Market Update: Bitcoin and Ether Trends
This article originally appeared in First Mover, CoinDesk’s daily newsletter, analyzing the latest movements in crypto markets. Subscribe to receive daily updates in your inbox.
Latest Prices
Asset | Price | Change (24h) |
---|---|---|
CoinDesk 20 Index | 1,968 | +2.8% |
Bitcoin (BTC) | $61,253 | +3.0% |
Ether (ETH) | $2,638 | +2.0% |
S&P 500 | 5,620.85 | +0.4% |
Gold | $2,541 | +1.3% |
Nikkei 225 | 38,211.01 | +0.68% |
Top Stories in the Crypto Space
Bitcoin’s Recent Rally
Bitcoin has experienced a notable rally during the late European morning, having fluctuated between $59,000 and $61,000. It climbed to approximately $61,250, marking a 24-hour increase of nearly 3%. This uptick in price coincides with significant political developments in the United States. Reports emerged late Wednesday suggesting that Robert Kennedy Jr. might withdraw from the U.S. presidential race by the end of this week, with intentions to endorse Donald Trump. Trump has publicly positioned himself as a pro-crypto candidate, which could influence the sentiment of crypto investors positively.
Market sentiment has shifted dramatically, with Polymarket bettors estimating a nearly 94% chance that Kennedy will indeed withdraw from the race. This marks a significant adjustment from earlier predictions, highlighting the volatility not only in crypto markets but also in political landscapes. The broader digital asset market is reflecting this positive sentiment, with an increase of nearly 2.75% over the last 24 hours, as indicated by the CoinDesk 20 Index.
Political Contributions from Crypto Companies
In a related development, nearly half of all corporate political contributions in the 2024 election cycle have originated from cryptocurrency companies. According to a Wednesday report from corporate influence watchdog Public Citizen, around 48% of corporate election spending has been attributed to crypto firms such as Ripple and Coinbase. This equates to approximately $119 million out of a total of $248 million raised so far.
Most of these contributions have been directed towards pro-crypto super political action committees (PACs), like Fairshake, which aims to promote policies favorable to the crypto industry and counteract the influence of crypto skeptics. Notably, nearly $108 million of the $203 million raised by Fairshake has come directly from crypto companies, with significant contributions from influential individuals like the Winklevoss twins and Coinbase’s CEO, Brian Armstrong. This trend illustrates the growing financial influence of the crypto industry on political processes, emphasizing the need for regulatory attention as this sector continues to expand.
Ether Liquid-Staking Derivatives Growth
Looking ahead, HashKey Capital had forecasted a significant growth in ether liquid-staking derivatives, predicting that the total value locked (TVL) in these derivatives would double from August 2023’s figures to reach $44 billion by August 2025. As of now, halfway through this forecast period, the market appears to be on track, with the TVL of Ether liquid-staking derivatives hitting $36.25 billion. Lido, a prominent player in this space, currently commands a substantial 70% market share. This growth indicates robust demand for staking, despite relatively stagnant ETH prices in recent months.
Interestingly, the validator entry queue for staking has surged to an all-time high of approximately 7,400, according to analysts at HashKey Capital. This rising interest in staking occurs even as annualized staking yields have remained relatively stable at around 3.5% for the past four months. This situation presents a paradox: while more validators are eager to join the network, the rewards for staking are not substantially increasing. This dynamic could lead to potential adjustments in the staking model or yield incentives as the market matures.
Chart of the Day
– Omkar Godbole