First Mover Americas: BTC and ETH Begin Week with Cautious Gains Amid Reduced Volume
Summary
Cryptocurrencies Bitcoin and Ether began the week with modest gains amid reduced trading volumes following a Federal Reserve interest rate cut. Bitcoin rose 1.3% to approximately $63,500, while Ether increased by 2.7% to $2,650. Digital asset investment products saw inflows of $321 million, primarily in Bitcoin-linked assets. Core Scientific is positioned to become a substantial player in AI hosting. Solana’s market exhibits bullish sentiment through significant open interest in call options.
The cryptocurrency market commenced the week with modest price elevations, as Bitcoin (BTC) experienced an increase of approximately 1.3%, trading near $63,500, while Ether (ETH) outpaced BTC with a gain of 2.7% to reach $2,650. According to the CoinDesk 20 Index, the broader market saw a rise of nearly 1.1%. Recent data revealed that during the last 12 hours, there were marginally more liquidated short positions than long positions, amounting to $64.23 million in shorts compared to $54.42 million in longs. This muted trading activity follows the Federal Reserve’s recent interest rate cut of 50 basis points, which has likely contributed to lighter trading volumes. Over the past week, BTC has surged by 9.5% while ETH has impressively increased by over 16%. Furthermore, digital asset investment products have reported a second consecutive week of net inflows, totaling $321 million, as indicated by CoinShares. This rise is primarily attributed to the Federal Reserve’s monetary policy shift, with Bitcoin-linked products attracting $284 million in inflows. Conversely, Ether-linked products experienced outflows amounting to $29 million, marking the fifth consecutive week of such declines, as observed from ongoing withdrawals from the Grayscale Trust and limited inflows from new exchange-traded funds (ETFs). Additionally, Core Scientific appears poised to establish itself as a significant player within the artificial intelligence (AI) hosting sector, according to broker Canaccord, which recently initiated coverage of the mining firm with a buy rating and a price target of $16 per share. This prediction is supported by anticipated revenue growth in AI hosting, improved cash flow, and potential site acquisitions. Even after reallocating nearly 500 megawatts (MW) for AI hosting, the company retains about 230 MW of capacity available for Bitcoin mining. Finally, the market sentiment is illustrated by the significant open interest observed in Solana’s trading options on Deribit, with $47.52 million in call options greatly surpassing the put options by 2.5 times, signaling a bullish outlook among traders.
As of September 23, 2024, the cryptocurrency landscape is responding to previous financial adjustments made by the Federal Reserve, notably a 50 basis-point reduction in interest rates. This monetary policy enactment has not only shaped market strategies but also significantly impacted investment trends observed in various digital assets.
In conclusion, the cryptocurrency market is presently exhibiting cautious optimism, with Bitcoin and Ether marking notable gains amid a backdrop of reduced trading activity following recent interest rate cuts by the Federal Reserve. Investment products related to Bitcoin continue to draw attention, while Ether appears to be facing sustained challenges in attracting inflows. Additionally, Core Scientific’s aspirations in AI hosting, coupled with a positive market sentiment towards Solana, further reflect the dynamic nature of the crypto ecosystem as it adapts to evolving market conditions.
Original Source: www.coindesk.com
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