Crypto Market

BTC and ETH Market Insight

The Grayscale ruling on Tuesday had an immediate impact, causing BTC and ETH to experience an 8% surge after months of grinding down. However, the market completely reversed the gains made from the Grayscale victory pump in just 50 hours. Lowest monthly trading volume since 2020. $ETH experienced its lowest monthly trading volume since 2020 during the past month. The capital seemed to stop fleeing the market as the stable liquidity appeared to have bottomed out.

Options Market

The short term gamma sellers with dynamic risk management were hurt on big price swings this week - it rallied on optimism boosted by Grayscale’s ETF case win against SEC and erased all the gains after two trading sessions. The swings seemed to be highly concentrated within a very tight time window. Near-term IVs pumped on the rally and faded very quickly on the plunge to nearly unchanged compared to the previous week. Broadly speaking, the whole option market currently seemed to be far less prone to any sort of rekindling. Although the market remained rather sluggish in terms of volume and catalysts, with Grayscale’s victory we might start to see more plays on the potential upside to kick in.

Altcoins and Blockchain News

• The UK Financial Services Authority requires crypto  asset service providers in the country to comply with FATF travel rules from September 1.
• CyberConnect: The cross-chain bridge update proposal will allow CYBER to freely cross-chain on Ethereum, Optimism and BNB Chain.
• Arkham: Grayscale Ethereum Fund on-chain addresses have been identified, holding Ethereum worth a total of approximately $5 billion.
• According to Reuters, HashKey Capital has announced the launch of the first secondary crypto market fund, which will invest less than 50% of its capital in bitcoin and ethereum, the two largest crypto assets.
• The LSD stablecoin protocol Prisma Finance has officially launched on the Ethereum mainnet, users can mortgage wstETH, rETH, cbETH, sfrxETH to lend mkUSD.
• Yao Wensong, CEO of ZA Bank: ZA Bank is actively preparing to cooperate with Hong Kong licensed exchanges such as HashKey.
• According to DefiLlama data, friend.tech’s revenue on August 27 was US$80,560, a drop of more than 95% from the peak of US$840,000.
• According to zkSync Era block explorer data, the total number of transactions on the zkSync Era network has exceeded 100 million. 

Macro

The benchmark majors ended with solid gains: the DJIA added +1.4%, the S&P added +2.5%, and the NASDAQ +3.2%. Easing on inflation fears provided a material boost to market sentiment. Expectations on interest rates to be held for the rest of the year grow.