It's Glass Half Full Despite Record Short ETF Volume - Nft Decoded NFT NEWS DECODED DAILY

By Omkar Godbole (All occasions ET except indicated in any other case)

You understand how it feels if you’re watching a match, each groups rating and you find yourself with a draw? So, that is the bitcoin market proper now.

The bulls pushed costs above $103,000 early Thursday, just for the bears to chunk again, crashing costs to $91,000. Because it stands, we’re buying and selling steadily round $98,000. Speak about undecided …

The crash shook out leveraged crypto futures bets price round $1 billion, bringing a level of normality to what had change into an overheated market. That is presumably a blessing in disguise, as a result of had BTC surged all the best way as much as $120,000, the eventual leverage shakeout would have been much more extreme and will have probably broken investor confidence.

The glass-half-full perspective is supported by bitcoin spot ETFs, which managed to drag in a internet $766 million regardless of the chaos.

However there is a glass-half-empty aspect too. The ProShares Extremely Short Bitcoin ETF, which tracks twice the inverse of bitcoin’s every day efficiency, additionally noticed a internet influx in addition to file buying and selling quantity. Whereas the $7 million added is small in contrast with the lengthy spot ETFs, it reveals the bears are able to make their presence felt.

If all of it feels a little bit shaky, there’s extra to come back, with the possibility of draw back volatility if U.S. nonfarm payrolls information factors to a resilient labour market and sticky wage pressures. That may immediate a recalibration of Fed rate-cut expectations and presumably damage crypto costs. Weak information, conversely, might yield a worth bounce, though buying and selling directionally could be tough whereas costs are this indecisive.

In different information, President-elect Donald Trump’s appointment of David Sacks as Crypto and AI Czar (which could seem to be the other of crypto’s decentralization ethos) is being considered positively for Solana’s ETF prospects. Why? As a result of at one level, Sacks was related to the crypto hedge fund Multicoin, one among Solana’s early buyers. It appears farfetched, however hey it is a typical bull-market narrative.

Trying on the broader market, Hyperliquid’s HYPE token is rapidly approaching the $4.6 billion market worth of Arbitrum’s ARB token in a transfer that signifies application-specific layer 2s like Hyperliquid have gotten the “real value capture mechanisms for DeFi applications,” in accordance with Gautham Santosh, founding father of Polynomial Protocol.

Gautham famous on X that constructing on general-purpose layer 2s might imply setting up another person’s moat, primarily translating your success into their token worth. He factors out that whereas Arbitrum-based perpetual protocol GMX generates 54% extra income than Hyperliquid, its market cap stands at simply $376 million or simply 8% of Hyperliquid’s.

That is so much to soak up for as we speak. So, as dealer Alex Kruger mentioned on X, “If you’re not a full-time trader, focus on portfolio construction.” Keep alert on the market!

What to Watch

Crypto:
- Dec. 18: CleanSpark (CLSK) This fall FY 2024 earnings. EPS Est. $-0.18 vs Prev. $-1.02.
Macro
- Dec. 6, 8:30 a.m.: The U.S. Bureau of Labor Statistics (BLS) releases November’s Employment Scenario Report.
  - Nonfarm Payrolls (NFP) Est. 200K vs Prev. 12K.
  - Unemployment Price Est. 4.2% vs Prev. 4.1%.
  - Common Hourly Earnings MoM Est. 0.3% vs Prev. 0.4%.
  - Common Hourly Earnings YoY Est. 3.9% vs Prev. 4.0%.
- Dec. 11, 8:30 a.m.: The U.S. Bureau of Labor Statistics (BLS) releases November’s Client Value Index (CPI) information.
  - Core Inflation Price YoY Prev. 3.3%.
  - Inflation Price YoY Prev. 2.6%
- Dec. 11, 9:45 a.m.: The Financial institution of Canada declares its coverage rate of interest (often known as in a single day goal charge and in a single day lending charge). Prev. 3.75%.
- Dec. 12, 8:15 a.m.: The European Central Financial institution (ECB) declares its newest financial coverage determination (three key rates of interest).
  - Deposit facility rate of interest Prev. 3.25%.
  - Foremost refinancing operations rate of interest Prev. 3.4%.
  - Marginal lending facility rate of interest Prev. 3.65%.

