Market Update
- Crypto markets pulled back today, BTC is down 1.44% and ETH is down 2.81%. Altcoins took a bigger hit, especially those that Robinhood is delisting and expected to sell later this week amid the SEC's crackdown (Cardano, Solana, and Matic). ADA, SOL, and MATIC are down 4.01%, 4,13%, and 3.62%, respectively. Interestingly, many of the "DeFi 1.0" tokens (DeFi protocols launched in 2019 and 2020) saw large gains over the weekend. AAVE, COMP, and SNX each rose over 30% over the weekend and have since given back some of their gains. According to on-chain data, these rallies were driven by individuals or funds buying, with one Whale purchasing $17.2M AAVE over the weekend and holding $31.8M total. Traditional markets also pulled back today. SPX and NDQ are down 0.24% and 1.05%.
- In a notice released on June 20, Japan's National Tax Agency provided clarity that cryptocurrency issuers in the nation will be exempt from capital gains taxes on unrealized gains. The tax committee of the ruling Liberal Democratic Party (LDP) approved a proposal in December last year to waive corporate taxes on unrealized gains for crypto startups that issue their own tokens. Japan has been reassessing its approach to taxing cryptocurrencies for over a year to retain startups within the country, as previous tax burdens resulted in a significant departure of companies. This tax revision departs from the prior mandate that imposed a capital gains tax of approximately 35% on both a token issuer's tokens and unrealized gains. According to the proposal, the tax exemption will extend to unrealized gains obtained by continuously holding eligible cryptocurrency from the issuance date or by implementing specific technical measures to prevent its transfer to others. Additionally, Japan's industry associations have advocated for further tax reforms, such as aligning the tax rate for crypto gains with stocks and taxing individuals only when they convert crypto gains into fiat currency.
- HSBC Hong Kong, the leading bank in China, has introduced the option for its customers to trade bitcoin and ether exchange-traded funds (ETFs) listed on Hong Kong's stock exchange. The investment platform of HSBC Hong Kong currently features three crypto ETFs: CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF. Hong Kong has been actively positioning itself as a jurisdiction supporting cryptocurrencies this year. Numerous initiatives have been implemented to encourage digital asset innovation, including establishing an exchange licensing system, funding for web3 development, and regulatory calls for equitable treatment of crypto clients by banks. Additionally, city officials expressed their commitment to introducing legislation for stablecoins by 2024. Christopher Hui Ching-yu, the Secretary for Financial Services and the Treasury, emphasized adopting a comprehensive and predictable approach in this regard.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
ICE looks to have begun a new advance given the high volume one-day surge to test its two-month downtrend near $1.20. Volume has expanded to the highest levels in around two weeks, but Monday's gains are the biggest percentage gains from ICE since at least early April. While this downtrend will need to be surpassed to have confidence that a rally straight back to test $2.00 is underway, it looks likely technically given the sudden above-average gain on heavier volume. Momentum had provided some clues as to a possible bottoming earlier this month following some positive divergence despite ICE having undercut its May lows. Overall, rallies look likely which should carry ICE back to test $2.10 with only minor resistance possible near $1.50. Momentum indicators like MACD have crossed over back to bullish territory, and any daily close back over $1.28 should lead to upward acceleration.
Daily Important Metrics
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All metrics as of June 26, 2023 1:58 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $584B | $30,108 | ↓ -1.40% | ↑ 82% | |
 ETH | $222B | $1,848 | ↓ -2.39% | ↑ 54% | ↓ -28% |
 ADA | $9.8B | $0.2803 | ↓ -4.50% | ↑ 14% | ↓ -68% |
 DOGE | $9.1B | $0.0648 | ↓ -3.20% | ↓ -7.63% | ↓ -89% |
 SOL | $6.5B | $16.27 | ↓ -5.26% | ↑ 64% | ↓ -17% |
 DOT | $6.1B | $5.11 | ↓ -0.74% | ↑ 18% | ↓ -64% |
 MATIC | $6.0B | $0.6417 | ↓ -3.74% | ↓ -16% | ↓ -98% |
 LINK | $3.3B | $6.08 | ↓ -1.62% | ↑ 9.57% | ↓ -72% |
 NEAR | $1.4B | $1.55 | ↑ 9.34% | ↑ 22% | ↓ -60% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -31% | $18.18 | ↓ -5.26% | ↑ 119% | ↑ 38% |
| BITW | ↓ -57% | $10.98 | ↓ -2.83% | ↑ 104% | ↑ 23% |
| ETHE | ↓ -47% | $9.51 | ↓ -2.96% | ↑ 100% | ↑ 18% |
| BTCC | ↑ 0.26% | $5.54 | ↓ -2.64% | ↑ 83% | ↑ 1.09% |
News
QUICK BITS
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Coin Telegraph Token issuers in Japan exempt from 30% crypto tax on paper gains Japan's National Tax Agency published a partial revision of its corporate tax guidelines, implementing new tax rules f... |
CoinDesk Bybit Gains Crypto License in Cyprus The Dubai-based crypto exchange will gain now a foothold in the European Union after its exit from Canada and the U.K. |
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The Block HSBC Hong Kong now lets customers trade bitcoin and ether ETFs HSBC Hong Kong, the region's largest bank, now allows customers to trade bitcoin and ether ETFs listed on Hong Kong's stock exchange. ... |
Decrypt.co Swiss Authorities Freeze $26M Worth of Do Kwon, Terraform Labs Crypto Assets: Report $26 million in crypto linked to Terraform Labs and held in digital asset bank Sygnum has reportedly been frozen by Swiss authorities. |
Coin Telegraph ZkSync unveils new network of ‘Hyperchains’ — Testnet by end of year zkSync Era’s new ZK Stack will use recursive scaling and “hyperchains” to create an ecosystem of interoperable protoco... |
HIRING
BTC Manager OKX executive hints at expanding Dubai team after acquiring MVP license On June 15, the Seychelles-based crypto exchange OKX entered the Middle East after the Dubai Virtual Assets Regulatory Authority (VARA) granted its Minimal Viab... |
PRODUCT UPDATES AND PARTNERSHIPS
CryptoPotato Web3 Security Platform Redefine Partners with Safe for Blockchain Transaction Security Integrating Redefine's DeFirewall into Safe is expected to improve transaction security for users. |
CoinDesk NEAR Foundation Partners With Alibaba Cloud to Accelerate Web3 Growth in Asia The partnership will offer multi-chain indexing to provide data query API to developers. |
CryptoPotato DWF Labs and Algorand Foundation Reach Strategic Partnership [Press Release – Dubai, June 26th, 2023] DWF Labs, the global multi-stage Web3 investment firm, has announced a partnership with Algorand Foundation to support ... |
