Coinbase Institutional Market Call Nasdaq's Crypto Push and a Labor Market Shocker
Nasdaq's Crypto Push and a Labor Market Shocker
Description: This week, we're analyzing a market that's showing a clear divergence. Bitcoin is seeing strong inflows of over $620 million, while Ethereum is experiencing significant outflows of $880 million. Price action reflects this, with Bitcoin holding a tight range, Ethereum trading flat, and Solana outperforming with a 9% gain. We'll look at what healthy perp funding rates tell us about market sentiment.
The dominant theme is the shifting macro landscape. We received a major reality check on the U.S. labor market with large downward revisions to annual payroll data. This, combined with last week's weak JOLTs data, is increasing the odds of a larger Fed rate cut ahead of next week's FOMC meeting. All of this sets the stage for a critical CPI report on Thursday. We'll also touch on the latest OPEC+ announcements.
This comes as traditional finance makes huge moves into the space. Nasdaq is investing $50 million in the Gemini crypto exchange and has also filed with the SEC to trade tokenized securities alongside traditional stocks. We'll also cover Ant Digital's plan to tokenize $8 billion in assets and the latest onchain news from MegaETH and Ethena.
Topics Covered:
- Market Update:
- Diverging ETF Flows: BTC inflows ($620m) vs. ETH outflows (-$880m).
- Price Action: BTC range-bound, ETH flat, and SOL outperforming (+9%).
- Market Sentiment: Healthy perp funding rates and a rising COIN50 index.
- Macro Deep Dive:
- Labor Market Shocker: The 911k downward revision to benchmark payrolls.
- Fed Outlook: Increased odds of a rate cut ahead of the FOMC meeting.
- Key Data: What to expect from Thursday's CPI report.
- Fiscal & Geopolitics: OPEC+ news.
- Regulatory & Adoption Breakthroughs:
- Nasdaq invests $50 million in Gemini.
- Nasdaq seeks SEC approval to trade tokenized securities.
- Ant Digital plans to tokenize $8 billion in assets.
- Onchain & Ecosystem News:
- MegaETH launches a native stablecoin with Ethena to subsidize fees.
- Coinbase News & Product Launches:
- CB Research
Speakers:
Ben Floyd, Head of Execution Services
David Duong, Global Head of Research
Colin Basco, Institutional Research