Crypto Rebounds From Monday’s Chaos

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Bitcoin regained $56,000 on Asian morning amid a broader recovery following Monday’s crash. The broader crypto market, as measured by the CoinDesk 20 Index (CD20), was about 8% higher than it was 24 hours ago. Solana’s SOL led the gains, adding about 13% to trade around $137. XRP and DOGE rose about 7.5% and 11.8%, respectively. BTC later pulled back to trade around $55,000, about 7% higher on the day. “We could see a corrective rally in Bitcoin’s price,” Ruslan Lienkha, head of markets at YouHodler, told CoinDesk in an email on Tuesday. “However, this upside is likely to be limited by the prevailing pessimism in the broader markets.”

Spot ether ETFs saw inflows of around $49 million on Monday, despite the ETH price falling by as much as 20%. Ether suffered its biggest single-day drop since 2021 as Jump Crypto moved a large amount of the asset onto exchanges ahead of a potential sell-off. But professional investors appear to have bought the dip, with ETH ETFs trading above $715 million, the highest since July 30. But the ETFs remain in the red, recording net outflows of $460 million since their launch. In comparison, bitcoin equivalents saw inflows of over $1 billion in the first 12 days.

ARK Invest took advantage of the market decline to buy $17.8 million worth of Coinbase stock and $11.2 million worth of Robinhood stock. The purchases were ARK’s first purchase of COIN since June of last year and its first purchase of HOOD since February. Coinbase stock fell 7.3% on Monday, while HOOD fell 8.17%. ARK Invest typically buys stocks when their prices are falling and typically looks to sell them when they recover. The company aims to avoid any particular holding that has a weighting greater than 10% of any of its ETFs, which has driven much of the COIN sell-off in recent months.

Chart of the Day

(Coin)

The chart shows the daily net DOGE inflow to wallets connected to central exchanges.

Exchanges recorded a net outflow of $49.11 million worth of DOGE on Monday, the highest single-day figure since April 12.

Outflows generally represent investors’ savings.

DOGE fell more than 10 percent on Monday, hitting its lowest level since February.

Source: Coinglass

The story continues

– Omkar Godbole

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