Crypto Market

BTC and ETH Market Insight

The Federal Reserve maintains rates at 5.25-5.5%, prompting investors to anticipate a rate cut by the central bank in September. The market experienced a significant drop on Wednesday as escalating geopolitical uncertainties seized the focus of investors. 45% of the BTC network wealth is held by long-term investors, and many coins obtained during ETF-hype will soon shift into long-term HODL status. Capital outflows are occurring as the number of altcoins surpasses growth capital. A rapidly growing trend in the crypto space is the surge of crypto betting, with no signs of slowing down, as Polymarket's betting volumes reached a staggering $1 billion.

Options Market

BTC briefly broke through the 70k mark at the beginning of the last week before the pullback from 70k to 61k. ETH continued to experience some selling pressure post ETF launch, dipping below 3k support and finding its footing around the key 3k mark. The implied volatility fell post the BTC conference as the market unwound positions built up ahead of the event. The pullback only pushed IVs marginally higher, manifesting little fear from the market. Skew, on the other hand, shifted to favor puts in the front end as the downside protection demand rose.

Altcoins and Blockchain News

• According to official data, as of August 1st, Circle issued approximately 2.4 billion USDC and redeemed approximately 3.3 billion USDC in the past week, resulting in a decrease of approximately 900 million USDC in circulation.

   

• According to L2BEAT data, the TVL on the Ethereum Layer2 network is currently $38.67 billion, which is a 10.03% decrease in the last 7 days.

   

• Master Bot's userbase reached over 1 million after three weeks since launch, with the addition of finger equipment and TON rewards.

   

• The total size of the Paris Olympics fund pool on the prediction market Polymarket has exceeded $10 million.

   

• Binance CEO: In the future, games, SocialFi, and DeFi will drive the adoption of cryptocurrencies.

   

• According to The Block, the cryptocurrency trading platform Bybit will cease to offer services in France.

   

• Binance Labs announced an investment in the modular chain abstraction L1 Particle Network, with the specific amount undisclosed.

   

• DePIN Project Daylight completed a $9 million financing round, with a16z Crypto leading the investment.

Marco

The major indices closed lower for the week: the DJIA lost -2.1%, the S&P 500 -2.1%, and the NASDAQ -3.4%. The labor market cools down more than expected: the surprising unemployment rate jumped from 4.1% to 4.3%, the highest level since October 2021. The Fed officials are now likely to concerned more about the downside risk to the labor market.