Daily News | BTC Oscillates Widely, Market Awaits Tonight's CPI Data

2024-08-14, 04:22

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## Crypto Daily Digest: BTC Long Term Holders Still Firmly Hold, BANANA Destroys 2% of Tokens
According to Farside Investor data, the overall net inflow of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETFs was nearly $39 million yesterday. Among them, BlackRock IBTC inflow was $34.7 million, Fidelity FTBC inflow was $22.6 million, and Grayscale GBTC outflow was $28.7 million. The overall inflow of funds has significantly slowed down compared to July.

Yesterday, the overall net inflow of <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF was $25 million. BlackRock's ETHA inflow was $49.3 million, while Grayscale ETHE outflow was $31 million. The selling pressure from Grayscale gradually decreased, but at the same time, there was no significant inflow of ETH ETF funds.

**Report: Long term holders of Bitcoin remain steadfast, with their holdings still at historic highs in value**

Glassnode stated in its weekly on-chain report that after several months of relatively heavy allocation pressure, the behavior of Bitcoin holders seems to be shifting towards holding (HODL) and accumulation.

Over the past three months, more than 374,000 BTC have been transferred to LTH (Long Term Holding) status. The activity in the spot market indicates a recent net trend of selling pressure, and this trend has not completely dissipated. However, in recent months, the price fluctuations have been severe, leading to a significant reduction in the allocation pressure of LTH, resulting in the proportion of holdings value of this group first stabilizing and then resuming growth.

Compared with the ATH breakthroughs in past cycles, the current long-term holder group's holding value is still at a historical high. This indicates that if the price of Bitcoin rises in the future, LTH may face further withdrawal pressure. In addition, it also indicates that although the price of Bitcoin has been consolidating sideways and has even recently declined, the willingness of these investors to reduce their holdings at lower prices has further decreased.

**BANANA announces the destruction of 2% of its total supply of BANANA tokens**

According to official sources, the Telegram Bot project Banana Gun has announced the destruction of 2% of its total supply of BANANA tokens, worth approximately $8.6 million. Banana Gun is a Telegram robot designed specifically for on chain traders. By using Banana Gun, users can automatically purchase tokens that are about to go online, making it more retail friendly. From the enthusiastic response of the market to TG trading robots, it can be observed that the demand for such robots is rapidly increasing and may continue to expand in the future.

**Viewpoint: Satoshi Nakamoto's BTC holdings are expected to be surpassed by US Bitcoin spot ETFs**

Bloomberg ETF analyst Eric Balchunas posted on social media, “I didn't expect the US Bitcoin spot ETF to surpass Satoshi Nakamoto as the largest entity holding Bitcoin in October. BlackRock's ETF product alone is already the third largest holder of Bitcoin and is expected to become the largest holder by the end of next year, and is likely to maintain this position for the long term.”

## Market Trends
### Mainstream Coins:
BTC: BTC's recent performance has been fluctuating between $58,000 and $62,000. Although the inflow of funds into BTC spot ETFs has significantly slowed down, the market expects the volatile market to continue. This trend indicates that there are still divergent views on BTC in the current market, and investors are cautious about future trends.

ETH: ETH has shown strong performance recently, rebounding and breaking through the $2,700 mark. The ETH/BTC trading pair has slightly recovered. However, there has also been no significant inflow of funds into ETH spot ETFs, which may indicate that the market's bullish sentiment towards ETH is still limited.

Altcoins: Altcoin market has generally declined, and the BRC-20 sector has performed well, showing good capital concentration. Although the overall market sentiment is relatively low, some sectors can still attract capital attention.
###  Data Indicators
AHR999 Index: Today's AHR999 Index is 0.7. The AHR999 index is an indicator used to measure the price of Bitcoin relative to its historical price. The current value of 0.7 indicates that Bitcoin prices are relatively low and suitable for buying in batches.

Fear & Greed Index: The Fear & Greed Index is 30 today, indicating that market sentiment will remain sluggish for a period of time. A reading below 50 indicates that the market is in a state of fear and investor sentiment is relatively conservative. This emotion may cause the market to continue to fluctuate or decline in the short term.
### Market Hotspots:
BTC ecosystem: Multiple projects in the BTC ecosystem have shown outstanding performance, with tokens such as SATS, RIF, STX, CKB, and PIZZA experiencing significant increases. Especially SATS, as the leading token in the BRC-20 sector, has doubled its price compared to the low point of the previous two weeks, and its market value has surpassed ORDI. This indicates that the BRC-20 sector is still favored by investors in the current market environment.

Bot sector: BANANA token rose 20% under the push of news. Banana officially announced that it has destroyed 2% of its total supply of BANANA tokens, worth approximately $8.6 million. This news significantly boosted market confidence and pushed BANANA prices up.

## Macroeconomics: Risk asset markets such as the US stock market await tonight's CPI data
The three major US stock indices all rose over 1%, with the S&P 500 index rising 1.68% to 5434.43 points; The Dow Jones Industrial Average rose 1.04% to 39765.64 points; The Nasdaq index rose 2.43% to 17187.61 points. The benchmark 10-year Treasury yield is 3.85%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 3.93%.

Among the popular US stocks, Apple rose 1.72%, Microsoft rose 1.77%, Nvidia rose 6.53%, Google C rose 1.21%, Google A rose 1.15%, Amazon rose 2.06%, Meta rose 2.44%, TSMC rose 2.80%, Tesla rose 5.24%, and AMD rose 3.19%.

Federal Reserve Bostic said that the US economy is expected to normalize in the coming months; The interest rate cut is coming soon, and I hope to see more data; The recent inflation data has boosted confidence that inflation will return to 2%. At 20:30 Beijing time this evening, the July CPI data of the United States will be released, and it is expected that there will be significant market fluctuations before and after the release.
### Conclusion
The current market is in a state of overall volatility, and the performance of BTC and ETH reflects the market's cautious attitude towards major cryptocurrencies. Although the overall market sentiment is relatively low, some sectors such as BRC-20 and Bot still attract capital attention and perform relatively well. From the perspective of data indicators, it is currently a good time to <a href="/crypto/buy/bitcoin-btc" target="_blank" class="blog_inner_link">buy Bitcoin</a> in batches, but the sluggish market sentiment may cause the volatile market to continue for a period of time.

In the future, with the gradual recovery of market sentiment and the re inflow of funds, major cryptocurrencies are expected to usher in new opportunities for appreciation. But before that, the market may still need to go through a period of consolidation and volatility. Investors should closely monitor market trends and adjust their investment strategies in a timely manner to cope with possible market changes.

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<div>Author:**Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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