Crypto Market Stabilizes After Nursing Losses

This article originally appeared in First Mover, CoinDesk's daily newsletter, putting the latest moves in crypto markets in context.

Crypto Market Latest: Nursing Losses, XRP Surges to Highest Level Since March

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Crypto markets were largely flat during the European morning on Wednesday, with the CoinDesk 20 Index (CD20) down by around 0.35%. Bitcoin dropped about 0.6% in 24 hours to around $66,000. The biggest gainer among crypto majors was XRP, which added more than 4.5% to over 64 cents. This is XRP's highest level since March 25 and comes amid a large scheduled token unlock and increased hopes for settlement of a long-running SEC-Ripple lawsuit. A Tuesday filing showed that the SEC intends to amend its complaint against crypto exchange Binance, including with respect to "Third Party Crypto Asset Securities," which traders are taking as a sign that the dispute could be coming to an end.

Spot ether ETFs snapped a four-day losing streak on Tuesday, with only the second day of positive flows since they listed on July 23. Only Grayscale’s ETHE and BlackRock’s ETHA recorded net inflows, at $33 million and $81 million, respectively. Ether ETFs have witnessed a cumulative net outflow of over $400 million. Grayscale's ETHE has recorded the most losses at $1.84 billion, while BlackRock's ETHA leads inflows at $618 million. The bitcoin equivalents, on the other hand, saw outflows for a fourth day, to the tune of $18 million. According to data from SoSoValue, Grayscale's GBTC led outflows with about $73 million. Products from Fidelity, Ark Invest, Bitwise and VanEck saw outflows ranging from $2 million to $7 million, with only BlackRock's IBIT recording inflows of nearly $75 million.

Nvidia is set to see bigger price swings than both bitcoin and ether. NVDA's 30-day options implied volatility, a gauge of anticipated price swings over four weeks, recently surged from an annualized 48% to 71%, according to Fintel. Deribit's bitcoin DVOL index, a measure of 30-day implied volatility, declined from 68% to 49%, according to charting platform TradingView. The ETH DVOL index fell from 70% to 55%. NVDA, a bellwether for AI, has emerged as a barometer of sentiment for both equity and crypto markets. Both bitcoin and NVDA bottomed out in late 2022 and have since exhibited a strong positive correlation. The correlation between 90-day prices on bitcoin and NVDA is currently 0.73.

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- Omkar Godbole

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Please note that our privacy policy, terms of use, cookies and do not sell my personal information apply to this service.CoinDesk is an independent operating subsidiary of Digital Currency Group, which owns several crypto-related businesses including cryptocurrency exchange CoinDesk was acquired by Block.one in 2023 for an undisclosed sum, and both companies have a Block.one also has an interest in bitcoin via Genesis Block, a bitcoin mining company. , both companies have interests in cryptocurrencies andblockchain technology.

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.