Crypto News: Crypto CRASH, BTC Price, Recession, ETH, Tether & MORE!

Summary

The Coin Bureau Weekly News Roundup covers significant events in the crypto market, including Bitcoin's volatility dropping below $60k due to massive liquidations, economic concerns, and Yen carry trade. Ethereum celebrates its 9th anniversary, facing competition from 'Ethereum Killers' but remains strong with increasing use cases. Tether reports record profits, highlighting stablecoin dynamics and market growth. The episode also discusses recession fears driven by unemployment data, potentially affecting crypto markets. Finally, it reviews last week's top-performing cryptos and offers trading insights for navigating current market conditions, along with exclusive deals and promotions for viewers.

Takeaways

• 📉 Bitcoin (BTC) experienced significant volatility, falling below $60k after surpassing $70k, influenced by leverage and liquidations.
• 💡 The trigger for the Bitcoin sell-off was a combination of bearish crypto news and macroeconomic factors, including stronger than expected economic data and Federal Reserve's decision on interest rates.
• 💰 Spot Bitcoin ETFs recorded their largest net outflows in 3 months, suggesting that BTC is still viewed as a risk asset rather than a safe haven by investors.
• 🔄 The Yen carry trade, where investors borrowed Yen to buy other assets, including crypto, is contributing to the current market sell-off as investors need to repay these loans.
• 🎉 Ethereum celebrated its 9th anniversary, with its co-founders reflecting on its journey and looking forward to the next decade.
• 📈 Despite Ethereum's underperformance against Bitcoin, the ecosystem's growth remains strong, especially with layer 2 solutions and asset managers' interest.
• 🏦 The launch of spot Ethereum ETFs could attract new investors and increase Ethereum's on-chain value, potentially leading to a recovery rally.
• 💼 Tether reported record profits, with over $1.3 billion in Q2, indicating the company's aggressive expansion beyond stablecoins.
• 📊 Concerns over a potential recession have heightened due to higher than expected US unemployment figures, causing market panic.
• 💼 The increase in the supply of USDT and the growth of other stablecoins like USDC and PUSD suggest an ongoing demand for stablecoins in the crypto market.
• 📊 Last week's top-performing cryptos included Tether Gold, Py USD, USDT, USDD, and USDC, which may reflect market stress and a flight to safety.

Q & A

What was the significant event in the crypto market mentioned in the script that occurred last week?

The significant event mentioned was the extreme volatility in Bitcoin's price, which rallied to over 70k and then tumbled below 60k within a week, eventually closing around 54k.

What triggered the liquidations of long positions in Bitcoin as mentioned in the script?

The liquidations were triggered by a combination of bearish crypto news, such as concerns over Bitcoin Whales potentially dumping BTC, and macro factors including stronger than expected economic data leading to the Federal Reserve's decision to maintain interest rates.

What does the script suggest about the perception of Bitcoin as a safe haven during the sell-off?

The script suggests that despite the perception of Bitcoin as a safe haven, the fact that there were significant outflows from spot Bitcoin ETFs during the sell-off indicates that Bitcoin is still considered a risk asset by investors.

What is the significance of Ethereum turning nine years old as mentioned in the script?

The significance is that Ethereum, the second-largest cryptocurrency, has reached a major milestone, and its co-founders are excited about the potential developments in the next decade.

What is the broader sentiment towards Ethereum's future performance as indicated by the script?

The broader sentiment, as captured in a top reply from Autism Capital, is hopeful for a price pump, but there is also a recognition that Ethereum has been underperforming against Bitcoin, which could indicate a potential for a surprise to the upside if the correction doesn't worsen.

What is the potential impact of the increase in the supply of USDT on the crypto market as described in the script?

The increase in the supply of USDT, which is primarily used for leveraged trading, could create a bullish tailwind for the crypto market, especially if Tether uses its profits to buy BTC, supporting its price.

What does the script suggest about the current state of the stablecoin market?

