Daily Outlook: US Stocks Rise

CoinDesk 20 Index: 1,831.41 +2.21% Bitcoin (BTC): $58,088.29 +2.45% Ether (ETH): $2,345.28 +0.99% S&P 500: 5,554.13 +1.07% Gold: $2,515.67 +0.11% Nikkei 225: 36,833.27 +3.41%

Bitcoin (BTC) rose above $58,000 in early morning trading, following a rally in U.S. technology stocks and gains in Asian stock markets.

However, spot bitcoin exchange-traded funds (ETFs) in the U.S. snapped a two-day streak of inflows, with Ark Invest’s ARKB leading the outflows with $54 million. U.S. inflation data for August bolstered bets on a Federal Reserve rate cut as core inflation rose faster than expected to above 0.3%.

Chipmaker Nvidia (NVDA) closed the day up 8.2%, while Microsoft (MSFT), Google (GOOGL) and Apple (APPL) rose as much as 2.13%.

Leverage in the Bitcoin market is increasing again, and this development shows that traders are willing to take more risks.

According to CryptoQuant data, the estimated leverage ratio, calculated by dividing global futures open interest by the number of coins held on exchanges, jumped to 0.2060, the highest level since October 2023. Consolidation below 0.2 had been ongoing for months, suggesting a more cautious approach. Highly leveraged liquidity is stacked at around $58,500, according to Hyblock Capital.

Therefore, as BTC approaches this level, volatility could increase, especially as overall market liquidity remains low.

DeFi platform Pendle has begun offering variable yield pools of up to 45% based on a bitcoin-backed token.

The offering, which can provide a fixed annual return of 10%, allows users to deposit LBTC, a liquid staking token issued by restaking startup Lombard, into a Pendle pool created by the Ethereum layer-2 network Corn. Data shows that the pool has attracted over $13 million in user deposits since it went live. It matures on December 26.

Lombard is a restaking service that converts wrapped bitcoin (WBTC) into a Lombard Bitcoin (LBTC) token that can be used to generate yields in DeFi applications, while Corn is a network that uses bitcoin as the main token to pay usage fees.

The chart shows the prices and global bid-ask ratio of bitcoin perpetual futures listed on Binance. The recent price decline is characterized by a positive global bid-ask ratio represented by vertical green lines. According to Hyblock Capital, the chart shows that demand remains robust, positioning the market for a potential recovery.