QCP Capital Analyzes Market Sentiment Ahead of Fed Chair’s Speech at Jackson Hole

QCP Capital’s latest insights report offers a fascinating blend of optimism and caution as investors eagerly anticipate Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. The firm observes a buoyant mood in equity markets, with U.S. stocks reaching record highs, while the crypto sector remains firmly in the doldrums.

QCP Capital Report Spotlights Investor Anxiety

QCP Capital‘s analysis highlights the options market’s pricing of a 1% move on the S&P 500 following Jerome Powell’s address, revealing a hint of unease beneath the surface of the otherwise strong equity performance.

Additionally, the firm notes that bitcoin’s perpetual funding rates plummeted to -13% over the weekend—the lowest point since 2022—emphasizing the sharp contrast in sentiment between traditional and crypto markets.

The report also points out the possibility of further unwinding of the USD/JPY carry trade, citing Bloomberg reports that funds like Vanguard are increasing their bets on additional Bank of Japan rate hikes.

QCP suggests this could trigger broader market shifts, adding yet another layer of complexity to their outlook. The report underscores the significance of Powell’s upcoming speech, where investors will be keenly monitoring for clues on potential interest rate cuts and future monetary policy directions.

The crypto economy took a 1.9% dip on Aug. 19, with Monday’s trade volume surging 34.72% compared to Sunday. BTC has dropped 2.4% over the past 24 hours, while ETH saw a 3.5% decline during the same timeframe. Meanwhile, the Crypto Fear and Greed Index, hosted on alternative.me, sits at a score of 28, signaling “fear.”

What do you think about QCP’s latest crypto market and economic insights? Share your thoughts and opinions about this subject in the comments section below.

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Tron Triumphs as Cardano Fades—ADA Drops From Crypto’s Top 10

Based on recent market data, the cryptocurrency cardano (ADA) has fallen out of the top ten rankings, making way for tron (TRX) to take its place. ADA has struggled to hold its ground among the leading cryptocurrencies this year, and in the past 30 days alone, it has dropped 23% against the U.S. dollar.

Once a Top Ten Titan, Cardano Is Now Struggling Below the Threshold

ADA’s removal from the top ten list is reflected in metrics on coinmarketcap.com and other major crypto market cap aggregation sites. Unlike several other digital assets that have soared to new price highs and market achievements in 2024, cardano (ADA) has had a lackluster performance since 2021. Since the start of the year, ADA has declined by 43.4%. Over the last six months, it has lost 45% of its value, and just in the past month, it has seen a 23% drop.

This smart contract crypto asset has faced a particularly rough road since reaching its all-time high almost three years ago on Sept. 2, 2021. At that peak, ADA was priced at $3.09 per coin. Today, it has plummeted 89%, currently trading at $0.335 per coin at 4:30 p.m. EDT on Aug. 19. In the decentralized finance (defi) space, ADA’s total value locked (TVL) places it at the 28th spot, which is quite low on the defi hierarchy.

When it comes to all-time non-fungible token (NFT) sales, Cardano ranks as the eighth-largest blockchain. It has recorded $651,916,330 in all-time NFT sales as of Aug. 19, which pales in comparison to Ethereum’s $43 billion, Solana’s $5.7 billion, and even Bitcoin’s $4.4 billion. This week, ADA’s top trading pairs include USDT, USD, USDC, BTC, and EUR. Among more than 10,000 digital assets, ADA currently holds the 18th position in trading volume as of Aug. 19.

ADA’s downward trajectory and loss of its top-ten status reflect a challenging environment that raises questions about its future market viability. With significant losses across multiple metrics and tough competition from other digital assets, the road ahead for ADA appears uncertain. Investors are left to wonder if this once-promising asset can recover or if further decline is inevitable.

Tron, on the other hand, has outpaced ADA this year. TRX is enjoying a 5% increase today, a 12% gain this week, and a 17.2% rise over the last two weeks. Year-to-date, TRX has climbed 32%, though it’s still slightly behind some of its market rivals. While Tron’s presence in the NFT space is minimal, it shines in the defi arena, holding the impressive position of number two. Tron’s total value locked in defi is just shy of Ethereum’s lead, with the TRX chain securing $7.8 billion, according to defillama.com data.

