Cryptocurrency Market Update: Bitcoin Rally and Corporate Contributions

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Current Prices

• CoinDesk 20 Index: 1,968 (+2.8%)
• Bitcoin (BTC): $61,253 (+3.0%)
• Ether (ETH): $2,638 (+2.0%)
• S&P 500: 5,620.85 (+0.4%)
• Gold: $2,541 (+1.3%)
• Nikkei 225: 38,211.01 (+0.68%)

Key Developments

Bitcoin has shown a notable rally during the late European morning hours, fluctuating between the $59,000 and $61,000 range before ultimately climbing to approximately $61,250, marking a 24-hour surge of nearly 3%. Recent news has indicated that Robert Kennedy Jr. may withdraw from the U.S. presidential race by the end of this week and could endorse Donald Trump, who has positioned himself as a pro-crypto candidate for the upcoming election. Polymarket bettors currently suggest a 94% likelihood of this withdrawal occurring, representing a significant shift in sentiment compared to earlier in the week. Overall, the broader digital asset market has experienced a nearly 2.75% increase in the past 24 hours, as tracked by the CoinDesk 20 Index.

In another significant report from the corporate influence watchdog Public Citizen, it was revealed that nearly half of all corporate political contributions for the 2024 election cycle stem from cryptocurrency companies. So far, 48% of corporate election spending, which amounts to $119 million out of a total of $248 million, has originated from crypto firms such as Ripple and Coinbase. A majority of these funds have been directed towards pro-crypto super political action committees (PACs) like Fairshake, while also working to counteract the efforts of crypto skeptics. Notably, just under $108 million of the $203 million raised by Fairshake has come directly from crypto companies, with significant contributions from influential individuals like the Winklevoss twins and Brian Armstrong.

Reflecting on market trends, HashKey Capital had predicted a year ago that the total value locked (TVL) in ether liquid-staking derivatives would double from its August 2023 figure to reach $44 billion by August 2025. As we reach the halfway mark, the data suggests that this trajectory is on track, with the TVL of Ether LSDs currently hitting $36.25 billion. Lido has claimed a dominant market share of 70%, according to insights from DeFiLlama. Despite the relatively stagnant price of ETH in recent times, there is a rising demand for staking, evidenced by the validator entry queue reaching an unprecedented high of about 7,400. However, analysts from HashKey Capital noted that annualized staking yields have remained steady at around 3.5% for the past four months, resulting in a scenario where more validators are eager to join, yet the rewards have not seen substantial increases.

Chart of the Day

– Omkar Godbole