Crypto Market

BTC and ETH Market Insight

The net outflow of US spot Bitcoin ETFs continued for 8 consecutive days, and the Fear & Greed Index is signaling ‘Extreme Fear’. Bitcoin's fourth halving in 2024 experienced the worst price performance with an 8% drop in the first 125 days, compared to a 22% increase in previous halving cycles. The halving's net effect is insufficient to significantly impact the price of Bitcoin or the broader crypto markets. According to Glassnode, from a macro perspective, the spot price was trading around -26% below the ATH, which remained a relatively shallow drawdown compared to historical bull market regimes.

Options Market

The implied volatility remained elevated as the market weakness persisted. The hectic move of the 50 bps rate-cut probability in September upon non-farm payroll figures brought more volatility. Equities were sold off and crypto fell in tandem. BTC hit as low as 52.5k and ETH 2.15k, looking to re-test the lows seen on the pullback in early August. Front-end skew increased further to favour put whereas the mid and long-term still favoured calls -Dec and Mar call spread continued  to print in decent clips. ETH remained at a weaker spot than BTC and the market is currently pricing a 13 vol premium on the front-end over BTC and 10 vol for longer tenors.

Altcoins and Blockchain News

• Synthetix's upcoming new application chain, SNAXchain, aims to bring cross-chain liquidity and trading fee income to native token stakers and on-chain trading products.

• SunPump completed the burning of 12 million SUN tokens on September 6th.

• Curve founder Michael Egorov announced on the X platform that he will extend the locking period for his veCRV tokens until August 31, 2028.

• CryptoQuant posted on social media that since the Ethereum merge in September 2022, the ETH/BTC exchange rate has dropped by 44%. The current ETH/BTC exchange rate is 0.0425, hitting its lowest point since April 2021.

• The cross-chain protocol InterSwap, supported by Axelar (AXL), has announced the launch of its public testnet.

• Catizen currently has a total user base exceeding 33 million, with over 2 million on-chain users, over 2.2 million Telegram Premium users, total revenue from the ecosystem exceeding $20 million, and over 750,000 paying users.

• According to l2beat data, the Gravity Alpha Mainnet TVL of Galxe's Layer1 blockchain, designed for a complete chain experience and abstraction, has reached $148.05 million, with a 7-day increase of 97.21%.

• As reported by nftplazas, Web3 game developer Mino Games announced the transition of its card game "Dimensionals" to a Web2 model.
  
  

Marco

The major indexes closed lower for the week: the DJIA lost -2.9%, the S&P 500 -4.2% and the NASDAQ -5.8%. The labor market report was a key focus for the week, signaling the weakening of the U.S. labor market.The increasing worries over an economic slowdown and the rumors about NVIDIA being the subject of investigation dragged the market sentiment.