The script suggests that the stablecoin market is growing, with the market caps of USDT and USDC continuing to rise, indicating more money flowing into crypto and the potential for increased trading activity.

What is the potential implication of the increase in USDC's dominance within trading as mentioned in the script?

The increase in USDC's dominance within trading implies that Circle, the issuer of USDC, is slowly trying to take more of Tether's stablecoin market share, possibly due to regulatory changes affecting USDT.

What is the script's perspective on the current economic situation and its relation to the crypto market?

The script suggests that the current economic situation, with higher unemployment figures and fears of a recession, is causing panic among investors and impacting the crypto market, with the potential for a recession to have already begun affecting market dynamics.

What is the script's view on the performance of last week's top-performing cryptos in the context of the overall market?

The script acknowledges that discussing the top-performing cryptos in a market that is experiencing significant downturns may seem inappropriate, but it highlights the importance of understanding market dynamics and the potential for recovery in certain assets.

Outlines

00:00

📉 Major BTC Volatility & ETF Outflows

The first paragraph covers the significant drop in Bitcoin's price below $60,000 after reaching a high of $70,000, driven by large-scale liquidations of leveraged positions. Factors contributing to this include fears of Bitcoin whales selling off and macroeconomic concerns, including stronger-than-expected economic data and the Federal Reserve's decision to maintain interest rates. The paragraph also mentions a notable outflow of $240 million from spot Bitcoin ETFs, indicating that Bitcoin is still viewed as a risky asset during times of economic uncertainty.

05:02

🔄 Ethereum's Potential & ETH/BTC Pair

The second paragraph discusses Ethereum's recent underperformance relative to Bitcoin and the significance of the ETH/BTC pair as a broader indicator of altcoin performance. Despite recent challenges, the narrative suggests that Ethereum could experience a strong recovery, driven by its continued dominance in areas like tokenized real-world assets and the launch of spot Ethereum ETFs. The paragraph also highlights Ethereum's role in DeFi and the potential for a market rebound that could positively impact Ethereum's ecosystem.

10:03

💸 Tether's Expanding Influence & Stablecoin Dynamics

This paragraph focuses on Tether's record-breaking profits and its strategic expansion beyond being just a stablecoin issuer. It explores the increasing market dominance of USDC, driven by recent EU regulations, and Tether's push to position USDT as a leading offshore digital dollar. The paragraph also touches on the growing demand for stablecoins like PYUSD, USDT, and USDC, which signals more capital flowing into the crypto market.

15:05

📉 Recession Risks & Crypto Market Impacts

The fourth paragraph addresses the rising concerns over a potential recession, triggered by higher-than-expected U.S. unemployment rates. It discusses the implications of this economic downturn on the crypto market, suggesting that the recession might have already begun, with crypto possibly being the first asset class to recover when the Federal Reserve resumes money printing. The paragraph concludes by listing last week's top-performing cryptos, most of which were stablecoins, indicating a flight to safety during market turbulence.

📊 Crypto Market Review & Conclusion

The final paragraph reviews the top-performing cryptos of the previous week, highlighting the popularity of stablecoins like Tether Gold, PYUSD, and USDT during market volatility. It notes the potential for a gold price correction and emphasizes the continued growth in stablecoin market caps as a positive sign for crypto. The paragraph concludes with a reminder for viewers to check out Coin Bureau’s deals page, merchandise store, and to stay updated through their Telegram channel, wrapping up the weekly crypto review.

Keywords

💡Bitcoin (BTC)

Bitcoin, often represented by the ticker symbol BTC, is a decentralized digital currency that operates on a peer-to-peer network without the need for intermediaries. In the video, it is discussed as experiencing significant volatility, with its price falling below $60,000 after surpassing $70,000 earlier in the week. This highlights the theme of market instability and the impact of external factors on cryptocurrency valuations.

💡Ethereum

Ethereum is an open-source blockchain platform that features smart contract functionality and is the second-largest cryptocurrency by market capitalization. The script mentions Ethereum's ninth anniversary and its potential for a surprise rally, indicating its importance in the crypto ecosystem and the ongoing interest in its future performance.