Token Occasions

Governance votes & calls
Unlocks
- Solana’s Jito to launch 105% of JTO circulating provide on Dec. 7 at 10 a.m., price almost $500 million at present costs.
- Neon to launch 50% of NEON circulating provide on Dec. 7 at 10 a.m., price $35 million at present costs.
Token Launches
- Binance lists Throughout Protocol’s ACX and Orca’s ORCA, buying and selling to start at 8 a.m.
- Futures of PolyhedraZK’s ZKJ went dwell on OKX.

Conferences:

Token Discuss

By Shaurya Malwa
Ethereum and Base memecoin mog (MOG) surged 40% to set recent highs Friday on the again of a Coinbase spot market itemizing. It turns into the second-largest cat-themed token behind Solana-based popcat (POPCAT)

The memecoin is thought for its distinctive branding across the meme of a cat laughing with tears (typically represented by the “joycat” emoji 😹) and sporting Pit Viper sun shades. This token would not boast any intrinsic utility, thriving as an alternative on its community-driven ethos and the virality of meme tradition inside the cryptocurrency house.

Meme cash typically depend on group hype, and MOG has efficiently captured a zeitgeist with its humorous and culturally resonant branding driving demand.

Its cult group typically seems to ‘mog’ different token communities (a slang time period for outperforming) on social posts or in replies on X — and that has change into a meme itself, additional fueling the token’s reputation.

Derivatives Positioning

BTC and ETH perpetual funding charges have normalized from beforehand overheated ranges, with the ETH charge remaining elevated in contrast with BTC, suggesting a bullish bias for the ETH/BTC ratio. The positioning in SOL perpetuals is much more bullish.
The open interest-normalized cumulative quantity delta has declined for many main tokens prior to now 24 hours, indicating that the sell-off primarily resulted from the unwinding of lengthy positions fairly than recent shorts.
Despite BTC’s fast retrace to sub-$100K ranges, calls proceed to commerce at a premium to places, though the unfold is narrower than it was early Thursday. An identical dynamic is noticed in ETH choices.
A big bull name unfold crossed the tape on Deribit, involving an extended place within the $106,000 strike name and shorting the $110,000 strike name, each expiring on Dec. 27, in accordance with information supply Amberdata.

Market Actions:

BTC is down 0.82% from 4 p.m. ET Thursday to $98,196.16 (24hrs: -4.05%)
ETH is up 0.27% at $3,870.06 (24hrs: -1.93%)
CoinDesk 20 is down 0.29% to three,954.73 (24hrs: -3.32%)
Ether staking yield is down 5 bps to three.22%
BTC funding charge is at 0.0165% (18.05% annualized) on Binance

DXY is unchanged at 105.80
Gold is up 1.12% at $2656.00/oz
Silver is up 1.73% to $31.67/oz
Nikkei 225 closed -0.77% at 39,091.17
Hold Seng closed +1.56% at 19,865.85
FTSE is unchanged at 8,354.46
Euro Stoxx 50 is up 0.56% at 4,979.24
DJIA closed on Thursday -0.55% to 44,765.71
S&P 500 closed -0.19% at 6,075.11
Nasdaq closed -0.18% at 19,700.26
S&P/TSX Composite Index closed +0.15% at 25,635.73
S&P 40 Latin America closed +1.37% at 2,368.14
U.S. 10-year Treasury was unchanged at 4.18%
E-mini S&P 500 futures are unchanged at 6,083.50
E-mini Nasdaq-100 futures are unchanged at 21,465.75
E-mini Dow Jones Industrial Common Index futures are unchanged at 44,846.00

Bitcoin Stats:

BTC Dominance: 55.76% (0.10%)
Ethereum to bitcoin ratio: 0.03937 (1.08%)
Hashrate (seven-day transferring common): 800 EH/s
Hashprice (spot): $63.02
Complete Charges: 14.28 BTC/ $1.4M
CME Futures Open Curiosity: 518K BTC
BTC priced in gold: 37.3 oz
BTC vs gold market cap: 10.62%
Bitcoin sitting in over-the-counter desk balances: 423.84k

Basket Efficiency

Technical Evaluation

Dollar Index's daily chart. (TradingView/CoinDesk) — Greenback Index’s every day chart. (TradingView/CoinDesk)

The chart reveals the greenback index (DXY), which tracks the U.S. forex’s worth in opposition to main friends, has dived out of a trendline, characterizing the steep rally from late September lows.
Renewed losses in DXY will probably ease monetary circumstances additional, supporting extra risk-taking in monetary markets.

