Daily Market Briefing
Daily Market Brief 2024/08/06 12:00 UTC+8
Analyst Views
“Financial markets are like puzzle pieces that need to be reassembled periodically as new drivers of asset prices emerge. This is one of those times. Unlike the sharp declines in April and June, which were mitigated by increased leverage, there may not be such a reversal this time.” - 10x Research
“This market crash is clearly driven by macro factors, not specific to the crypto industry. The data focus in the US is the job market, so pay special attention to initial jobless claims on Thursday, and state employment data on August 16th.” - Alex Krüger, crypto analyst
“The direct trigger for this ETH decline was the aggressive ETH selling by Jump Trading and Paradigm VC, which caused the front-end ETH volatility to surge by more than 30% to 120%, exacerbated by market makers’ eagerness to cut gamma positions in short-term options.” - QCP Capital
Market Hotspots
Yesterday, the U.S. Bitcoin spot ETF had a net outflow of US$168.4 million, marking two consecutive trading days of net outflows.
Yesterday, the US Ethereum spot ETF had a net inflow of US$49 million.
Bitcoin dominance rose to 60% during the crypto market downturn and has increased by 9 percentage points since last Friday.
Today the Fear and Greed Index dropped to 17, turning from fear to extreme fear.
Bitcoin Cost Basis: ETFs/custodial wallets: $65K; Binance traders: $55K; Miners: $45K, below which levels confirmed bear markets during past market downturns (May 2022, March 2020, November 2018); Old whales: $22K.
Investment and Financing Information
Solana ecosystem RWA tokenization project Elmnts completed a $2 million Pre-Seed round of financing, led by Graph Ventures, Foundation Capital and B+J Studios, with participation from Asymmetric, Anagram and Solana co-founders Raj Gokal and Anatoly Yakavenko.
Cartridge, a blockchain gaming infrastructure provider, has completed a $7.5 million Series A financing round led by Bitkraft Ventures, with participation from Fabric, Dune, StarkWare, Primitive and Ergodic.
Regulatory developments
Lawyers for the U.S. Securities and Exchange Commission (SEC) have objected to Coinbase’s subpoena requests, which seek to search for “substantially all crypto-related documents,” which the SEC called overly broad.
