Originally featured in First Mover, CoinDesk’s daily briefing offering sharp insights into cryptocurrency market gyrations. Get it delivered fresh to your inbox every day.
Current Market Snapshot
Headliners
Leading the charge, Solana’s SOL surged among prominent cryptos as bitcoin (BTC) briefly cracked the $50,000 barrier late Monday, reigniting bullish vibes among traders. After the New York market opened, bitcoin experienced a wave of buying interest. SOL soared 8%, while ether (ETH) climbed 6.6%. On Tuesday, Ordinals (ORDI)—the initiative enabling NFT creation atop Bitcoin—popped 15%, with Avalanche’s AVAX adding 6%. The momentum of various blue-chip and altcoins has closely mirrored bitcoin’s trajectory, which has hit heights unseen since the tail end of 2021. While ETF approvals have largely fueled bitcoin’s ascent, some experts point to an all-time high rally in U.S. equities as a complementary catalyst. LMAX Digital noted in an early market report: “Although not dismissing this influence, the link between bitcoin and traditional assets has waned recently.” Their focus now sharpens on testing the 2021 peak again, with Monday’s surge past January’s ceiling and the $50K milestone paving the way for the next major leg up.
Franklin Templeton has filed for a spot Ethereum exchange-traded fund (ETF), as recent SEC documents reveal. This move places the asset manager alongside a growing list of applicants including BlackRock, Fidelity, Ark, 21Shares, Grayscale, VanEck, Invesco, Galaxy, and Hashdex, all actively seeking approvals in recent months. The submission arrived about a month after Franklin and nine other issuers unveiled spot bitcoin ETFs. Among these, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have attracted the lion’s share of investor demand. Franklin’s debut has been more modest, drawing roughly $70 million in inflows since launch.
Options traders are eagerly snapping up cheap, out-of-the-money (OTM) bitcoin call contracts at strike prices close to bitcoin’s all-time peak near $69,000. During the past weekend, hefty volumes of call options at $65K, $70K, and $75K strikes exchanged hands on Deribit, the premier crypto options platform by volume and open interest. Each options contract on Deribit corresponds to one bitcoin. Calls grant buyers the right (but not the obligation) to purchase bitcoin at a preset price before expiry, while puts allow the right to sell. The broad appetite for calls with elevated strike prices signals an upbeat sentiment among savvy market players. Kelly Greer, head of Americas sales at Galaxy, told CoinDesk: “We’re witnessing concentrated open interest around $50,000 calls, plus flows in $50K, $60K, and even $75K calls with maturities ranging April through June.”
Market Data Spotlight
The latest Bank of America fund manager survey highlights investor exposure to technology stocks reaching its zenith since August 2020. Simultaneously, cash reserves within funds hover near levels that historically trigger contrarian sell signals. This shift hints at a possible downturn for tech equities, which could ripple negatively into the crypto space.
Chart of the Day
- Investor allocations to tech stocks peaked at the highest point since August 2020, per Bank of America’s latest survey.
- Cash holdings among fund managers approach levels typically signalling a sell-off.
- Such bearish tech indicators might weigh down cryptocurrency markets in the near term.
Hot Reads
- MOON Token Holder Nets 550% on Polymarket Bets as Bitcoin Clears $50K
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