Cryptos Stage Massive Rebound

Cryptocurrencies staged a spectacular rebound in the past 24 hours, recovering a part of the brutal losses suffered a day earlier as recession fears engulfed world markets. The whipsaw in crypto prices coincided with a similar rebound in stock markets in Asia and Europe. Wall Street futures are also trading in the green as markets digested the stronger-than-expected services PMI readings from the U.S. that offset concerns about the health of the U.S. economy. Comments from Fed officials that assuaged concerns about a hard landing for the U.S. economy also boosted market sentiment.

Overall crypto market capitalization has increased to $1.98 trillion after falling to as low as $1.75 trillion a day earlier. More than 8 percent of the top 100 cryptocurrencies are trading with overnight gains in excess of a percent. However, losses have not been fully recouped as evidenced by the fact that none of the top 100 cryptocurrencies are trading with gains of more than a percent over the past week.

Bitcoin rallied 4.9 percent overnight to trade at $55.053, around 25 percent below the all-time high. Weekly losses have been restricted to 17.6 percent whereas losses over the 30-day horizon have reduced to 2.7 percent. Gains in 2024 have also increased to 30 percent.

Ethereum too bounced 7 percent in the past 24 hours to rise to $2,463, around 50 percent below the previous peak. Weekly losses have been restricted to 26 percent whereas losses over the 30-day horizon have reduced to 18 percent. Gains in 2024 have also increased to close to 8 percent.

With a market capitalization of $1.09 trillion, Bitcoin dominates 55.3 percent of the overall crypto market. Ethereum which enjoys a market cap of $296 billion follows with a market share of 15.1 percent. Amidst a renewal in risk appetite, the market share of stablecoins has decreased to 8.85 percent from 9.1 percent a day earlier.

5th ranked Solana (SOL) surged 14.2 percent overnight whereas 8th ranked Dogecoin (DOGE) dazzled with a spike of more than 11 percent in the past 24 hours. 4th ranked BNB (BNB), 7th ranked XRP (XRP), and 10th ranked Cardano (ADA) have all rallied more than 8 percent overnight. 9th ranked Toncoin (TON) also added close to 4 percent in the past 24 hours.

64th ranked Brett (BRETT) topped overnight gains with a surge of more than 32 percent. 41st ranked Bittensor (TAO) followed with overnight gains of 31.9 percent. 82nd ranked Akash Network (AKT), 96th ranked AIOZ Network (AIOZ) and 60th ranked Ondo (ONDO) followed with overnight gains of more than 26 percent.

Meanwhile, the past week witnessed large outflows from digital asset investment products amidst fears of a recession in the U.S. The CoinShares’ Digital Asset Fund Flows Weekly report showed outflows of $528 million during the week ended August 3 as compared with inflows of $245 million in the prior week. Year-to-date flows stood at $22 billion whereas cumulative AUM decreased to $89.7 billion.

While Bitcoin-based products recorded net outflows of $400 million, Ethereum-based products recorded net outflows of $146 million. Multi-asset products received inflows of $18.1 million whereas Solana-based products recorded outflows of $2.8 million.

More than 78 percent of the cumulative AUM of $89.7 billion is attributed to Bitcoin products that account for an AUM of $70 billion. Bitcoin’s dominance of crypto market is much lower, at around 55 percent. AUM of Ethereum products stood at $12.3 billion. Multi-asset portfolios command assets under management of $4.4 billion. An AUM of $1.5 billion is attributed to Solana-based products and $591 million to Binance-based products.

The provider-wise analysis of flows inter alia shows inflows of $641 million to iShares ETF followed by $15 million to 21Shares.

Outflows of $806 million were recorded from Grayscale Investments followed by $193 million from Fidelity ETF and $123 million form Ark 21 Shares. Bitwise ETF also recorded outflows of $77 million.

Though year-to-date outflows exceed $17.8 billion, Grayscale Investments still accounts for an AUM of $23.1 billion, which is more than 25 percent of the cumulative AUM of $89.7 billion. iShares commands an AUM of $22.2 billion, followed by Fidelity that has mobilized assets under management to the tune of $11.2 billion.

The country-wise analysis shows weekly outflows of $531 million from United States. Hong Kong recorded outflows of more than $27 million followed by Germany with outflows of $11.6 million and Sweden that recorded outflows of $6.8 million.

Switzerland topped inflows with $27.8 million followed by Canada that recorded inflows of $17.1 million.

Of the cumulative AUM of $89.7 billion, $67.6 billion or 75 percent is in United States. Switzerland follows with AUM of more than $5.1 billion whereas Canada accounts for an AUM of $4.4 billion. Germany accounts for an AUM of $3.9 billion followed by Sweden with an AUM of $3.0 billion.

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