Crypto Market Recovers After Yesterday’s Chaos

CoinDesk 20 Index: 1,782 +8.8%

Bitcoin (BTC): $54,931 +6.4%

Ether (ETC): $2,448 +8.0%

S&P 500: 5,186.33 −3.0%

Gold: $2,455 +2.2%

Nikkei 225: 34,260 +10.2%

Bitcoin (BTC) rose above $56,000 earlier in the day as the market in Asia recovered from yesterday’s sharp price drop. CoinGecko data shows BTC up 6%, its biggest 24-hour price increase since May. Ether (ETH) and XRP are up 8%, BNB Chain’s BNB is up 12% and Solana’s SOL is up 16%. Japan’s Topix index is up nearly 10%, a five-day total, as the yen weakened against the U.S. dollar. Futures tracking the S&P 500 rose 1.5%, while the tech-heavy Nasdaq 100 rose 2.1%. Risk sentiment has been boosted by renewed hopes that the Fed will swiftly cut interest rates following yesterday’s global market decline.

Spot ether ETFs saw inflows of around $49 million yesterday despite the ETH price falling by as much as 20 percent. Ether suffered its biggest single-day drop since 2021 as Jump Crypto moved a large amount of the asset onto exchanges ahead of a potential sell-off. However, professional investors appear to have benefited from the decline, with ETH ETFs trading above $715 million, the highest level since July 30. The ETFs remain in the red, recording net outflows of $460 million since their launch. In comparison, bitcoin ETFs saw inflows of over $1 billion in the first 12 days.

ARK Invest took advantage of the big market drop by buying Coinbase (COIN) and Robinhood (HOOD) stock for the first time in months. Cathie Wood’s investment management firm bought COIN for the first time since last buying $21.6 million worth of stock on June 6, 2023. The firm bought $17.8 million worth of COIN, and invested $11.2 million in Robinhood, buying HOOD for the first time since February 13. COIN lost 7.3% to close at $189.47 yesterday, as crypto and global stock markets experienced one of their sharpest losses in recent years. HOOD, on the other hand, lost 8.17% to $16.42.

The chart shows the daily net inflow of DOGE into wallets connected to centralized exchanges. The exchanges recorded a net outflow of $49.11 million worth of DOGE yesterday, the highest single-day figure since April 12. DOGE fell by over 10% yesterday, hitting its lowest level since February. Source: Coinglass