Weekly Crypto Market Insights
(23-29 September 2024)
The above chart is the Bitcoin (BTC) H1 chart on TradingView for the week of 23-29 September 2024.
From the chart, the price of BTC opened at US$62,667.36 on 23 September 2024 and closed at US$65,784.03 on 29 September 2024. It marks an approximately 4.94% increase in price. The price is above the EMA200 which marks a bullish trend for now.
The above chart is the Ethereum (ETH) H1 chart on TradingView for the week of 23-29 September 2024.
From the chart, the price of ETH opened at US$2,5701.51 on 23 September 2024 and closed at US$2,666.38 on 29 September 2024. It marks an approximately 3.58% increase in price. The price is above the EMA200 which marks a bullish trend for now.
The above chart is the Solana (SOL) H1 chart on TradingView for the week of 23-29 September 2024.
From the chart, the price of SOL opened at US$143.12 on 23 September 2024 and closed at US$157.28 on 29 September 2024. It marks an approximately 9.82% increase in price. The price is above the EMA200 which marks a bullish trend for now.
The above chart is the TOTAL3 H1 chart on TradingView. It shows the total market capitalization of the top-125 cryptocurrencies, excluding BTC and ETH, for the week of 23-29 September 2024. The purple line is a comparison with BTC market cap.
From the chart, the market capitalization of TOTAL3 opened at US$594.348B on 23 September 2024 and closed at US$637.224B on 29 September 2024. It marks an approximately 7.16% increase in price. The market cap is above the EMA200 which marks a bullish trend for now.
The above chart is the OTHERS H1 chart on TradingView. It shows the total market capitalization of the top-125 cryptocurrencies, excluding BTC and the Top 10 cryptocurrencies, for the week of 23-29 September 2024. The purple line is a comparison with BTC market cap.
From the chart, the market capitalization of OTHERS opened at US$208.132B on 23 September 2024 and closed at US$232.065B on 29 September 2024. It marks an approximately 11.45% increase in price. The market cap is above the EMA200 which shows a bullish trend.
Crypto Inflows Surge by Over $300 Million Following Fed’s Rate Cut
The U.S. Federal Reserve has decided to cut rates by 50 basis points.
Bitcoin was the standout performer, attracting $284 million in inflows.
Rising Bitcoin Inflows
The combination of the rate cut and recent price movements sparked heightened interest in short-bitcoin investment products, which garnered $5.1 million.
The Fed kept market observers guessing about the size of its much-awaited rate cut until the very last moment.
Regionally, the United States led the charge with $277 million in inflows, while Switzerland marked its secondlargest weekly inflows of the year at $63 million. However, Germany, Sweden, and Canada faced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively, indicating a more cautious approach in those markets.
Emerging Trends
While Bitcoin continues to dominate the inflow narrative, Solana has shown resilience, attracting consistent small inflows of $3.2 million last week. As the digital asset landscape evolves, the impact of monetary policy shifts and investor behavior could be important in impacting the inflows in the digital asset space.
Notably, the crypto asset space experienced a substantial sell-off last month, reaching the lowest price levels since the start of the year. Bitcoin lost 25% of its total value in just four days, declining by $320 billion due to a sudden change in market sentiment. The change in market sentiment was reportedly caused by a deteriorating stock market condition, with which crypto assets are highly correlated.
Last week, the US Federal Reserve reduced interest rates by half a percentage point, marking the first reduction since 2020.
The reduction followed more than two years of substantial interest rate hikes aimed at curbing inflation rates, which jumped to 7% in 2022 before dropping to 2.5% this year. The central bank’s announcement echoed optimism of taming inflation towards a 2% target.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct
their own research when making a decision.
Solana, Base, Sui DEX volume lead as meme coins rebound
According to DeFi Llama data, DEX networks in Solana, Base, and Sui led the recovery, rising by 40%, 20%, and 30%, respectively. Solana DEXes handled $7.13 billion in the last seven days while Base and Sui processed $3.92 billion and $597 million.
Still, the total volume handled in CEX and DEX networks in September was the lowest since February. DEX networks handled over $114 billion, down from $172 billion in the previous month. Ethereum, Solana, and BNB Smart Chain had the highest monthly volume.
CEX volume, on the other hand, handled $895 billion during the month, down from $1.2 trillion in the previous month. Binance had the most volume, followed by Bybit, OKX, and Coinbase.
The rebound in the last seven days was mostly because of the ongoing crypto rebound, with Bitcoin rising to $66,000 and Ethereum surging to $2,700. This rally was mostly because the Federal Reserve decided to start cutting interest rates and the Chinese government offered stimulus. They also rallied after Binance’s founder, Changpeng Zhao was released from prison.
