Weekly Crypto Wrap: 29th August 2024

TLDR

• Shaping Australia's Digital Future at the DECA Global Digital Asset Regulatory Summit.
• BTC Markets proudly supports the ASX Refinitiv Markets Day for Charity.
• Learn about crypto with BTC Markets beginners guide.
• Bitcoin ETFs surge with US$250m inflows after Fed hints at rate cuts.
• ETH ETFs show mixed results: strong inflows offset by Grayscale outflows.
• Australia's annual inflation slows to 3.5% in July, lowest since March.

BTC Markets announcements

Shaping Australia's Digital Future: Caroline Bowler moderates industry titans at DECA Summit.

Our CEO, Caroline Bowler, is moderating a panel featuring industry veterans Paul Derham, Michele Levine, and John Bassilios at the Digital Economy Council of Australia (DECA) Global Digital Asset Regulatory Summit.

The panel will provide insights into effective regulatory practices and explore Australia's position within the global digital asset landscape.

Time: Aug 30th 01:45 - 02:15 PM AEST.

Register here.

Trade with us on ASX Markets Day and support Australian charities in need.

BTC Markets is proud to once again support the ASX Refinitiv Markets Day for Charity on Tuesday, 15th October 2024. This event has become a cornerstone of Australia’s financial industry, uniting major players such as ASX, NABtrade, Macquarie Bank, Citi, and BTC Markets to raise funds for a wide range of charitable organisations.

The event goes beyond trading; it’s about making a meaningful impact in the lives of Australians who need it most. Since its inception in 1996, the ASX Refinitiv Charity Foundation has raised over $36 million, with all proceeds directly benefiting charities focused on women, children, disabilities, and medical research.

BTC Markets will donate 100% of our trading profits to Australian-based charities dedicated to these vital causes. We invite you to trade with us and help make a difference in the lives of thousands of Australians.

Read more here.

Unpacking the ATO’s latest guidance on crypto taxes for DeFi with Crypto Tax Calculator.

Our Head of Finance, Charlie Sherry, catches up with Patrick McGimpsey from Crypto Tax Calculator to talk about the latest guidance from the Australian Taxation Office (ATO) on the taxation of Decentralised Finance (DeFi).

Watch the video here.

Plus, use our exclusive discount code BTC30 to enjoy a 30% saving on all CTC plans before 31 October 2024. View more details here.

Start your crypto journey with BTC Markets' beginner's guide.

Explore the world of cryptocurrencies with BTC Markets' beginner's guide. Our Learn Section is crafted specifically for newcomers eager to understand the crypto space.

What you’ll find in our Learn Section:

• Introduction to cryptocurrencies: Explore the fascinating world of cryptocurrencies and their potential role in the future of finance.
• Getting started in crypto: Learn the basics about crypto wallets, exchanges and creating an account.
• How to buy and sell crypto: Learn how to buy, sell, and store crypto on an exchange, and secure your assets with best practices.
• How to stay safe in crypto: Stay safe in the crypto space by understanding the common scams and how to avoid them.
• Crypto tax requirements: Understanding the regulatory landscape and tax reporting requirements for crypto.

Visit our Learn Section today and start your journey towards becoming a confident and informed crypto enthusiast. With BTC Markets, the future of finance is at your fingertips.

Explore now.

BTC Markets x Ticker News ‘Crypto Corner’ featuring Greg Oakford.

In this episode, we investigate the fascinating world of meme coins, the GameStop phenomenon, and the evolving landscape of NFTs. Caroline Bowler sat down with Greg Oakford from Upside Dao to discuss how crypto is on a faster adoption curve than the internet. They looked at the surge in ordinals and Solana NFTs despite short-term shifts in attention.

Watch now on YouTube or Ticker News.

Mobile app fiat and crypto withdrawals.

Did you know that you can now easily withdraw fiat and cryptocurrency using our latest mobile app update?

