ARP's Crypto Digest

ARP’s Crypto Digest

General Digital Asset Market View:

This week, Bitcoin ETFs saw strong inflows, led by BlackRock’s $IBIT and Fidelity’s $FBTC, with $IBIT peaking at $187M and $FBTC at $115M. 

Despite Grayscale’s $GBTC experiencing notable outflows, the overall trend was positive, culminating in an eye-watering $311M net flow into spot Bitcoin ETFs on the 12th. The sheer size and influence of these ETFs, representing a significant influx of traditional finance money, overshadowed older market players and effectively absorbed the German government’s selling pressure. Despite skepticism about ETF investors being “paper hands” last couple of weeks, this week’s inflows demonstrated their resilience and strong market impact.

More Crypto:

The 200-day Simple Moving Average (SMA) is a key indicator in Bitcoin’s market trends. On July 4, Bitcoin fell below this threshold for the first time since August 2023, with the current SMA at $58,720.

Historically, Bitcoin often dips below the 200-day SMA during bull markets but typically rebounds, continuing its upward trend. This pattern was evident before the 2016–2017 bull market, during the 2018–2019 bear market, and again in early 2023.

Now, Bitcoin faces a crucial moment: reclaiming the 200-day SMA could signal the start of a new bullish phase, reflecting past rebounds in 2015, 2019, and 2023. The accompanying chart underscores this trend’s significance in predicting Bitcoin’s future movements.

In Q2 2024, venture capitalists invested $3.2 billion (+28% QoQ) into crypto and blockchain companies across 577 deals (-4% QoQ). The median deal size rose from $3 million to $3.2 million, while the median pre-money valuation surged from $19 million to $37 million. This indicates significant competition and FOMO among investors despite less available investment capital compared to previous peaks.

What Happened This Week:

• Sei has announced the launch of Sei v2 mainnet beta.

• Worldcoin Foundation has launched World Chain developer preview.

• BlackRock’s BUIDL has reached a $500M market cap. Ondo finance owns 44% of the BUIDL supply.

• MakerDAO has announced the Spark Tokenization Grand Prix to allocate $1 billion into tokenized real-world assets via SparkFi.

• Xai contributors have agreed to relock their July unlock tokens over 6 months.

What to Look Out For:

• Spot ETH ETF final approval from SEC expected next week.

• XDEFI Wallet to announce major rebrand next week.

• Cosmos v18 upgrade live on July 17.

• Radiant launching on Base this month, introducing isolated lending for memecoin markets.

• $STX Nakamoto Upgrade by Monday ~ 15th.

What we enjoyed reading and listening to:

• Improved version of Neuralink update — Link

• Global Economic Outlook 2024 — Link

• Fed Chair Powell says holding rates high for too long could jeopardize economic growth — Link

• The German Government is now out of Bitcoin — Link

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