The current market trends in the crypto space are closely tied to global economic indicators and central bank decisions. The CoinDesk 20 Index, a benchmark of top cryptocurrencies, has experienced a slight increase of 1.0% over the past day, reaching a value of 1,987.
Powered By
- Bitcoin (BTC): $60,841 – 0.5%
- Ether (ETC): $2,660 +0.9%
- S&P 500: 5,570.64 – 0.9%
- Gold: $2,534 +2.2%
- Nikkei 225: 38,364 +0.4%
Bitcoin’s Price Volatility Ahead of Jackson Hole Meeting
The crypto market is abuzz with anticipation for the upcoming Jackson Hole meeting, where Federal Reserve Chair Jerome Powell will deliver a speech. Analysts are divided on what to expect from Powell’s address, which could have significant implications for risk assets, including cryptocurrencies.
Dovish Tone or Cautious Approach?
According to Amberdata, "Given the good CPI reading last Wednesday, we’re likely to get a dovish Powell tone Friday," suggesting a potential favorable development for risk assets. However, SignalPlus cautions that Powell might adopt a cautious approach, while Deribit’s options market doesn’t anticipate a significant price swing in either direction.
Options Market Expectations
A recent survey conducted by Deribit found that single-day BTC options indicate a 2.5% price swing (in either direction). This suggests that investors are preparing for potential volatility but don’t expect a dramatic shift in the market.
Republican Presidential Candidate Donald Trump Promotes Decentralized Finance Platform
In an effort to win over crypto voters ahead of the Nov. 4 elections, Republican presidential candidate Donald Trump has announced his support for a decentralized-finance platform called "The DeFiant Ones." The platform aims to provide individuals with access to financial services and promote financial inclusion.
Crypto Believers See Potential in Blockchain Technology
Proponents of digital assets have long argued that blockchain technology can help bridge the gap between traditional finance and underserved communities. While details about Trump’s new platform are scarce, its potential impact on the crypto space is a topic of interest among industry observers.
Decentralized Finance (DeFi) Making a Comeback
According to Steno Research, DeFi projects focused on democratizing finance are expected to reach an all-time high in total value locked next year. The resurgence of DeFi can be attributed, in part, to the Federal Reserve’s decision to lower interest rates in 2020.
Interest Rates and Their Impact on DeFi
Analyst Mads Eberhardt notes that interest rates play a crucial role in influencing investor behavior. When interest rates are low, investors become more inclined to seek out higher-risk opportunities in decentralized financial markets. Conversely, when interest rates rise, the appeal of DeFi diminishes.
Chart of the Day: ETH’s Options Skews
The chart below illustrates ether’s 30- and 60-day options skews remaining negative. This indicates that puts offering downside protection are trading at a premium to calls, suggesting some traders are taking protective measures ahead of Powell’s speech.
Source: Amberdata – Omkar Godbole
Bitcoin Tops $61K Ahead of Jackson Hole as Ether ETFs Extend Record Outflow Streak
The crypto market has been volatile in recent days, with Bitcoin experiencing a significant price swing. Meanwhile, ether ETFs have continued to experience outflows, sparking concerns among investors.
Australia’s Securities Regulator Wins Case Against Kraken’s Local Operator
In a major development for the global regulatory landscape, Australia’s securities regulator has secured a win against Kraken’s local operator. This decision could have significant implications for crypto exchanges operating in the region.
Sam Altman’s Worldcoin Violated Data Policies, Colombia Regulator Says
A recent investigation by Colombia’s regulator found that Worldcoin, founded by Sam Altman, had violated data policies. This development highlights the importance of regulatory compliance in the crypto space and underscores the need for clear guidelines governing data protection practices.
