In today’s update, we delve into the movements and trends observed in the Asian trading session, focusing on cryptocurrency flows and broader economic indicators that shape market sentiments.
Over-The-Counter (OTC) & Allied Trades Desk Flows
Ethereum (ETH): The session recorded light buy flows, indicating cautious optimism among traders.
Bitcoin (BTC): Exhibited balanced two-way flows, suggesting a market in search of direction.
Solana (SOL): A pronounced sell skew was observed, with sell orders outnumbering buys at a ratio of 2:1.
Altcoins Movement: Helium (HNT), Toncoin (TON), and Algorand (XAI) experienced buying interest. In contrast, Gala (GAL) and Lido DAO (LDO) faced selling pressures.
Crypto Markets & Noteworthy Headlines
Market Corrections: Exchange-Traded Funds (ETFs) saw net outflows, pressing down spot prices for key cryptocurrencies. Ethereum notably fell below the $3,300 mark, experiencing a sharp 5% drop. Meanwhile, Bitcoin hovered around the $64,400 level.
Solana's Growth: Solana's Total Value Locked (TVL) has soared to $5.3 billion, marking a significant 25% increase over the past month and reaching its highest point since January 2022.
XRP's Uptick: Optimism about a potential settlement with the SEC has bolstered XRP, gaining notable market support.
Layer 2 Ethereum Tokens: These tokens mirrored Ethereum’s overnight sell-off, showing heightened volatility.
Stablecoins: An uptick in USDT liquidity hints at a possible rise in Bitcoin prices, aligning with historical trends.
Volatility and Options Market
Volatility Trends: Both Bitcoin and Ethereum are seeing decreased volatility, aligning with spot market movements. The options market is currently skewed towards puts as we approach the month-end expiry.
Options Dynamics: Vega selling is prominent with a decline in demand for BTC and ETH calls for the coming months. The sentiment post-expiration remains a focal point, especially with significant political events on the horizon.
Macro Economic Landscape
Treasury Yield Curve: A sharp steepening in the Treasury yield curve as market anticipates more aggressive rate cuts, potentially setting the stage for a bullish trend reminiscent of the one that started in late 2022.
Tech Stock Shifts: A negative shift in market sentiment toward tech stocks was noted as the Nasdaq fell over 3.5%, influenced by recent tech earnings.
Economic Indicators: The PCE Core index is in focus today, with market eyes also set on upcoming earnings reports from major tech companies like Amazon, Apple, Microsoft, and Meta Platforms.
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