Trading Desk Insights
Markets stumbled Thursday on a hotter‑than‑expected wholesale inflation reading. The data signaled persistent price pressure and knocked the probability of a rate cut in September lower. Equities slumped mid‑session but regained most ground, with the S&P 500 closing near a fresh high. Crypto did not enjoy the same rebound. Bitcoin pulled in sharply from its record high near $124 500 to a low of $117 000, struggling to keep pace with equities. Open interest and cumulative volume delta both declined, indicators of widespread deleveraging. At this stage the move looks like short‑term noise rather than a shift in the inflation outlook or broader market trajectory.
Complicating the tone, Treasury Secretary Bessent stated that the U.S. government is “not going to be buying” Bitcoin. He then added that the government remains “committed to adding to its Bitcoin holdings in a budget‑neutral way.” The mixed messaging intensified selling pressure, triggering a 90 % surge in liquidations, which hit roughly $900 million.
As BTC dominance slides, capital seems to be migrating further out the risk curve. Historically that has meant flows into large‑cap altcoins before moving into mid‑ and small‑caps. If the anticipated rate cut arrives in September, we expect that rotation to accelerate.
Regardless of turbulence in broader markets, ETF demand remains robust. Bitcoin ETFs drew about $231 million in inflows, but Ethereum outstripped it dramatically with $640 million, marking its sixth consecutive day with inflows north of $200 million.
Elsewhere, Intel shares gained on a Bloomberg‑reported development that the Trump administration is discussing a potential equity stake in the chipmaker to aid its turnaround.
Crypto Charts
ETF Flow
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
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