Crypto Market

BTC and ETH Market Insight

US CPI increased for the second month in a row. 3.7% was not seen as alarming, and investors expected the Fed to leave rates unchanged in its September meeting. The BTC price continued to be stuck in this broad 25k/30k range with the move higher in USD and yields. According to data from Glassnode, long-term holders possessed around 2.9M BTC, while only 2.3M Bitcoin remained on exchanges. The decline in Bitcoin's share on exchanges may indicate a growing confidence among investors in its potential for long-term growth or a response to the temporary fluctuations in the market.

Options Market

The short-term outlook for BTC and ETH is choppy, with modest gains that are short-lived and a lack of follow-through on the downside. Realized volatility has returned to mid-20s, and short-term implied volatilities have slightly increased. The BTC term structure has moved higher across the curve, while ETH's lagged behind. The ETH/BTC volatility spread narrowed down a little and long-term skew remains bullish for both BTC and ETH, with ETH showing a call premium in the long end. The options market's consistent put skew may indicate waning bearish momentum.

Altcoins and Blockchain News

• FTX tweeted that based on a review and assessment of the recent Kroll cybersecurity incident, FTX has unfrozen all affected accounts. Claimants can now resume their claims applications on the platform.
• Worldcoin parent company CEO: Has funded $4.8 million for cryptocurrency and blockchain education in Kenya.
• Prisma Finance has reached its $30 million debt limit, with total collateral worth more than $55 million.
• Web3 social network CyberConnect announced the end of the first quarter of CYBER community rewards. In the past 30 days, more than 130k addresses received a total of 2.3 million CYBER tokens.
• The yield  aggregator  protocol Yearn announced the official launch of yETH, an index token based on the Liquidity Staking Derivative Token (LST).
• According to The Block, ssv.network has launched a mainnet which focuses on distributed validator technology by connecting users to a network of operators that jointly manage Ethereum validator nodes to realize decentralized staking.
• Paradigm Partner: Will raise $1 billion fund and not give up investing in crypto area.
• Data: Friend.tech protocol fees exceeded $5 million in the past 7 days, second only to Ethereum and Lido.
• Block.one’s crypto exchange Bullish is applying for a Hong Kong license.

Macro

The major benchmarks finished mixed last week: the DJIA added +0.1%, the S&P lost -0.2%, and the NASDAQ -0.4%. WTI oil price rose above $90 for the first time since November 2022, boosting the value stocks. The consumer price index (CPI) rose 0.6% for August but was in line with the expectations.