Bitwise CIO: “Strategy Could Buy or Sell Bitcoin”

Chart of the Day — Top token buyback protocols.
Trade of the Day — TAO in a triangle.
Alpha Leaks — Amazon satellites catching up to SpaceX.
News Roundup — Strategy, crypto ETF inflows, OUSD confusion.

Token Buybacks Outstripping Supply

According to this chart from Tokenomist, eight crypto projects have token buyback programs that have outpaced circulating supply growth during the period from January 1st to the end of June.

The project with the largest buyback by value in USD is Hyperliquid, which has bought back $283.43 million worth of HYPE in that period, while the project with the largest buyback relative to its supply growth is Meteora, with a 57.87% buyback percentage.

TAO Ranging in a Symmetrical Triangle

TAO is consolidating in a symmetrical triangle pattern, and while the most explosive move may come when it breaks out of this narrowing range, we can also look to trade its movements within the pattern. In that context, it’s setting up for a possible move higher here.

Go Premium to get the full setup on TAO while it is in this interesting position, with full details on entry, stop loss, and take profit targets. Inner Circle members have been profiting whether the market is going up or down, and we’re always monitoring the charts across stocks and crypto. Go premium today to catch our signals.

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Strategy’s Changing Role in the Bitcoin Market

In a new official memo (excerpt shown below), Bitwise CIO Matt Hougan has presented a convincing case that Strategy’s role in the Bitcoin market has now changed substantially.

Hougan explains that while Strategy has for several years been “the most dominant bitcoin buyer in the world and a one-way source of bitcoin demand”, the situation has now changed, meaning that “going forward, Strategy could buy or sell bitcoin depending on market conditions.”

He also reasoned that Strategy will not be a large seller, and will likely be a net buyer when the BTC price rallies, while also dismissing Strategy liquidation risks as “conspiracy theories” that “seem to defy math”.

Arguably the most critical point is that Strategy may be “a less important figure in bitcoin in the next cycle”. From there, Hougan is of the opinion that institutions will replace Strategy as the largest buyer of BTC, but whether or not institutions step up, it looks like the next cycle may shift us out of Bitcoin’s Strategy-era.

BTC and ETH ETF Flows Turn Positive

After a long run of daily outflows, the spot BTC ETFs flipped strongly positive at the end of the week, and it was a similar story for the ETH funds.

In the case of the BTC ETFs, there had been ten consecutive days of negative flows, with a total of more than $2.7 billion leaving the funds over that period. However (as shown in the chart from SoSoValue, below), Thursday saw a solid green day, with $223.5 million coming in, while US markets were then closed on Friday.

For the ETH ETFs, there had been nine consecutive negative days, before Wednesday and Thursday both flipped green, with inflows of $14.89 million and $29.08 million, respectively.

Crypto ETFs are no longer only about BTC and ETH though, and it’s worth noting that while ETFs for XRP, SOL, and HYPE are operating at lower volumes than the BTC and ETH ETFs, they have consistently, since launch, been mainly experiencing inflows.

Confusion Around OUSD Partners

We reported here on Thursday about new stablecoin initiative Open Standard, which had announced that it is working on a stablecoin called OUSD, in partnership with over 140 companies, including some of the most well known corporations in the world, such as Visa, Mastercard, and Google.

However, it’s now being reported that all is not as it had initially appeared. The list of partner companies included thirteen from South Korea, but of those, Samsung, Shinhan, Dunamu, and K Bank have all subsequently told Korean media that they are only reviewing the Open Standard plan. Upbit has also clarified that it is not involved in OUSD issuance, and Samsung stated,

“There were no official consultations, and we do not even know what role we would play”.

It remains unclear where exactly this leaves Open Standard’s proposals, but an important point for traders is that Circle stock dropped 16.5% on the news that Open Standard would be competing in the stablecoin market (as Circle is the issuer of USDC).

Keep an eye on the charts around this one, as this still-developing uncertainty around Open Standard could trigger a recovery for CRCL.

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