Crypto Market Update

Risk assets are surging following Fed Chair Jerome Powell’s dovish pivot at Jackson Hole, signaling a shift in policy aimed at addressing potential weaknesses in the job market through rate cuts. The DXY has dropped significantly, reaching a new year-to-date low and approaching the 100 mark. Cryptoassets are rallying, with BTC 4.83% nearing $62,000 as it works to break through its 50-day moving average, which has provided significant resistance. While ETH 0.55% and SOL 6.31% are lagging slightly, both remain in positive territory, trading near $2,700 and $146, respectively. Altcoins are seeing a broad-based rally, with AI-related tokens like FET -3.87% , TAO 15.74% , and NEAR 5.79% among the top 50 standout performers, likely driven by anticipation of NVDA 2.03%  earnings next week. In equity markets, soft landing indices are leading the charge, with IWM -0.63% , KRE -0.40% , and RSP -1.63%  outperforming QQQ -0.71%  and ^SPX -1.13% .

Token Split Coming to MKR

MakerDAO has proposed an optional redenomination of its MKR governance token into 24,000 NewGovToken (NGT) tokens as part of its strategic Endgame plan. This plan aims to broaden governance participation by allowing more users to hold meaningful amounts of NGT. Alongside this, MakerDAO is launching a new stablecoin called NewStable (NST), providing users with the choice to continue using the original DAI 0.01% and MKR tokens or transition to the new counterparts. The proposal emphasizes user choice and flexibility, with the potential for DAI and NewStable to serve different use cases, from crypto-native applications to broader mass adoption. Maker’s Endgame initiative is a key reason MKR remains a constituent in our Core Strategy, as efforts to boost attention on Maker and increase the DAI supply are likely to positively impact its price. In terms of the redenomination itself, the benefits are akin to a stock split. While there are no index inclusion considerations, which are a common reason for corporate stock splits, this quasi-stock split is expected to increase liquidity and focus on MKR, driven primarily by the psychological effects of unit bias.

Sony Launches an Ethereum L2

Sony, in collaboration with Startale Labs, is launching its own layer-2 blockchain network called Soneium, built on Ethereum using optimistic rollup technology through the Optimism blockchain ecosystem’s OP Stack. Initially targeting Web3 users, Soneium aims to offer cheaper transaction options and connect with other networks within the ecosystem via the “Superchain.” Over the next two years, Sony plans to integrate Web3 and blockchain technology into its products, including Sony Bank, Sony Music, and Sony Pictures, with the long-term goal of onboarding enterprises and general decentralized apps onto the platform.

Technical Strategy

Following a very choppy August, Bitcoin has just successfully achieved a minor breakout to the highest levels since 8/1 with Friday’s gains.  This is a minor positive and bodes well for additional upside follow-through into next week.  Unfortunately, it’s difficult at this time to project a larger breakout of the current five-month range, but it’s likely that BTC 4.83% does rally to challenge $69,500 which is considered an Equal-leg extension and resistance to this rise.  To have conviction that a larger rally can happen, BTC requires a weekly close back over $70k which approximates the peaks from late July along with an area of five-month channel resistance.  However at present, Friday’s move is a definite technical positive for the next 3-5 days of additional gains.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.23T +$86B(4.02%) BTC Dominance 55.98 % (0.24%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$118B (0.21%) In Exchanges +$21B (-0.34%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$3.0M (-0.03%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.3033(0.3596) Binance +0.9962(0.0001) Bitfinex 0.0000(-0.1765) Bitmex -0.0805(-0.0910) ByBit +0.9922(1.1573) Deribit +0.2149(0.0000) Huobi +0.3445(0.3445) Kraken +0.5852(0.7208) Mean +0.3033(0.3596) OKex -0.0498(-0.6819) Sentiment BMI : 44 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $63,150(3.89%) Spot Basis $-39(-0.06%) Volume 502,076(-24.04%) Open Interest 290,973(-0.36%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 14,279(-36.37%) Open Interest 296,321 (0.85%) Vol. Put/Call Ratio 0.5098 (-28.15%) OOI Put/Call Ratio 0.4806 (0.13%) All metrics as of 2024-08-23 18:23:06 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.25T $63,189 4.48% 49.62% ETH $328B $2,725 4.27% 19.74% -19.97% SOL $70B $149 4.31% 46.74% -1.92% HNT $1.1B $6.65 0.31% -82.38% -88.23% DOGE $234,188 $0.0002 18.21% -99.74% -99.82% All prices as of 2024-08-23 18:22:45 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -24.49% $34 3.95% 47.94% -1.12% ETHE -0.62% $23 4.44% 18.77% -20.61% News Quick Bits The Block Bitcoin spikes up as Fed says ‘time for policy adjustment’ at Jackson Hole The bitcoin price broke above the $61,000 mark after Fed Chair Jerome Powell's dovish announcement at the Jackson Hole symposium. Market Data The Block Spot bitcoin ETFs see $65 million in net inflows, extending streak of positive flows to six days U.S. spot bitcoin ETFs recorded $64.91 million in net inflows on Thursday, while spot Ethereum ETFs saw $874,610 exit the funds. Regulation CoinDesk Colombia's Regulator Notifies Worldcoin of Alleged Data Violation Worldcoin is currently collecting data of individuals with its Orb device in 25 locations of the Latin American country. CoinDesk Australia's Securities Regulator Wins Case Against Kraken's Local Operator The Federal Court of Australia ruled on Friday that cryptocurrency exchange Kraken's operator in Australia, Bit Trade Pty Ltd, "contravened" with a section of the nation's Corporations Act. The Block Blockchain Association, DeFi Education Fund warn that SEC’s consolidated audit trail poses privacy concerns Two digital asset-focused groups say the U.S. SEC's newly operational database poses privacy concerns for millions. Web 3.0 CoinDesk NEAR Blockchain Gets Major Upgrade to Add 'Stateless Validation' NEAR Protocol has deployed a major upgrade known as "Nightshade 2.0" on its main network, designed to improve the scalability and usability of the blockchain. CoinDesk Avalanche Becomes Latest Blockchain to Support Franklin Templeton's Tokenized Money Market Fund The fund’s official record of share ownership is kept on the Stellar network and the fund may also use Polygon and Arbitrum for certain accounts. The Block MakerDAO plans to optionally redenominate 1 MKR into 24,000 NGT tokens as part of endgame MakerDAO has planned an optional conversion of each MKR governance token into 24,000 NewGovToken (NGT) tokens as part of its Endgame plan. Coin Telegraph Soneium blockchain launched by Sony to attract Web3 developers Sony Block Solutions Labs, a year-old joint venture between Sony Group and Startale, has introduced an Ethereum Layer-2 blockchain to lure app developers across various sectors. Sony Block Solutions Labs, a joint venture between Sony Group and Singapore-based Startale Labs, has announced the development of the new layer-2 blockchain, “Soneium.” The blockchain aims to attract app developers from various sectors, including entertainment, gaming, finance, and more.According to a joint statement by Sony Group and Startale, the Soneium testnet would be introduced through a partnership with Astar Network. The Sony Group has been experimenting with incorporating Web3 technologies in its operations. Its entry into the blockchain space could further bolster Web3 adoption. Explaining the initiative, Jun Watanabe, chairman of Sony Block Solutions Labs, said:Read more