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.
Trading volumes for Bitcoin (BTC) exchange-traded funds (ETFs) soared past $1 billion as trading commenced on August 5, driven by plummeting markets that led to “extremely elevated” trading activity in the crypto sector, according to Alex Thorn, head of research at Galaxy Digital. In a post on the X platform, Thorn highlighted that within just 20 minutes, Bitcoin ETFs recorded over $1.3 billion in trading volume, with iShares Bitcoin Trust leading the pack at over $875 million.
Thorn anticipates net inflows for BTC ETFs due to “dip buying” as investors rush to capitalize on an approximate 8% drop in spot BTC prices since August 4. This decline followed a significant downturn in Ether (ETH) prices, which plunged by over 21%. The sharp drop was attributed to substantial sales by funds such as Jump Trading and Paradigm VC, who offloaded hundreds of millions of dollars worth of Ether, as reported by QCP Group on August 5.
Bitcoin prices have fallen around 8% in the past day, according to CoinMarketCap. Related reports indicate that the crypto market crash was triggered by “aggressive” selling by Jump Trading, with analysts noting that Jump has already sold over $377 million in ETH and may plan to liquidate up to $481 million in total.
The overnight sell-off exacerbated a deteriorating macroeconomic environment affecting all asset classes. The S&P 500 index has dropped more than 5% since August 1. The report further stated, “Macro sentiment has also worsened following poor US unemployment data last Friday. Additionally, huge unwinds across all assets [have] caused volatility to spike sharply.”
Japan’s central bank raised interest rates on July 30, prompting traders to rapidly unwind positions that had taken advantage of the country’s low borrowing costs.
Markus Thielen, founder of 10x Research, expressed to Cointelegraph his expectation of a slowdown in new crypto investments until the market stabilizes: “The market structure, including fiat-to-crypto on-ramps, has been weak for months […] It’s unlikely that significant players will invest amid high volatility and unpredictable prices. Many still need to exit positions and deleverage their portfolios.”
Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to “demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer explained.
“While [MicroStrategy’s] approach has had plenty of detractors, […] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmark’s “buy” rating is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer stated.
MicroStrategy’s stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 million—approximately $65,800 per coin—financed through “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.
Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to “demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer explained.
“While [MicroStrategy’s] approach has had plenty of detractors, […] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmark’s “buy” rating is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer stated.
MicroStrategy’s stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 million—approximately $65,800 per coin—financed through “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.
The U.S. government has transferred $2 billion worth of Bitcoin, despite former President Donald Trump’s recent statement that the U.S. would never sell its Bitcoin holdings.
This transfer, consisting of 29,800 Bitcoin, was moved from a government wallet, which held assets seized from the Silk Road marketplace in 2022, to an unknown address on July 29.
The funds have since been transferred to another unknown wallet.
This move comes just days after Trump, speaking at the Bitcoin 2024 conference in Nashville, Tennessee, made several pro-crypto promises.
He vowed that the U.S. government would retain its Bitcoin holdings and aimed to establish the U.S. as the “crypto capital of the world” through supportive policies, including the dismissal of Securities and Exchange Commission Chair Gary Gensler.
Additionally, Senator Cynthia Lummis announced legislation to designate Bitcoin as a strategic reserve asset for the U.S. She proposed acquiring 5% of Bitcoin’s total supply to hold as a Treasury asset, likening it to a modern “Louisiana Purchase.”
Catherine Chen, Binance’s head of VIP and institutional, commented to Cointelegraph that the attention on Bitcoin from high-profile U.S. figures is a “positive sign” for the digital asset sector.
READ MORE: Bitcoin Stabilizes Ahead of Critical Weekly Close Amid Presidential Candidates’ Crypto Plans
“What is clearly meaningful is that politicians and prominent industry leaders are explicitly stating their positions, recognizing the value of Bitcoin in the monetary system, and making it clear that crypto is important on their agenda,” Chen noted.
She highlighted Binance’s Capital, People, Technology (CPT) Framework, which aims to advance the crypto market under these strategic reserves.
Galaxy Digital CEO Mike Novogratz criticized the government’s Bitcoin transfer, calling it “tone deaf.” Some speculate this transfer might relate to a July 1 agreement between Coinbase and the U.S. Marshals Service to manage government-held crypto assets.
The U.S. government currently holds $12 billion in Bitcoin, primarily from seizures. However, not everyone believes Bitcoin will become a strategic reserve asset.
