Market Watch | BTC sees volatile fluctuations, market awaits tonight's CPI data

Daily Summary: BTC long-term holder still firmly holding, BANANA destroys 2% of the Token

According to Farside Investor data, the overall net inflow of BTCSpot ETF was nearly $39 million yesterday. Among them, BlackRock IBTC saw an inflow of $34.7 million, Fidelity FTBC saw an inflow of $22.6 million, and Grayscale GBTC saw an outflow of $28.7 million. Overall fund inflows slowed significantly compared to July.

Yesterday, the overall net inflow of ETH ETF was $25 million. BlackRock’s ETHA saw an inflow of $49.3 million, while Grayscale’s ETHE saw an outflow of $31 million. Selling pressure from Grayscale has gradually decreased, but there hasn’t been a significant influx of funds into ETH ETF.

Report: BTC long-term holders remain steadfast, with Holdings value still at historic highs

Glassnode stated in its weekly on-chain report that after experiencing several months of relatively heavy distribution pressure, the behavior of BTCholders seems to have turned towards HODLing and accumulation.

In the past three months, over 374,000 BTC have been transferred into LTH (Long-Term Holdings) status. The activity in the Spot market indicates a net tendency towards selling pressure, which has not yet completely dissipated. However, the recent price fluctuation has caused a significant reduction in the distribution pressure on LTH, leading to a stabilization of the value proportion of this group’s holdings, followed by a rise.

Compared to the ATH breakthrough in past cycles, the value of long-term holder Holdings is still at a historical high. This indicates that if BTC prices pump in the future, LTH may face further withdrawal pressure. It also indicates that despite BTC prices being in a Sideways consolidation, and even recently dropped, these investors are willing to further reduce their position at lower prices.

BANANA announces the destruction of 2% of the total supply of BANANA tokens.

According to official sources, the Telegram Bot project Banana Gun announced the destruction of 2% of the total supply of BANANA Token, approximately $8.6 million. Banana Gun is a Telegram bot designed for on-chain traders. By using Banana Gun, users can automatically snatch tokens about to be listed, which is quite friendly to retail investors. From the market’s enthusiastic response to TG trading bots, we can observe a rapid rise in demand for these types of bots, which may continue to expand in the future.

Opinion: Satoshi Nakamoto’s BTC holdings are expected to be surpassed by the US BTC Spot ETF

Bloomberg ETF analyst Eric Balchunas tweeted on social media that ‘The US BTCSpot ETF is expected to surpass Satoshi Nakamoto as the largest entity holding BTC in October. The ETF product launched by BlackRock alone is already the third largest holder of BTC and is expected to become the largest holder by the end of next year, and is likely to maintain this position in the long term.’

Market Analysis:

Market Trends

• BTC: Recently, the trend of BTC has been fluctuating between $58,000 and $62,000. Although the fund inflow of BTC spot ETF has slowed down significantly, the market expects the volatile trend to continue. This trend indicates that there are still divergent views on BTC in the market, and investors are cautious about its future trend.
• ETH: The recent performance has been strong, with a Rebound breaking through the $2,700 level. The ETH/BTC trading pair has also made some recovery. However, the ETH spot ETF has not seen significant capital inflows, which may suggest that market sentiment towards ETH remains limited.
• AltCoin: The AltCoin market is generally falling, and the BRC-20 zone is performing well, showing good capital aggregation. Although the overall market sentiment is relatively low, some zones can still attract capital to follow.

Data Metrics

• AHR999 Index: Today’s AHR999 Index is 0.7. The AHR999 Index is an indicator used to measure the BTC price relative to its historical price. The current value of 0.7 indicates that the BTC price is relatively low and suitable for staggered buying.
• Fear and Greed Index: The Fear and Greed Index is 30 today, indicating that market sentiment will remain depressed for a while. A value below 50 indicates fear in the market and conservative investor sentiment. This sentiment may lead to continued volatility or downward movement in the market in the short term.

Market Hotspots

1. BTC ecosystem: Several projects in the BTC ecosystem have performed well, with significant pumps in SATS, RIF, STX, CKB, PIZZA, and other tokens. In particular, SATS, as the leading token in the BRC-20 zone, has doubled its price compared to the previous two weeks and its market cap has surpassed ORDI. This indicates that the BRC-20 zone continues to attract investors in the current market environment.
2. Botzone: BANANAToken rose 20% in response to the news. Banana officially announced the destruction of 2% of the total supply of BANANAToken, worth about $8.6 million. This news significantly boosted market confidence and pumped up the BANANA price.

Macroeconomics: US stock and other risk asset markets await tonight’s CPI data

The three major U.S. stock indexes all rose more than 1%, with the S&P 500 rising 1.68% to 5434.43 points; the Dow Jones Industrial Average rose 1.04% to 39765.64 points; and the Nasdaq Composite rose 2.43% to 17187.61 points. The benchmark 10-year U.S. Treasury yield was 3.85%, and the 2-year U.S. Treasury yield, which is most sensitive to the Federal Reserve’s interest rate policy, was 3.93%. Among the popular U.S. stocks, Apple rose 1.72%, Microsoft rose 1.77%, NVIDIA rose 6.53%, Google Class C rose 1.21%, Google Class A rose 1.15%, Amazon rose 2.06%, Meta rose 2.44%, TSMC rose 2.80%, Tesla rose 5.24%, and AMD rose 3.19%.

Federal Reserve Bostic said the US economy is expected to normalize in the coming months; rate cuts are imminent, and more data is hoped for; recent inflation data has strengthened confidence in inflation returning to 2%. At 20:30 tonight Beijing time, the US July CPI data will be released, and significant market Fluctuation is expected around the release.

Summary

The current market is in a state of volatility, and the performance of BTC and ETH reflects the cautious attitude of the market towards major cryptocurrencies. Despite the overall market sentiment being low, some zones such as BRC-20 and Botzone still attract funds to follow and perform relatively well. From the perspective of data indicators, it is currently a good time to buy BTC in batches, but the low market sentiment may prolong the period of volatility.

In the future, with the gradual recovery of market sentiment and the reflow of funds, major cryptocurrencies are expected to have new pump opportunities. However, before that, the market may still need to go through a period of consolidation and volatility. Investors should closely follow market trends, adjust investment strategies in a timely manner, and respond to possible market changes.

Author: icing This article represents only the author’s point of view and does not constitute any trading advice. This article is original, and the copyright belongs to Gate.io. Please indicate the author and source if you need to reprint, otherwise legal responsibilities will be pursued.