💡Stablecoin

A stablecoin is a type of cryptocurrency that is pegged to a stable asset, like the US dollar, to minimize price volatility. In the video, Tether (USDT) is highlighted as a stablecoin with record profits, demonstrating the role stablecoins play in the crypto market and their potential impact on the broader financial landscape.

💡Liquidation

In the context of trading, liquidation refers to the process where a trader's position is closed automatically due to insufficient margin to cover losses. The script mentions liquidations of long positions in Bitcoin, which contributed to its rapid price decline, illustrating the high-risk nature of leveraged trading in cryptocurrencies.

💡Macro Factors

Macro factors are economic events or trends that affect the overall economy and financial markets. The video discusses how macro factors, such as economic data and Federal Reserve decisions, influenced the crypto market, particularly Bitcoin's price movements.

💡Yen Carry Trade

The Yen carry trade is a financial strategy where investors borrow Japanese Yen at low-interest rates to invest in higher-yielding assets. The script explains that the need to repay these loans, or unwind the trade, contributed to market sell-offs, affecting the crypto space as investors liquidated their positions.

💡Ethereum Killers

Ethereum Killers refer to other blockchain platforms that aim to outperform Ethereum by offering better scalability, lower fees, or other advantages. The video mentions that despite Ethereum underperforming against Bitcoin, the emergence of Ethereum Killers and the broader ecosystem's growth suggest a resilient and competitive market.

💡Asset Managers

Asset managers are professionals who oversee investment portfolios and make investment decisions on behalf of their clients. The script suggests that Ethereum is becoming a preferred platform for asset managers to issue tokenized real-world assets, indicating a growing trend of traditional finance integrating with blockchain technology.

💡Leverage

Leverage in trading refers to using borrowed capital to increase the potential return on an investment. The video script notes that leverage played a role in Bitcoin's volatility, as large amounts of long positions were liquidated, demonstrating the double-edged nature of leveraged trading.

💡Recession

A recession is a significant decline in economic activity spread across the economy, typically lasting more than a few months. The video discusses fears of a recession due to higher unemployment figures and its potential impact on the crypto market, suggesting that economic downturns can influence investor behavior and market sentiment.

💡Tether Gold

Tether Gold is a stablecoin backed by physical gold, providing exposure to the precious metal within the crypto ecosystem. The script mentions Tether Gold's price appreciation during market stress, reflecting the flight to safety among traders and the role of gold-pegged tokens as a hedge against market volatility.

Highlights

Bitcoin's price tumbled below 60k after surpassing 70k, indicating extreme volatility triggered by leverage and liquidations.

Concerns over Bitcoin Whales and the US government's movements influenced the market.

Spot Bitcoin ETFs experienced their largest net outflows in 3 months, suggesting Bitcoin is still viewed as a risk asset.

Ethereum celebrated its 9th anniversary with optimism for the next decade's developments.

Ethereum's underperformance against Bitcoin raises questions about its position as the second-largest crypto.

The growth of Ethereum's ecosystem, including its layer 2 solutions, shows strength despite competition from so-called 'Ethereum Killers'.

Asset managers are increasingly choosing Ethereum for issuing tokenized real-world assets due to its security and smart contract capabilities.

The launch of spot Ethereum ETFs may attract new investors, potentially increasing Ethereum's on-chain value.

Tether reported record profits, with implications for the crypto market, especially considering its role in leveraged trading.

Tether's expansion beyond stablecoins and the impact of regulations on its business strategy.

The increase in USDT's market cap is a bullish sign for crypto, as it indicates growing demand for stablecoins.

Recession fears have led to market panic, with unemployment figures sparking concerns about economic downturn.

The S rule, an indicator of recessions, may not accurately reflect the current economic situation due to factors like immigration.

Crypto markets are often the first to react to economic changes, suggesting they may also lead in recovery.