According to Tronscan, Tron has processed $13.41 trillion in transfer volume since the network launched, and it hosts $60.72 billion tether (USDT) minted on its blockchain. This figure surpasses the $52.58 billion worth of tethers issued on Ethereum. However, TRX still has some catching up to do to overtake dogecoin (DOGE), the popular meme coin, which now ranks as the ninth largest cryptocurrency with a market cap of $14.6 billion, compared to TRX’s $12.38 billion.

What do you think about cardano getting knocked out of the top ten standings this week? Share your thoughts and opinions about this subject in the comments section below.

Gold Shatters Records as Investors Brace for Economic Turbulence

Precious metals prices are on the move again, with gold hitting a new peak of $2,564 during Tuesday’s trading sessions. As of now, gold is being traded at $2,527 per ounce, while silver has climbed more than 6% this week, currently standing at $29.68 per ounce. Market trends show that the prices of precious metals are being heavily swayed by factors such as geopolitical tensions, inflation concerns, and the actions of central banks.

The Meteoric Rise of Precious Metals Continues

Gold and silver bugs are enjoying the current market as both metals have seen substantial gains over the past few months. Gold reached another all-time high on Tuesday at $2,564, while silver peaked at $29.91 per ounce during the day. Gold’s ascent has been especially noticeable since the stock market downturn on Aug. 5, although U.S. stock indexes have since staged a lively recovery.

Gold Shatters Records as Investors Brace for Economic Turbulence — Gold on Aug. 20, 2024.

Even though predictions have softened since Aug. 5, some still foresee a potential recession in the United States. Historically, during periods of economic uncertainty, people have gravitated toward gold to safeguard their wealth. This trend is rooted in gold’s reputation as a reliable store of value, offering protection against inflation and currency devaluation. Interestingly, oil prices measured in gold are at a 40-year low, sparking concerns that something may be fundamentally wrong with the economy.

On the social media platform X, the Weekend Investing founder, Alok Jain, said:

Gold is screaming that things are not normal in the world… but who will listen?

NY Times bestselling author Jim Rickards commented, “Gold at another all-time high, around $2,560 per ounce. As I’ve said before, that tells you little about gold and everything about the dollar. EUR/USD and USD/JPY are just passengers on the same sinking ship. Gold is the ocean, the real measure of things.” Recent times have shown, that the persistent geopolitical tensions and economic policy hurdles have fueled a tremendous surge in demand for gold, driving its prices to new heights.

What do you think about gold rising to peak values on Aug. 20, 2024? Share your thoughts and opinions about this subject in the comments section below.

Cryptoquant: Bitcoin Demand Remains Weak Despite Accumulation by Long-Term Holders

Recent data from Cryptoquant researchers indicate that bitcoin demand growth continues to show signs of weakness. Despite this, the report notes that long-term holders have been accumulating bitcoin at unprecedented levels, providing some resilience to the market.

Report Shows Bitcoin Demand Craters Amid Weak Market Signals

Bitcoin demand has seen a significant decline since early April, according to data analyzed by cryptoquant.com. The research indicates that apparent demand for bitcoin dipped into negative territory this month, with the total holdings of large bitcoin investors, commonly referred to as “whales,” experiencing a sharp slowdown in growth.

Specifically, the monthly pace of growth in whale holdings has decreased from 6% in March to just 1% in recent weeks. This weakening demand has been reflected in bitcoin’s price, which has dropped from around $70,000 to $49,000, highlighting the need for a resurgence in demand for a sustainable price recovery.

Cryptoquant: Bitcoin Demand Remains Weak Despite Accumulation by Long-Term Holders — Source: Cryptoquant’s Institutional Insights report published on Aug. 20, 2024.

Cryptoquant’s findings also point to a notable decline in bitcoin purchases by spot BTC exchange-traded funds (ETFs) in the United States. Daily purchases have dropped from 12,500 BTC in March to an average of just 1,300 BTC last week. This reduction in ETF activity coincides with a lower price premium for bitcoin on Coinbase, which has fallen from 0.25% earlier this year to a mere 0.01% currently.

The researchers explain that declining premiums further underscore the weakening demand within the U.S. market, suggesting that without a recovery in ETF purchases, the overall demand for bitcoin may remain subdued. However, not all metrics signal a bearish outlook. Cryptoquant researchers note that long-term holders have continued to accumulate bitcoin at a record-high monthly rate of 391,000 BTC.

Additionally, the total market capitalization of stablecoins has surged to a new peak of $165 billion, indicating growing liquidity within the crypto market. These factors suggest that while short-term demand may be weak, the underlying fundamentals, driven by long-term holders and increased stablecoin liquidity, could provide a foundation for future growth.