This feature allows you to effortlessly manage your withdrawals and track transfer statuses through a comprehensive history list.

The feature is live in the most recent app release. Update your mobile app from the App Store (iOS) or Google Play Store (Android). Discover more about this exciting mobile app update here.

BTC Markets in the news

Bitcoin slips under $60,000 again as crypto market faces broad pressure.

“There isn't a single catalyst for today’s downturn in the crypto markets, but it seems to be a combination of factors,” BTC Markets Crypto Analyst Rachael Lucas told The Block. “Technical indicators show that the U.S. Dollar Index (DXY) is oversold on the daily chart, which could suggest a potential rebound in the dollar, traditionally leading to downward pressure on risk assets like cryptocurrencies.”

Lucas added that seasonality could be involved in the market downturn. The “September Effect” has traditionally led markets to underperform due to portfolio rebalancing, tax-loss harvesting, and increased caution ahead of U.S. elections.

Read the full article here.

State of crypto

The weekly trading stats as of Monday, August 26th at 10:00 am AEST, based on data from Tradingview in USD.

Bitcoin ETFs surge with US$250m inflows after Fed hints at rate cuts.

Bitcoin ETFs experienced a surge in activity, with over US$252 million in net inflows and trading volumes surpassing US$3.12 billion, marking the highest levels since July. This spike was largely driven by positive sentiment following Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole symposium, where he hinted at potential rate cuts soon. Bitcoin prices surged above US$64,000 in response.

BlackRock’s IBIT ETF led the market, with US$1.2 billion in trading activity and US$83 million in inflows. Fidelity's FBTC and Bitwise’s BITB also saw significant inflows, while Grayscale's GBTC was the only ETF to record net outflows of US$35 million.

Powell's comments indicated a potential shift towards looser monetary policy, which is expected to be confirmed at the next Fed meeting on September 17. Lower interest rates generally boost risk assets like cryptocurrencies by making capital more accessible, thus enhancing their appeal to investors.

Trade BTC/AUD on BTC Markets.

Source: TheBlock.co

Hong Kong Bitcoin ETFs surpass US$256m AUM.

Hong Kong's spot Bitcoin ETFs have surpassed 2 billion Hong Kong dollars (roughly US$256 million) in assets under management (AUM), but they trail behind U.S. counterparts. The three ETFs hold around 4,450 BTC, with a recent inflow of 247 BTC. The majority of AUM, HK$1.3 billion (US$167 million), is managed by China Asset Management and Harvest Asset Management in partnership with OSL, while the third ETF holds HK$776 million (US$99.5 million), representing about 42% of the market.

Despite this progress, Hong Kong's ETFs had a slower start compared to U.S. Bitcoin ETFs, attracting only US$14 million in their first week versus billions in the U.S. The city faces challenges in becoming a global crypto investment hub, needing more retail and institutional investors to compete.

ETH ETFs show mixed results: strong inflows offset by Grayscale outflows.

Recent trends in Ethereum ETFs reveal a mixed picture. Despite substantial inflows into new Ethereum funds, notably BlackRock's ETHA, which alone has garnered over US$1 billion, and other ETFs like Fidelity’s Ethereum Fund and Bitwise Ethereum ETF, overall sentiment seems negative due to significant outflows from the Grayscale Ethereum Trust (ETHE). This long-standing fund, which transitioned to an ETF in July, has faced substantial redemptions, overshadowing the success of newer funds.

In total, about US$465 million has been withdrawn from the nine new U.S. Ethereum ETFs. However, excluding Grayscale's outflows, over US$2 billion has been allocated to other ether funds in their first month. This suggests strong investor interest in Ethereum exposure despite the Grayscale setbacks.

Trade ETH/AUD on BTC Markets.

BlackRock lists ETH ETF on Brazilian stock exchange.

