Bitcoin Teases Breakout
Bitcoin showed impressive strength, reaching $65K USD on Monday, driven by record ETF inflows. However, today Bitcoin experienced a sharp drop of 6% to $58K USD, partly due to the liquidation of large long positions and the ongoing global uncertainties. However this may also be manipulation by market makers and exchanges attempting to liquidate investors and suppress the price for better buying opportunities.
In other sectors, AI has seen a significant resurgence. Notable AI coins such as FET are up 42%, Render 29%, and Prime 27%. We believe AI will continue to be a top performing sector and recommend including it in a diversified portfolio. Additionally, Popcat has surged 62% in the meme sector, showing strong market demand. This week, Binance Futures listed Popcat, and speculation around a potential spot listing is likely to further influence its price.
Bitcoin Weekly Price Chart
Nasdaq wants SEC Approval for Bitcoin Index Options
Nasdaq is seeking SEC approval to launch Bitcoin Index options, a major step in integrating cryptocurrency into mainstream finance. These options are designed to enhance existing investments by providing traders and institutions with strategic tools to manage risk and maximise returns.
For those with significant Bitcoin exposure, options allow for hedging strategies that can protect you against market volatility, ensuring that sudden price drops don’t heavily impact portfolio value. Furthermore, options enable investors to implement various strategies designed to profit from market volatility, price movements within a specific range, and even generate returns in relatively stable markets. This versatility is a critical aspect of financial markets, and many large institutions and investors utilise options to manage risk and enhance returns - thus the availability of options would make Bitcoin a more mature and attractive asset.
ETF Inflows Moon as BlackRock and Grayscale Keep Buying
This week, we’ve seen a notable surge in ETF inflows as major players capitalisze on recent Bitcoin dips and anticipated interest rate cuts. BlackRock and Grayscale now hold nearly 3% of Bitcoin’s circulating supply, signaling their growing confidence in Bitcoin's long term potential and positioning for future growth. Furthermore, the reduced supply of Bitcoin in open markets could create a massive supply shock as demand for the asset increases.
BlackRock experienced its largest daily inflow in 35 days on August 26th, with $224 million, while total Bitcoin ETFs saw a total of $544 million in inflows from August 18th to 24th, the largest in 5 weeks. These inflows reflect the growing confidence these financial giants have on Bitcoins long term value, ensuring they are well positioned for the assets future gains.
RFK Suspends Campaign to Support Trump
Robert F. Kennedy Jr. has suspended his presidential campaign and will withdraw his name from the ballots in 10 battleground states. RFK Jr. has endorsed Donald Trump, urging his supporters to back Trump, which has slightly shifted prediction odds in Trump’s favour. Given the Kennedy family's deep background in the Democratic Party, this endorsement is highly significant. Kennedy Jr. is a major advocate for cryptocurrency and recently reaffirmed his support of Trump's stance on holding Bitcoin as a strategic reserve for the US.
Additionally, Kennedy Jr. revealed that he recently purchased 21 Bitcoins, including three for each of his six children. This endorsement along with his pro crypto stance is bullish for Bitcoin as it increases the US government's chance of increasing adoption towards Bitcoin at a large and rapid rate.
El Salvador the Bitcoin Nation
El Salvador's Bitcoin holdings are approaching 6,000 BTC, as the country has been steadily acquiring nearly one Bitcoin per day since March 16th, bringing its total value to around $360 million. President Nayib Bukele has been a dedicated advocate for cryptocurrency, viewing it as a pathway to economic independence and innovation.
While his aggressive Bitcoin strategy has sparked both admiration and concern, Bukele’s bold approach to financial sovereignty has no doubt proven effective in the short term. His overwhelming re-election victory in February for a second five-year term underscores the strong support he enjoys from his country.
Wyoming Advances in Crypto Adoption
Wyoming is spearheading the next growth phase in cryptocurrency by developing its own US dollar-backed stable coin, set to launch in Q1 of 2025. As cryptocurrency becomes more mainstream and institutionalised, Governor Mark Gordon is aiming to provide individuals and businesses with faster and more cost effective transaction methods.
Flavia Naves, a commissioner on the Wyoming Commission, emphasised the vision. “When you walk into Cowboy Coffee in Jackson, Wyoming, and want to buy your latte, you’ll be able to use your Solana wallet to pay with the Wyoming token.” This initiative represents a significant step forward in crypto adoption, offering a practical example of how stable coins can seamlessly integrate into everyday transactions, further enhancing the utility and acceptance of digital currencies
Celcius Repays $2.5 Billion Debt to Creditors
Former crypto lender Celsius has distributed over $2.5 billion to 251,000 creditors, covering more than 93% of the $3 billion owed to 372,000 customers after its collapse in 2022. The repayment process, which began in January, used Coinbase, PayPal, and cash transfers. However, 121,000 creditors still haven’t claimed their funds due to issues like small amounts or complications. Celsius plans to retry the distribution every two weeks and offer PayPal codes. Despite this, the crypto market remains stable, with no major price drops, unlike past instances where similar events caused significant market panic.