What do you think Cryptoquant’s research report? Share your thoughts and opinions about this subject in the comments section below.

Bitcoin Bulls Charge Toward $62K as Fed’s Minutes Triggers Market Frenzy

Bitcoin’s price hit $61,838 per coin by 3:45 p.m. EDT on Wednesday, after spending much of the day lingering below the $60,000 mark. The crypto market mirrored the upward movement seen in the S&P 500 and Nasdaq, which both rallied just before the closing bell. This newfound optimism is largely being credited to the Federal Reserve’s minutes report, hinting at a likely rate cut next month.

Fed’s Rate Cut Tease Ignites Mini Bitcoin Spike

The release of the Federal Reserve’s minutes brought a wave of positivity, with markets reacting favorably. The report mentioned that a “vast majority” of Federal Open Market Committee (FOMC) members believed that if economic data remains consistent, “it would likely be appropriate to ease policy at the next meeting.” Following this news, equity markets rebounded, and all four U.S. benchmark indices closed in the green, with the Russell 2000, S&P 500, and Nasdaq leading the charge.

Globally, the crypto market swelled to $2.16 trillion, marking a 2.32% increase over the past day. Bitcoin (BTC) climbed to an intraday peak of $61,838 per coin, and as of Wednesday, the top crypto asset has gained 3.4% against the U.S. dollar. Ethereum (ETH) also experienced a lift, though more modest, rising 1.66% during the day’s trading sessions. Over the past week, BTC is up 4.11%, while ETH remains down by 0.9%.

Due to this uptick, $13.65 million in BTC short positions were liquidated within the past four hours. During the same period, $4.66 million in ETH shorts were wiped out as well. So far today, $22.93 million in BTC shorts have been cleared, along with $8.78 million in ETH shorts. However, ETH took a heavier hit on the long side, with $16.55 million in ether long positions getting wiped out.

In total, $104.76 million in derivatives positions were liquidated, with $57.56 million of those being short positions. Approximately 40,297 traders were liquidated, according to coinglass.com metrics, with the largest liquidation occurring on Binance, where an ETH trader lost $2.98 million. After reaching the $61,838 high, bitcoin faced stiff resistance at $62,000, and as of 4:30 p.m. EDT, BTC is trading at $61,350 per unit.

What do you think about bitcoin’s rise on Wednesday following the release of the Fed’s minutes report? Share your thoughts and opinions about this subject in the comments section below.

Bitcoin Market Reaches ‘Equilibrium’ as Speculation Declines, Glassnode Reports

The bitcoin market has hit a phase of tranquility, where investor enthusiasm has cooled, and speculative activity has sharply decreased. According to a thorough report from Glassnode, this quiet spell might be setting the stage for an uptick in market volatility.

Glassnode Analysis Shows Bitcoin Market Entering a Tranquil Phase Amid Decline in Speculative Activity

Glassnode’s latest onchain findings reveal a significant dip in net capital inflows into the bitcoin market, hinting at a balance between investors cashing out profits and cutting losses. This balance is highlighted by the Sell-Side Risk Ratio, showing that most bitcoin transactions are happening around the same price at which they were originally bought. Glassnode suggests that this period of low volatility and neutral profitability could be just a calm before the storm.

“Historically, periods of quiet and calm market structure are short-lived, and often precede an expectation for heightened volatility,” Glassnode’s analysis states.

Researchers at Glassnode point out that the current market conditions signal a complete reset in speculative activities, especially in perpetual swap markets. Speculation in these markets has dropped dramatically, as shown by the reduced volume of liquidations. This reset isn’t limited to bitcoin but extends across the wider digital asset space. The neutral funding rates for various tokens further confirm that the market has shifted towards a more stable, spot-driven environment.

The report notes:

This phenomenon can also be observed across the broader digital asset ecosystem, with a vast swathe of tokens now displaying a neutral funding rate. This underscores the idea that a major reset in speculative interest has occurred across the entire market, and therefore, spot markets are likely to be in the driver’s seat for the near term.

The report also explores the behavior of bitcoin holders, especially short-term ones who are increasingly becoming long-term holders. Coins that have been held for three to six months, now making up over 12.5% of the circulating supply, are close to transitioning into long-term status. This shift suggests that a large portion of the market is choosing to hold onto their assets despite the waning speculative interest. Glassnode concludes that while this market calm may persist for a while, historical trends indicate that a return to higher volatility could be just around the corner.