BlockTower Capital’s Ari Paul estimated a 10% chance of this happening within the next four years, suggesting skepticism about this direction for Bitcoin in the U.S. policy landscape.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Bitcoin (BTC) aimed to reclaim $62,000 on August 3, as markets showed signs of recovery after a significant liquidation event.
Data from Cointelegraph Markets Pro and TradingView indicated a 3% rebound in BTC price following multi-week lows of $60,435 on Bitstamp.
This came on a day of heavy losses for global stocks, with Japan’s Nikkei dropping 6%, setting a pessimistic tone for Wall Street. Disappointing U.S. employment data added to the panic.
Bitcoin itself lost nearly $5,000, breaching several key support levels, including the short-term holder cost basis.
Liquidations surged as a result, with monitoring resource CoinGlass reporting a total crypto longs wipeout of $230 million on August 1 and 2.
“The yields are falling off a cliff in the U.S. markets as the job reports came in astonishingly bad,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, commented on X.
“Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”
Van de Poppe suggested that the recent events likely increased the chances of the Federal Reserve cutting interest rates at its next meeting in September, a move seen as bullish for crypto and risk assets.
“One thing is for certain: Rate cuts for September are confirmed,” he concluded.
The United States’ rising national debt, now exceeding $35 trillion, is raising alarms about the economy’s health.
Analysts suggest that this growing debt could drive greater adoption of Bitcoin as a safe-haven asset.
Matt Bell, CEO of Turbofish, highlighted the potential for Bitcoin in the face of fiat currency devaluation: “The recent news of the US national debt reaching the record high of $35 trillion highlights growing concerns around the sustainability of traditional fiat currencies.
This situation stresses the importance of Bitcoin as ‘hard money’ — a decentralized and deflationary asset that offers a hedge against currency devaluation.”
Investors often turn to safe-haven assets like Bitcoin and gold during times of fiat currency instability to safeguard their purchasing power. Historical trends show Bitcoin’s value rising during periods of financial distress.
According to Bitfinex analysts, the burgeoning US debt could drive Bitcoin prices to new heights as government bonds lose appeal.
They stated, “The US national debt of $35 trillion highlights the importance of Bitcoin as ‘hard money’ and potentially acts as a catalyst for the next upward cycle in Bitcoin […] This may drive investors to seek alternative stores of value like Bitcoin, which is often perceived as a hedge against economic inefficiencies.”
The analysts also pointed out that a significant portion of the current US national debt is linked to inflation and the ease of printing money.
They noted, “Bitcoin can rightly be called one of the only true hard currencies because it’s protected against inflation to a large degree, has a limited supply, is durable due to its digital nature and is increasingly available.”
Crypto analyst Rekt Capital predicted a possible breakout in Bitcoin’s price in September, saying, “Bitcoin is still on track for a September breakout.
History suggests that a breakout from the ReAccumulation Range mere ~100 days after the Halving was always going to be unlikely.”
As of July 31, Bitcoin’s price had risen over 8.3% in the past month, trading just above $66,000, according to Bitstamp data. Despite this increase, Bitcoin remains 10.5% below its all-time high of $73,750.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Digital currency-backed exchange-traded funds (ETFs) are expected to be integrated into “model portfolios” by the end of 2024, according to Samara Cohen, BlackRock’s chief investment officer for ETFs and Index Investments.
In a Bloomberg interview on July 29, Cohen discussed the current state of major financial institutions, including Morgan Stanley, Wells Fargo, and UBS, in relation to onboarding and promoting crypto ETFs.
She mentioned that these institutions are now engaged in risk analytics and due diligence, particularly focusing on Bitcoin (BTC) and Ether (ETH) within their portfolios.
Cohen noted, “What will happen toward the end of this year and into next year is we will see allocations into model portfolios which will give us much more of a steer into how investors are using them.”
Model portfolios, commonly offered by large brokerage firms, are diversified investment strategies that balance risk and return, providing investors with pre-designed templates or “recipes” for investing.
BlackRock anticipates that the management of model portfolios will grow from the current $4.2 trillion to $10 trillion over the next five years.
Earlier in July, Salim Ramji, global head of iShares and index investments at BlackRock, commented on the growing trend, stating, “It’s going to be massive,” and emphasizing the importance of fiduciary advisers in this shift.
Cohen highlighted that Bitcoin and Ether, though distinct in their use cases, serve as “portfolio diversifiers.”
Addressing the recent net outflows from spot Ether ETFs, she expressed no concern, noting the strong initial launch and the role these ETFs play as an “access point” for investors seeking exposure to ETH.
