USDC Native Cross-Chain Transfers, Hong Kong Launching Crypto License
Market Update
- Crypto markets are lower today, with BTC down 1.7% after a highly volatile session saw ~$360m in both long and short derivative liquidations yesterday. After initially rising to $30k, BTC dropped nearly 7% in one hour following alerts that U.S government BTC sales were taking place from Arkham Intel. The rumors were later proven false, sending BTC from an intraday low of $27.2k to its current level of ~$29.2k. Despite the high levels of volatility, Bitcoin continues to trade as a safe haven amid uncertainty in the banking sector, recently reaching a 57% 30-day rolling correlation with gold, its highest level in nearly two years. ETH 4.75% fell 2.5% nominally while ETHBTC is down -0.9%. Equities are higher today, with the S&P gaining 1.6% and the Nasdaq up 2.14%.
- Circle, the creator of US Dollar Coin (USDC) has launched a new protocol that enables users to transfer USDC between Ethereum and Avalanche without the need for bridges or third-party services. The new protocol, called Cross-Chain Transfer Protocol (CCTP), destroys tokens sent to its contract and issues new tokens on the receiving network, improving liquidity and capital efficiency in decentralized finance. CCTP is expected to simplify user experience and increase trust in highly liquid, safe, and fungible assets in native USDC and has already been adopted by several cross-chain protocols. The move is a significant step towards solving the fragmentation problem in the Web3 ecosystem caused by multiple unofficial versions of USDC floating around on various networks.
- Hong Kong is preparing to launch a new crypto licensing regime next month, aiming to position the city as a leading hub for cryptocurrency trading in Asia. The guidelines are expected to allow retail investors to trade major cryptocurrencies like Bitcoin and Ethereum starting June 1st. Hong Kong's Securities and Futures Commission (SFC) is also conducting pilot projects to explore the potential applications of digital assets, including tokenizing green bonds and developing a central bank digital currency. Despite concerns over its impact on Hong Kong's relationship with mainland China, the city has received interest from over 80 companies seeking to establish a business in the territory, including exchanges, blockchain infrastructure firms, and payment providers.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Wednesday's 14% gains in ICE 1.32% look to have solidified its recent lows as having been important support after the steep drop from $2.10 over the last couple of weeks. As shown below, ICE maintains very bullish structure and trends have grown more parabolic starting with the breakout above February highs in late March. Its pattern has shown a steady pattern of higher highs and higher lows in recent months, and despite a sharp 35% + drop in just under two weeks' time, no technical damage has occurred to the daily chart. Recent consolidation has helped to alleviate overbought conditions and creates an attractive entry zone from a risk/reward standpoint following such a steep runup over $2 into mid-April. Gains to multi-day highs are thought to lead to an upcoming test and breakout back over April highs, with resistance materializing at $2.37-$2.40 before consolidation gets underway in May. Overall, until/unless its recent uptrend line is breached, it pays to think that ICE can still push higher in the weeks ahead. However, evidence of deteriorating momentum and/or failure to regain April highs on this bounce would necessitate paying close attention to recent technical structure for any evidence of deterioration. At present, ICE 's daily chart remains technically attractive, despite Wednesday's 14% gains.
Daily Important Metrics
|
All metrics as of April 27, 2023 1:59 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $568B | $29,323 | ↓ -1.35% | ↑ 77% | |
 ETH | $229B | $1,905 | ↓ -2.13% | ↑ 59% | ↓ -18% |
 ADA | $14B | $0.4149 | ↑ 0.45% | ↑ 68% | ↓ -8.93% |
 DOGE | $11B | $0.0804 | ↓ -2.28% | ↑ 15% | ↓ -62% |
 MATIC | $9.4B | $1.02 | ↓ -1.51% | ↑ 34% | ↓ -43% |
 SOL | $8.7B | $22.26 | ↓ -1.98% | ↑ 125% | ↑ 48% |
