Morgan Stanley, the largest wealth manager in the United States, is likely to face intense compliance scrutiny after permitting its entire team of financial advisers to start pitching spot Bitcoin exchange-traded funds (ETFs). This move has drawn criticism from crypto skeptic John Reed Stark, a former U.S. Securities and Exchange Commission (SEC) official.
“By unleashing its legion of 15,000 brokers to pitch Bitcoin, Morgan Stanley has just voluntarily subjected themselves to what will likely become the largest SEC and FINRA examination sweep in history,” Stark wrote in an August 9 statement on X (formerly Twitter). He added, “Identifying violations will be like shooting fish in a barrel. So whoever Morgan Stanley’s current compliance director is — well, good luck with that.”
Stark explained that both the SEC and the Financial Industry Regulatory Authority (FINRA) will have immediate access to all records, documents, emails, texts, voicemails, and phone conversations related to Morgan Stanley’s Bitcoin sales to retail investors. “This resplendent, abundant, and easily accessible treasure trove of evidence will be available to the SEC and FINRA not only with the click of a mouse in the form of a request for documents or testimony but also upon demand during an on-site surprise ‘for-cause’ inspection,” Stark warned, calling the move “Morgan Stanley’s death wish.”
The criticism follows reports that Morgan Stanley authorized its 15,000 financial advisers to start recommending spot Bitcoin ETFs to high-net-worth clients. A source familiar with the matter confirmed to Cointelegraph on August 7 that the firm plans to endorse two Bitcoin ETF products: BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Crypto industry commentators believe Morgan Stanley’s move could be significant for Bitcoin. Haseeb Qureshi, managing partner at crypto venture fund Dragonfly, commented on X, “Expect to see some chunkier inflows in the second half of the year,” adding, “Can you imagine how big this is?”
Since the approval of spot Bitcoin ETFs on January 11, they have attracted $17.3 billion in inflows, according to data from Farside.
The Bitcoin bull-bear market cycle indicator, which tracks phases of investor sentiment, has shifted to signal bullish conditions after three days of flashing bearish signals as Bitcoin’s price plunged to levels not seen since February.
“Most Bitcoin on-chain cyclical indicators that were hovering near the borderline have now shifted back to signaling a bull market,” CryptoQuant founder and CEO Ki Young Ju wrote in an Aug. 9 post on X (formerly Twitter). Pseudonymous crypto trader PlanB added, “Bitcoin is still in a bull market.”
The indicator had entered “Bear” territory when Bitcoin’s price dropped below $50,000, following a steep decline to $49,751 on Aug. 5, a day now referred to as “Crypto Black Monday.” This marked the first time Bitcoin fell below $50,000 since February. Bitcoin continued to trade below the critical $60,000 level until Aug. 8, according to CoinMarketCap data. At the time of writing, Bitcoin is trading at $60,732.
This recent downturn marked the first bear signal from the bull-bear market cycle indicator since January 2023, shortly after the FTX collapse. The Crypto Fear & Greed Index also reflected this bearish sentiment, hitting an “Extreme Fear” score of 17 on Aug. 6, the lowest since the FTX crash. The index has since recovered to a “Neutral” reading of 48.
Some traders believe the swift reversal suggests the recent price dip could have been a bear trap, where experienced traders sell Bitcoin in a controlled manner to temporarily lower the price and trap short-sellers.
Analysts are divided on what comes next. While some see the recent downturn as a precursor to a bull run, others remain cautious. On Aug. 7, 10x Research’s head of research Markus Thielen suggested waiting for Bitcoin to drop into the low $40,000s to time the next bull market entry. Meanwhile, veteran trader Peter Brandt noted that Bitcoin’s decline since the halving is similar to the 2015-2017 halving bull market cycle, hinting at a potential bull run ahead.
Tether, the issuer of USDT—the world’s largest stablecoin—has minted over $1.3 billion worth of USDT since the market bottom, as investors appear to be positioning themselves to buy the dip.
Since the market hit its low on August 5, Tether’s treasury has printed over $1.3 billion in USDT. This newly minted USDT has been transferred to several major centralized cryptocurrency exchanges, including Kraken, Coinbase, OKX, and Bullish, according to an August 9 post on X by Lookonchain.
Large inflows of stablecoins like USDT to crypto exchanges often indicate that investors are preparing to buy assets, as stablecoins serve as the primary gateway for converting fiat currency into cryptocurrencies.
Following a significant $510 billion sell-off in the crypto market, there is speculation that the local market may have reached its bottom. Since August 5, when Bitcoin (BTC) hit a five-month low of just above $49,500, the cryptocurrency has shown signs of recovery. According to Bitstamp data, Bitcoin’s price has rebounded by over 21%, reaching $60,271 as of 10:44 am UTC. In the past 24 hours alone, Bitcoin has risen by more than 5.2%.
