Crypto Daily Report – July 6

Name: FS Insight
Price range: $$$

Jul 6, 2022

Crypto Daily Report

July 6, 2022

THIS MESSAGE IS SENT SOLELY TO MEMBERS OF FSINSIGHT

Tickers on this report: AVAX, BNB, BTC, CRV, CVX, ETH, SOL

Market Update

Walter Teng

Digital Asset Strategy Associate

Amidst a flat opening in traditional markets (NDAQ +0.1% | SPX -0.4%), digital asset market capitalization is up by 2.6% over the last 24 hours. BTC and ETH 1.62% have been trading at similar levels since capitulating 18 days ago, at $20.1k (+3.3%) and $1.13k (+3.7%), respectively. Alt Layer 1 majors BNB, SOL 4.12% , and AVAX, are changing hands at $237 (+5.3%), $35.8 (+5.9%), and $18.4 (+8.4%). In the top 100, CVX -0.88% has shown the most substantial 24-hr gain (+10.7%) at $5.63. While Convex had substantial (27.4m) unlocks on 6/30 that incited fear of sell pressure in the bear markets, the majority of Curve war participants (e.g. FRAX) surprisingly relocked their CRV and CVX -0.88% into partner and derivative protocols, signaling faith in arguably the only 'sustainable' primitive DeFi has seen thus far. The next unlock date to watch out for is 7/7, where 8.7m more CVX will be unlocked.
Polygon announced a partnership with startup Nothing to offer NFTs on its new Android-based Nothing Phone (1). The NFT project, called "Nothing Community Dots," airdrops tokens to community investors that unlock perks such as invites to Nothing Phone (1)'s launch on July 12. The ETH sidechain follows in the footsteps of Alt Layer-1 Solana, which revealed its blockchain phone called Saga. The push for mobile-first crypto is as significant to the space as mobile was for the internet and commerce, as crypto UI/UX today is far superior on desktop. Blockchain-native phones first surfaced in 2018 via Sirin Labs. The launch's timing proved too early, as NFTs and DeFi had not gained traction yet, resulting in layoffs and unpaid factory bills.
In yesterday's Crypto Daily, we reported on Voyager Digital's decision to halt trading, deposits, withdrawals, and loyalty rewards last week. Today, the troubled lender has filed for Chapter 11 bankruptcy in the Southern District Court of New York, specifying that it is liable for $1b - $10b in deposits to more than 100,000 creditors. The filing has been described as part of a "Plan of Reorganization" to enable clients to reaccess their accounts. The proposed plan involves customers receiving a combination of crypto, proceeds from Three Arrows Capital (3AC) recovery, and common shares. At this time, it is unclear if these assets will amount to the total customer deposits. 3AC's Chapter 15 bankruptcy proceedings and forced liquidation by the British Virgin Islands will complicate the recovery process.

Daily Technical Strategy

Mark L. Newton, CMT

Head of Technical Strategy

Weekly ratio charts of Ethereum to Bitcoin (ETHBTC) show this to have stabilized nicely over the last month, despite the ongoing deleveraging being seen in many parts of the Crypto market. Weekly ETHBTC charts going back since 2017 show this to have formed a large basing structure, which many might refer to as a "Rounding Bottom" pattern. Normally formations like these do tend to have a bullish bias following a period of consolidation, which has played out over the last seven months. As shown, ETHBTC stabilized back in mid-June right at the 50% retracement of the entire 2019-2021 rally. Weekly RSI fell to the lowest level in nearly three years, and has recently begun to lift. While both Bitcoin and Ethereum have held up relatively better than Altcoins in recent weeks, Ethereum seems like a more favorable risk-reward to consider buying dips in the short run. The act of recouping former March lows in ETHBTC will translate into a stronger degree of upward acceleration in ETHBTC, and Ethereum would stand out more clearly as a favorite when this occurs.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market Cap $907B +$27B (+3.09%)

BTC Dominance 42.44% (+0.70%)

Stable Coins

Increase in circulating stablecoins is a Bullish signal

In Circulation $66B (-0.07%)

In Exchanges $15B (+0.23%)

BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC in Exchanges 2.4M (0.04%)

Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate 0.0047% (0.0029)

Binance 0.0008 (-0.0086)

Bitfinex 0.0000% (-0.0179)

Bitmex 0.0008% (-0.0086)

ByBit 0.0064% (0.0098)

Deribit 0.0017% (0.0021)

FTX 0.0064% (0.0072)

Huobi 0.0081% (0.0053)

Kraken 0.0012% (0.0037)

Mean 0.0047% (0.0029)

OKex -0.0030% (-0.0045)

Futures All Exchanges

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price $20,260 (3.53%)

Spot Basis $5.49 (0.03%)

Volume 2.2M (39%)

Open Interest 438,830 (0.13%)

Options All Exchanges

Higher open interest change in a bull market is bullish for the sector

Volume 21,214 (29%)

Open Interest 214,228 (3.01%)

Volume Put/Call Ratio 0.8126 (9.91%)

Open Interest Put/Call Ratio 0.6411 (1.16%)

