### Cryptocurrency Market Update Amid Rising Bond Yields and Geopolitical Tensions

**Decline in Top Cryptocurrencies:**

Over the past 24 hours, the prices of leading cryptocurrencies have seen a noticeable decline. This downturn coincides with a significant increase in bond yields and growing concerns over geopolitical tensions in the Middle East. The surge in crude oil prices has further dampened market sentiment, contributing to the overall market unease.

**Bond Yields and Opportunity Cost:**

Yields on government bonds have hardened overnight, which in turn increases the opportunity cost of holding non-interest bearing assets like cryptocurrencies. Specifically, ten-year U.S. treasuries saw a rise of more than 0.5 percent, while yields on 5-year and 2-year tenors increased by approximately 0.4 percent. Longer-term U.S. treasuries, such as those over the 30-year tenor, experienced a 0.2 percent rise in yields.

**Crypto Market Capitalization and Performance:**

Amidst the ongoing anxiety, the overall cryptocurrency market capitalization has decreased by 1.7 percent overnight, settling at $2.2 trillion. None of the top 10 non-stablecoin cryptocurrencies are trading in positive territory for the past 24 hours. However, 7 of the top 10 have maintained weekly gains, whereas 3 are showing losses on a year-to-date basis.

**Bitcoin Performance:**

Bitcoin (BTC) slipped by 1.4 percent overnight, trading at $62,845.11, which is around 15 percent below its all-time high. Despite this drop, Bitcoin has gained 3.2 percent in the past week and has seen an overall increase of more than 48 percent in 2024. Within the past 24 hours, Bitcoin’s trading range was between $64,043.99 and $62,685.82.

**Spot ETF Inflows:**

Data from Farside Investors indicates that Bitcoin Spot ETF products in the U.S. recorded a net inflow of $202.6 million on Monday, down from $252 million on Friday. iShares Bitcoin Trust (IBIT) led with inflows of $224.1 million on Monday.

**Ethereum Performance:**

Ethereum (ETH) fell by 1.8 percent over the past 24 hours, trading at $2,687.31, about 45 percent below its previous peak. Weekly gains for Ethereum are close to 0.90 percent, while its gains for 2024 have decreased to 17.7 percent. In the past 24 hours, Ethereum’s trading range was between $2,748.81 and $2,668.89.

**Ethereum ETF Outflows:**

Farside Investors data shows that Ethereum Spot ETF products in the U.S. had a net outflow of $13.2 million on Monday compared to an outflow of $5.7 million on Friday. No Ethereum ETFs recorded net inflows on Monday; Grayscale Ethereum Trust (ETHE) topped with net outflows of $9.5 million.

**Other Notable Cryptocurrencies:**

– **BNB (BNB):** Ranked 4th, BNB shed 1.5 percent overnight to trade at $554.53.
– **Solana (SOL):** Ranked 5th, SOL lost 1.8 percent overnight to trade at $156.85.
– **XRP (XRP):** Ranked 7th, XRP declined by 1.4 percent overnight to $0.5899.
– **Dogecoin (DOGE), TRON (TRX), and Toncoin (TON):** Ranked 8th, 9th, and 10th respectively, all erased more than 3 percent in the past 24 hours.

**Gainers and Laggards:**

– **Helium (HNT):** Ranked 59th, HNT saw gains of more than 10 percent overnight, adding 30 percent over the past month due to reports of two large U.S. carriers offloading traffic onto the Helium MOBILE Network.
– **Akash Network (AKT):** Ranked 83rd, AKT gained close to 17 percent over the past week, driven by anticipation ahead of NVIDIA’s earnings update.
– **DOGS (DOGS):** Ranked 96th and a Telegram-native meme coin, DOGS shed 19 percent since it started trading on August 26.

**Investment Inflows Boosted by Fed Chair’s Comments:**

Firm hints at rate cuts by Fed Chair Jerome Powell during the Jackson Hole economic symposium have spurred inflows into digital asset investment products. CoinShares’ Digital Asset Fund Flows Weekly report revealed inflows of $533 million for the week ending August 24, compared to $30 million the previous week. Year-to-date flows have risen to $22.7 billion.

**Breakdown of Inflows and AUM:**

– **Bitcoin Products:** Topped with inflows of $543 million.
– **Multi-Asset Products:** Received more than $20 million in inflows.
– **Ethereum Products:** Recorded outflows exceeding $35 million.

Approximately 80 percent of the cumulative AUM of $89.4 billion is attributed to Bitcoin products ($71.4 billion). Bitcoin’s dominance in the crypto market stands at around 56 percent. Ethereum products have an AUM of $11.2 billion, multi-asset portfolios command $4.3 billion, Solana-based products have $1.2 billion, and Binance-based products hold $580 million.

**Provider-Wise Analysis:**

– **iShares ETF:** Topped with inflows of $346 million.
– **Fidelity ETF:** Recorded inflows of $88 million.
– **Ark 21 Shares ETF:** Had inflows of $84 million.
– **ProShares ETF:** Saw inflows of $38 million.
– **Grayscale Investments:** Recorded outflows of $189 million.

iShares ETF leads with a cumulative AUM of $23.4 billion (26.2 percent share). Despite year-to-date outflows exceeding $18.9 billion, Grayscale Investments holds an AUM of $21.6 billion (24.2 percent share). Fidelity commands an AUM of $11.4 billion, followed by 21Shares with assets under management totaling $3.1 billion.

**Country-Wise Analysis:**

– **United States:** Recorded weekly inflows of $498 million.
– **Hong Kong:** Saw inflows close to $16 million.
– **Switzerland:** Recorded inflows around $13.9 million.
– **Brazil:** Saw inflows of $8 million.
– **Germany:** Experienced outflows close to $9 million.

Of the total AUM of $89.4 billion, the United States accounts for $68 billion (76 percent). Switzerland follows with an AUM exceeding $4.6 billion; Canada accounts for $4.4 billion; Germany holds $3.7 billion; and Sweden has an AUM of $2.9 billion.

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