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Ether ETF inflow surprise
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Crypto market braces for potential price shakeout ahead of key data
Key points:
Bitcoin price drop triggers broader crypto market selloff.
Major cryptocurrencies like Ethereum experience losses.
News - The cryptocurrency market experienced a broad selloff over the weekend, mirroring a decline in Bitcoin as investors await key economic data releases this week.
Bitcoin prices dropped 4.8% within the last 24 hours, dipping below $58,500. This decline reverberated across the broader crypto market with Solana and Toncoin leading the decline among major players, both down 7%.
What’s next? Market analysts warn of a potential further decline in Bitcoin prices in the coming weeks, citing technical indicators suggesting weakness. However, upcoming traditional market releases could potentially trigger a rebound.
Both the U.S. and U.K. will release their Consumer Price Index (CPI) data on Wednesday, potentially impacting investor sentiment towards riskier assets like cryptocurrencies.
Key economic data - Other economic data releases this week include Australia's consumer confidence index (Tuesday), Japan's Producer Price Index (Tuesday), earnings reports from retail giants Alibaba and Walmart (Thursday), and GDP updates from Hong Kong and Taiwan (Friday). Historically, traditional market events have influenced cryptocurrency prices by reflecting economic health and investor risk appetite.
Crypto industry attracts $2.7B in Q2 despite fewer investments
Key points:
Investor sentiment towards crypto is improving.
Infrastructure projects dominate Q2 funding.
News - The cryptocurrency industry is showing signs of renewed investor interest, with venture capital funding on the rise in the second quarter of 2024.
Despite a decline in the number of deals, the total amount of capital invested saw a modest increase compared to the previous quarter.
Pitchbook's latest report highlights a shift towards later-stage funding rounds, with infrastructure projects emerging as a dominant force. Notable investments include Monad, BeraChain, and Babylon, which collectively secured hundreds of millions in funding.
The return of investor confidence is evident in the two "mega-rounds" secured by Farcaster and Zentry, demonstrating a growing appetite for high-potential projects.
However, it's important to note that the overall funding levels are still significantly below the peak years of 2021 and 2022.
The recent fundraising efforts by prominent venture capital firms like Pantera Capital and a16z underscore the ongoing interest in the cryptocurrency sector. As the industry continues to evolve, we can expect further investment activity and the emergence of new and innovative projects.
Ether ETF weekly inflows turn positive for the first time since launch
Key points:
BlackRock's Ethereum ETF leads with a $188.4 million inflow.
Grayscale's Ethereum Trust faces significant outflows.
News - U.S.-listed spot Ethereum exchange-traded funds have experienced their first week of positive net inflows since their launch on 23 July.
Despite a significant decline in the price of Ether, these funds collectively attracted $104.8 million in new investments over the week ending 5 August.
BlackRock's iShares Ethereum Trust emerged as the frontrunner, gathering $188.4 million in inflows, bringing its total assets under management to over $900 million. Fidelity's Ethereum Fund also saw substantial inflows, totaling $44.65 million.
While six of the nine ETFs experienced net inflows, Grayscale's Ethereum Trust faced significant outflows, amounting to $180 million. This outflow contributed to a net outflow of $406.4 million for all nine funds combined.
The overall net asset value of the nine ETFs reached $7.3 billion as of 9 August, demonstrating growing investor interest in this asset class. As the market evolves, ETF issuers are now exploring the potential for launching options contracts on these spot Ethereum ETFs, expanding investment opportunities for traders.
Crypto censorship in Venezuela: Government blocks Binance amid political unrest
Key points:
Binance assures users that their funds are safe despite access restrictions.
Peer-to-peer cryptocurrency trading on Binance is popular in Venezuela.
News - Venezuela's government has imposed a ban on cryptocurrency exchange Binance and social media platform X amid ongoing political turmoil following the disputed presidential election.
Local internet watchdog VE sin Filtro reported a DNS block on Binance, preventing users from accessing the platform's website and mobile app. Binance confirmed the access restrictions but assured users that their funds remained secure.
Binance platform's peer-to-peer service has been a popular method for Venezuelans to exchange the rapidly depreciating bolivar for cryptocurrencies.
However, after the censorship implementation, users are employing virtual private networks (VPNs) to access blocked services.
The country has been engulfed in protests since the 28 July presidential election, with both Maduro and his opponent, Edmundo González, claiming victory. The government's refusal to release detailed vote counts has led to international condemnation and calls for transparency.
More stories from the crypto ecosystem
Did you know?
Polkadot owes its inception to Gavin Wood, a key architect of Ethereum. Wood’s deep involvement in Ethereum's development provided him with invaluable experience that he subsequently channeled into creating Polkadot.
Binance’s former CEO CZ discovered Bitcoin during a 2013 poker game, initiating his crypto journey. After gaining significant experience in the industry, he founded Binance in 2017.
Ethereum operates several testing environments called testnets. Interestingly, these testnets are named after metro stations. For instance, Goerli is named after a station in Berlin. These testnets serve as practice grounds for developers to experiment with Ethereum applications before deploying them on the main network.
Top 3 coins of the day
Solana (SOL)
Key points:
SOL gained 22% in the last seven days.
In the longer timeframe, SOL is trading sideways.
What you should know - SOL's short-term market structure has been bullish. Its support zone around the $125 level has been tested multiple times and is currently holding strong. This area is crucial as a failure to maintain it could lead to further downside. A potential entry point can be considered around the $130 mark for entering a long position. A stop-loss can be placed just below the support zone, around the $115 level. This is a strategic point to limit potential losses in case the support zone fails and the price moves lower. The take-profit level can be marked around $190. Well, the RSI is currently around the 45 level, suggesting that the asset is not in the overbought or oversold territory. This neutral position can support a potential upward move if the market sentiment turns positive.
Shiba Inu (SHIB)
Key points:
SHIB led the market with close to 16% weekly gains.
However, it was down by about 4.15% over the last day.
What you should know - SHIB's daily chart shows the coin to be in a downtrend channel, with lower highs and lower lows, indicating a bearish trend. This pattern has been consistent since mid-April. The near-term resistance level can be found around the 0.00001500 mark - It has been tested multiple times and has so far acted as a barrier to upward movement. The price has found support around the 0.00001000 mark. The RSI is currently around 37.64, indicating that SHIB is nearing the oversold territory. This suggests that there might be a potential for a bounce if the market sentiment changes. The CMF is slightly below the zero line, indicating weak buying pressure. It aligns with the current downtrend, suggesting that sellers are still in control.
dogwifhat (WIF)
Key points:
WIF’s value increased by 42.42% over the last seven days.
Regardless, the long-term momentum remained bearish.
What you should know - WIF has staged a remarkable recovery, surging 83.32% from its recent low. However, the token is now testing the lower Bollinger Band, indicating potential oversold conditions and increased volatility. Resistance is evident around the $2.50 level, where previous attempts to break through have failed. Despite a recent surge in trading volume, suggesting heightened interest, the overall market sentiment remains cautiously bearish as indicated by the AO oscillator. While the recent green bars on the AO point to a potential weakening of bearish momentum, the token is still grappling with the overarching downtrend.
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