August 14 BTC markets weak amid summer lull Bitfinex Alpha 67
In Bitfinex Alpha
The only word we use to describe the current market environment is: weak. In fact, he is weak at best and skeptical at worst. Bitcoin funds saw weekly inflows peak at $111 million in the week ending August 5, their most significant weekly withdrawal since March. Although there have been some flows since then, they have been relatively small.
But what is more positive is that the trend of redirecting withdrawals into short Bitcoin funds has also paused. In fact, some altcoins have seen increased inflows. Solana, XRP, and Litecoin all recorded positive cash flows.
However, the broader landscape shows that there is still a large dose of caution among investors. Trading volumes across the chain, as well as the broader exchange market, are down 62 percent year-to-date. Bitcoin miners are contributing to this as they prepare for the expected halving next April, and are significantly stockpiling their assets.
Volatility indicators show that we are experiencing calmer times overall. Bitcoin's historical metrics appear to be stabilizing, indicating an imminent stabilization in market volatility, as traders point to a balanced market.
The broader macro environment also appears calm. Consumer prices in July saw a modest rise of just 0.2%, driven by higher rental costs but offset by lower prices in areas such as automobiles. Current inflation data paints a picture of a steady 2% annual rate, giving the Fed some breathing room and removing immediate pressure for further rate hikes. Small businesses are also becoming a bit optimistic according to the National Federation of Independent Business. However, their confidence remains below the 49-year average, suggesting a continuing atmosphere of caution.
But this quiet period did not stop the flow of news. PayPal's unveiling of PYUSD, a stablecoin tied to the Ethereum blockchain, represents a massive merger of traditional financial models with the world of cryptocurrencies. In order not to lag behind, India has revealed its interest in developing an integrated web browser for cryptocurrencies, stressing its commitment to compatibility with new web technologies. Finally, the SEC's decision to postpone its decision on Ark Invest's Bitcoin exchange-traded fund application has been added – and optimists point out that this will ultimately be good for the long-term goal of expanding access to crypto assets.
Work also continues to expel alleged misdeeds of the past. FTX co-founder Sam Bankman-Fried has had his bail conditions revoked and is remanded in custody following allegations of witness tampering, while the exchange's former outside legal counsel also faces a class action lawsuit.
Who said that everything is quiet in the cryptocurrency space? Happy trading!
