BIT Daily Market Briefing 08/06 - This round of market crash is clearly driven by macro factors
As new asset price drivers emerge, financial markets resemble a puzzle that needs to be reassembled regularly. This is one of those times. Unlike the significant declines in April and June that were alleviated by increased leverage, this time such a reversal may not occur.Daily Market Briefing
Daily Market Briefing 2024/08/06 12:00 UTC+8
Analyst Insights
"With new price drivers for assets emerging, the financial markets resemble a puzzle that needs to be reassembled regularly. This is one of those times. Unlike the significant declines in April and June that were alleviated by increased leverage, this time such a reversal may not occur." - 10x Research
"The current market crash is clearly driven by macro factors rather than being specific to the cryptocurrency industry. The focus of U.S. data is on the job market, so pay special attention to the initial jobless claims this Thursday and the state employment data to be released on August 16." - Alex Krüger, Crypto Analyst
"The direct trigger for the recent ETH drop was the aggressive ETH sell-off by Jump Trading and Paradigm VC, causing front-end ETH volatility to surge over 30% to 120%, with market makers eager to cut their short-term options gamma positions exacerbating the situation." - QCP Capital
Market Highlights
- Yesterday, the U.S. Bitcoin spot ETF saw a net outflow of $168.4 million, marking two consecutive trading days of net outflows.
- Yesterday, the U.S. Ethereum spot ETF recorded a net inflow of $49 million.
- Bitcoin's dominance rose to 60% during the downturn in the crypto market, an increase of 9 percentage points since last Friday.
- Today's Fear and Greed Index dropped to 17, shifting from fear to extreme fear.
- Bitcoin cost basis: ETF/custodial wallets: $65,000; Binance traders: $55,000; miners: $45,000, confirming a bear market when below this level during past market downturns (May 2022, March 2020, November 2018); old whales: $22,000.
Investment and Financing Information
- The Solana ecosystem's RWA tokenization project Elmnts has completed a $2 million Pre-Seed funding round, led by Graph Ventures, Foundation Capital, and B+J Studios, with participation from Asymmetric, Anagram, and Solana co-founders Raj Gokal and Anatoly Yakavenko.
- The blockchain gaming infrastructure provider Cartridge has completed a $7.5 million Series A funding round, led by Bitkraft Ventures, with participation from Fabric, Dune, StarkWare, Primitive, and Ergodic.
Regulatory Dynamics
- Lawyers from the U.S. SEC oppose Coinbase's subpoena request, which seeks to search "essentially all documents related to crypto," claiming it is overly broad.
