Crypto Stocks Surge, Azuki Community Revolts
Market Update
- BTC is up 1.7% today, retesting above $31K as crypto markets shrug off last week's negative ETF-related headlines. Most ETF applicants have now refiled to address the SEC's concerns that applications were inadequate without naming exchanges tasked with market surveillance. Equities with high beta to BTC have seen significant gains today. Publicly traded BTC miners Marathon Digital (MARA 10.57% ) are up 10.53%, CleanSpark (CLSK 10.94% ) is up 13.29%, and Terawulf (WULF) gained 15.43% at the time of writing. Other BTC-related equities that have seen gains include Coinbase (COIN 8.31% ), up 11.71%, and MicroStrategy (MSTR 15.25% ), up 10.4%. Comparing these equities to the broader market, SPY 1.14% has been trading relatively flat, only up 0.14% today. This further solidifies Bitcoin's recent negative correlation with traditional equity markets. ETH continues to gain, currently trading at $1.96K, up 2.1% today. Recent gainer, Bitcoin Cash (BCH 1.43% ) has slowed down after crossing the $320 mark last week, down 2.1% over the past day. Compound (COMP 2.08% ), an Ethereum-based DeFi lending protocol, led the top 100 in gains over the past week, up 72.7%. This is partially attributed to its founder recently announcing a new project to bring real-world asset markets on-chain. However, no specific mention of Compound's involvement in the new venture was mentioned.
- Coinbase witnessed a surge in its stock value after revealing its partnerships with a diverse range of ETF issuers. As a result, Coinbase shares experienced a notable increase of 12% at writing, contributing to an impressive overall rise of 138% since the beginning of the year. In contrast, the broader cryptocurrency market saw a more modest 1.5% increase in market cap. Coinbase made headlines when Fidelity resubmitted its spot bitcoin ETF application and highlighted Coinbase's involvement in monitoring market manipulation. Furthermore, CBOE, a major equities derivative trading firm, refiled listing applications for VanEck, WisdomTree, and Invesco, explicitly mentioning Coinbase in the filings.
- Azuki Elementals holders dissatisfied with the project's launch have come together to demand a refund of $38 million from Azuki founder Zagabond. Unfortunately, their efforts were met with further losses when the Azuki DAO, which they formed to coordinate their actions, fell victim to a hack, resulting in tens of thousands of dollars being stolen. The controversy began when the Azuki Elementals NFT project, created as a spin-off from the original Azuki collection, received criticism for its similarities to the original collection. Despite generating $38 million in revenue for the Azuki team from initial sales, both collections' market value rapidly declined after the post-sale Elementals art reveal. In response, 74 "diamond Azuki holders" formed the Azuki DAO to retaliate against Chiru Labs, the creator of Azuki, for allegedly scamming the community. The Azuki DAO remains determined and is working to address the vulnerability, consult legal experts, and pursue legal action against Zagabond and Chiru Labs. While some other Azuki holders disagree with the Azuki DAO's actions, viewing them as unrepresentative of the broader community, the group remains committed to their cause. The original Azuki collection 'floor price,' or cheapest market value one can buy a piece, has fallen from above 15 ETH last week to ~6 ETH at writing, a 61% drop from a few days before the debacle.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
ATOM -3.41% growing very close to a technical breakout of its ongoing downtrend from early February and volume has been particularly supportive in this regard. Daily Cosmos charts show this sharp four-week rally following its successful retest of prior lows from late last year. Daily closes back over $10.25 would definitively break this four-month downtrend along with successfully recouping prior May lows which would be quite constructive. Upon successful confirmation of this breakout, gains up to $14.00 would be likely with additional upside areas of importance found at $14.44. Momentum has slowly gotten more positive on the recent rally but would likely require a trend breakout before weekly MACD makes a bullish crossover of the signal line. Dips, if/when they occur, should find strong support near $9-$9.30
Daily Important Metrics
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All metrics as of July 3, 2023 2:12 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $602B | $31,016 | ↑ 1.79% | ↑ 87% | |
 ETH | $236B | $1,961 | ↑ 2.81% | ↑ 64% | ↓ -24% |
 ADA | $10B | $0.2951 | ↑ 2.42% | ↑ 20% | ↓ -68% |
 DOGE | $9.5B | $0.0681 | ↑ 0.15% | ↓ -2.94% | ↓ -90% |
 SOL | $7.7B | $19.16 | ↓ -0.36% | ↑ 94% | ↑ 6.38% |
 MATIC | $6.6B | $0.7032 | ↑ 5.31% | ↓ -7.73% | ↓ -95% |
 DOT | $6.5B | $5.43 | ↑ 0.78% | ↑ 25% | ↓ -62% |
 LINK | $3.6B | $6.60 | ↑ 3.40% | ↑ 19% | ↓ -68% |
 NEAR | $1.3B | $1.43 | ↓ -1.01% | ↑ 12% | ↓ -75% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -31% | $20.45 | ↑ 6.57% | ↑ 147% | ↑ 59% |
| BITW | ↓ -56% | $11.53 | ↑ 1.63% | ↑ 115% | ↑ 27% |
| ETHE | ↓ -47% | $10.26 | ↑ 3.22% | ↑ 116% | ↑ 28% |
| BTCC | ↑ 0.35% | $5.60 | ↓ -0.18% | ↑ 85% | ↓ -2.41% |
News
MARKET DATA
Coin Telegraph Federal Reserve's banking bailouts reach a new weekly high of $103B The Fed’s emergency loan facility has reached new highs as embattled banks are needing a central bank bailout. ... |
The Block Optimism, Aptos and ApeCoin set for largest token unlocks in July Optimism, Aptos and ApeCoin are set for significant token unlocks this month, releasing more than a combined $100 million worth of tokens. ... |
The Block Coinbase shares surge after wide range of ETF partnerships revealed COIN was surging Monday after it was revealed it had partnerships with a wide range of ETF issuers for a spot bitcoin fund. The pos... |
CryptoSlate Bitcoin-adjacent stocks boom as BTC surges, other US equities remain flat Quick Take In a noteworthy development, Bitcoin has surged past the $31,000 mark. However, in stark contrast, both the Nasdaq and the S&P 500 indexes remain... |
NFTS
Decrypt.co The Azuki DAO, formed last week to coordinate a lawsuit against Azuki founder Zagabond, was targeted by a successful hack early this morning. |
PRODUCT UPDATES AND PARTNERSHIPS
CoinDesk OKX Overcomes FTX-Related Concerns Around Crypto Industry in $70M Expansion of Man City Sponsorship Manchester City and OKX's other partners have been auditing the exchange's proof of reserves to ease concerns that it won't go the same way as FTX. |
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