Bitcoin Insights
On December 8, 2023, David Duong, Head of Institutional Research at Coinbase, and David Han, Institutional Research Analyst, shared their latest weekly commentary on the cryptocurrency market on LinkedIn.
Bitcoin Rally Analysis
According to Duong, the recent Bitcoin rally led to about US$256 million in short Bitcoin liquidations. He attributes this substantial move to moderating US rate expectations and unique factors specific to crypto.
Equity Market Comparison
While equities like the S&P 500 and Nasdaq have been moving sideways, the Bitcoin rally suggests differing market dynamics, possibly due to predictions of a pullback by several sell-side banks following the gains in November.
Spot Bitcoin ETF Developments
Addressing the updated S-1 filings by BlackRock and Bitwise, Duong discusses detailed changes addressing concerns from custody arrangements to the creation of an Intraday Indicative Value (IIV) indicating readiness for launch and a high level of SEC scrutiny.
Intraday Indicative Value (IIV)
The Intraday Indicative Value (IIV) is a real-time estimate of an Exchange-Traded Fund’s (ETF) net asset value, calculated and updated regularly throughout the trading day. It’s crucial for ETFs tracking volatile markets like cryptocurrencies and provides transparency to investors.
Institutional Crypto Appetite
Duong highlights the growing institutional interest in cryptocurrencies, evidenced by the rise in the CME futures basis for bitcoin and ether. He suggests that institutions lacking direct BTC or ETH spot access have been paying a premium for crypto exposure.
Long-Term Bitcoin Holder Behavior
According to Duong, the percentage of long-term Bitcoin holders increased to 86% in early December. This suggests that the recent price appreciation has not yet prompted these long-term holders to take profit, contrasting with previous market cycles.
Hot Take: Coinbase Insights
The insights shared by David Duong and David Han offer a comprehensive overview of the latest trends in the cryptocurrency market, providing valuable information on Bitcoin’s rally, ETF developments, and institutional crypto appetite. As the market continues to evolve, Coinbase’s institutional research remains a crucial resource for understanding the dynamics of the crypto landscape.
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