcoin, valued at nearly $600 million, have been transferred to a Coinbase Prime wallet, capturing the attention of traders once again. This transaction, reported by [Arkham Intelligence](https://platform.arkhamintelligence.com/explorer/address/bc1qlap8hkt9genaljz5nt2zlehhudx63zlahr2zek), is believed to be part of the $2 billion worth of Bitcoin that the U.S. Department of Justice (DOJ) seized in connection with the Silk Road case. The DOJ had previously moved these funds to an unidentified wallet two weeks ago, and this recent transfer to Coinbase Prime suggests that Coinbase may be moving the coins into longer-term custody, or potentially liquidating the confiscated assets.

As Mark Newton is on break, there will be no Technical Strategy section for this week. Mark will be returning on Tuesday, August 20th.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.09T +$876M(0.04%) BTC Dominance 55.84 % (-0.40%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$116B (0.47%) In Exchanges +$20B (4.77%) 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 +0.1936(-0.3109) Binance +0.9959(2.3202) Bitfinex +1.3899(0.9880) Bitmex +0.2429(-0.4620) ByBit +0.0512(-0.1545) Deribit +0.0956(-0.0445) Huobi -0.3388(-0.3388) Kraken -0.0864(-0.0181) Mean +0.1936(-0.3109) OKex +0.4359(0.0132) Sentiment BMI : 45 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $59,430(-0.38%) Spot Basis +$131(0.22%) Volume 610,308(-31.33%) Open Interest 272,561(2.59%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 17,029(-29.01%) Open Interest 283,420 (0.48%) Vol. Put/Call Ratio 0.4703 (-50.42%) OOI Put/Call Ratio 0.5014 (-0.69%) All metrics as of 2024-08-14 18:23:10 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.17T $59,299 -2.79% 40.41% ETH $320B $2,661 -1.47% 16.96% -16.70% SOL $68B $145 -1.89% 42.33% 1.37% HNT $1.1B $7.00 1.73% -81.45% -86.79% DOGE $169,927 $0.0002 -3.18% -99.81% -99.86% All prices as of 2024-08-14 18:22:50 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -24.15% $33 -2.43% 43.13% 1.94% ETHE 0.28% $22 -2.09% 15.83% -17.50% News Market Data The Block Riot Platforms buys another 1 million Bitfarms shares, increasing ownership stake to 18.9% Riot Platforms now owns just over 85.29 million Bitfarms shares and is the largest shareholder of its smaller bitcoin mining rival. The Block Nearly $600 million in seized Silk Road bitcoin sent to Coinbase wallet: Arkham The bitcoin appears to be part of approximately $2 billion worth of BTC the U.S. Department of Justice seized in the Silk Road case. Regulation The Block Binance and Brazil’s SEC reach agreement years after the regulator banned derivatives products Binance reached an agreement with the CVM in Brazil, years after the regulator blocked the exchange from offering derivatives products. Fundraising and M&A CoinDesk Digital Assets Infrastructure Provider Parfin Raises $10M in Series A Funding The company plans to reach $16 million by the end of a second closing. The Block Sling Money, a stablecoin-based global payment app, raises $15 million in Series A Sling Money converts fiat currency to USDP and then back again in order to complete transfers between around the world. Web 3.0 CoinDesk Ethereum-Based Swell Imports Wrapped Bitcoin to Serve as Liquid Restaking Token Users can deposit their wBTC to get swBTC in return, with yield expected to start flowing from mid-September – as part of a blockchain "restaking" scheme ultimately designed to secure protocols in the Ethereum blockchain ecosystem. CoinDesk As Restaking Takes Shape on Solana, Ethereum-Focused Renzo Jumps in With 'ezSOL' The Block EigenLayer testing permissionless token support, ERC-20 tokens to be added as restakable assets The Ethereum restaking project is adding permissionless token support, allowing for ERC-20 tokens to be added as restakable assets.