Crypto Markets Daily Nov 12 2024

Cash Isn’t King

Four of the five worst performing large-cap tokens over the last 7 days are stablecoins: USDC, USDT, and Dai, First Digital USD. They haven’t depegged, they just haven’t rallied like everything else. Monero is the only top 100 coin by market cap to post a negative return over the same period following a delisting by Kraken.

AI and compute-related tokens populate much of the list of top performers – the category, like DeFi and other developer-reliant categories, stands to benefit from the incoming administration’s promised regulatory push. However, memecoins stand on top as they continue to outperform: (DOGE 50%, BONK 27%, BRETT 22%) – many are likely following Dogecoin’s lead as prime candidates for capital rotation once traders take profits on its meteoric rally, echoing similar behaviour in 2021.

BTC Spot ETFs saw another inflows of $1.1B on Monday. All U.S. Spot ETFs have recorded net inflows of $8.3B since Oct 10, totalling 31% of their total inflows of $26.97B since launch. The ETH Spot ETFs saw their largest inflows since launch on Monday of $295.5M, almost recovering the net outflows since launch (-$28.7M).

The term structure of ATM implied volatility has returned to a strong inversion after the post-election drop. All tenors are lifted, but demand for optionality in the short-term trades with a significant premium to longer-dated tenors.