M2 News, CEO Update, Crypto Market Plunges, Morgan Stanley To Offer BTC ETFs, Market Snapshot
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CEO Update: Five Observations on a Dynamic Market?
The M2 team has been closely following the digital asset market’s reaction to Friday's US job’s report, the unwinding of the Japanese Yen carry trade and the results of these - as well as other contributing factors - across multiple markets. Refer to the article below for an in-depth examination of the current market conditions.?
Web3 media CryptoNews quoted M2 CEO Stefan on the recent trends in the market, and DL News highlighted his insights on investor behaviour shifting from Bitcoin to Ethereum ETFs.
Crypto Market Plunges Amid Japan's Interest Rate Hike
In the first week of August 2024, the crypto market experienced a severe sell-off, losing $510 Billion. Bitcoin fell 18% and Ethereum dropped 26%. The crash was triggered by a combination of factors: the Bank of Japan raised its interest rate from 0% to 0.25%, making yen-denominated loans more expensive. This rate hike impacted US markets, as traders who borrowed yen to invest in US assets faced higher costs. US job growth in July was disappointing, with only 114,000 new jobs added and the unemployment rate rising to 4.3%, further adding to market uncertainty. Nearly $40 Billion in leveraged positions were quickly liquidated, with over $1 Billion in trades affected on August 4-5. Despite the sharp decline, there’s hope for recovery if market conditions stabilize.
Morgan Stanley to Offer BTC ETFs to its Clients
Major financial player, Morgan Stanley is making a move by offering Bitcoin ETFs to select clients with a net worth above $1.5 Million and high risk tolerance. It reflects increased institutional interest in cryptocurrencies and provides high-net-worth investors with a regulated option for Bitcoin exposure.
Market Update
The start of August saw the largest sell-off since the FTX and Terra crashes of 2022. A downturn driven by a spike in yen-denominated loan costs, following a rate hike by the Bank of Japan. The resulting macroeconomic ripple effect caused Bitcoin and Ethereum to decline by over 18% and 26%, respectively, in just a matter of hours. At the time of sending, Bitcoin and Ethereum trade at $57K and $2.4K.?
The total crypto market cap dropped from $2.15 Trillion on Sunday to $1.76 Trillion, erasing $400 Billion and reaching levels not seen in nearly six months. Additionally, the Fear & Greed Index fell to 31 points, reflecting a level of fear not observed since September 2023. As of August 8, the index now registers 42 points, indicating a neutral sentiment.?
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However, the markets rebounded just as swiftly as they declined. After reaching a low on Monday morning, they recovered significantly, erasing most? losses. Since 10 AM GST on Monday, Bitcoin and Ethereum have risen by 10% and 5%, respectively (as of 12:00 PM GST on August 8). It’s worth noting Solana’s performance, as it increased by 31% over three days after initially losing 30% of its value.
Quick News
In just 8 days of trading, $1.3 Billion has been added, bringing the total staked ETH to a record 34 Million.
This is the highest single-day trading volume since March 25, 2024, when it reached $6.1 Billion. BlackRock’s iShares Bitcoin Trust (IBIT) led the day, accounting for 52% of the total volume.
Marathon Digital increased its holding by 2,282 Bitcoin in July and now holds over $1.1 Billion.?
The Brazilian Securities and Exchange Commission (CVM) has approved Brazil’s first Solana-based exchange-traded fund (ETF). The final step before trading can commence is the formal listing on the Brazilian stock exchange, B3.?
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