AI Miners Continue Outperformance, CB Premium Remains Muted Despite Flows Increasing
Crypto Market Update
The crypto market has been consolidating over the past 12 hours following Bitcoin’s first daily close above its 200-day moving average since last August. BTC 2.42% is hovering just below $64K, while ETH 1.47% is holding above $2,600, and SOL 3.24% remains strong above $150. SEI 18.58% , one of the high-performance L1s that rallied significantly in Q1, is leading the market today, following a similar path to SUI 8.09% . Other notable outperformers include POPCAT 129.60% , NOT 4.08% , RUNE 5.28% , and WLD. In crypto-linked equities, miners in our HPC/AI basket, particularly WULF -5.19% and CORZ -1.91% , continue to show strength, surging over 30% in the past two weeks as investors increasingly view BTC miners as potential AI hosting solutions. Equities are mixed, with tech leading the charge, while the DXY is slightly higher as yields rebound. Meanwhile, gold continues to set new all-time highs on a daily basis. On the macro front, today’s data is light, with key releases like durable goods and GDP tomorrow, followed by personal income, spending, and core PCE on Friday. Despite the recent rally in crypto prices, we have yet to really see much of a pick-up in funding rates (heatmap below).
Stablecoins/ETFs Register Another Day of Inflows
Yesterday, BTC spot ETFs saw their fourth consecutive day of net inflows, totaling $136 million, with IBIT leading the way by accumulating nearly $100 million in USD inflows. This pushed the 5-day moving average up to $68 million. ETH ETFs also saw solid inflows, with an aggregate of $62.5 million, the bulk of which came from BlackRock’s ETHA, which attracted $59 million. While stablecoins experienced minor outflows yesterday, they still posted over $1 billion in net inflows over the past five days, a positive sign for crypto prices. However, despite this optimistic trend, one area of concern for bulls is the Coinbase premium, a key indicator of US spot demand, which has hovered around 0 in recent days, showing little progress.
Binance Launching Pre-Market Spot Trading
Binance has introduced a pre-market spot trading service, allowing users to trade tokens before their official spot market listing. Unlike competitors that offer pre-market trading primarily through derivatives, Binance enables trading of actual tokens during this early period. A spokesperson emphasized that Binance is the only exchange to offer this feature, providing users with real tokens to hold and trade in the pre-market. By contrast, rivals like Bybit and Coinbase offer pre-market trading of derivatives or perpetual futures contracts. Binance’s pre-market service is a collaboration with Binance Launchpool, where users can stake assets like BNB to acquire tokens from new projects. Only certain Launchpool tokens are eligible for pre-market trading, and users face limitations on withdrawals, transfers, and deposits until the official spot listing. The pre-market trading window closes at least four hours before the official launch, with separate announcements made for each. However, this service is not available in regions such as the U.S., Canada, Dubai, Japan, Russia, and Spain.
Technical Strategy
Chainlink has shown meaningful signs of bottoming out following its rally to the highest levels since early August. The initial LINK 2.43% breakout back above $11 put this back on the radar, as it managed to successfully exceed the downtrend from late May, roughly four months ago. The next meaningful upside test lies at $14, which looks likely to be tested in the month of October. the ability to get back over would represent even better technical progress, and likely drive LINK up to $17.25 with an eventual retest of $19.19 which marked the peak in late May. Overall, the recent uptick in momentum along with improvement in technical structure bodes well for a further LINK rally in the days/weeks ahead. Pullbacks, if/when they occur, should find strong support near $11.50 before turning back higher.
Daily Important Metrics
All metrics as of 2024-09-25 14:58:12 All Funding rates are in bps Crypto Prices
All prices as of 2024-09-25 11:09:24 Exchange Traded Products (ETPs)
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