TradFi Property

MicroStrategy (MSTR): closed on Tuesday at $386.4 (-4.83%), up 0.47% at $388.23 in pre-market.
Coinbase International (COIN): closed at $320.57 (-3.13%), up 0.83% at $323.24 in pre-market.
Galaxy Digital Holdings (GLXY): closed at C$27.65 (-0.22%)
MARA Holdings (MARA): closed at $24.79 (-4.51%), down 0.69% at $24.96 in pre-market.
Riot Platforms (RIOT): closed at $12.32 (-4.86%), up 0.16% at $12.34 in pre-market.
Core Scientific (CORZ): closed at $16.94 (-3.03%), down 1% at $16.77 in pre-market.
CleanSpark (CLSK): closed at $13.93 (-5.11%), up 0.5% at $14.00 in pre-market.
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $28.91 (-2.07%), up 0.83% at $29.15 in pre-market.
Semler Scientific (SMLR): closed at $58.55 (-7.65%), up 1.95% at $59.69 in pre-market.

ETF Flows

Spot BTC ETFs:

Day by day internet influx: $766.7 million
Cumulative internet inflows: $33.03 billion
Complete BTC holdings ~ 1.092 million.

Spot ETH ETFs

Day by day internet influx: $428.5 million
Cumulative internet inflows: $1.32 billion
Complete ETH holdings ~ 3.158 million.

Supply: Farside Buyers

In a single day Flows

Top digital assets’ volume and performance

Chart of the Day

Daily stablecoin transfer volume (Artemis) — Day by day stablecoin switch quantity (Artemis)

The every day stablecoin switch quantity has surged to just about $150 billion, probably the most since Might.
Stablecoins are broadly used to fund cryptocurrency purchases, derivatives buying and selling and to maneuver capital throughout borders.

Whereas You Have been Sleeping

Trump Names David Sacks as ‘AI and Crypto Czar’ (CoinDesk): President-elect Donald Trump appointed David Sacks as his czar for synthetic intelligence and cryptocurrency, aiming to spice up U.S. management in these sectors. Sacks, a PayPal veteran and enterprise capitalist, will prioritize cryptocurrency regulation and safeguarding free speech whereas addressing issues over Large Tech bias.
Macron Vows to Serve The rest of Time period as French President (Bloomberg): French President Emmanuel Macron vowed to serve out his time period by means of 2027, calling for unity after his authorities was ousted in a no-confidence vote. He pledged to nominate a brand new prime minister inside days to kind a authorities and tackle France’s stalled finances disaster.
Memecoins Attain $140B Market Cap and Acquire Floor in Crypto Financial system (CoinDesk): Memecoins, led by dogecoin, have grown 330 p.c in market worth since Jan. 1, and now account for 3.16% of the crypto market and 5.27% of whole buying and selling quantity. The expansion of latest tokens and exercise on platforms like Solana has raised questions concerning the sector’s long-term stability.
Buyers Poured $140B Into U.S. Inventory Funds After Trump Election Victory (Monetary Occasions): The S&P 500 climbed 5.3 p.c in November as buyers poured $139.5 billion into U.S. fairness funds, the strongest month-to-month influx on file, pushed by optimism over President-elect Donald Trump’s pro-growth agenda. In the meantime, fairness markets in rising economies, Europe, and Japan suffered important outflows amid commerce stress fears.
India’s Central Financial institution Revises Down Financial Progress Forecast for 2025, Retains Curiosity Price Regular (CNBC): India’s central financial institution held its benchmark rate of interest regular at 6.5% on Friday, citing a have to steadiness rising inflation with financial development. It additionally decreased banks’ money reserve ratio by 50 foundation factors to 4.0% to assist liquidity. The RBI downgraded its fiscal 2025 GDP development forecast to six.6%, reflecting issues over a slowing financial system.
High NFT Model Pudgy Penguins to Launch PENGU Token (CoinDesk): Pudgy Penguins, a high NFT assortment, plans to launch a token known as PENGU on Solana this 12 months, with 23.5% of its 88 billion provide reserved for holders of associated NFTs. Despite the NFT market downturn, Pudgy Penguins’ sturdy cultural relevance positions it nicely in a market now favoring memecoins over NFTs.