All metrics as of July 6, 2022 1:33 PM

Crypto Prices

Symbol	Market Cap	Last Price	Daily Change	Year to Date	Relative to BTC YTD
BTC	$387B	$20,255	2.96%	-57%
ETH	$139B	$1,141	3.56%	-69%	-13%
ADA	$15B	$0.4576	1.57%	-66%	-8.78%
SOL	$12B	$36.08	6.11%	-79%	-22%
DOGE	$9.0B	$0.0681	2.06%	-60%	-3.57%
DOT	$6.8B	$6.91	2.71%	-75%	-18%
MATIC	$4.1B	$0.5143	4.30%	-80%	-23%
LINK	$2.9B	$6.27	1.69%	-68%	-12%
NEAR	$2.5B	$3.46	3.55%	-76%	-20%
HNT	$1.1B	$9.17	0.44%	-76%	-19%
FTM	$655M	$0.2572	2.04%	-89%	-32%
Our Deep Research Projects
AVAX	$5.3B	$18.81	11%	-83%	-26%
IOTA	$760M	$0.2733	2.59%	-80%	-23%
ZIL	$508M	$0.0390	1.29%	-49%	8.10%
AMP	$384M	$0.0091	-1.19%	-81%	-25%
ZEN	$191M	$15.17	4.84%	-75%	-19%
VGX	$59M	$0.2129	-11%	-93%	-36%

All prices as of July 6, 2022 1:33 PM

Exchanged Traded Products (ETPs)

Symbol	Premium to Nav	Last Price	Daily Change	Year to Date	Relative to BTC YTD
GBTC	-30%	$12.93	5.55%	-62%	-5.50%
BITW	-26%	$8.97	-4.88%	-76%	-20%
ETHE	-30%	$7.74	-1.90%	-76%	-19%
QBTC	-5.71%	$20.50	-1.06%	-66%	-9.65%
BTCC	0.32%	$3.78	-0.79%	-56%	0.60%

All prices as of July 6, 2022 8:02 AM

Stocks

Symbol	Market Cap	Last Price	Daily Change	Year to date	Relative to BTC YTD
PYPL	$216B	$73.30	-1.48%	-61%	-4.38%
SQ	$76B	$65.08	-2.47%	-60%	-2.95%
COIN	$65B	$52.72	-4.85%	-79%	-22%
SBNY	$18B	$186	-1.79%	-42%	14%
HOOD	$15B	$8.69	3.39%	-51%	5.65%
MSTR	$6.1B	$188	0.33%	-65%	-8.67%
SI	$4.2B	$62.09	2.92%	-58%	-1.35%
MARA	$3.5B	$5.73	-5.60%	-83%	-26%
RIOT	$2.7B	$4.60	-2.75%	-79%	-23%
MOGO	$223M	$0.8812	-0.38%	-74%	-17%

All prices as of July 6, 2022 1:24 PM

News

QUICK BITS

Billions in bitcoin trapped on lending platforms like Celsius may turn into a tax writeoff for investors

CNBC

The bad debt writeoff from Crypto platforms could eventually provide relief to investors who lost their funds.

MARKET DATA

Voyager Digital files for Chapter 11 bankruptcy, proposes recovery plan

Coin Telegraph

Voyager Digital has joined the growing list of CeFi firms hurting as a result of exposure to Three Arrows Capital and declining crypto asset prices.

Circle's USDC on track to topple Tether USDT as the top stablecoin in 2022

Coin Telegraph

The USDT-to-USDC market cap ratio fell to its lowest ever in July 2022.

El Salvador's Bitcoin wallet Chivo scores $52M in remittances in 2022

Coin Telegraph

El Salvador payment app Chivo processed $52 million in remittances over the past 6 months, as expatriates make use of commission-free BTC transfers.

THOUGHTS AND OPINIONS

Web3 will unite users from social media platforms, says Aave exec

Coin Telegraph

At this year’s NFT.NYC conference, Aave executive Christina Beltramini shared detailed insights into the platform’s recent launch and future vision.

REGULATION

Huobi Tech Subsidiary Is Granted US Money Transfer License

CoinDesk

Huobi subsidiary HBIT has obtained a U.S. license, which means the company can conduct foreign exchange and money transfer operations across the nation.

Russian Citizens Are Banned From Accessing BitMEX From The EU

DCForecasts

Russian citizens are banned from accessing the BitMEX exchange and services from the European Union after July 11 as the platform is working to increase complaince with the EU sanctions against Russia by enforcing even bigger restrictions for the use...

Salary payments in USDT stablecoin ruled as illegal in the Chinese court

Coin Telegraph

Tether USDT stablecoin cannot be used for salary payments, a Chinese court ruled, citing the country’s blanket ban on all types of crypto transactions.

FUNDRAISING AND M&A

Virginia county Fairfax commits $35M to Van Eck crypto lending fund

Coin Telegraph

Fairfax County continues its cryptocurrency investment endeavors through VanEck crypto lending fund, exploring the world of yield farming through the asset manager.

Bitmark Raises $5.6M, Launches Interoperable NFT Wallet

CoinDesk

Blockchain startup Bitmark wants to find new, creative ways to display NFT collections.

MINING

5,800 Rigs Are Now Churning at Hut 8's Ontario Site - And the Miner Will Be 'Hodling' All the Bitcoins They Mine

CoinDesk

HUT continues to hold onto its bitcoin while others sell off.

HIRING

Boom turns to bust: a summary of recent crypto layoffs

The Block

With trouble at Terra, Celsius and Three Arrows Capital — not the mention the wider market rout — crypto firms have had to make cuts. Here’s a list. The post Boom turns to bust: a summary of recent crypto layoffs appeared ...

WEB 3.0

Polygon Joins Solana in Bringing Web3 to Smartphones

CoinDesk

Tech startup Nothing has partnered with Ethereum scaler Polygon to bring non-fungible tokens (NFTs) to its new smartphone Nothing Phone.

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