Market update

Cointree Crypto Market Update - August 21st 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$87,772, moving -3.48% at the time of writing. Meanwhile, Ethereum ends at AU$3,827 moving -6.10% week-on-week. On the Altcoin side, Solana drops -4.52%, Cardano loses it's Top 10 Status moving -0.06%, and XRP holds steady with +1.42%.

🗞 What’s happening in the news?

The market is buzzing with activity, and we’re here to keep you in the loop. From regulatory challenges to exciting sponsorship deals, here’s what you need to know...

🔮 SEC Rejects Solana ETFs

The U.S. Securities and Exchange Commission (SEC) has thrown a wrench into the plans for Solana ETFs. The SEC rejected Cboe BZX’s 19b-4 filings for two prospective spot Solana ETFs, leading to their removal from the Cboe website. The reason? Concerns over whether Solana should be classified as a security, a stance the SEC has taken in multiple court cases.

Despite this setback, the issuers, 21Shares and VanEck, aren’t giving up. Their filings remain active on the SEC’s EDGAR system, and they could refile or amend their proposals to address the SEC's concerns.

“We remain committed to expanding investor access to cryptocurrencies,” said Audrey Belloff, head of communications at 21Shares.

Keep an eye on this space—Solana’s journey in the ETF market is far from over!

💼 Institutional Investors Hold Steady on Bitcoin

Volatility? What volatility? Despite recent market swings, institutional investors are standing firm on their Bitcoin holdings. According to analysts, over 60% of the world’s leading hedge funds are now investing in Bitcoin via ETFs, underscoring growing confidence in the cryptocurrency.

Bitwise’s Head of Research, Europe, André Dragosch, shared some eye-opening stats:

“Of the institutional investors who allocated funds to spot Bitcoin ETFs in Q1 2024, 44% increased their stakes, 22% held steady, and only 21% reduced their positions in Q2.”

Even with Bitcoin’s price dropping over 20% in Q2, these institutions didn’t flinch—they continued to accumulate.

Wintermute analysts also highlighted the resilience of institutional investors, noting that their ongoing accumulation signals growing mainstream acceptance of Bitcoin as a key investment asset. This trend could have significant implications for the market as we move forward.

⚽ Floki Strikes Big with English Premier League Deals

If you follow us on Twitter, you know the Floki Vikings dominate the community space when mentioned — and now, they’re making waves in the sports world too! Floki has secured major sponsorship deals with English Premier League (EPL) teams, including Nottingham Forest and Sunderland AFC.

Floki’s ecosystem tokens and its flagship game, Valhalla, will be featured on stadium screens and as uniform sponsors. This move is part of an initial one-year contract aimed at boosting the project's visibility. Floki’s strategy bypasses traditional bidding processes through direct contacts, allowing them to increase brand visibility at a fraction of the cost compared to other major crypto projects.

The FLOKI token surged 10% following the news, with its price currently hovering around $0.000188. As Floki continues to expand its presence, keep an eye on how these partnerships might influence the token’s market performance.

💹 Yen Strengthening: What Bitcoin Traders Need to Know

Remember how the Japanese yen caused the crypto market to drop by 20% a couple of weeks ago? Well, the yen is on the move again, and it’s something Bitcoin traders need to watch closely.

The yen has been rallying against the U.S. dollar, gaining 2.4% recently and causing ripples in the global markets. This renewed strength in the yen could trigger another round of carry unwinds, potentially impacting risk assets like Bitcoin.

Simon Ree, a well-known trader, pointed out that:

“yen strength is causing a negative feedback loop, triggering stops and unwinding overstretched carry positions.”

ING analysts also warned that the yen’s rally could lead to a greater willingness among traders to buy yen at weaker levels, potentially skewing the market towards further yen appreciation.

Stay vigilant, traders—yen movements could have a significant impact on your crypto portfolios in the coming weeks.