Last week's top-performing cryptos included stablecoins like Tether Gold, PY USD, and USDT, reflecting market sentiment.

The Coin Bureau's Telegram channel and deals page offer resources for staying updated on crypto market movements and trading opportunities.

Transcripts

welcome to the coin Bureau Weekly News

Roundup here are the top stories in

crypto this

[Music]

week down real bad BTC tumbles below 60k

just days after surpassing 70k as spot

Bitcoin ETFs see their largest net

outflows in 3 months how low could BTC

go ethereum turns nine the second

largest crypto hits a big milestone

while investors IE so-called ethereum

Killers why eth could be about to

surprise to the upside assuming this

correction doesn't get any worse of

course tether's record profits crypto's

largest company reports billions of

dollars in profits from the reserves on

its usdt stablecoin what does it mean

for crypto recession fears arrive

investors Panic after us unemployment

figures come in much higher than

expected when could the recession begin

and a closer look at last week's top

performing cryptos for what that's worth

and where they could be headed next all

this and More in just a

moment last week BTC saw unbelievable

volatility rallying to over 70k at the

start of the week and almost closing the

week below 60k as we shoot this it's

around 54k now the reason for this

extreme volatility is the same as all

always leverage there were hundreds of

millions of dollars of Longs which got

liquidated causing BTC to fall fast so

then what triggered these liquidations

well besides investors going

irresponsibly long when BTC broke above

70k it seems the trigger was a

combination of bearish crypto and macro

factors on the crypto front there were

concerns that more Bitcoin Wales would

dump BTC it wasn't Mount gox or the

German government that BTC investors

were scared about that's old news this

time it was a combination of bankrupt

crypto trading firm Genesis whose

creditors were sent over $1 billion of

BTC and the US government moving $2

billion worth of BTC presumably to sell

meanwhile on the macro front economic

data came in slightly stronger than

expected and the Federal Reserve

subsequently decided to keep interest

rates where they were before going off

on their summer break

now obviously the day after the

unemployment figures were released and

they surprised to the upside but more on

that later now as a cherry on top the

spot Bitcoin ETFs saw almost $240

million of net outflows in a single day

this is significant as it was assumed

that BTC was now seen as a Safe Haven by

investors the fact that they sold when

recession fears arose suggests that BTC

is still still seen as a risk

asset now the sell-off we're seeing

across all markets is in large part due

to another macro factor and that is the

Yen carry trade in short investors

around the world borrowed trillions of

dollars worth of yen to buy other assets

including crypto now they need to repay

those Yen loans I.E sell everything it's

possible that the unwind of the Yen

carry trade will continue to keep

markets suppressed throughout the week

but it's safe to assume that the powers

that be are trying to minimize the

volatility fortunately any kind of

intervention will involve money printing

which will eventually boost crypto so if

you're brave enough to trade these tense

market conditions then use the coin

Bureau deals page to maximize your

profits it's got trading fee discounts

of up to 70% sign up bonuses of up to

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smash that like button if you're