Despite this recovery, Bitcoin may still face volatility unless it can break through the crucial $64,000–$65,000 resistance level. This price range is significant because it represents the short-term realized price for large Bitcoin holding entities, often referred to as “whales.” As noted in an August 9 post by CryptoQuant, “The short-term holder whale realized price is in the 64K-65K range. This level may present itself as a resistance.”
Investors are now watching closely to see if the influx of USDT can help push Bitcoin above this key threshold.
Tether, the issuer of USDT—the world’s largest stablecoin—has minted over $1.3 billion worth of USDT since the market bottom, as investors appear to be positioning themselves to buy the dip.
Since the market hit its low on August 5, Tether’s treasury has printed over $1.3 billion in USDT. This newly minted USDT has been transferred to several major centralized cryptocurrency exchanges, including Kraken, Coinbase, OKX, and Bullish, according to an August 9 post on X by Lookonchain.
Large inflows of stablecoins like USDT to crypto exchanges often indicate that investors are preparing to buy assets, as stablecoins serve as the primary gateway for converting fiat currency into cryptocurrencies.
Following a significant $510 billion sell-off in the crypto market, there is speculation that the local market may have reached its bottom. Since August 5, when Bitcoin (BTC) hit a five-month low of just above $49,500, the cryptocurrency has shown signs of recovery. According to Bitstamp data, Bitcoin’s price has rebounded by over 21%, reaching $60,271 as of 10:44 am UTC. In the past 24 hours alone, Bitcoin has risen by more than 5.2%.
Despite this recovery, Bitcoin may still face volatility unless it can break through the crucial $64,000–$65,000 resistance level. This price range is significant because it represents the short-term realized price for large Bitcoin holding entities, often referred to as “whales.” As noted in an August 9 post by CryptoQuant, “The short-term holder whale realized price is in the 64K-65K range. This level may present itself as a resistance.”
Investors are now watching closely to see if the influx of USDT can help push Bitcoin above this key threshold.
U.S. regulators announced that they require additional time to decide whether an exchange-traded fund (ETF) designed as a comprehensive crypto portfolio can be listed on Nasdaq’s electronic securities exchange, according to an August 9 regulatory filing.
This filing responded to Nasdaq’s June request for permission to list the Hashdex Nasdaq Crypto Index ETF on its electronic exchange.
If approved, the Hashdex Nasdaq Crypto Index ETF would become the first diversified spot crypto ETF in the U.S. market. It would also be the first U.S. ETF to include alternative cryptocurrencies, or “altcoins.”
The ETF aims to track the Nasdaq Crypto US Index (NCIUS), which includes a diverse portfolio of cryptocurrencies weighted by market capitalization. According to the ETF’s registration filing, the holdings include core digital assets like Bitcoin (BTC) and Ether (ETH) as well as altcoins like Chainlink (LINK) and Uniswap (UNI). Notably, approximately 95% of the index is comprised of ETH and BTC.
Before this ETF can be traded, the Securities and Exchange Commission (SEC) must approve its registration application, known as an S-1, and allow at least one public equities exchange, such as Nasdaq, to list the product.
On August 6, Nasdaq submitted a similar filing to U.S. regulators, requesting permission to list options on Ethereum (ETH) ETFs. To date, the SEC has not permitted any exchanges to list options on spot BTC or ETH ETFs.
If approved, Nasdaq’s request would enable options trading exclusively for BlackRock’s iShares Ethereum Trust (ETHA), the only ETH ETF listed on Nasdaq’s electronic exchange. Other ETH ETFs are listed on the New York Stock Exchange’s (NYSE) Arca or Cboe.
In July, the SEC informed several options exchanges, including Nasdaq ISE, that more time was needed to make a decision on their requests to list options on spot BTC ETFs.
Bitcoin and Ether ETFs were first introduced in the U.S. in January and July, respectively, and now manage approximately $65 billion in assets, according to Yahoo Finance.
At the Aug. 7 Wall Street open, Bitcoin (BTC) hovered around $56,000, raising concerns over a lack of support.
Data from Cointelegraph Markets Pro and TradingView showed BTC’s price rebound stalling, with BTC/USD remaining flat compared to the daily open. Despite being up by around $7,000 from the six-month lows on Aug. 5, market observers remained worried amid uncertainty.
Analyzing exchange order book conditions, trading resource Material Indicators suggested that Bitcoin’s price direction could go either way based on current buy and sell liquidity. “The amount of BTC ask liquidity between here and the CME Gap fill is significant, but not insurmountable,” it noted in a post on X. “The concern is that there aren’t any large buy walls in the active trading range to create a foundation for a stronger move up. Let’s see if that changes after TradFi opens and the CME Gap is open for business.”
