BTC and ETH Trade Sideways After Yesterday’s Sell-off: Markets Wrap

Illicit activity makes up 0.15% of crypto transaction volume


Blockworks exclusive art by Axel Rangel


key takeaways

  • Digital assets trade sideways after yesterday’s sell-off
  • Illicit activity makes up .15% of crypto transaction volume

Risk assets sell-off as bond yields rally.

BTC and ETH trade sideways after yesterday’s sell-off.

Illicit activity makes up .15% of crypto transaction volume.

Latest in Macro:

  • S&P 500: 4,696, -0.10%
  • NASDAQ: 15,080, -0.13%
  • Gold: $1,788, -1.19%
  • WTI Crude Oil: $79.47, +2.08%
  • 10-Year Treasury: 1.73%, +0.027%

Latest in Crypto:

  • BTC: $43,221, -0.10%
  • ETH: $3,436, -2.50%
  • ETH/BTC: 0.0793, -2.51%
  • BTC.D: 39.60%, -0.31%

Bond yields rally

Jurrien Timmer, director of global macro at Fidelity, wrote, “The 30y TIPS real yield has jumped 30 bps in the last 4 days. Less-negative real rates could become part of the landscape during this Fed cycle, with implications for the liquidity highfliers and SoV (Store of Value) plays.”

Source: Fidelity

The rise in rates likely comes as a result of the FOMC minutes released yesterday. “We are phasing out our purchases more rapidly because with elevated inflation pressures and a rapidly strengthening labor market, the economy no longer needs increasing amounts of policy support,” Powell said during a press conference in December following the conclusion of the two-day FOMC meeting.

The Wall Street Journal wrote: “They noted that current conditions included a stronger economic outlook, higher inflation, and a larger balance sheet and thus could warrant a potentially faster pace of policy rate normalization”.


The rise in rates and news of tightening sent digital asset markets tumbling yesterday.

Timmer continued by adding, “I remain constructive on BTC & ETH over the long-term (and still see $100k as fair value for BTC in a few years based on my supply/demand models). But there is no denying that the short-term charts don’t look great”.

Bitcoin Fidelity

ETH has begun to bounce back versus BTC after trading as low as $3,331 earlier today, according to data from CoinGecko. The ETH/BTC ratio was last hovering near .0795, according to Trading View, as it tries to reclaim its longer-term uptrend.

Crime in crypto on the decline

Illicit activity as a percentage of transaction volume has fallen drastically over the past five years, according to a Chainalysis report released today.

Source: Chainalysis

“Across all cryptocurrencies tracked by Chainalysis, total transaction volume grew to $15.8 trillion in 2021, up 567% from 2020’s totals,” said Chainalysis. “Given that roaring adoption, it’s no surprise that more cybercriminals are using cryptocurrency. But the fact that the increase was just 79% — nearly an order of magnitude lower than overall adoption — might be the biggest surprise of all. In fact, with the growth of legitimate cryptocurrency usage far outpacing the growth of criminal usage, illicit activity’s share of cryptocurrency transaction volume has never been lower.”


Trading data from OpenSea and Solanalysis of some of the top Solana and Ethereum projects can be found below:

Top Ethereum Projects
Top Solana Projects

If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.

Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png


Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.


Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121


Oklahoma’s new crypto bill will go into effect in November of this year


The deposits hit a $20 million cap in just 45 minutes


Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image is “aware” that bonding curve contracts on were exploited, and has since paused trading


Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients