The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto. |
The crypto market is little changed with XRP the biggest gainer.BTC and ETH ETFs' flows flipped on Tuesday.Nvidia is expected to be more volatile than bitcoin or ether. |
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CoinDesk 20 Index: 2,273 −0.4% Bitcoin (BTC): $66,096 −0.7% Ether (ETC): $3,316 −0.5% S&P 500: 5,436.44 −0.5% Gold: $2,465 +2.5% Nikkei 225: $2,465 +2.5% |
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The crypto market was little changed during the European morning, with the CoinDesk 20 Index (CD20) down by around 0.35%. Bitcoin dropped about 0.6% in 24 hours to around $66,000. The biggest gainer among crypto majors was XRP, which added more than 4.5% to over 64 cents. This is XRP's highest level since March 25 and comes amid a large scheduled token unlock and increased hopes for settlement of a long-running SEC-Ripple lawsuit. A Tuesday filing showed that the SEC intends to amend its complaint against crypto exchange Binance, including with respect to "Third Party Crypto Asset Securities," which traders are taking as a sign that the dispute could be coming to an end. |
Spot ether ETFs snapped a four-day losing streak on Tuesday, recording a net $33 million of inflows on only the second day of positive flows since they listed on July 23. Ether ETFs have witnessed a cumulative net outflow of over $400 million. Grayscale’s ETHE has recorded the most losses at $1.84 billion, while BlackRock’s ETHA leads inflows at $618 million. The bitcoin equivalents, conversely, broke a four-day winning streak with $18 million of net outflows. SoSoValue data shows that Grayscale’s GBTC led outflows at $73 million. Products from Fidelity, Ark Invest, Bitwise, and VanEck saw outflows ranging from $2 million to $7 million. Blackrock’s IBIT was the only ETF that recorded inflows, adding nearly $75 million. Nvidia is expected to see more significant price swings than bitcoin and ether. NVDA's 30-day options implied volatility, a gauge of anticipated price swings over four weeks, recently surged from an annualized 48% to 71%, according to Fintel. Deribit's bitcoin DVOL index, a measure of 30-day implied volatility, declined from 68% to 49%, according to charting platform TradingView. The ETH DVOL index fell from 70% to 55%. NVDA, a bellwether for AI, has emerged as a barometer of sentiment for both equity and crypto markets. Both bitcoin and NVDA bottomed out in late 2022 and have since exhibited a strong positive correlation. The correlation between 90-day prices on bitcoin and NVDA is currently 0.73. |
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Market Insight: 'Anti-Risk' Yen Strengthens After BOJ Rate Hike |
Bitcoin remained on the defensive while the Japanese yen strengthened in the foreign exchange market after the Bank of Japan raised its interest rate and announced other measures to tighten liquidity. In an aggressive hawkish move, the central bank lifted its unsecured overnight call rate target to around 0.25% from the previous 0%-0.1% range. It also said it would cut liquidity-boosting bond purchases to roughly 3 trillion yen ($20 billion) a month by the first quarter of 2026. As of March, the bank was buying about 6 trillion yen of bonds a month. Bitcoin held steady near $66,000, nursing a weekly loss of 2% on expectations for renewed rate cuts from the U.S. Federal Reserve. That spurred demand for the "anti-risk" yen, sending the USD/JPY rate down to nearly 150, the strongest for yen since March, according to data source TradingView. Futures tied to the S&P 500 rose 0.4%, signaling a positive open on Wednesday. Traders use the low-yielding Japanese yen to invest or fund investments in high-return assets. As such, a notable rally in the yen tends to strain the so-called carry trades and forces investors to reduce exposure to riskier assets, including cryptocurrencies. |
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The number of active XRP perpetual futures contracts has surged to 1.5 billion XRP, the highest since April 20, and funding rates have been positive.The increase shows rising demand for long positions or leveraged bets looking to profit from a price rally.XRP has gained 34% this month.Source: Coinglass |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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