What do you think about Glassnode’s latest analysis? Share your thoughts and opinions about this subject in the comments section below.

Bored Ape Yacht Club Leads the Week’s Priciest NFT Sale Despite Overall Market Dip

While non-fungible token (NFT) sales saw a 24% boost the week before, the last seven days have witnessed a 4.3% dip. Meanwhile, the number of NFT buyers jumped by 31.48%, with sellers also on the rise by 25.86%.

NFT Sales Drop 4.3%, But Buyer and Seller Participation Increased

This past week, NFT sales were rather lackluster, dropping 4.3% compared to the previous week. Total sales reached $90,678,150, with Ethereum-based NFTs leading the charge at $32,195,968, although this figure represents an 8.26% decline, according to cryptoslam.io data.

Solana claimed the second spot with $19.4 million in sales, marking a 6.39% increase from the previous week. Bitcoin rounded out the top three, posting $13.7 million in sales, a gain of 12.39%.

The week’s top collection was Ethereum’s Cryptopunks, raking in $5.43 million, although sales were down by 29.01% compared to last week. Solana’s Monkey NFTs snagged $3.36 million, taking second place and climbing 52.16% in sales this week.

The third most active NFT collection was Immutable X’s Guild of Guardians (GoG), which managed $3.31 million in sales over the last seven days, a 6.62% increase from the previous week.

The priciest NFT of the week was Bored Ape Yacht Club #7,398, which fetched $325,387 just a day ago. Close behind was an Arbitrum GUSDC Locked Deposit, selling for $184,956 five days ago, followed by a Bitcoin-based Ordinal Maxi Biz NFT, which went for $82,819 yesterday.

This week’s NFT market activity paints a picture of a dynamic and evolving landscape, where despite some sales slipping, interest from buyers and sellers remains vibrant. The varied performance across different platforms and collections hints at a market still finding its footing.

What do you think about the NFT sales action over the last seven days? Share your thoughts and opinions about this subject in the comments section below.

South Korea’s Bitcoin Premium Persists Amid Market Volatility

Despite recent turbulence in the crypto market, bitcoin’s price continues to carry a premium in South Korea. As of 4 p.m. EDT, bitcoin is trading at $59,002 per unit, but in South Korea, the exchange rate hits $59,900, reflecting a 1.52% premium.

Despite First Negative Dip Since Oct. 2023, South Korea’s Bitcoin Premium Continues

Interestingly, bitcoin (BTC) has consistently traded at a premium in South Korea since Oct. 30, 2023, dipping into the negative just once on Aug. 22, 2024. According to cryptoquant.com, BTC was priced at around $60,500 per coin on that day, and within two days, it climbed to $64,000. Although the price momentarily fell 0.36% below the global average in South Korea on Aug. 22, the dip was fleeting.

South Korea's Bitcoin Premium Persists Amid Market Volatility — Starting on Oct. 30, 2023 and for 297 days, BTC has witnessed a premium in South Korea. The premium jumped more than 10% in mid-March 2024. The first dip since then occured on Aug. 22, 2024, dipping 0.36%.

By Aug. 23, the premium had bounced back to nearly 1%, reaching 0.93% above BTC’s global average. The premium climbed to 2.63% on Aug. 27 and settled at 1.94% by Aug. 29. As August comes to a close, bitcoin is trading at a 1.52% premium on the South Korean crypto exchange Upbit, with prices approximately $898 higher. Ethereum (ETH) is also trading at a premium on Upbit, albeit a smaller one at 0.95%, according to the latest price data.

While stablecoins USDT and FDUSD are BTC’s top trading pairs, the South Korean won ranks as the second most traded fiat currency, just behind the U.S. dollar. Throughout 2024, the won has been a significant player in trade volume, second only to the greenback. Interestingly, Coinbase saw a consistent premium from Aug. 4 to Aug. 28, though it remained far below South Korea’s, peaking at just 0.07% on Aug. 22.

However, by Aug. 29, Coinbase BTC prices had slipped back into the negative after 24 days of a slight premium, according to cryptoquant.com metrics. The ongoing bitcoin premium in South Korea, contrasted with the modest premium on Coinbase, highlights a stronger and more persistent demand in the South Korean market. Nevertheless, a Coinbase Premium often reflects increased demand for bitcoin, which can drive up its price.

What do you think is driving the persistent bitcoin premium in South Korea, and how do you see it impacting the global market in the coming months? Share your thoughts in the comments below.