Market Update

Equities are gaining to start the week, with the ^SPX 0.65%  rising above $5,350 and the NDQ above $19,060, as the market prepares for an eventful macroeconomic week. May CPI data and a FOMC meeting are slated for Wednesday, followed by PPI on Thursday and consumer sentiment data on Friday. Rates spiked aggressively on Friday after higher-than-expected non-farm payrolls, but a soft CPI report could result in a dovish Fed meeting, providing fuel for a more significant deterioration in rates. Late on Friday afternoon, crypto assets saw sharp declines, with Bitcoin dropping from $71k to $68k and Ethereum falling from $3,800 to slightly below $3,600. BTC and ETH have since regained some of the losses as they are trading at $69.9k and $3.7k, respectively. Last week was strong for crypto ETPs, which saw over $2 billion in inflows, matching that of the entire month of May. Ethereum products had their best week of inflows since March, totaling $68.9 million.

Bitfarms Approves Potential Issuance to Deter Riot’s Takeover

Bitcoin miner Bitfarms is attempting to block a hostile takeover from competitor Riot Platforms through a “poison pill” strategy. In April, Riot proposed an acquisition of Bitfarms at a 24% premium, which Bitfarms ultimately rejected. Riot then accumulated approximately 12% of the BITF shares over the last two weeks, making them the largest shareholder, with intentions of calling a special shareholder meeting to introduce independent directors to the Bitfarms board. Riot believes that Bitfarms’ board members are not acting in the best interests of shareholders. To preserve the integrity of Bitfarms’ strategic alternatives review process, the Bitfarms board has approved a poison pill strategy. Under the plan, if a single entity accumulates more than 15% of the company between June 20th and September 10th, the company will issue additional stock, diluting the entity’s stake. Bitfarms hopes the new issuance plan will deter Riot from acquiring more shares and allow them to pursue their own directives.

Fidelity International Tokenizes MMF with Onyx Digital Assets.

Fidelity International has selected JP Morgan’s Onyx Digital Assets as its partner to tokenize one of its money market funds. Fidelity International is a subsidiary of Fidelity Investments based in London, and Onyx is JP Morgan’s private blockchain network that supports its Tokenized Collateral Network (TCN). TCN is an application that connects JP Morgan’s transfer agent and financial institutions, allowing for instant tokenization and transfer of collateral. JP Morgan completed its first tokenized collateral settlement last year, transferring tokenized shares of one of Blackrock’s money market funds to Barclays to serve as collateral for an OTC derivatives trade. Banks and asset management firms continue adopting tokenization strategies to unlock capital efficiency and lower costs. Most tokenization activities have focused on MMFs as collateral, but the goal for Onyx and other tokenization companies is to expand into equities, fixed income, real estate, and other assets to transform how finance is facilitated.  

Technical Strategy

Friday’s Solana decline directly coincided with a setback in many crytocurrencies in response to Treasury yields spiking dramatically higher following Friday’s bullish Jobs data.  SOL declined under the lows from late May which might result in a 3-5 day period of consolidation before price starts to rally back.  Importantly, this doesn’t look like the start of a larger decline, but yet just a short-term period of minor weakness.  However, the uptrend from early May was broken on Friday’s weakness, so this will be an area at $168 which will need to be recouped to have confidence that the decline has played its course.  Near-term areas of support to consider attractive support for SOL lies between $145-$150 on any further weakness in the days ahead.  Conversely, any rise back over $175.62 would allow for a push back above $200 which seems likely in the months ahead.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.53T $-8.2B (-0.32%) BTC Dominance 54.09 % (0.43%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$112B (0.03%) In Exchanges +$20B (-0.13%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$2.3M (-0.02%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +1.2108 (0.0051) Binance +0.9993 (0.0105) Bitfinex -0.0266 (-0.4478) Bitmex +1.0000 (0.0000) ByBit +1.0000 (0.0000) Deribit +0.2782 (0.2380) Huobi +1.0000 (1.0000) Kraken +1.8495 (0.4457) Mean +1.2108 (0.0051) OKex +2.8019 (0.0000) Sentiment BMI : 31 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $69,780 (0.04%) Spot Basis +$369 (0.53%) Volume 205,170 (2.90%) Open Interest 297,303 (0.78%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 5,179 (-24.48%) Open Interest 217,825 (-8.25%) Vol. Put/Call Ratio 0.3839 (-38.38%) OOI Put/Call Ratio 0.4578 (3.20%) All metrics as of 2024-06-10 13:51:05 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.38T $70,115 0.83% 66.01% ETH $445B $3,700 0.20% 62.62% -2.05% SOL $75B $163 0.58% 59.91% -3.67% DOGE $297,405 $0.0003 -1.24% -99.67% -99.80% All prices as of 2024-06-10 11:54:46 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $38 0.29% 61.63% -2.64% ETHE -1.16% $34 0.23% 77.67% 7.02% News Quick Bits CoinDesk Crypto Custody Firm Fireblocks Partners With Coinbase International Exchange for More 'Reliable' Trading Fireblocks customers can now connect to their Coinbase International Exchange account and protect exchange operations using the custody tech firm’s governance and policy rules. The Block HSBC China rolls out e-CNY services for corporate clients The bank’s China branch said it is the first foreign bank in China to offer digital yuan services to both retail and corporate customers. Market Data The Block Crypto investment products saw $2 billion in inflows last week amid rate cut anticipation: CoinShares Global digital asset investment products saw net inflows for the fifth consecutive week, adding $2 billion. Dose of DeFI CryptoSlate Polkadot treasury allocates $14.4 million to bolster DeFi project Hydration Polkadot Treasury has allocated 2 million DOT, valued at $14.4 million, to enhance the liquidity of the DeFi project Hydration, according to a June 10 statement shared with CryptoSlate. The project stated that the funds will boost the liquidity and efficiency of its single-sided liquidity provisioning platform, Omnipool. This latest funding aligns with Polkadot’s current […] The post Polkadot treasury allocates $14.4 million to bolster DeFi project Hydration appeared first on CryptoSlate. The Block ZkSync introduces a decentralized governance framework called ZK Nation ZkSync, an Ethereum Layer 2 network developed by Matter Labs, has introduced a new community-driven governance system called ZK Nation. The Block FriendTech to move to new Friendchain blockchain in move away from Base Activity on FriendTech briefly increased with the launch of its v2 upgrade in May, but activity has since declined to pre-v2 levels. The Block Arbitrum DAO votes to approve $215 million gaming ecosystem fund The proposal will allocate 225 million ARB tokens worth about $215 million at current prices over three years to a Gaming Catalyst Program. Fundraising and M&A The Block Solana-based multisig protocol Squads raises $10 million, launches retail wallet app Fuse Solana-based multisig protocol Squads raised $10 million in Series A funding and launched its retail wallet app Fuse on public TestFlight. Investment Products CoinDesk Fidelity International Tokenizes Money Market Fund on JPMorgan’s Blockchain The U.K. firm joined JPMorgan’s Tokenized Collateral Network (TCN), piloting the tokenization of its own money market fund for the first time with Onyx Digital Assets.