Bitcoin had its most significant negative one-day move this year, with a 10% drop in a matter of hours, falling to around $26,000 after relatively low volatility over the last few months. The reason for the move is based on several technical factors, while long-term holders have not shown any signs of selling. This week, bitcoin rose to nearly $28,000 based on positive news for a spot bitcoin ETF approval.
THIS WEEK'S TOP STORIES
MARKET NEWS
Bitcoin Holders Undeterred Amid Short-Term Leverage Wipeout
On August 17, bitcoin dropped 10% in a 2-hour span, with the culprit a mixture of variables. First, options deleveraging (perpetual futures markets dropped by about $2.75bn during and following the event) was the largest since the collapse of FTX in November 2022, as forced selling amplified the move loser. Additionally, the move was worsened by low volume on exchanges as dollar-denominated monthly trading volumes are at their lowest point since October 2020. Despite this price action, the percentage of Bitcoin’s supply that hasn’t moved in 3+ years is making new all-time highs at over 40%. Long-term holders continue to accumulate and hold for longer. Read Full Story...
INSTITUTIONAL INFRASTRUCTURE
EDX Markets Selects Anchorage Digital as Custody Provider for New Clearinghouse Business
Institutional crypto exchange EDX Markets (backed by major financial institutions, including Citadel Securities and Fidelity Digital Assets) has partnered with Anchorage Digital to utilize their regulated crypto platform as the custody provider for EDX’s clearinghouse business (EDX Clearing). This move aims to bring traditional market structure standards to the digital asset ecosystem and establish a safer crypto marketplace. EDX's CEO, Jamil Nazarali, emphasized Anchorage Digital's robust security, governance, risk, and compliance framework as crucial for serving its institutional client base. As the US's sole federally chartered crypto bank, Anchorage Digital Bank is seen as an ideal partner for EDX's pursuit of a compliant clearinghouse business. Read Full Story...
BITCOIN ETF
First bitcoin ETF could be coming soon as court rules in favor of Grayscale over SEC
After a two-year battle to convert GBTC to a spot bitcoin ETF, Grayscale is making progress. Yesterday, the US Court of Appeals for the DC Circuit ruled in favor of Grayscale against the SEC. While this doesn’t mean GBTC will be converted to a spot bitcoin ETF, it has increased confidence that it will eventually be approved. This news precipitated a nearly 6% increase in the bitcoin price. Read Full Story...
