Crypto Market Update

This morning’s PPI data continues the recent streak of softer inflationary data, with the May MoM reading coming in at -0.2% versus +0.1% expected. Rates have continued to roll over, with the US10Y dropping to 4.25%. Despite the positive data, crypto is continuing to show weakness. BTC -0.68% has fallen back below $67k and ETH -0.03% below $3,500, while altcoins are showing more pronounced losses. The Open Network (TON -1.42% ), Telegram’s blockchain network, has been one of the strongest performers over the last two weeks amid impressive adoption of its applications. Daily active addresses briefly surpassed Ethereum’s as the network’s accessibility via the Telegram app is proving to be an excellent on-ramp to crypto.

Microstrategy Proposes $500 Million Convertible Note Offering

Microstrategy has proposed a $500 million convertible senior note offering, with an option to raise an additional $75 million. The notes will be due in 2032 and are convertible into cash, MSTR 3.77%  class A common stock, or a combination of the two. The funds will be used to acquire additional bitcoin and for general corporate purposes. Microstrategy’s current holdings include 214,400 BTC, at an average cost of $35,180, totaling over $14 billion at today’s prices. Microstrategy also disclosed the redemption of $650 million of its 2025 convertible senior notes. The notes are convertible at any time prior to July 15^th at a conversion price of $397.99 per share. Microstrategy’s shares are trending downwards with Bitcoin today, having fallen 6.20% at the time of writing.

Terraform Labs Dissolving after $4.47 Billion Settlement

Terraform Labs, the development company of the failed algorithmic stablecoin UST, agreed to a settlement with the SEC for $4.47 billion. The penalties include $3.58 billion in disgorgement, a $420 million civil penalty, and bar Do Kwon from ever serving as a director or officer of any public company. Chris Amani, CEO of Terraform Labs, announced intentions to dissolve the company, burn any unvested Luna tokens in the company’s wallets, and sell ecosystem projects like Pulsar Finance, Station Wallet, and Enterprise DAO. Additionally, a community proposal will offer the network up to other development teams if they are interested in keeping the network running. Amani suggested a new decentralized governance model could serve as a framework for troubled projects in the future. The LUNA -6.92% and LUNC -5.46% tokens have both dropped more than 7% today after the news of the dissolution plan.

Technical Strategy

Monero has held up remarkably well despite much of the volatility that’s occurred across the Crypto space in recent months. As daily XMR -2.76% charts show, this ran up over 75% since the middle part of April, and has now begun to stall out at an important level of resistance just above $180 which has formed two major areas of resistance for XMR since early 2023.  It’s likely that XMR might show further consolidation and possible short-term weakness into July before this rally can resume, given the prominence of this current resistance.  However, given the strength in momentum since April, it’s likely that pullbacks don’t serve to cause much technical damage to the broader trend before this starts to turn back higher.  Near-term support lies at $164 with more meaningful levels near $155 before this stabilizes and turns back higher.  Anny weekly close back above $183 should postpone any further consolidation, allowing for a push up to $200 into August.  At present, it’s unlikely that gains can happen right away without some backing and filling to this recent advance.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.45T $-6.1B (-0.25%) BTC Dominance 54.41 % (0.18%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$113B (0.04%) In Exchanges +$20B (0.44%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$2.3M (0.09%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.9031 (0.4180) Binance +0.9956 (-0.0005) Bitfinex -0.0291 (-0.0002) Bitmex +1.0000 (0.0000) ByBit +1.0000 (0.5526) Deribit +0.1877 (0.1502) Huobi +1.0000 (1.0000) Kraken +0.5209 (0.1689) Mean +0.9031 (0.4180) OKex +0.7433 (1.8167) Sentiment BMI : 32 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $68,035 (-0.21%) Spot Basis +$217 (0.32%) Volume 787,857 (2.08%) Open Interest 293,350 (-2.07%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 33,305 (-11.00%) Open Interest 270,463 (3.33%) Vol. Put/Call Ratio 0.4762 (-28.07%) OOI Put/Call Ratio 0.4420 (-0.95%) All metrics as of 2024-06-13 12:00:24 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.32T $66,840 -4.09% 58.26% ETH $417B $3,469 -3.87% 52.45% -3.67% SOL $68B $148 -6.64% 45.80% -7.87% DOGE $405,847 $0.0004 -18.81% -99.54% -99.71% All prices as of 2024-06-13 13:53:44 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $36 -1.73% 56.09% -1.37% ETHE -2.61% $32 -2.69% 64.41% 3.89% News Quick Bits The Block Terraform Labs to dissolve, CEO asks community to take over following $4.47 billion SEC settlement Chris Amani, CEO of Terraform Labs, said the firm plans to dissolve its operations and urged the community to take over. The Block MicroStrategy proposes $500 million convertible note offering to acquire more bitcoin The firm, which already holds 214,400 BTC, also announced the redemption of $650 million of its 2025 convertible senior notes. The Block Bitcoin miner stocks rise as Trump calls mining ‘last line of defense’ against CBDC Former President Trump also said the rest of bitcoin mining should be done in the United States ahead of upcoming election. The Block Biden campaign in talks to accept crypto donations through Coinbase Commerce: sources President Biden’s campaign is in discussions with industry players about accepting crypto donations through Coinbase Commerce. Market Data Decrypt.co Bitcoin, Ethereum Prices Dip as Fed Signals One Rate Cut Ahead in 2024 Inflation has come down substantially, but the Fed’s fight isn’t over yet. Bitcoin dipped as interest rates remained unchanged. Dose of DeFI The Block Curve Finance founder gets liquidated amid sharp drop in CRV token price The price of Curve DAO fell nearly 25% in the past 24 hours, which put Curve founder Michael Egorov's loans at risk of liquidation. Regulation CoinDesk Australia's Treasury to Include Stablecoin Rules in Crypto Bill Draft, ASIC's Warning For Crypto Entities Australia's regulators have provided rare updates on their plans for the digital assets sector, including plans to introduce a draft framework for stablecoins and hinted that more enforcement is on its way against unlicensed entities during an event in Sydney on Wednesday. Fundraising and M&A The Block Blockchain engineering group Equilibrium launches venture unit, raising over $30 million for first fund Equilibrium Group has launched Equilibrium Ventures, which is raising over $30 million for its first fund.