The “gap” in CME Group’s Bitcoin futures market, potentially acting as a price magnet, was identified between $57,845 and $58,845.
Material Indicators co-founder Keith Alan warned about two potential death crosses involving various moving averages but mentioned that the downside they suggest could be mitigated. “Trend Precognition and the MACD are both signaling a momentum shift on the Bitcoin Daily chart. The bullishness of those signals is somewhat dampened by the death cross between the 21-Day and 100-Day MAs. It appears that the 50-Day and the 200-Day are also on a similar path,” he explained on X, referencing proprietary trading indicators.
“It’s worth noting that Death Crosses are lagging indicators. A fast recovery could unwind them, and if BTC bulls can manage to fill the CME Gap today and continue upward, that would be a sign of strength. Failure to fill the gap or a rejection from the top of the gap would be a concern for bulls.”
The macroeconomic situation also remained volatile, with traders adopting a “wait and see” approach. In its latest bulletin to Telegram subscribers, trading firm QCP Capital advised monitoring macro correlations closely. “While the initial shock may have passed, we foresee continued selling pressure in the coming days as systematic funds continue to pare exposure in light of the heightened volatility,” it warned. “We recommend keeping a close eye on Nasdaq, Nikkei, and USDJPY as cross-asset correlations remain high in the near term.”
QCP reiterated its earlier view on long-term profitability, suggesting that crypto should now be suitable for longs.
At the Aug. 7 Wall Street open, Bitcoin (BTC) hovered around $56,000, raising concerns over a lack of support.
Data from Cointelegraph Markets Pro and TradingView showed BTC’s price rebound stalling, with BTC/USD remaining flat compared to the daily open. Despite being up by around $7,000 from the six-month lows on Aug. 5, market observers remained worried amid uncertainty.
Analyzing exchange order book conditions, trading resource Material Indicators suggested that Bitcoin’s price direction could go either way based on current buy and sell liquidity. “The amount of BTC ask liquidity between here and the CME Gap fill is significant, but not insurmountable,” it noted in a post on X. “The concern is that there aren’t any large buy walls in the active trading range to create a foundation for a stronger move up. Let’s see if that changes after TradFi opens and the CME Gap is open for business.”
The “gap” in CME Group’s Bitcoin futures market, potentially acting as a price magnet, was identified between $57,845 and $58,845.
Material Indicators co-founder Keith Alan warned about two potential death crosses involving various moving averages but mentioned that the downside they suggest could be mitigated. “Trend Precognition and the MACD are both signaling a momentum shift on the Bitcoin Daily chart. The bullishness of those signals is somewhat dampened by the death cross between the 21-Day and 100-Day MAs. It appears that the 50-Day and the 200-Day are also on a similar path,” he explained on X, referencing proprietary trading indicators.
“It’s worth noting that Death Crosses are lagging indicators. A fast recovery could unwind them, and if BTC bulls can manage to fill the CME Gap today and continue upward, that would be a sign of strength. Failure to fill the gap or a rejection from the top of the gap would be a concern for bulls.”
The macroeconomic situation also remained volatile, with traders adopting a “wait and see” approach. In its latest bulletin to Telegram subscribers, trading firm QCP Capital advised monitoring macro correlations closely. “While the initial shock may have passed, we foresee continued selling pressure in the coming days as systematic funds continue to pare exposure in light of the heightened volatility,” it warned. “We recommend keeping a close eye on Nasdaq, Nikkei, and USDJPY as cross-asset correlations remain high in the near term.”
QCP reiterated its earlier view on long-term profitability, suggesting that crypto should now be suitable for longs.
Core Scientific’s stock (CORZ) surged over 12% on August 6, following the expansion of a billion-dollar deal with artificial intelligence cloud provider CoreWeave. CoreWeave is expanding its hosting agreement with Core Scientific to secure additional resources for its Nvidia graphics processing units (GPUs). According to an announcement on August 6, Bitcoin miner Core Scientific will modify its infrastructure to supply approximately 112 incremental megawatts to CoreWeave’s GPUs.
Core Scientific’s shares rose 12.1% to $9.22 on the Nasdaq following the news. The company anticipates generating about $2 billion in additional revenue from the 12-year hosting agreement with CoreWeave.
The expansion comes nearly 60 days after Core Scientific declined a buyout offer from CoreWeave. On June 3, the firms announced a $3.5-billion deal for Core Scientific to provide 200 MW of infrastructure to host CoreWeave’s high-performance computing (HPC) operations. Shortly after, on June 6, Core Scientific revealed an unexpected and unsolicited buyout offer from CoreWeave of $5.75 per share, which the board members rejected, citing a low valuation.
