In today’s update, we delve into the movements and trends observed in the Asian trading session, focusing on cryptocurrency flows and broader economic indicators that shape market sentiments.

Over-The-Counter (OTC) & Allied Trades Desk Flows

• Ethereum (ETH): The session recorded light buy flows, indicating cautious optimism among traders.
• Bitcoin (BTC): Exhibited balanced two-way flows, suggesting a market in search of direction.
• Solana (SOL): A pronounced sell skew was observed, with sell orders outnumbering buys at a ratio of 2:1.
• Altcoins Movement: Helium (HNT), Toncoin (TON), and Algorand (XAI) experienced buying interest. In contrast, Gala (GAL) and Lido DAO (LDO) faced selling pressures.

Crypto Markets & Noteworthy Headlines

• Market Corrections: Exchange-Traded Funds (ETFs) saw net outflows, pressing down spot prices for key cryptocurrencies. Ethereum notably fell below the $3,300 mark, experiencing a sharp 5% drop. Meanwhile, Bitcoin hovered around the $64,400 level.
• Solana's Growth: Solana's Total Value Locked (TVL) has soared to $5.3 billion, marking a significant 25% increase over the past month and reaching its highest point since January 2022.
• XRP's Uptick: Optimism about a potential settlement with the SEC has bolstered XRP, gaining notable market support.
• Layer 2 Ethereum Tokens: These tokens mirrored Ethereum’s overnight sell-off, showing heightened volatility.
• Stablecoins: An uptick in USDT liquidity hints at a possible rise in Bitcoin prices, aligning with historical trends.

Volatility and Options Market

• Volatility Trends: Both Bitcoin and Ethereum are seeing decreased volatility, aligning with spot market movements. The options market is currently skewed towards puts as we approach the month-end expiry.
• Options Dynamics: Vega selling is prominent with a decline in demand for BTC and ETH calls for the coming months. The sentiment post-expiration remains a focal point, especially with significant political events on the horizon.

Macro Economic Landscape

• Treasury Yield Curve: A sharp steepening in the Treasury yield curve as market anticipates more aggressive rate cuts, potentially setting the stage for a bullish trend reminiscent of the one that started in late 2022.
• Tech Stock Shifts: A negative shift in market sentiment toward tech stocks was noted as the Nasdaq fell over 3.5%, influenced by recent tech earnings.
• Economic Indicators: The PCE Core index is in focus today, with market eyes also set on upcoming earnings reports from major tech companies like Amazon, Apple, Microsoft, and Meta Platforms.

Stay tuned for more updates and insights as we continue to monitor these developing trends across the financial and cryptocurrency markets.

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