GME Squeeze Ignites Speculative Fervor, MetaPlanet Adopts BTC Reserve Strategy

Crypto Market Commentary

  • Bitcoin rebounded over the weekend, with prices fully recovering from Friday’s drawdown by Monday morning. BTC -3.35% is now trading just below $63k. Meanwhile, both ETH -2.94% and SOL 1.23% have lagged, trading at $3950 and $146, respectively. Altcoin flows seem to have shifted towards memecoins, which are outpacing the rest of the market today, with gains exceeding 5% from BONK -5.59% , DOGE -3.43% , and PEPE. This interest in memecoins likely stems from the ongoing short squeeze in GME -2.89% . Traders are probably betting on the return of speculative fervor among retail market participants. Equities are mixed, with technology stocks carrying most of the weight today. The ^SPX 0.54%  is slightly in the red, while the QQQ 0.97%  is up about 0.15%. The DXY N/A% has edged lower, moving down to retest the 105 level, influenced by lower yields. Investors are bracing for another pivotal Consumer Price Index (CPI) release on Wednesday, where analysts currently expect a headline rate of 3.4% and a core inflation rate of 3.6%.
  • The market is currently fixated on the ongoing GameStop (GME 2.10% ) short squeeze. If this serves as a precursor to broader short-covering across the market, crypto-related equities stand to benefit, as they happen to be a heavily shorted area. Our crypto equities basket is filled with names that have short interest levels near or exceeding 20% of their respective floats: MSTR -3.00%  (21%), MARA -1.60%  (23%), RIOT -2.21%  (20%), and CLSK (18%).
  • Metaplanet Inc., a Tokyo-based publicly listed firm specializing in crypto, has announced its adoption of bitcoin as a strategic reserve asset, attributing the decision to ongoing fiscal challenges in Japan, including high government debt levels and a weak yen. With Japan grappling with economic difficulties, marked by a staggering government debt-to-GDP ratio and the yen’s recent plunge to a 34-year low, Metaplanet views bitcoin as a non-sovereign store of value that offers stability amid fiat currency depreciation. The company plans to expand its bitcoin reserves using various capital market instruments, currently holding 117.7 BTC valued at $7.2 million as of May 10.
GME Squeeze Ignites Speculative Fervor, MetaPlanet Adopts BTC Reserve Strategy

Technical Strategy

  • SAFE has begun to show more convincing evidence of bottoming out following its 17% gains over the last four of five trading sessions. Price has reached the highest levels since early May and should rally to initial targets near $2.04 with additional levels found at $2.17 which look more important before consolidation sets in. Overall, a push back to new highs is very possible on movement over $2.17 which equates to over 40% from current levels. Pullbacks, if/when they occur should prove short-lived and buyable given the lack of any counter-trend exhaustion along with the strong upward acceleration of momentum of late. Support should materialize anywhere from $1.82-$1.85 on near-term consolidation.
GME Squeeze Ignites Speculative Fervor, MetaPlanet Adopts BTC Reserve Strategy

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market cap 2.30T +$35B(1.56%)
BTC Dominance
53.77 % (0.99%)
Stablecoins

Increase in circulating stablecoins is a Bullish signal

In Circulation +$111B(0.00%)
In Exchanges +$18B(-0.04%)
BTC Metrics

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

# BTC Exchanges +$2.3M(0.05%)
Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate+0.5224(0.1366)
Binance+0.9983(0.3760)
Bitfinex-0.0281(-0.0001)
Bitmex+0.9851(0.8251)
ByBit-0.0118(-1.0019)
Deribit+0.0850(0.0805)
Huobi+0.4759(0.4759)
Kraken+0.3731(0.4057)
Mean+0.5224(0.1366)
OKex +0.5657(0.4520)
Sentiment
Picasso Network Successfully Integrates IBC with Ethereum, Wormhole Token Goes Live

BMI : 40 (100.00%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME Price $63,040(3.43%)
Spot Basis +$357(0.57%)
Volume 247,110(-5.75%)
Open Interest 267,683(-1.19%)
Options all exchanges

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

Volume 7,860(-2.16%)
Open Interest 233,181 (-0.52%)
Vol. Put/Call Ratio 0.4981 (-22.70%)
OOI Put/Call Ratio 0.4239 (-5.56%)

All metrics as of 2024-05-13 14:49:40

All Funding rates are in bps

Crypto Prices

Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD
btc imageBTC
$1.24T $62,752 2.00%48.58%
btc imageETH
$353B $2,941 0.15%29.24%-13.01%
btc imageSOL
$66B $147 1.23%44.47%-2.77%
btc imageDOGE
$505,711 $0.0005 2.57%-99.43%-99.62%

All prices as of 2024-05-13 13:48:47

Exchange Traded Products (ETPs)

Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD
BITW -0.32 $314.01%31.24%-11.67%
ETHE -0.24 $211.30%8.66%-26.86%

News

Quick Bits

The Block

Japan’s Metaplanet adopts bitcoin as reserve asset amid yen slump

The Tokyo-listed company has adopted bitcoin as its treasury reserve asset in response to mounting government debts and weakening yen.

Market Data

CoinDesk

Stablecoin Expansion Stalls Ahead of U.S. Inflation Data

Wednesday's U.S. CPI data is expected to show the cost of living likely increased 3.4% over the year in April, a moderation from March's 3.5%.

The Block

US spot bitcoin ETFs return to net inflows following four weeks of outflows

The shift was mirrored by global crypto ETPs attracting $130 million in net inflows, inclusive of the U.S. spot bitcoin ETFs.

Dose of DeFI

The Block

Synthetix founder Kain Warwick launches Infinex

The developers at Synthetix have rolled out Infinex — a front-end site for that unifies DeFi ecosystems under a user-friendly layer.

CoinDesk

DYdX Founder Antonio Juliano to Step Down as CEO of the Decentralized Exchange; Ivo Crnkovic-Rubsamen Takes Over

Juliano will become chairman and president of dYdX Trading.

Regulation

CoinDesk

U.S. House's McHenry Says Bill on Crypto Market Structure Will Get Floor Vote

The most comprehensive U.S. cryptocurrency legislation to so far make it through a congressional committee will get even further, with the entire House of Representatives set to vote on whether to approve it soon, according to Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial Services Committee.

The Block

MoonPay donates $1 million to Coinbase-initiated Stand With Crypto PAC

Stand With Crypto backs crypto-friendly politicians in Congress to help facilitate clearer crypto regulation in the United States.

Fundraising and M&A

CoinDesk

Zest Raises $3.5M, Led by Tim Draper, for On-Chain Bitcoin Lending Using Stacks

The seed raise was led by billionaire investor Tim Draper with participation from Binance Labs, Flow Traders, Trust Machines and others.

Disclosures (show)

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