US stocks return to KTV, but Bitcoin doesn't
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US stocks return to KTV, but Bitcoin doesn't
Binance's Bitcoin perpetual futures funding rate has dropped to its lowest level since 2022, as enthusiasm among quick-profit traders wanes.
Navigating Web3 tides with focused insightsBy Huang Wenwen, Wall Street Insights
As market panic in early August gradually subsided, U.S. equities appear to have regained their rhythm, overcoming turbulence and returning to record highs—while Bitcoin and the broader cryptocurrency market have failed to keep pace, remaining sharply lower.
Last night, the S&P 500 and Nasdaq achieved their first eight-day consecutive gain streak of the year. Meanwhile, the largest digital asset, Bitcoin, has declined over 8.5% so far this month and is currently trading at $61,017.90.
At the same time, the MSCI World Stock Index rose nearly 1%, and gold prices hit a new all-time high.
Analysts point out that one challenge facing digital assets is the potential sale of seized Bitcoin by the U.S. government. According to Arkham Intelligence, blockchain data shows the U.S. government transferred $600 million worth of seized Bitcoin last week into an exchange wallet operated by Coinbase Global.
Khushboo Khullar, venture partner at Lightning Ventures, said:
"The potential sales by the U.S. government are creating 'temporary downward pressure' on Bitcoin's price... We expect this gap to close soon."
In addition, derivatives markets in crypto also show signs of weakening demand. Data from CryptoQuant indicates that funding rates for Bitcoin perpetual futures on Binance have dropped to their lowest level since 2022, suggesting waning enthusiasm among short-term traders.
Earlier, Bitcoin reached a record high of $73,798 in March, driven by expectations of looser U.S. monetary policy and inflows into dedicated U.S.-based exchange-traded funds (ETFs). However, investor appetite for these ETFs has since cooled.
On the political front, U.S. crypto policy continues to influence the market. Former President Donald Trump, a Republican supportive of cryptocurrencies, is competing against Democratic Vice President Kamala Harris in the presidential race, while Harris has yet to clearly outline her stance on digital asset policies.
Among other tokens, Ethereum has seen even steeper losses, falling 23.5% over the past month.
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