What happened: Global bond yields spiked and gold hit a fresh record above $3,500/oz, while bitcoin traded with little conviction and ether-focused ETFs attracted large inflows. Those shifts are reshaping where capital is parked ahead of key U.S. jobs data this week.
Long-dated government yields climbed after selling in the U.S., U.K. and Japan, with the U.S. 30-year Treasury nearing 5% and Britain’s gilts hitting levels not seen since 1998. Investors rotated into gold as hedging demand rose — a main driver behind tokenized gold’s market value topping $2.5 billion. That same risk-off pressure has left crypto price action muted: bitcoin is essentially flat over 24 hours, while volatility metrics like Deribit’s DVOL sit near multi-month lows.
Flows and on-chain behavior
The mechanical story in crypto is capital shifting from spot bitcoin ETFs toward spot ether products: spot BTC ETFs recorded net outflows last month, while spot ETH ETFs netted roughly $3.87 billion. On-chain data and futures/option positioning back that rotation — open interest across perpetuals rose to around $114 billion, and Deribit options show active put and call interest clustered near key strikes.
At the same time, institutional appetite for altcoins has risen: trading volumes in ETH futures hit record highs in August, and SOL and XRP futures also saw strong increases. Some corporates continue to diversify treasuries with altcoins, adding an institutional component to recent gains.
Why traders should care
The market’s tug-of-war matters for near-term price direction. A softer U.S. jobs report could accelerate expectations of Fed rate cuts and push risk assets, including crypto, higher. Conversely, hotter-than-expected labor data could keep rates elevated and sap appetite for risky assets. For traders, short-term liquidation clusters near key BTC price levels mean moves can be amplified by derivatives activity.
Risk note: Market moves described here reflect macro and derivatives dynamics that can change quickly. Trading or investing in cryptocurrencies and leveraged products involves significant risk — prices can be volatile and past flows do not guarantee future performance.
Source: Coindesk. Read the original coverage for full details.
