Crypto News – Bitcoin Reclaims $61K Amid Market Rally and Inflation Concerns

Crypto News – Bitcoin Dominance Hits 57% as ETF Approvals and Halving Event Loom

Crypto News – The CoinDesk 20 Index rose 3.2%, reaching 1,961, while Bitcoin (BTC) surged 4.4% to $61,384. Ether (ETH) also gained 4.3%, trading at $2,754. In broader markets, the S&P 500 increased by 1.7% to 5,434.43, Gold climbed 1.9% to $2,513, and Japan’s Nikkei 225 saw a modest rise of 0.58%, closing at 36,442.43.

Bitcoin Recovers Losses Amid August Volatility

Bitcoin has reclaimed the $61,000 level, reversing part of the losses it incurred during the sharp drop at the beginning of August. In the past 24 hours, BTC has outperformed the broader crypto market, which rose just over 2% according to the CoinDesk 20 Index. Despite these gains, trading funds remain cautious as they anticipate a busy week of economic data releases, particularly focusing on the upcoming U.S. Consumer Price Index (CPI).

QCP Capital, a crypto trading firm, warned of potential short-term market fluctuations in a Telegram broadcast, stating, “Investors remain cautious ahead of US CPI this week. They will closely watch inflation numbers for guidance on whether the Fed will cut rates by 50 or 25 bps in September. The odds are now evenly split.”

Goldman Sachs Holds Over $400 Million in BTC ETFs

Goldman Sachs has significant holdings in seven of the eleven U.S.-listed spot bitcoin ETFs, with a total investment exceeding $400 million. The largest holding is in BlackRock’s IBIT, amounting to $238.6 million, followed by $79.5 million in Fidelity’s FBTC, and $56.1 million in Invesco Galaxy’s BTCO, according to the bank’s quarterly 13-F report.

During the CoinDesk Consensus 2024 event in Austin, Mathew McDermott, Goldman Sachs’ global head of digital assets, highlighted the success of BTC ETFs, stating, “The bitcoin ETF obviously has been an astonishing success,” and described the ETF launch as a “big psychological turning point” for the industry. Goldman Sachs continues to focus on the digitization of assets through its digital asset desk.

Coinbase Teases wBTC Launch on Layer-2 Blockchain Base

Coinbase appears to be working on a version of wrapped Bitcoin (wBTC) for its layer-2 blockchain, Base. The speculation arose after Coinbase made cryptic posts late Tuesday U.S. time, with the phrases “cbBTC” and “Coming soon.” Jesse Pollak, who leads the Base project, followed up by sharing plans to build a “massive bitcoin economy” on the network. Wrapped tokens like wBTC allow cryptocurrencies to be used on different blockchain protocols, enhancing liquidity within the ecosystem.

Chart of the Day

The chart reveals that Bitcoin’s dominance—its share of the total cryptocurrency market—has surpassed 57%, reaching its highest point since March 2021. This increase in dominance is supported by positive developments such as the approval of Bitcoin ETFs and anticipation of the upcoming halving event, despite challenging market conditions.