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VanEck Crypto Monthly Recap for August 2024

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  Most crypto assets fell sharply in August as fundamental usage and financial statistics slipped against the broader market backdrop of rising volatility. For the month of August, Bitcoin (BTC) fell 11%, Ethereum (ETH) -24%, and Solana (SOL) -21%, vs. the S&P +2% and the Nasdaq +1%. The market capitalization of all Smart Contract Platforms (SCP) ended August (-12%) lower than it closed in July. Breaking Down Ethereum’s Struggles Notable Performer - Tron Notable Laggard - zkSync Though the precipitating event for the dismal price performance was a risk-off typhoon spawned by the yen carry trade, general sentiment for crypto remained poor even after the event. The apex of the pandemonium was August 5, when BTC wicked as low as $49k while ETH crashed to $2.1k after opening the month at around $64.6k and $3.2k respectively. Though Bitcoin has regained some of its value since the “flash crash,” sitting around $ 58k at the time of writing, ETH is still wallowing around...
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VanEck Mid-September 2024 Bitcoin ChainCheck: 1-Year Review Edition

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  Bitcoin's (BTC) YTD (+36% as of 9/16) performance surpasses nearly every other major asset class (again), 1  but some investors have been spooked by the recent drawdown, a ~21% correction from the March peak. In this note, we examine the current state of the Bitcoin blockchain, including its recent fundamentals, correlation with other assets, volatility, ETP traction, our take on the likely impact of the U.S. election, and express our more global view on the role of decentralized networks in increasingly censored digital landscapes. Bitcoin Fundamentals Bitcoin Miner Behavior Rising Institutional & Sovereign Adoption Asset Correlations & Volatility Impact of the Fed & U.S. Elections Decentralization: A Global Need Conclusion Bitcoin Fundamentals As of September 16th, 2024 7-day Average 365 day change (%) Last 30 days Percentile vs all-time history (%) Bitcoin Price $58,584 124 96 Bitcoin Dominance 56% 15 81 Unrealized profit/loss ration 0.46 106 67 Bitc...
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VanEck Crypto Monthly Recap for September 2024

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  Bitcoin reacted strongly to the Fed’s rate cut and China’s stimulus, rallying 7.7% and beating Gold (+5%), Ethereum (+3.2%), MSCI ACWI (+2.3%) and the S&P (+1.7%). Bitcoin ETP buyers returned with US versions attracting $1.2B in net inflows, a substantial rebound from August’s negative number and not far from the monthly average of $2B. Cumulatively, the US ETFs have bought more Bitcoin than has been mined since their launch, which makes them very important to price formation. We will have more on this topic in an upcoming   ChainCheck . Notably, Bitcoin’s daily correlation with the Nasdaq is back to late 2023 levels, above 0.62 on a 30-day average. Allocators may want to see this fall before getting more aggressive. Notable Performers - Sui, Solana and Aptos Ethereum’s Gambit and L1 Token Value Notable Laggard - Polygon Memecoins paced gains +31%, while DeFi +19%, Layer 1s +11%, and crypto equities +11%. ETH continued to lag +3%, reflecting market share loss and mu...
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