From the crypto market reaching a neutral state to crypto ETFs leaking funds followed by BNB hitting new all-time highs, here’s a piece of what happened today.
Market stays neutral, and a directional move oncoming
The crypto seems to have reached a point of equilibrium, as the long and short positions being liquidated differ by a very minute margin. According to Coinglass, more $199 million worth of short positions were liquidated during the past 24 hours, and the long position liquidated hit nearly $195 million. Equal volatility suggests that the market is cleansing and both sides, and volatility is building up before a directional move.
Money flows out of crypto ETFs
The crypto ETF netflow has gone into the negative zone. BTC ETFs saw more than $326 million flowing out, while the ETH ETF saw more than $400 million in funds being moved out.
With the market in an indecisive situation, nobody wants to invest. So, if netflow inflows are negative, it means the ETF reduced its crypto holdings because of selling pressure or redemptions.
Britain’s new plan encourages asset managers
Britain’s financial regulator unveiled new plans on Tuesday aimed at encouraging asset managers to “tokenise” their funds using blockchain technology in an effort to appeal to younger investors.
Under the proposal, UK asset managers would be allowed to issue crypto tokens that represent shares in their investment funds on public blockchains like Ethereum — a significant shift from the current system, where tokenisation has been limited to private blockchains.
BNB Chain Proposes $45M Airdrop to Support Memecoin
BNB Chain has announced a bold compensation plan aimed at compensating memecoin traders hit by the recent market downturn. The initiative reportedly allocates $45 million in tokens to be distributed across more than 160,000 wallet addresses, in an effort to restore confidence and reward community loyalty.
Tether mints 1 billion USDT
Tether minted a fresh $1,000,000,000 $USDT, and this will add more liquidity to the market. Increases market depth (more stablecoin liquidity). Often precedes rising trading activity or price moves. Signals institutional readiness for bigger market participation.
Fed decision could be delayed
As the US government continues to be shut for the third week, Federal Reserve Chairman Jerome Powell stated that if this continues, it will delay October data and thereby policy decisions. With two more rate cuts expected this year, many believe that there will be 25 25-basis-point cut this month and one more in December. However, with the government being shut down, the cuts may be delayed. The next Federal Open Market Committee (FOMC) is scheduled to happen in 15 days, and the CME Group Fedwatch tool gives a rate cut for October a 96% chance.
BNB touches new all-time highs
Binance’s exchange’s BNB token hit a new all-time high yesterday, reaching a value of $1,370. In the past few weeks, the token established new all-time highs despite the recent market liquidation of nearly $20 billion. The crypto market crashed, and $20 billion worth of positions were liquidated after Donald Trump imposed 100% more tariffs on China.
JP Morgan to offer crypto trading services
In a turn of events, banking giant JP Morgan has decided to offer crypto trading services, but is hesitant to offer crypto custody services. Speaking on CNBC’s Squawk Box Europe on Monday, JPMorgan’s global head, Scott Lucas, mentioned that offering crypto custody services was off the table, near term. However, Lucas mentioned that they would offer a trading service.
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