Solana’s meme coins pumped
Solana’s jump happened as most meme coins in its ecosystem recovered. Data by CoinGecko shows that Moo Deng’s (MOODENG) price surged by almost 700% in the last seven days, bringing its market cap to over $300 million.
Mother Iggy (MOTHER), which is associated with Rapper Iggy Azalia, rose by 96%, pushing its valuation to over $112 million. Altogether, the market cap of all Pump.fun tokens jumped to over $1.06 billion, while the collected fees has jumped to over $148 million.
Meanwhile, Aerodrome, whose total value locked rose to over $1 billion for the first time, was the most active DEX network in Base, handling over $2.66 billion in volume in the last seven days. It was followed by PancakeSwap and Clober. Cetus, DeepBook, Turbos, and Kriya were the leading DEX networks in Sui. The other top performers were BNB Chain, Arbitrum, Optimism, and Polygon.
Source: https://crypto.news/solana-base-sui-dex-volume-lead-as-meme-coins-rebound/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
PayPal Enables Business Accounts to Buy, Hold and Sell Cryptocurrency
Announced it is enabling its U.S. merchants to buy, hold and sell cryptocurrency directly from their PayPal business account. At launch, this functionality for Business Accounts will not be available in New York State. Today’s announcement is PayPal’s latest step to increase cryptocurrency’s utility by making increased functionality available to millions of merchants in the U.S.
“Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency,” said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, PayPal. “Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly.”
Additionally, PayPal is enabling U.S. merchants to externally transfer cryptocurrency on chain to third-party eligible wallets. PayPal business account holders can now send and receive supported cryptocurrency tokens to and from
external blockchain addresses.
PayPal has continuously made significant steps to increase cryptocurrency’s utilization. In 2020, PayPal announced the availability of its customers to buy, hold and sell cryptocurrency directly from their PayPal and Venmo accounts. In 2023, PayPal announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD). In April 2024, we enabled PYUSD as a funding instrument for our Xoom platform, allowing users to pay no transaction fees when using PYUSD to fund eligible transfers to friends and family abroad. Most recently, PYUSD was made available on the Solana blockchain, providing users with the choice of multiple blockchains allowing for increased flexibility and control.
Source: https://newsroom.paypal-corp.com/2024-09-25-PayPal-Enables-Business-Accounts-to-Buy,-Hold-and-Sell-Cryptocurrency
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
As part of a newly-revealed provision, the debtors in charge of collapsed cryptocurrency exchange FTX will set aside up to $230 million from government forfeiture proceedings for preferred shareholders.
The agreement, which was revealed in a recent filing, came as a surprise to creditors, who are traditionally reimbursed before shareholders in bankruptcy proceedings, and who were unaware of the provision when they voted overwhelmingly to approve the plan before the August 16 voting deadline.
“Ordinary creditors had no input,” Sunil Kavuri, a representative of the largest FTX creditor group, said. “FTX customers following me have commented how they feel scammed and robbed again by the estate.”
As part of the agreement, the FTX debtors’ estate, led by lawyers from Sullivan and Cromwell, will contribute 18% of all proceeds from government forfeiture actions to a special fund for the “exclusive benefit” of certain shareholders, up to $230 million in total. Though the agreement was officially executed on August 28, nearly two weeks after the deadline for creditors to vote on the plan, the agreement was only revealed on September 27—the 30th and final day the estate was allowed to file the amended plan, according to the agreement.
“The Debtors and the Preferred Shareholders each have an interest in avoiding the cost, expense and delay that would be associated with litigation in connection with the Plan and the Forfeiture Proceeds,” the filing argues. The FTX estate did not immediately respond to a request for comment from The Block.
The FTX estate estimated the proceeds from forfeiture actions in a filing from June: about $626 million seized from the Emergent entity used to purchase shares in Robinhood, fiat and digital assets “secured from certain accounts on third-party cryptocurrency exchanges” worth about $379 million (as of June), about $150 million in cash “seized from accounts registered in the name of FTX
DM” and “two private planes that were purchased …using approximately $35 million of estate assets.”
Summed together, the value as of June appears to be about $1.19 billion, 18% of which would come out to $214.2 million, within a reasonable range of the $230 million provided for by the agreement. The plan also provides for each shareholder to receive up to $250,000 for legal fees, paid out through the segregated fund.
However, Kavuri has argued that since the bankruptcy claims were evaluated based on the value of the relevant cryptocurrencies at the time, creditors in actuality will receive more like “10% to 25% of their crypto back.”
