Bitcoin’s Recovery Stalls as Dollar Rallies

As I sit down to write this article, I’m keeping a close eye on the crypto markets. The latest price moves have left many of us wondering what’s next for Bitcoin and the wider crypto market. In this article, I’ll dive into the latest developments and what they might mean for investors.

The Dollar’s Rise

The dollar index (DXY) has topped 106, the highest since May 2. This has kept investor risk appetite under check ahead of U.S. first-quarter GDP data, durable goods for May, and a weekly jobless report scheduled for 12:30 UTC (08:30 EST). As Marc Chandler, managing director and chief market strategist at Bannockburn Global Forex, noted, the market may be most sensitive to the weekly jobless claims, given the recent increase and a growing sense that the labor market appears to be at an inflection point.

The dollar’s rise has kept investor risk appetite in check.

Crypto Traders Watch the Biden-Trump Presidential Debate

Crypto traders will be closely watching the Biden-Trump presidential debate, set for 21:00 EST, for clues on what the outcome of November’s election might mean for the industry. Will the next president be crypto-friendly, or will they take a harder stance on regulation?

The presidential debate could have significant implications for the crypto industry.

Demand for Spot Ether ETFs

Consensus is building that demand for U.S.-based spot ether ETFs may not be as strong as for bitcoin ETFs. According to Galaxy Research, the ETFs, once approved, could see $1 billion of net inflows a month. However, Galaxy also warned that demand may be limited due to the lack of staking rewards, echoing comments by Bernstein and JPMorgan. Outflows from the Grayscale Ethereum Trust (ETHE) may also act as a drag on the overall inflows.

Demand for spot ether ETFs may not be as strong as for bitcoin ETFs.

Bitcoin Miner Marathon Digital Diversifies Revenue Stream

Bitcoin miner Marathon Digital (MARA) has become a multicoin miner to diversify its revenue stream as the recent Bitcoin halving cut profits by 50% and made the industry more competitive. The company has mined 93 million kaspa (KAS) tokens since September 2023, valued at about $15 million, and brought 30 petahash worth of machines online to mine the token, while 30 more will be starting by the third quarter.

Marathon Digital is diversifying its revenue stream by mining multiple coins.

ETH Options Volume

The chart below shows recent activity in ether December expiry options at various strike price levels. The concentration of volumes in higher strike call options shows a bullish bias.

ETH options volume suggests a bullish bias.

The improving regulatory outlook around ETH over the past month may be driving this bullish sentiment. Last week, the SEC dropped its case against Consensys regarding ETH’s potential status as a security.

The improving regulatory outlook around ETH may be driving bullish sentiment.

Conclusion

As the crypto markets continue to evolve, it’s clear that there are many factors at play. From the dollar’s rise to the Biden-Trump presidential debate, there are many variables that could impact the industry. One thing is certain, however: the crypto industry is not going anywhere anytime soon.

The crypto market is constantly evolving, with many factors at play.