Digital Assets

Hubbis Partners with Independent Reserve to Bring You Weekly Crypto News and Market Trends - Navigating the Cryptocurrency Market's Volatile Ride

Demand for BTC ETFs continues to outpace mining supply, a trend expected to persist even after the halving. While BTC's rising price typically boosts smaller cryptocurrencies, recent surges have been particularly remarkable, especially among meme coins.

Unlike major tokens and traditional assets, meme tokens and NFTs lack tangible pricing metrics like discounted cash flow or revenue projections, leading to unpredictable pricing dynamics. This speculative environment can result in rapid and drastic price movements in either direction, driven by euphoria or lethargy. Expect continued volatility in these cryptocurrencies, making for an unpredictable market ride.

This week, there's speculation about whether the decline in ETH/BTC is primarily due to BTC's performance. While this appears to be the case, any positive price movements could draw attention to developments in the ETH ETF application process. The ETH/BTC ratio currently stands at 0.0535, down from 0.0570 last week.

The recent changes in bond yields, which typically influence both equity markets and cryptocurrencies, have not had a significant effect on cryptocurrencies. Cryptocurrencies seem to be moving independently of traditional economic factors like inflation and monetary policy, suggesting they may be forming their own market dynamics.

On the OTC desk, USDT is trading above its value, signalling heightened crypto market enthusiasm. Altcoin inquiries surged, indicating interest beyond Bitcoin and Ethereum. BTC and ETH holders are holding their assets. Monitoring ETF inflows relative to BTC mining supply continues to be crucial.

Read this week's full market update here.