Daily News | MicroStrategy Increased Holdings of 55,500 BTC, ETH Drove Layer 2 to Rise Collectively

Crypto Daily Digest: BTC ETF saw a daily outflow of nearly $700 million, MicroStrategy increased holdings of 55500 BTC

According to Farside Investor data, yesterday’s net outflow from US spot Bitcoin ETFs was $684 million. Fidelity FBTC had a net outflow of $134 million, Bitwise BITB had a net outflow of $280.7 million, and Grayscale GBTC had a net outflow of $158.2 million. BlackRock data has not been updated yet.

Yesterday, the US Ethereum spot ETFs saw a small inflow of $2.9 million. Fidelity FETH inflow was $4.4 million, Bitwise ETHW inflow was $8.7 million, Grayscale ETHE outflow was $7.6 million, and BlackRock ETHA data has not been updated yet.

Wintermute analyst: Funds are shifting from Bitcoin to Ethereum, derivative markets indicate investors expect Ethereum to rise further

According to The Block, Wintermute analysts stated that funds are shifting from BTC to ETH, and the derivatives market indicates that investors expect Ethereum to rise further. The open interest contracts of Ethereum surged over the weekend, and the implied volatility also increased. The demand for call options also significantly increased, indicating that the confidence of derivative traders continues to strengthen. Analysts say that the characteristic of switching from BTC to ETH is that the implied volatility of ETH has sharply increased, and the bearish bullish bias has reached its highest level in 12 months, indicating that investors have a strong preference for upward risk.

According to Wintermute analysts, traders are actively driving the market higher through upward buying. Wintermute analysts pointed out in their weekly crypto market update that “over the past few trading days, funds have flowed into Ethereum as open contracts on the weekend trading platform have pushed up to historical highs.”

MicroStrategy increased holdings of 55,500 BTC by approximately $5.4 billion

MicroStrategy founder Michael Saylor posted on social media that MicroStrategy has increased its holdings of 55,500 Bitcoins at an average price of approximately $97,862, with a total value of approximately $5.4 billion.

As of November 24, 2024, MicroStrategy holds 386,700 Bitcoins with a total purchase cost of approximately $21.9 billion and an average purchase price of approximately $56,761.

Last week, the net inflow of digital asset investment products reached a record high of $3.13 billion

According to the latest weekly report data from Coinshares, the inflow of digital asset investment products reached a historic high last week, with a total of $3.13 billion, bringing the total inflow this year to a record high of $37 billion.

The $3.2 billion inflow into the United States was offset by outflows of $40 million, $84 million, and $17 million from Germany, Sweden, and Switzerland, which saw recent price highs as opportunities for profit taking rather than increasing positions. The market sentiment in Australia, Canada, and Hong Kong is more positive, with inflows of $9 million, $31 million, and $30 million, respectively.

Bitcoin’s inflow of funds is $3 billion, while Solana‘s inflow exceeds Ethereum’s by $16 million and $2.8 million respectively. However, based on data from the beginning of the year, Solana lags far behind Ethereum. The inflows of Altcoin XRP, Litecoin, and Chainlink are also $15 million, $4.1 million, and $1.3 million, respectively.

Market Trends: ETH showed strong performance, Layer 2 sector collectively rose

Market Hotspots

Altcoin leader ETH showed strong performance, driving the Ethereum eco ENS, LDO, SSV, and others to rise. ENS is the Ethereum domain name protocol, which has been repeatedly recommended by Vitalik Buterin; LDO is the largest staking protocol on the Ethereum chain, with an overall TVL exceeding $33 billion. The rise in ETH may be the first to benefit LDO, which currently has a circulating market cap of $1.5 billion and ranks 67th in the entire market;

Amidst ETH’s strong performance, the Layer2 sector collectively rose, with BLAST, BOBA, ARB, OP, and others all experiencing 24-hour gains exceeding 10%. The Layer2 sector has been consistently underperforming over the past year, and market funds may start speculating on Layer2 amid ETH’s strong performance.

Mainstream Coins

BTC made a slight adjustment, falling below $93,000 in the morning today, but has rebounded above $94,500. Yesterday, there was a large outflow of over $680 million from US spot ETFs, and the subsequent market situation still needs to be observed for the inflow and outflow of funds in ETFs in the next few days;

ETH showed strong performance, breaking through the $3,500 mark at one point during the day and remaining firm even during the market downturn, still above $3,450. The ETH/BTC exchange rate bottomed out and rebounded;

The rise and fall of Altcoins are mixed, with the Ethereum Layer2 sector collectively rising and the meme coin sector entering a correction zone.

Macro News: The three major US stock indices collectively closed higher, while two-year US Treasury yields fell sharply

The three major indexes of the US stock market collectively closed higher, with the S&P 500 index rising 0.30% to 5,987.37 points; The Dow Jones Industrial Average rose 0.99% to 44,736.57 points; The Nasdaq index rose 0.27% to 19,054.84 points. The benchmark 10-year Treasury yield is 4.27%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 4.21%.

The Federal Reserve’s interest rate outlook has once again become the focus. Investors will focus on the October Personal Consumption Expenditures (PCE) price index released on Wednesday, which is the Federal Reserve’s preferred inflation indicator. The minutes of the latest policy meeting of the Federal Reserve will also be released before Thanksgiving. The market monitors the composition of President-elect Trump’s administration and its potential impact on the US economy.

The Federal Reserve’s Kashkari said, “A rate cut in December is a reasonable consideration. The neutral interest rate may be higher and policy restrictions may not be as strict. Geopolitical risks are the primary consideration for economic prospects. I will not comment on the nominated candidates for the Ministry of Finance. We need the government to put the United States on a sustainable fiscal path.”