Crypto Market Stabilizes After Nursing Losses

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The crypto market was little changed in the European morning, with the CoinDesk 20 Index (CD20) down about 0.35%. Bitcoin fell about 0.6% in the 24-hour period to around $66,000. The biggest gainer among crypto majors was XRP, which rose more than 4.5% to above 64 cents. That’s XRP’s highest level since March 25 and comes amid growing hopes for a major planned token unlock and a resolution to a long-running SEC-Ripple lawsuit. A filing on Tuesday showed that the SEC plans to amend its complaint against crypto exchange Binance to include “Third-Party Crypto Asset Securities,” which traders saw as a sign the dispute could be coming to an end.

Spot ether ETFs snapped a four-day losing streak on Tuesday, recording net inflows of $33 million on just the second day of positive flows since their listing on July 23. Ether ETFs witnessed cumulative net outflows of over $400 million. Grayscale’s ETHE lost the most at $1.84 billion, while BlackRock’s ETHA led the inflows with $618 million. Bitcoin equivalents, on the other hand, snapped a four-day winning streak with net outflows of $18 million. SoSoValue data shows Grayscale’s GBTC led the way with outflows of $73 million. Products from Fidelity, Ark Invest, Bitwise and VanEck saw outflows ranging from $2 million to $7 million. Blackrock’s IBIT was the only ETF to record inflows, adding around $75 million.

Nvidia is expected to see more significant price swings than bitcoin and ethereum. According to Fintel, NVDA’s 30-day implied volatility, a measure of expected price swings over four weeks, recently rose from 48% to 71% annually. Deribit’s bitcoin DVOL index, a measure of 30-day implied volatility, fell from 68% to 49%, according to charting platform TradingView. The ETH DVOL index fell from 70% to 55%. NVDA, a pioneer for artificial intelligence, has emerged as a sentiment barometer for both the equity and crypto markets. Both bitcoin and NVDA bottomed in late 2022 and have shown a strong positive correlation since then. The 90-day correlation between bitcoin and NVDA is currently 0.73.

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(Coin)

The number of active XRP perpetual futures contracts rose to 1.5 billion XRP, the highest level since April 20, while funding rates also remained positive.

This increase reflects increased demand for long positions or leveraged bets that aim to profit from price increases.

XRP has gained 34% this month.

Source: Coinglass

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– Omkar Godbole

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