Price Action:

*In the past 24 hours, both Bitcoin and Ethereum have experienced notable price increases, with BTC rising approximately 2.2% and ETH about 4%. Despite these gains, both cryptocurrencies face significant resistance levels above their current prices, and technical indicators present a mixed picture, suggesting caution as they approach key resistance points.

Friday

*A volatile week in the markets is concluding with muted stock movements, as traders remained cautious after an unprecedented spike in volatility. Despite the S&P 500’s largest rally in nearly two years, Friday’s trading saw minimal changes. The index was headed for its fourth consecutive week of losses, marking the longest losing streak since September 2023. Investor sentiment remained fragile amid recent market turmoil, especially given concerns about stretched valuations and positions.

*The unwinding of yen-funded carry trades is expected to continue, potentially driving the Japanese currency to strengthen towards 100 per dollar, according to BNY. Bob Savage, head of markets strategy and insights, noted that investors remain overly bearish on the yen, leading to ongoing reductions in short positions. He argued that the yen is currently undervalued at 147 per dollar, and its fair value should be closer to 100 over time.

*Coinbase Inc. shares increased after a federal court ruled that Ripple Labs Inc. must pay a fraction of the amount the US Securities and Exchange Commission had sought in a civil suit. This decision is seen as a positive sign for the largest US crypto exchange, which is also facing a legal battle with the SEC.

Thursday

*Major CRYPTOS rose on Thursday after Ripple Labs was fined $125 million in a case against the US SEC—a result the company described as a win. Bitcoin gained up to 4.5%, surpassing $57,600, while Ether climbed nearly 5%. Despite these gains, both remain well below their levels from a week ago, following a sharp decline on Monday, the steepest since the collapse of FTX in 2022.

*Stock futures climbed while bonds declined following a labor-market report that alleviated concerns of a significant economic downturn. Equities surged in early trading after data revealed that US initial jobless claims fell by the most in almost a year, coming in lower than expected. As worries about the economy diminished, Treasury yields rose across the board, with the market also preparing for a $25 billion auction of 30-year bonds later on Thursday.

*JPMorgan reports that a recent market selloff has wiped out this year’s gains, leading to the unwinding of three-quarters of the global carry trade.

Wednesday

*Donald Trump’s campaign pledge to establish a national Bitcoin stockpile using cryptocurrency held by the US government has raised concerns among former prosecutors. They argue that this plan would divert seized digital assets that are typically used to compensate crime victims. Trump announced at the Bitcoin 2024 conference on July 27 that if elected president, the US would retain all Bitcoin it holds or acquires, turning this “vast wealth into a permanent national asset to benefit all Americans.”

*Global stocks rose while bonds declined as the Bank of Japan sought to calm markets following significant volatility caused by the country’s surprising rate hike last week.

*US 30-year mortgage rates dropped last week by the largest margin in two years, hitting their lowest point since May 2023 and triggering a wave of refinancing applications. The 30-year fixed mortgage rate fell 27 basis points to 6.55% for the week ending August 2. Additionally, the rate on a five-year adjustable mortgage decreased by 31 basis points to 5.91%, the lowest rate this year.

Tuesday

*Bitcoin and Ether rebounded from significant losses on Tuesday following a wave of risk aversion that affected global markets, including the crypto sector. Bitcoin briefly climbed back above $56,000, while Ether, the second-largest cryptocurrency, rose as much as 4.6% to over $2,500. These gains mark a partial recovery from Monday’s sharp selloff, which saw Bitcoin drop below $50,000 for the first time since February and Ether experience its steepest decline since 2021.

*Stocks climbed as dip buyers returned to the market following a nearly $6.5 trillion selloff in global equities over the past few weeks. Every major sector in the S&P 500 saw gains after the index experienced its steepest decline in nearly two years. According to Goldman Sachs, since 1980, the U.S. benchmark has typically yielded a median return of 6% in the three months following a 5% drop from a recent peak.

*There’s a silver lining in this week’s Wall Street turmoil: key defensive investing strategies are proving effective once more, renewing confidence in hedging trades that had faltered in recent years. Treasuries, which failed to serve their protective role during the 2022 downturn, have rallied amid the current stock market meltdown. This has pushed their 60-day correlation with the S&P 500 closer to negative territory, indicating they are once again acting as a hedge against equities.

Monday

*Investors offloaded shares of Bitcoin and Ether exchange-traded funds en masse as the prices of the two largest cryptos plummeted to their lowest levels in months during a global stock market downturn. According to CoinShares data, BTC and ETH investment products experienced outflows of $400 million and $146 million, respectively, for the week ending on August 3. BTC ETFs saw their most significant single-day outflows in roughly three months on Friday.

*A selloff in the riskier segments of the global market intensified, causing stocks to plummet as traders sought the safety of bonds amid growing concerns about a slowdown in the world’s largest economy. From New York to London and Tokyo, equities were severely impacted. Nearly 98% of the shares in the S&P 500 declined, putting the index on track for its worst session in about two years. Losses were particularly severe in the high-flying tech sector, with the Nasdaq 100 facing its worst start to a month since 2002.

*Commodities such as copper, gold, and crude oil experienced significant declines as the global financial market meltdown expanded. Traders hurried to cash out of profitable trades and made new bearish bets across industrial raw-material markets.