She remarked on the outflows from more expensive funds, such as the Grayscale Ethereum Trust, and noted investor interest in incorporating ETH into broader portfolios within trusted ecosystems.
Cohen also indicated that a spot ETF for altcoins like Solana (SOL) is unlikely in the near future.
Robert Mitchnick, BlackRock’s head of digital assets, echoed this sentiment at the Bitcoin 2024 conference, saying, “I don’t think we’re gonna see a long list of crypto ETFs.”
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Bitcoin encountered significant selling pressure after the Wall Street opening on July 29, as attempts to reach the $70,000 mark were decisively rejected.
Data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin’s price dropped by 4.5% following a distribution phase.
After a steady climb over the weekend and during the initial Asian trading session, BTC/USD lost steam when Wall Street reopened, falling from a high of $70,016 on Bitstamp to a low of $66,839.
This price movement coincided with a notable transfer from a wallet linked to the U.S. government, involving approximately $2 billion in Bitcoin.
Trader Skew noted, “Transfer went to a fresh wallet by looks of it which typically is the precursor of OTC related auctions,” suggesting potential impacts on supply and price.
Charles Edwards, founder of Capriole Investments, expressed concern over the recurring pattern of government-related Bitcoin distributions affecting price trends.
He commented, “Just when you think all the excess supply dumping is over, the current admin finds another way to screw us.”
Analyzing recent market dynamics, Skew highlighted significant profit-taking at higher price levels, observing, “That push up from spot takers was met with passive spot selling, hence price didn’t sustain above $70K on LTF.”
READ MORE: Why Do We Need an RWA Tokenized Lending Blockchain Protocol?
The $69,000+ region remains a crucial psychological and liquidity threshold for Bitcoin, echoing its previous all-time high in 2021.
CoinGlass data indicated that while the liquidity above $69,000 remained intact, the price dipped to lower levels to access liquidity.
Skew anticipated further downside, noting bulls’ struggles to stabilize the market. Josh Rager, another well-known trader, cautioned that the market could see a series of lower highs, leading to a potential downtrend.
Trader CrypNuevo speculated on choppy price action ahead of the Federal Reserve’s meeting on July 31, stating, “When there is a big event like this FOMC, markets tend to be choppy until the news comes out.
“Big players step in with caution.
“Not an easy week.”
He also shared a chart suggesting possible Bitcoin price movements around the Fed’s decision.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
The U.S. government has transferred $2 billion worth of Bitcoin, despite former President Donald Trump’s recent statement that the U.S. would never sell its Bitcoin holdings.
This transfer, consisting of 29,800 Bitcoin, was moved from a government wallet, which held assets seized from the Silk Road marketplace in 2022, to an unknown address on July 29.
The funds have since been transferred to another unknown wallet.
This move comes just days after Trump, speaking at the Bitcoin 2024 conference in Nashville, Tennessee, made several pro-crypto promises.
He vowed that the U.S. government would retain its Bitcoin holdings and aimed to establish the U.S. as the “crypto capital of the world” through supportive policies, including the dismissal of Securities and Exchange Commission Chair Gary Gensler.
Additionally, Senator Cynthia Lummis announced legislation to designate Bitcoin as a strategic reserve asset for the U.S. She proposed acquiring 5% of Bitcoin’s total supply to hold as a Treasury asset, likening it to a modern “Louisiana Purchase.”
Catherine Chen, Binance’s head of VIP and institutional, commented to Cointelegraph that the attention on Bitcoin from high-profile U.S. figures is a “positive sign” for the digital asset sector.
READ MORE: Bitcoin Stabilizes Ahead of Critical Weekly Close Amid Presidential Candidates’ Crypto Plans
“What is clearly meaningful is that politicians and prominent industry leaders are explicitly stating their positions, recognizing the value of Bitcoin in the monetary system, and making it clear that crypto is important on their agenda,” Chen noted.
She highlighted Binance’s Capital, People, Technology (CPT) Framework, which aims to advance the crypto market under these strategic reserves.
Galaxy Digital CEO Mike Novogratz criticized the government’s Bitcoin transfer, calling it “tone deaf.” Some speculate this transfer might relate to a July 1 agreement between Coinbase and the U.S. Marshals Service to manage government-held crypto assets.
The U.S. government currently holds $12 billion in Bitcoin, primarily from seizures. However, not everyone believes Bitcoin will become a strategic reserve asset.
BlockTower Capital’s Ari Paul estimated a 10% chance of this happening within the next four years, suggesting skepticism about this direction for Bitcoin in the U.S. policy landscape.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.