Crypto Market Update

Despite rates moving lower today, the DXY is surging higher due to weak economic data from Europe. This is a major driver behind the move lower in crypto, with BTC 1.31% breaking below $67k, ETH 3.24% finding support around $3500, and SOL -0.59% hovering near $152 after bouncing off $150 this morning. Investors are treading carefully ahead of tomorrow’s CPI and FOMC announcements, where headline inflation is expected at 3.4% and core at 3.5%. The market uniformly expects the Fed funds rate to remain unchanged, but the key takeaway will be Chair Powell’s tone and the revised economic projections from the Fed. Equities are mixed, with most sectors in the red except for tech, which is up nearly 1% on major outperformance from Apple today. Bitcoin ETFs broke a 19-day streak of inflows yesterday, experiencing minor outflows amidst the current rally in the DXY. However, the 5-day moving average of inflows remains elevated at just over $330 million.

Metaplanet Buys More Bitcoin

Tokyo-listed investment firm Metaplanet Inc. (TSE: 3350) saw its stock rise 9.88% after purchasing an additional 23.351 BTC for 250 million yen ($1.58 million), bringing its total bitcoin holdings to over 141 BTC. This latest purchase, at an average price of $65,300 per BTC, aligns with Metaplanet’s strategic shift towards a Bitcoin-centric investment approach in response to Japan’s economic challenges. Since announcing its bitcoin investment focus in April, Metaplanet’s stock has surged from 19 yen to 89 yen per share. This move is part of a broader trend of public companies adopting bitcoin as a treasury reserve asset, led by firms like Microstrategy Inc. (NASDAQ: MSTR).

ZK Airdrop Details Revealed

Matter Labs, the developers behind the L2 network ZKsync Era, have officially disclosed the distribution schedule for their highly-anticipated ZK token airdrop. The airdrop will consist of 3.675 billion ZK tokens, representing 17.5% of the total 21 billion supply, to 695,232 eligible wallets next week. Designed to prioritize “real people,” 89% of the tokens will go to users who met specific activity thresholds on ZKsync, while 11% will go to ecosystem contributors. The tokens will be fully liquid with no lock-up periods, aiming to encourage community governance participation. The remaining supply will be distributed through ecosystem initiatives, with substantial allocations to investors and the Matter Labs team, who will have their tokens locked for a year and gradually unlocked over three years

Technical Strategy

Today’s breakdown in Bitcoin is a short-term technical negative which likely will bring about additional consolidation before any rally back to new highs can occur.  BTC 1.31% has violated the uptrend from early May which could result in a pullback to test $64,600 in the days ahead with additional support found at $62,400.  While i do suspect that weakness proves short-lived and not too damaging, Tuesday’s decline looks like a short-term warning following the run-up in May.   Its Elliott-wave pattern appears like a possible ABC formation which began back on 5/20 when BTC closed just above $71.4k.   Following a 50-62% retracement of May’s rally, BTC should be able to turn back higher towards all-time highs, which might also coincide with Treasury yields beginning a more material breakdown.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.44T $-90.1B (-3.56%) BTC Dominance 53.97 % (-0.22%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$112B (0.01%) In Exchanges +$20B (0.23%) 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 +0.7870 (-0.4238) Binance +0.9969 (-0.0024) Bitfinex -0.0289 (-0.0023) Bitmex +1.0000 (0.0000) ByBit +1.0000 (0.0000) Deribit +0.0221 (-0.2561) Huobi +1.0244 (1.0244) Kraken +1.3045 (-0.5450) Mean +0.7870 (-0.4238) OKex -0.1251 (-2.9270) Sentiment BMI : 32 (3.13%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $67,170 (-3.74%) Spot Basis +$263 (0.39%) Volume 291,703 (42.18%) Open Interest 299,853 (0.86%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 11,648 (124.90%) Open Interest 250,578 (15.04%) Vol. Put/Call Ratio 0.7186 (87.20%) OOI Put/Call Ratio 0.4378 (-4.38%) All metrics as of 2024-06-11 12:00:51 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.31T $66,293 -5.46% 56.97% ETH $415B $3,456 -6.64% 51.88% -3.24% SOL $68B $148 -9.23% 45.04% -7.60% DOGE $410,981 $0.0004 38.19% -99.54% -99.71% All prices as of 2024-06-11 11:51:59 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $37 -2.37% 60.64% 2.34% ETHE -1.42% $32 -5.83% 65.86% 5.67% News Quick Bits CoinDesk Crypto Exchange Crypto.com Secures Spot on Ireland's Virtual Assets Service Provider Register The company has also received approval in Dubai, U.K., the Netherlands and Spain. The Block Uncertainty looms for crypto industry and stablecoins ahead of key EU MiCA deadline A key MiCA deadline in the European Union is approaching on June 30, impacting the regulation of the crypto market across member states. The Block Spot Ethereum ETF issuers still waiting on SEC for first round of S-1 comments: Sources Spot Ethereum ETF issuers are now expecting the comments to come back this week after they didn’t hear anything on Friday. Market Data CoinDesk Bitcoin ETFs See $65M Net Outflows on Monday, Breaking 19-Day Record Streak Grayscale’s GBTC saw $40 million in outflows, the most among its counterparts, while Bitwise’s BITB led inflows at $7.6 million. Crypto Infrastructure The Block OP Mainnet implements ‘fault proofs’ to strengthen rollup decentralization OP Labs, the core developer of Optimism, has released fault proofs on the OP Mainnet. Fundraising and M&A The Block Nexus Labs closes $25 million Series A round to scale verifiable computation The zk-proof project said that the latest funding round was co-led by Lightspeed Venture Partners and Pantera Capital. The Block Uniswap Labs acquires ‘Crypto: The Game’ ahead of its third season Uniswap Labs has acquired "Crypto: The Game," an on-chain Survivor-esque competition, for an undisclosed price, Fortune reported on Monday. Product Updates and Partnerships CryptoSlate SubQuery launches first decentralized RPCs for Polkadot and Kusama SubQuery Network, a Web3 infrastructure provider, has introduced two new decentralized Remote Procedure Calls (RPCs) for efficient data management on the Polkadot and Kusama networks, according to a June 11 statement shared with CryptoSlate. SubQuery said these RPCs are the first decentralized ones on Substrate-based networks and will be operated by over 30 independent Node […] The post SubQuery launches first decentralized RPCs for Polkadot and Kusama appeared first on CryptoSlate.