Funding Rates Negative Ahead of Jackson Hole, BitVM2 Whitepaper Released
Crypto Market Update
BTC -1.60% continues to trade in a tight range, hovering just above $58K after retesting $60K over the weekend. Similarly, ETH -2.16% is moving sideways, currently just under $2,600, while SOL -2.93% is trading just over $142 after revisiting the mid-$130s late last week. Using perpetual futures funding rates as a gauge for market sentiment, it seems market participants remain cautious, with BTC’s open interest-weighted funding rate flipping negative again early this morning (chart below). Meanwhile, in traditional markets, the soft-landing trade continues to outperform, with IWM -1.08% and RSP -0.40% outperforming ^SPX -0.17% and QQQ -0.21% . On the macro front, the DXY has moved to below 102 for the first time since January. It’s a big week for Fed policy, with FOMC minutes set to be released on Wednesday and numerous Fed speeches on deck. However, all eyes will be on Fed Chair Powell’s keynote speech at Jackson Hole on Friday, where the market hopes to gain clarity on the path of future rate cuts.
![Funding Rates Negative Ahead of Jackson Hole, BitVM2 Whitepaper Released](https://cdn.fsinsight.com/wp-content/uploads/2024/08/image-56-1024x761.png)
BitVM2 Whitepaper Released
The new “BitVM2” paper from Robin Linus and his team, an update from their previous BitVM paper, represents a potentially significant advancement in making Bitcoin more programmable. A BitVM Bridge allows users to safely transfer their Bitcoin to a rollup and withdraw it, with shorter lock-up periods and smaller upfront capital requirements. A key feature in the BitVM2 update is “permissionless challenging,” which allows anyone to question suspicious transactions, as opposed to a fixed set of operators. Most BTC bridges are controlled by multisigs that require a t-of-n honest majority, whereas the BitVM architecture has a 1-of-n security model, because anyone can challenge a malicious action and prevent theft. BitVM2 also reduces the amount of collateral operators need to lock up and shortens the time it must be held, with the verification process falling from 70 to just 3 on-chain transactions.
Bitwise Expands into Europe
Bitwise has expanded its presence into Europe with the acquisition of London-based crypto ETP issuer ETC Group, which manages over $1 billion in assets. This move adds nine European-listed crypto ETPs to Bitwise’s portfolio, including the largest physically backed Bitcoin ETP, as well as products for ETH -2.16% , SOL -2.93% , and XRP -1.28% . With this acquisition, Bitwise’s total assets under management surpass $4.5 billion, building on a successful year marked by the launch of two major spot Bitcoin and Ethereum ETPs. Bitwise plans to strategically grow ETC Group’s platform in Europe, further cementing its role as a leading global crypto asset manager.
Technical Strategy
As Mark Newton is on break, there will be no Technical Strategy section for today. Mark will be returning on Tuesday, August 20th.
Daily Important MetricsAll metrics as of 2024-08-19 15:50:58 All Funding rates are in bps Crypto Prices
All prices as of 2024-08-19 12:03:36 Exchange Traded Products (ETPs)
News
|
Reports you may have missed
MARKET UPDATE RISK ASSETS ARE MOVING LOWER IN TUESDAY TRADING AHEAD OF A DENSE REST OF THE WEEK FOR MACROECONOMIC EVENTS. After rallying above $61k, BTC -1.60% has dropped below $59k, and ETH -2.16% has followed suit, moving below $2,600. SOL -2.93% is underperforming today after the SEC reportedly rejected two 19b-4 filings for Solana spot ETFs under the assumption that Solana should be designated as a security. Tron (TRX 7.79% ) is one of...
Uniswap Sponsors $2.5 Million Audit Competition, Flexa Launches Crypto Point-of-Sale Toolkit
MARKET UPDATE EQUITIES ARE SHOWING SLIGHT INCREASES TODAY AS INVESTORS WEIGH DISAPPOINTING HOUSING DATA AGAINST IMPROVED CONSUMER CONFIDENCE AND STEADY INFLATION EXPECTATIONS. The SPY -0.17% and QQQ -0.21% have both increased by approximately 0.2%. Crypto assets are mixed with BTC -1.60% and ETH -2.16% gaining following yesterday’s late-day selloff, while altcoins are broadly lower. Net flows this week have been muted for both Bitcoin and Ethereum, with Bitcoin ETFs seeing $3.5 million in outflows...
CRYPTO MARKET UPDATE THE GOLDILOCKS ECONOMIC SCENARIO, WHERE INFLATION RECEDES WHILE THE ECONOMY AVOIDS A RECESSION, IS BACK IN VIEW AFTER STRONG RETAIL SALES DATA AND LIGHTER-THAN-EXPECTED JOBLESS CLAIMS HAVE EASED FEARS OF A FED POLICY ERROR. The SPY -0.17% has gained to $552, and the QQQ -0.21% has surged to $473, erasing all of August’s declines. Crypto assets are also increasing, with BTC -1.60% approaching $60k and ETH -2.16% trading near $2,670. Chainlink...
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,...
Articles Read 1/3
Enjoyed the read? Subscribe now for unlimited access!
Get invaluable analysis of the market and stocks. Cancel at any time.
Already have an account? Sign In f4eca9-7a128a-9f6476-402b8b-73b25d
Already have an account? Sign In f4eca9-7a128a-9f6476-402b8b-73b25d