BlackRock is set to list its iShares Ethereum Trust ETF (ETHA39) on Brazil's B3 exchange, starting Wednesday. This new ETF will be available as a Brazilian depositary receipt (BDR), representing shares of foreign companies traded in Brazil. The launch follows the successful introduction of BlackRock’s iShares Bitcoin Trust ETF (IBIT) on the Brazilian stock exchange earlier this year.

Nicolas Gomez, BlackRock’s head of ETFs for Latin America, highlighted that ETHA39 will give investors access to the two largest cryptocurrencies by market cap. This move continues Brazil’s trend of embracing institutional crypto products, as evidenced by recent approvals for Solana-based ETFs. In the U.S., BlackRock’s ETHA has achieved over US$1 billion in cumulative net inflows, marking a significant milestone.

PayPal's PYUSD hits US$1b market cap on Solana boost.

PayPal's stablecoin, PYUSD, has recently surpassed a US$1 billion market cap, driven by its expansion to the Solana blockchain and attractive DeFi incentives. Initially launched on Ethereum, PYUSD faced slow growth. However, its migration to Solana in late May revitalised its performance, with its Solana-based supply quickly surpassing that on Ethereum, reaching US$650 million within three months.

The surge in PYUSD's activity is largely attributed to yield incentives from DeFi protocols on Solana, which have significantly boosted user engagement. Monthly active wallet addresses for PYUSD jumped from 9,400 in May to over 25,000 in July. DeFi platforms like Kamino, Drift, and Marginfi have offered attractive rewards for PYUSD deposits, enhancing its appeal.

Buy SOL/AUD on BTC Markets.

Crypto Fear & Greed Index

Source: alternative.me

The week ahead: economic events

August 29th: Germany Inflation Rate. United States GDP Growth Rate.

August 30th: Japan Consumer Confidence. France Inflation Rate. Euro Area Inflation Rate. Italy Inflation Rate. India GDP Annual Growth Rate. Canada GDP Growth Annualised and GDP Growth Rate. United States Core PCE Price Index MoM, Personal Income and Personal Spending.

August 31st: China NBS Manufacturing PMI.

September 2nd: China Caixin Manufacturing PMI.

September 4th: United States ISM Manufacturing PMI. Australia GDP Growth Rate. Canada Balance of Trade and Interest Rate.

September 5th: United States Job Openings. Australia Balance of Trade.

Source: trading economics

Market reflections

Overview

Australia’s annual inflation eased to 3.5% in July, the lowest since March, while construction activity rose slightly in Q2 but missed forecasts. The Composite PMI saw its fastest growth in three months due to a strong services sector. U.S. durable goods orders surged in July, and Japan’s inflation remained steady, driven by high electricity prices. In contrast, Germany experienced sharp declines in manufacturing PMI, business climate, and consumer sentiment.

Australia

• Australia's annual inflation slows to 3.5% in July, lowest since March.
• Construction activity rises marginally in Q2, falling short of expectations.
• Composite PMI sees fastest growth in three months, driven by resilient services sector.

Australia's annual inflation slows to 3.5% in July, lowest since March.

Australia's Consumer Price Index (CPI) rose by 3.5% in the year to July, down from 3.8% in June but slightly above market expectations of 3.4%. This marks the lowest inflation rate since March, reflecting the impact of the extended Energy Bill Relief Fund rebate. Housing prices eased significantly, with electricity costs dropping sharply. Transport prices also fell to a five-month low, while food inflation hit a three-month high due to rising costs for fruit, vegetables, and cereals. Despite the overall slowdown, inflation remains above the RBA’s target range of 2-3%.

Australia's construction activity rises marginally in Q2, falling short of expectations.

Australia's total construction work increased by 0.1% quarter-on-quarter in Q2, missing market forecasts of a 0.7% rise. This slight gain follows a 2.0% decline in Q1, the steepest since Q3 2020. The modest recovery was driven by a rebound in engineering activity, while building construction, both residential and non-residential, saw declines.