enjoying the video and subscribe to the

channel and ping that notification Bell

so you don't miss the next one now on a

more positive note ethereum turned 9

years old last week specifically on the

30th of July ethereum creative italic

beran posted a photo of what is

presumably ethereum's launch party it

includes some of ethereum's original

co-founders including polad do founder

Gavin wood crazy how things change

anyways vitalik added that he's excited

to see what the next decade brings for

ethereum the top reply from autism

Capital perfectly captured the broader

sentiment quote hopefully a pump in all

seriousness eth has continued to

underperform BTC all while ethereum

Killers gain traction as you can see eth

is at risk of falling to lows against

BTC not seen since

2021 to be clear this doesn't mean that

eth's price is going to fall in feat

terms it either means that there will be

a rally but BTC will rally more than eth

or there will be a crash but BTC will

crash less than eth to recap the eth BTC

pair is important because it gives us a

sense of how Alt coins are doing more

broadly when eth BTC is rising it means

altcoin season is coming soon and when

it's falling it means that alt season is

slipping further away with a bit of luck

eth BTC will see a bounce in the coming

days regarding the so-called ethereum

Killers meanwhile some of you may have

seen the news that salana recently

surpassed ethereum by weekly fees with

the pump. fun mem coin generator

accounting for more fees than all of

ethereum in a single day day at first

glance this is bearish for eth but it

misses the bigger picture when you zoom

out and include ethereum's layer 2os

it's clear to see that ethereum's growth

is as strong as ever and that no other

ecosystem comes close at least for now

this is of little consolation though to

those who have been fixed on eth's

day-to-day price action but it seems

there's a catalyst coming there too as

we highlighted in our recent ethereum

update ethereum appears to be becoming

the chain of choice for asset managers

to issue their tokenized real world

assets on this makes sense as ethereum

is technically the most secure smart

contract compatible cryptocurrency on

the market at the same time the launch

of the spot ethereum ETFs has opened the

door to a new cohort of investors who

will ape into eth the next time they

hear about another asset manager doing

stuff on ethereum this will increase

eth's onchain value making it an even

more popular form of collateral in turn

this will likely result in a lot of

borrowing within ethereum's ecosystem

which will boost the prices of just

about every token in it this would

explain why arve had been rallying

before the whole Market went down the

toilet RV is the largest defi lending

protocol on ethereum and RV token

holders could benefit if that fee switch

is passed topic for another video I'm

afraid anyhow the key takeaway is that

eth is positioned for a mind melting

recovery rally in addition to the

improving fundamentals the fact that

there's still so much fud in ethereum's

ecosystem suggests that lots of Traders

are irresponsibly short eth of course

this would make the recovery rally truly

impressive now as I record this eth is

around

$2,400 having taken a beating along with

the rest of the market now this level is

critical because it's where the

Ballinger band moving average on the

monthly is being Above This level means

eth is in a bull market and being below

it means eth is in a bare market now

another fundamental reason why eth is

likely to do well in the long term is

because ethereum hosts most of the

stable coins in circulation this is

again due to it being the most secure

smart contract crypto out there and this

is one of the reasons why the continued

increase in the supply of usdt is

bullish for crypto if you watched our

video about stablecoin market caps

you'll know that usdt is used primarily

for leveraged trading this is why you

see billions of usdt being printed every

time there's crypto Market volatility

it's literally just Traders buying usdt

so they can bet on crypto prices going

up or down however there is a way that

usdt impacts crypto prices directly and

and that is via tether the company that

issues it to refresh your memory last

May tether promised to use a portion of

its monthly profits to buy BTC logically

this creates a bullish Tailwind for BTC

which depending on when these buys

happen could support its price it also

underscores the significance of tether's

record-breaking profits which topped 1.3

billion in Q2 to put things into

perspective tether has made 5.2 billion

in profit this year so far although it's

not clear how much tether has invested

in BTC it is clear that the company is

expanding aggressively this is clear

because tether's q1 profits were over

$4.5 billion considering that usd's

market cap has increased while the

yields on its reserves haven't changed

the only reason for the smaller Q2

profits is that tether has been spending

money on its operations which are

expanding Beyond stable coins this is

interesting because it suggests that

tether is trying to stop becoming a

stable coin only company and it makes

sense that the only reason why it would

do this is because the company believes

usd's dominance will decline funnily

enough this seems to be happening

because of regulations in case you

missed the memo the eu's M regulations

came into effect at the end of June the

tldr is that they restrict stablecoin

access to EU users oddly enough circles

usdc managed to make the cut not

surprisingly usdc dominance within