In March, the companies had signed a leasing agreement with potential revenue exceeding $100 million for a Tier 3 data center in Austin, Texas. The site, previously used by Hewlett Packard, was expected to deliver up to 16 MW of capacity for CoreWeave.
“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure,” said Core Scientific CEO Adam Sullivan.
The total revenue from all contracts between the companies is now projected at $6.7 billion.
Modifications to Core Scientific’s infrastructure to meet the additional demand are expected to commence in the coming months, with operational status scheduled for the first half of 2026. CoreWeave will fund all capital investments required to convert the existing infrastructure into data centers tailored for dense HPC. The new agreement also includes provisions for two five-year renewal terms, and CoreWeave retains the option to further expand the deal with up to 118 MW of infrastructure at another Core Scientific site.
Buying a “strategic reserve” of Bitcoin would be another “Louisiana Purchase moment” for the United States, according to Michael Saylor, the outspoken co-founder of business intelligence company MicroStrategy. Speaking on CNBC on August 6, Saylor endorsed Wyoming Senator Cynthia Lummis’ proposed BITCOIN Act, which aims to compel the US Treasury to gradually accumulate 1 million BTC, almost 5% of the total supply.
“Thomas Jefferson purchased the Louisiana Territory for $15 million in 1803 and nearly doubled the size of the United States,” Saylor remarked. “Bitcoin is scarce, desirable digital property. It’s a great idea to trade a little bit of currency or paper for someplace that billions of people are gonna want to be in 100 years.”
Saylor’s company, MicroStrategy, owns approximately $8 billion worth of BTC. He has consistently been bullish on Bitcoin and recently predicted that its price could reach approximately $13 million per coin by 2045. This forecast was made during his keynote speech at the Bitcoin 2024 conference on July 26.
The Bitcoin 2024 conference, which Saylor described as “very catalytic and marked an inflection point for Bitcoin,” attracted significant attention from political figures, including US presidential candidates, governors, senators, and house members who voiced their support for the digital asset. “Now, it’s possible to discuss nation-states holding Bitcoin on the balance sheet. And if nation-states are going to buy it, then it’s reasonable for institutions, corporations, and individuals to buy it as well,” Saylor told CNBC.
Saylor has urged investors to become “triple maxi” BTC bulls, advocating for pouring all available resources into BTC with the goal of achieving a nine-figure net worth in the coming decades.
His comments came just one day after the entire crypto market experienced a $510-billion drop in total market capitalization during a market crash. Despite Bitcoin’s approximate 18% price decline, it has shown partial recovery. Notably, long-term investors have remained resilient, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing zero net outflows on August 5, despite the market turbulence.
Bitcoin (BTC) attempted to stabilize at the Wall Street open on August 5 as the crypto markets recovered from a significant sell-off.
Data from Cointelegraph Markets Pro and TradingView showed a $4,000 rebound in BTC’s price after the U.S. trading session began, bringing it near $55,000. This recovery followed a dip below $50,000, the first time since February, causing concern among traders who feared further declines as traditional financial markets reopened.
Risk assets experienced relatively mild losses, with the S&P 500 down 3% and the Nasdaq Composite Index 3.7% lower at the time of writing. U.S. markets thus avoided the severe losses seen in Asia, where Japan’s Nikkei 225 suffered its worst two-day combined losses in history.
Mass selling by trading firm Jump Trading was reported to have significantly impacted the crypto market’s sharp reaction. The Kobeissi Letter attributed the market turmoil to the unprofitable Japanese yen carry trade, exacerbating existing market pain. “The solution to this problem is not as simple as it may seem and may require a separate thread,” it explained on X. “This is a vastly different situation than previous market downturns.”
The VIX volatility index reached levels seen only during the 2008 global financial crisis and the March 2020 COVID-19 market crash. Charles Edwards, founder of Capriole Investments, noted the similarities to early 2020: “Some eerie similarities to early 2020. Stocks overvalued, growing risk of recession, rising unemployment, sharp correlated global market moves down,” he told X followers.
Edwards suggested that the Federal Reserve would likely intervene with early rate cuts and liquidity measures, but the timing remains uncertain. “At some point, the Fed will step in, likely with early rate cuts and probably liquidity too. But when? Until then, expect ALL markets to correlate.”
An emergency meeting by the Federal Reserve was reportedly under consideration, with varying predictions on the outcome. Jeremy Siegel, a professor at the Wharton School of Business, predicted, “I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” in an interview with CNBC. The Federal Open Market Committee (FOMC) meeting next month is now expected to trigger a 0.5% rate cut, according to CME Group’s FedWatch Tool.