 DOT | $7.0B | $5.97 | ↓ -2.89% | ↑ 37% | ↓ -40% |
 LINK | $3.7B | $7.15 | ↓ -3.14% | ↑ 29% | ↓ -48% |
 NEAR | $1.7B | $1.93 | ↓ -2.47% | ↑ 52% | ↓ -25% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -41% | $16.17 | ↑ 7.09% | ↑ 95% | ↑ 18% |
| BITW | ↓ -57% | $10.92 | ↑ 3.20% | ↑ 103% | ↑ 26% |
| ETHE | ↓ -54% | $8.92 | ↑ 7.86% | ↑ 87% | ↑ 10% |
| BTCC | ↑ 0.82% | $5.38 | ↑ 3.86% | ↑ 78% | ↑ 0.55% |
News
QUICK BITS
CoinDesk ‘Tokenization Is the Killer App for TradFi’: JPMorgan The head of the bank's Onyx Digital Assets platform, Tyrone Lobban said there is added caution post-FTX, but JPMorgan’s strategy hasn’t at all changed. |
Coin Telegraph Arkham denies buggy Mt. Gox alerts to blame for 7% Bitcoin price crash Blockchain analytics firm Arkham Intelligence has denied playing a role in the flash crash that saw Bitcoin fall 7% in... |
CryptoPotato Genesis Creditors Allegedly ‘Walk Away’ From Previously Agreed Bankruptcy Restructuring Plan DCG has sought a mediator for the bankruptcy proceeding after the creditors challenged Genesis' restructuring plan. |
MARKET DATA
CoinDesk Cross-Chain Bridge Stargate's Volume Soars as Airdrop Hunters Set Sights on LayerZero Token Volume on the Stargate cross-chain bridge has surged by 30% in the past 24-hours as investors attempt to meet the criteria for a rumored LayerZero airdrop. |
REGULATION
Decrypt.co Hong Kong's Crypto Licensing Regime Expected to Launch Next Month The licensing regime for crypto firms is expected to launch in May, with access to retail traders slated for June 1, per Hong Kong's finance regulator. |
NFTS
Decrypt.co Mad Lads Gave Solana NFTs a ‘New Heartbeat’ After Losing DeGods: Coral CEO Armani Ferrante reflects on the buzzy launch of Mad Lads, plus Coral’s larger plans with the Backpack app and versatile xNFTs. |
PRODUCT UPDATES AND PARTNERSHIPS
AMBCrypto Franklin Templeton in a pioneering move uses Polygon to support its OnChain fund Franklin Templeton aims to enhance its operational efficiency by expanding its money market fund on Polygon. The plan is to bring more value for the fund’s shar... |
Reports you may have missed
CRYPTO MARKET UPDATE AFTER ANOTHER DAY OF SIZEABLE OUTFLOWS FROM ETHE 4.58% , THE GRAYSCALE-ISSUED ETF NOW RETAINS JUST 85% OF THE AUM IT BEGAN WITH ON TUESDAY. However, crypto has rallied strongly since the US market closed yesterday, with BTC 3.38% briefly moving above the $68k level, ETH 3.52% rebounding sharply to $3,250, and SOL 6.65% revisiting $184. Among larger-cap tokens, SOL beta names including RNDR and JUP have outperformed over the past 24...
CRYPTO MARKET UPDATE CRYPTO WAS CERTAINLY LOOKING STRONG RELATIVE TO EQUITIES YESTERDAY UNTIL ASIAN MARKET HOURS COMMENCED. Shortly after the HK market opened, we saw increased sell pressure and approximately $100 million in liquidations across all crypto assets, bringing BTC 3.38% down to below $64,000, ETH 3.52% down to $3,150, and SOL 6.65% to just below $170. This contrast in price action during U.S. and Asia market hours has been consistent throughout July....
CRYPTO MARKET UPDATE RATES ARE BROADLY LOWER, WITH A NOTABLY STRONGER RALLY AT THE FRONT END OF THE CURVE AS THE MARKET APPEARS TO BE TAKING POTENTIAL RATE CUTS OVER THE NEXT COUPLE OF FOMC MEETINGS MORE SERIOUSLY. Despite significant weakness in equities today, the crypto market is looking relatively healthy, with BTC 3.38% and many altcoins in the green. BTC 3.38% briefly rallied above $67k but has since drifted back down...
CRYPTO MARKET UPDATE DESPITE BEING THE LAUNCH DAY FOR ETH 3.52% ETFS, CRYPTO BROADLY MOVED LOWER IN THE EARLY MORNING HOURS TODAY, POSSIBLY DUE TO MOVEMENT OUT OF THE MT. GOX TRUSTEE WALLETS. Mt. Gox sent approximately $130 million in BTC 3.38% to Bitstamp, leaving about 90k BTC 3.38% remaining in the trustee wallets. This move lower was likely also influenced by a rise in the DXY. Currently, BTC 3.38% is trading around $66.5k,...
Articles Read 1/3
Enjoyed the read? Subscribe now for unlimited access!
Get invaluable analysis of the market and stocks. Cancel at any time.
Already have an account? Sign In b53744-5c88db-6bf0d8-786257-5196bf
Already have an account? Sign In b53744-5c88db-6bf0d8-786257-5196bf