trading is increasing and usdc market

cap is growing this is fascinating

because usdc primary demand driver has

been defi it seems that circle is slowly

trying to take more of tether's

stablecoin trading P at the same time

tether seems to be pushing to turn usdt

into de facto offshore digital dollars

with initiatives like its extensive

telegram integration more about that in

the description I digress now the key

takeaway in this case is that the demand

for stable coins continues to grow this

is evident in the fact that the market

caps of usdt and usdc keep climbing

what's eye openening is that even the

market cap for PayPal's py USD has been

growing FYI py usd's purpose is crypto

payments say did you know that payment

stable coin related regulations are

being worked on in the US probably

nothing now this brings me to what has

probably been the hottest topic over the

last 72 hours and that's the prospect of

a recession if you've been keeping up

with the coin Bureau you'll know we

actually did a deep dive into the

possibility that a recession would be

starting and what it means for the

markets link to that video is in the

description if you you missed it to

summarize recessions often begin much

earlier than they're officially declared

or are even identified in this case

everyone is worried about recession

risks because the unemployment rate for

July came in much higher than expected

this triggered an indicator called the S

rule which predicts recessions the catch

is that the S rule is technically a

lagging indicator because it uses a

3month rolling average in plain English

the recession could have begun as long

as 3 months ago if we're using the S

rule as the measure low and behold

crypto has been crashing for about 3

months now coincidences aside if you

watched our video about the possible

recession you'll know that another way

to tell when one has started is to look

at unemployment by state when

unemployment is rising in every US state

then the US is in recession well this

happened late last year specifically

October 2023 what this means is that

it's possible that the US has

technically been in a recession since

late last year and you'll recall markets

crashed a lot back then too the catch in

this case is that it assumes that

unemployment is an accurate way to

assess whether a recession is here as

pointed out in a recent video by macro

analyst Joseph Wang the sharp rise in un

employment was not due to a shortage of

jobs but an oversupply of Labor caused

by the enormous migration the US has

experienced the fact that this has been

happening for a while suggests earlier

prints were skewed too put simply the S

rule or any other unemployment based

indicator may not be giving an accurate

picture as to whether the US is in a

recession or not and if you believe that

these indicators are correct and not

being warped by by things like

immigration then it means the recession

began many months ago and this means

that most of the market action related

to any recession has probably happened

already at least in crypto remember that

most cryptos have essentially been

crashing since spring which is when the

recession could have started per the S

rule stocks are just late to the party

so to speak and just as how crypto was

the first to arrive at the crash party

it'll also be the first to leave as it's

the most sensitive to liquidity and the

most forward-looking in plain English if

a recession has in fact begun then

crypto will be one of the first asset

classes to recover when the FED starts

Printing and with all that said it's

about time we looked at last week's top

performing

cryptos now given how the market

currently looks like the denum more of a

Tarantino film talking about last week's

top performing cryp cryptos does feel a

bit like dancing on someone's grave but

well sometimes folks you just got a

boogie so last week's top performing

cryptos were tether gold py USD usdt us

DD and

usdc exciting

times so tether Gold's xut token appears

to have pumped due to a combination of

the appreciation of gold's price as well

as the flight to safety within crypto

over the last few days as a fun fact

gold pegged tokens often deeg to the

upside during Market stress as Traders

hedge themselves given that xut

effectively mirrors gold it's better to

look at the gold chart to get a sense of

where it's going next now we may be

mistaken but it looks like gold could

have put in a local top and could be in

for a sizable correction in the coming

weeks this could happen if markets

experience a quick recovery and finally

we have py USD usdt us DD and usdc these

are all obviously stable coins so

there's not much ta to be done but there

is one thing worth mentioning the market

caps of PUSD usdt and usdc continue to

grow and you'll recall that this is

fundamentally indicative of more money

flowing into crypto and US doud's

presence is simly noteworthy as it

didn't deeg during last week's

volatility volatility which was

apparently the largest since the

pandemic flash crash of 2020 so if you

didn't Panic sell then pat yourself on

the back you've got a stomach of Steel

and will make a hodler out of you in no

time oh and by the way if you want to

keep up with which cryptos are pumping

and where you can trade them then be

sure to check out the coin Bureau inside

a telegram Channel linked to in the

description and my friends that is all

for today's coin Bureau weekly crypto

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thank you so much for watching and we'll

see you all in next week's episode

[Music]