Australia's Composite PMI sees fastest growth in three months, driven by resilient services sector.

Australia's Judo Bank Composite PMI Output Index rose in August, up from July, marking the fastest expansion in three months. This improvement was primarily driven by stronger activity in the services sector, fuelled by rising new business and a growing customer base. Manufacturing PMI also inched up, indicating a slower pace of contraction, with export orders returning to growth. Despite rising input costs, output price inflation eased, and business confidence improved across both sectors, though it remains below average.

Global

• U.S. durable goods orders surge in July, rebounding sharply and defying market expectations
• Japan’s inflation holds steady, driven by surging electricity prices & core inflation uptick.
• Germany’s manufacturing PMI, business climate indicator and consumer sentiment plunge.

U.S. durable goods orders surge in July, rebounding sharply and defying market expectations

U.S. durable goods orders soared by 9.9% in July, recovering from a 6.9% decline in June and surpassing market expectations of a 5% increase. The jump, driven primarily by a surge in transportation equipment, challenges growing pessimism around U.S. manufacturing activity and suggests the current slowdown may be temporary. Excluding defence, durable goods orders rose by 10.4%.

Japan’s inflation holds at 2.8% in July, driven by surging electricity prices and core inflation uptick.

Japan's annual inflation rate remained steady at 2.8% in July, the highest level since February and unchanged for the third consecutive month. Electricity prices saw the sharpest increase since March 1981, rising by 22.3% following the end of energy subsidies in May. Gas prices also surged, while food and transport costs continued to rise, albeit at a slower pace. The core inflation rate reached a five-month high of 2.7%, keeping market expectations alive for potential interest rate hikes by the central bank. Monthly, the CPI increased by 0.2%, marking the smallest rise in three months.

Germany’s manufacturing PMI, business and consumer sentiment plunge amid rising concerns.

The HCOB Flash Germany Manufacturing PMI fell in August, below expectations. This marks the 26th consecutive month of contraction in the manufacturing sector. The steepest drop in new orders in nine months, driven by weak construction and customer hesitancy, contributed to the decline. While output continued to fall, the pace slowed slightly, and purchase prices nearly stabilised after 18 months of decline.

Germany's Ifo Business Climate indicator fell in August, the lowest level since February, reflecting growing pessimism among companies and a worsening assessment of current conditions. While forecasts anticipated a lower reading of 86, the subindex for current conditions dipped to 86.5, and business expectations decreased to 86.8. Ifo President Clemens Fuest expressed concern, stating that the German economy is "increasingly entering a crisis."

The GfK Consumer Climate Indicator for Germany fell heading into September, missing market expectations. This marks the lowest reading since May, driven by growing concerns over job security, rising corporate insolvencies, and a weak economy. Income expectations plummeted to their lowest in nearly two years, while economic prospects and the propensity to buy also declined. Rolf Bürkl of NIM noted that the fleeting optimism from the European Football tournament has faded, and household worries have deepened, delaying hopes for an economic recovery.

Scam awareness

Understanding the dynamics of a ‘rug pull’.

The financial markets are known for wild volatility and the potential for extraordinary gains. However, it is also a breeding ground for unscrupulous individuals and groups looking to make a quick buck at the expense of unsuspecting investors. One of the most infamous schemes in the finance space is a ‘pump and dump’ also known as a ‘rug pull’ in crypto. In this section, we'll delve into what rug pulls are, how they work, and most importantly, how you can protect yourself from falling victim to them.

What is a rug pull?

A rug pull is a form of market manipulation where scammers deceive investors into believing a cryptocurrency project is legitimate and promising. They lure investors into providing liquidity or buying tokens in a project. Once a substantial amount of funds is locked into the project, the scammers pull the rug, essentially draining the liquidity pool or selling off their tokens, causing the project to collapse and leaving investors with significant losses.

Read the full blog here.

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Weekly prices are accurate as of 10:00 AM AEST on 26/08/2024.