Crypto Receives a Boost from Strong Jobs Print, WULF Sells Hash Rate to Expand AI Capabilities

Oct 4, 2024

Crypto Market Update

The crypto market is moving higher today, lifted by stronger-than-expected jobs numbers. The BLS reported 254k jobs added last month, far exceeding the market estimate of 140k, while August’s figures were revised up from 142k to 159k. The unemployment rate also dropped to 4.1% from 4.2%. In response, rates rallied, the DXY spiked, and the futures market largely priced out the possibility of a 50 bps rate hike next month. Despite these moves, crypto pushed higher, likely driven by a reduced probability of a hard landing scenario, which is now seen as nearly zero. BTC 1.15% is trading just above $62k, ETH 2.36% over $2400, and SOL 1.53% is attempting to break through $144. Leading the top 50 in performance are TAO 5.09% , TIA 0.00% , WIF 6.64% , RNDR, and STX 11.55% . Broader equity markets are also up, with small caps again outperforming large caps.

Crypto Receives a Boost from Strong Jobs Print, WULF Sells Hash Rate to Expand AI Capabilities
Source: CME Group

WULF Monetizes Nautilus

TeraWulf has sold its 25% stake in the Nautilus Cryptomine joint venture for $92 million to a subsidiary of Talen Energy Corporation, with plans to reinvest these funds into its Lake Mariner facility, which is focused on high-performance computing (HPC) and AI data centers. The sale included $85 million in cash and 30,000 bitcoin miners, delivering a 3.4x return for TeraWulf. While the market seems to be penalizing WULF N/A%  for this decision—likely viewing it as shedding cost-efficient hash rate at a less-than-ideal point in the liquidity cycle—the company, now the sixth-largest public Bitcoin miner, aims to capitalize on the long-term cost advantages of its Lake Mariner operations before the PPA contract for Nautilus expires. This move also aligns with TeraWulf’s strategic diversification into AI infrastructure to meet rising demand, setting it apart from its peers.

Crypto Receives a Boost from Strong Jobs Print, WULF Sells Hash Rate to Expand AI Capabilities
Source: TeraWulf

SWIFT to Trial Digital Asset Transactions

Starting in 2025, banks across North America, Europe, and Asia will use SWIFT’s network to trial live digital asset and currency transactions, transitioning from experimental phases to real-world implementation. These trials will demonstrate SWIFT’s capability to facilitate seamless value transfers between four billion accounts globally, integrating digital assets into the traditional financial system. Building on prior work, which showed SWIFT’s ability to link blockchains, CBDCs, and cash networks, the trials will focus on payments, FX, securities, and trade. With 134 countries currently exploring CBDCs and tokenized assets projected to reach $16 trillion by 2030, SWIFT aims to address the fragmented digital landscape by linking isolated networks. SWIFT is also participating in Project Agora, a BIS-led initiative focused on integrating tokenized bank deposits and CBDCs. Tom Zschach, SWIFT’s Chief Innovation Officer, noted that for digital assets to succeed globally, they must coexist seamlessly with traditional money.

Technical Strategy

Following a sharp drawdown after having successfully found resistance near the top of its five-month range in mid-September, Monero now looks to be bottoming.  Daily XMR -0.26% charts show price having held at a near exact area where this bottomed out in August as well as July between $133-$135.  Volume spiked on the pullback to support this past Wednesday, marking a likely capitulatory low.  Technical signs of reversals were apparent on Thursday’s rebound which is now following through today.  This likely paves the way for a push up to $153-$157 initially and the ability to reclaim $157.  Movement back above $157 would set the stage for a larger rally back to challenge key resistance at $180.  Overall, XMR looks like an attractive risk/reward here following a third retest of important support.

Crypto Receives a Boost from Strong Jobs Print, WULF Sells Hash Rate to Expand AI Capabilities
Source: TradingView

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market cap 2.16T +$70B(3.35%)
BTC Dominance
56.84 % (-0.16%)
Stablecoins

Increase in circulating stablecoins is a Bullish signal

In Circulation +$120B(0.00%)
In Exchanges +$22B(0.25%)
BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC Exchanges +$3.0M(0.25%)
Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate+0.7206(0.0473)
Binance+0.5856(-0.3725)
Bitfinex+1.3695(-0.2311)
Bitmex+0.6539(0.0989)
ByBit+0.9984(0.2210)
Deribit+0.1641(-0.7436)
Huobi+0.4881(0.4881)
Kraken+0.7183(-0.1874)
Mean+0.7206(0.0473)
OKex +0.5164(0.2235)
Sentiment
Picasso Network Successfully Integrates IBC with Ethereum, Wormhole Token Goes Live

BMI : 54 (100.00%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME Price $62,530(3.62%)
Spot Basis +$261(0.42%)
Volume 652,707(-12.44%)
Open Interest 300,698(1.75%)
Options all exchanges

Higher open interest change in a bull market is bullish for the sector

Volume 19,889(-30.69%)
Open Interest 266,106 (0.69%)
Vol. Put/Call Ratio 0.5662 (-3.12%)
OOI Put/Call Ratio 0.4928 (0.20%)

All metrics as of 2024-10-04 17:06:33

All Funding rates are in bps

Crypto Prices

Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD
btc imageBTC
$1.23T $62,269 3.64%47.44%
btc imageETH
$293B $2,435 5.06%7.03%-27.41%
btc imageSOL
$67B $144 6.84%41.31%-4.15%
btc imageHNT
$1.2B $7.24 4.97%-80.81%-86.98%
btc imageDOGE
$200,344 $0.0002 25.14%-99.77%-99.85%

All prices as of 2024-10-04 17:06:12

Exchange Traded Products (ETPs)

Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD
BITW -33.56% $291.05%23.99%-15.90%
ETHE 0.19% $20-4.86%2.94%-30.18%

News

Quick Bits

The Block

Leah Wald’s Sol Strategies reinvests FTX windfall in Solana

The company formerly known as Cypherpunk Holdings has bought more Solana tokens with capital recovered from FTX.

The Block

PayPal executes first business transaction using its PYUSD stablecoin: Bloomberg

The Silicon Valley-based firm's efforts to grow its digital assets arm and spur added use of its stablecoin continue.

Market Data

The Block

Hyperliquid climbs to the top in daily trading volume among decentralized perpetual swaps

Hyperliquid currently leads in daily trading volume among decentralized perpetual swap platforms, data shows.

CoinDesk

Bitcoin ETFs Register Net Outflows for Third Straight Day

Bitcoin and ether outflows from ETFs contribute to this week's weak crypto price action.

Regulation

CoinDesk

Coinbase to Delist Unauthorized Stablecoins in EU by December

Tether, which is the largest issuer of stablecoins, has not managed to snag the necessary e-money license in the European Union.

CoinDesk

IMF Urges El Salvador Again to Strengthen Regulatory Framework and Oversight of Bitcoin

The IMF has been asking El Salvador for changes regarding its bitcoin law since its adoption in 2021.

Fundraising and M&A

The Block

TeraWulf sells $92 million stake in nuclear-powered bitcoin mine to fund AI diversification

The bitcoin miner intends to reinvest the capital into its flagship facility in New York, which focuses on hosting HPC/AI data centers.

Web 3.0

The Block

Magic Eden and Ubisoft release gaming NFT collection on Arbitrum based on Captain Laserhawk anime

Holding an NFT for the multiplayer shooter game gives users access to rewards, content generation and influence over governance decisions.

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