The price of Bitcoin hovered around $16,000 at the time of FTX’s bankruptcy, for example, and has since risen to nearly $66,000. Under the plan, a creditor who lost 1 BTC in the bankruptcy will only receive $16,000, about 24% of the value they would have received had claims been repaid in-kind (with the original asset rather than a cash equivalent).
While the SEC had previously warned FTX that repaying creditors in stablecoins or other “crypto asset securities” could open the estate up to legal challenges from the agency, the bankruptcy plans for other cryptocurrency companies including Genesis and BlockFi provided for some in-kind repayments.
The FTX reorganization plan’s confirmation hearing, at which Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware will decide whether or not to approve it, is currently scheduled for 10:00 am ET on October 7. The FTX estate is legally mandated to report the full results of the creditor vote by September 30, seven calendar days before the hearing, which is also the deadline for the estate to file any responses to objections to the plan in support of the plan’s
confirmation.
Under the FTX bankruptcy plan that received “overwhelming preliminary support” from creditors, 98% of creditors will receive at least 118% of their claim value in cash, according to FTX press releases.
Source: https://www.theblock.co/post/318589/ftx-to-set-aside-up-to-230-million-for-shareholders-not-creditors-from-govt-forfeiture-proceeds
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
BlackRock’s Ethereum ETF Surpasses $1 Billion in Total Value Amid Renewed Enthusiasm
Fidelity’s FETH fund led the charge with a one-day inflow of $42.5 million.
The US market for spot Ethereum exchange-traded funds (ETFs) has seen a shift in investor sentiment, with the largest weekly inflows recorded since early August.
The surge marks the end of a six-week streak of consecutive outflows, signaling renewed enthusiasm among investors.
According to data from SoSoValue, US-based spot Ethereum ETFs saw inflows totaling $58.7 million on Friday alone.
This helped the funds achieve a net positive inflow of $84.5 million for the week, breaking a six-week cycle of net outflows.
Fidelity’s FETH Leads in Terms of Inflows
Fidelity’s FETH fund led the charge with a one-day inflow of $42.5 million, followed by BlackRock’s ETHA fund, which attracted $11.5 million. While Fidelity’s fund recorded the highest single-day inflow, it was BlackRock’s ETHA fund that reached a remarkable milestone.
Just two months after its launch, the fund’s total net asset value surpassed $1 billion, making it only the second Ethereum ETF to achieve this benchmark, following Grayscale’s Ethereum Mini Trust. The achievement places BlackRock’s Ethereum ETF among the top 20% of more than 3,700 ETFs available in the US market, as noted by Nate Geraci, president of The ETF Store.
Other funds also posted gains on Friday, with Bitwise’s ETHW receiving $5.4 million, Invesco’s QETH attracting $4.3 million, Grayscale’s ETH logging $2.3 million, VanEck’s ETHV taking in $2.0 million, and 21Shares’ CETH seeing $1.4 million in inflows. However, not all funds benefitted equally; Grayscale’s ETHE experienced $10.7 million in outflows, while Franklin’s EZET saw no change in
inflows or outflows.
The renewed inflows were recorded on three out of five trading days last week, marking only the second week of positive inflows since these funds were launched in late July. The total net asset value of all Ethereum ETFs now stands at $7.4 billion, the highest since August 26.
The recent rate cut by the Federal Reserve appears to have bolstered market confidence, as Ethereum’s price has outperformed Bitcoin. Additionally, transaction fees have surged due to increased blockchain activity, reflecting the growing interest in the world’s second-largest cryptocurrency by market capitalization.
SEC Postpones
Decision on ETH
ETF Options
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Nasdaq’s proposed rule change to list and trade options on BlackRock’s iShares Ethereum Trust (ETHA).
Originally expected by September 26, the SEC’s decision has now been pushed back to November 10. As reported, the agency said the delay allows it to assess the potential implications of such a move on market stability.
The SEC’s decision to delay is not unusual.
Under Section 19(b)(2) of the Securities Exchange Act, the regulator has the authority to extend its review period for up to 90 days to thoroughly evaluate the potential risks and benefits of the proposal.
The decision comes shortly after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT), following amendments to address concerns about market manipulation and excessive risk-taking.
In addition to postponing the ruling on BlackRock’s Ethereum options, the SEC has also delayed its decision on a separate proposal by NYSE American LLC.
Source: https://cryptonews.com/news/blackrocks-ethereum-etf-surpasses-1-billion-in-total-value-amid-renewed-enthusiasm/
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.