Significant outflows from Bitcoin funds highlight growing investor anxiety and potential instability in the broader financial markets.
The post Bitcoin funds see $400 million outflows amid recession fears appeared first on Crypto Briefing.
Markets
Coinbase and MicroStrategy down 15 and 18% pre-market amid deepening global rout
The significant drop in crypto-related stocks and prices highlights the vulnerability of the crypto market to global economic and geopolitical instability.
The post Coinbase and MicroStrategy down 15 and 18% pre-market amid deepening global rout appeared first on Crypto Briefing.
Bitcoin dips to $53K after Bank of Japan’s rate hike, Ether follows drop as global market panic ensues
Global financial instability and market panic highlight the vulnerability of cryptocurrencies to traditional economic policy changes.
The post Bitcoin dips to $53K after Bank of Japan’s rate hike, Ether follows drop as global market panic ensues appeared first on Crypto Briefing.
Bitcoin falls into demand zone — Will SOL, XRP, KAS and AAVE follow?
Bitcoin may find buyers close to $56,000, benefitting select altcoins such as SOL, XRP, KAS, and AAVE.
Bitcoin (BTC) is in a free fall, breaking below the psychological $60,000 support on Aug. 4. Bitcoin came under intense selling pressure this week as traders reduced risk following the roughly 6% plunge in the Japanese stock market, Nikkei, on Aug. 2. The weaker than expected July jobs report on Aug. 2 did not help matters and the Nasdaq Composite fell into the correction territory, down more than 10% from its record high.
Even after the recent fall, Bitcoin remains stuck inside a large range. Although it is difficult to predict the direction of the breakout from a range, Bitcoin whales remain bullish. Whale addresses holding over 1,000 Bitcoin have added 84,000 Bitcoin in July. Also, nearly 64,000 Bitcoin left whale exchange balances in the past 30 days, the most since 2015, according to the whale net position change metric by Glassnode.
Bitcoin’s weakness has pulled several altcoins lower, indicating that the buyers are staying on the sidelines. However, as Bitcoin drops closer to the bottom of its range, buyers are likely to step in. That is expected to start a bounce in select altcoins.
Ethereum futures open interest hits 19-month high, yet ETH price weakness intensifies
Ethereum derivatives metrics show increased activity, indicating higher interest but not necessarily a bullish trend.
Ether (ETH) experienced a 10% correction between July 31 and Aug. 2, retesting the $3,000 support for the first time since July 8. This movement significantly outpaced the broader cryptocurrency market, which declined by 6.8% during the same period. Despite this, Ether futures open interest rose to its highest level in seven months, leading traders to speculate whether a rally to $3,600 is the next probable move.
The increased activity in ETH futures contracts typically indicates institutional investors' interest, as open interest measures the demand for leverage. However, buyers (longs) and sellers (shorts) are always matched, so an increase in open interest does not inherently indicate a positive outlook.
Part of Ether’s decline can be attributed to the lack of net inflows into recently launched Ether exchange-traded funds (ETFs) in the United States. Although there were some inflows, particularly into BlackRock’s iShares Ethereum Trust and the Fidelity Ethereum Fund, these were offset by outflows from the Grayscale Ethereum Trust, which has existed since before the ETF conversion.
MicroStrategy stock set to gain 30% if BTC hits $150K in 2025 — Analyst
The valuation assumes continued aggressive Bitcoin buying by MicroStrategy.
Shares of MicroStrategy are set for 30% gains if Bitcoin (BTC) climbs to $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph.
The stock could reach $2,150 per share if MicroStrategy sustains the BTC buying spree started by founder Michael Saylor in 2020, according to Benchmark fintech analyst Mark Palmer. It currently trades at around $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000” by the end of 2025, Palmer told Cointelegraph in an email.
Bitcoin price crumbles to $62K support, but derivatives metrics show bullish signs
Bitcoin’s price continues to correct, but BTC options markets reflect traders’ interest in the $62,000 level.
Bitcoin (BTC) price plunged 5.5% between July 31 and Aug. 1, reaching its lowest level in over two weeks at $62,498. This movement has been attributed to reduced expectations of interest rate cuts in the United States and the distribution of 47,000 BTC from the estate of defunct exchange Mt. Gox. Traders fear that Bitcoin’s price could further correct to retest the $57,000 support level, but derivatives markets show resilience and no signs of stress.
On July 31, the United States Federal Open Market Committee announced its decision to leave interest rates unchanged at 5.25%, aligning with market expectations. Fed Chair Jerome Powell cited solid signs of gross domestic product expansion and confidence in the current rate of inflation reduction, potentially supporting a rate cut in September. In short, Powell’s statement suggests a more cautious approach to rate cuts.
Investors increased their bets in US Treasurys, causing the five-year yield to reach its lowest level in six months. Part of this movement can be explained by escalating tensions in the Middle East, leading traders to seek protection in the asset deemed safest. Another confirmation of this theory comes from the precious metal gold, as its price increased to $2,450, just 1.5% below its all-time high.
Galaxy Digital stock pullback a buying opportunity — Analyst
Shares are a bargain after second-quarter earnings sent the stock down roughly 16%, says Benchmark analyst Mark Palmer.
Galaxy Digital shares are a bargain after disappointing second-quarter earnings sent the stock down roughly 16%, according to an Aug. 1 analyst report shared with Cointelegraph.
Investors retreated from the stock after Galaxy revealed a series of bearish metrics during its second-quarter earnings call. According to the report, which was penned by Benchmark fintech analyst Mark Palmer, these included a larger-than-expected net loss, a decline in counterparty trading revenue and a nearly 8% drop in book value per share.
According to Palmer, the stock route ignores “several positive developments in the build-out of the company’s institutional digital asset platform” and progress on other “key initiatives, including its ongoing effort to uplist its stock to the Nasdaq in the U.S., and its plans to expand and monetize the high-voltage power capacity at its flagship Helios data center in Dickens County, Texas.”
Fed holds interest rate steady at 23-year high, possible rate cut coming September
The Fed's interest rate decision could significantly influence crypto markets, affecting investor sentiment and economic dynamics globally.
The post Fed holds interest rate steady at 23-year high, possible rate cut coming September appeared first on Crypto Briefing.
Tether reports record-breaking $5.2B profit in first half of 2024
Tether said its US Treasury reserve surpasses the size of all but 17 of the world’s governments.
According to a July 31 announcement, Tether, manager of the dollar-pegged USDT (USDT) stablecoin, reported record-breaking profits of $5.2 billion in the first half of 2024 and a larger-than-ever stockpile of United States government bonds.
Tether’s US Treasury portfolio is now worth approximately $97.6 billion, the company said. The growth in the company’s Treasury holdings reflects the ongoing proliferation of Tether (USDT) stablecoins, which Tether says are backed 1:1 with liquid US dollar-denominated assets. The figures are based on an attestation by BDO, an independent accounting firm.
The total market capitalization of USDT stands at some $114 billion, according to Binance, slightly less than Tether’s total reserves, which exceed $118 billion, Tether said.