Crypto Market Update

Crypto is rebounding nicely today following an intense Bitcoin-led selloff yesterday, catalyzed by idiosyncratic sell pressure from fears over Mt. Gox supply coming to market. It was a somewhat rare occurrence to have such a significant selloff in BTC -1.66% but an overall positive day for altcoins. BTC -1.66% is attempting to reclaim $62k, while ETH -1.37% hovers just above $3400, and SOL -3.99% tries to break through $140 again. Interestingly, we saw the BTC discount on Coinbase compress following the US market open, which is a positive sign that US investors are coming back into the fold at current levels. The crypto market is seeing broad participation in the current rally. Crypto equities are also participating, with our HPC miner basket outperforming other publicly traded miners as the market continues to reprice these names higher. Today’s move was likely catalyzed by the announcement from Core Scientific that they would be adding hosting capacity for their partner CoreWeave, further diversifying their revenue streams. This crypto bounce comes despite a rise in rates and the DXY and a pullback in many macro-sensitive indices we discussed last week as being correlated to BTC -1.66% . Tech is back to leading equities, with both the QQQ -0.45%  and ^SPX -0.19%  marching higher despite most sectors being down on the day.

CORZ Allocates More Capacity to CoreWeave

Core Scientific announced a new contract with CoreWeave for an additional 70 MW of infrastructure to support high-performance computing (HPC) operations, increasing their total allocated infrastructure for HPC hosting to 270 MW. This agreement, part of a previously established 200 MW, 12-year hosting contract, involves modifying 100 MW of Core Scientific’s existing infrastructure to host CoreWeave’s NVIDIA GPUs. The modifications are set to begin in late 2024, with operational status expected by late 2025. This contract is anticipated to add $1.225 billion in revenue over its duration, enhancing Core Scientific’s earnings power and shareholder value. CoreWeave will fund the necessary capital investments, credited against hosting payments, and retain options for further expansion and renewal. This demonstrates a continued push by miners to diversify into HPC as they leverage prebuilt infrastructure and existing energy contracts.

Solana Foundation Launches Actions / Blinks

The Solana Foundation is introducing tools, called “Actions” and “blinks,” that enable any website, app, social media platform, or QR code to facilitate crypto transactions on the Solana blockchain. “Actions” allow on-chain transactions directly from various digital platforms, while “blinks” create shareable links for these transactions, making blockchain interactions more accessible beyond specialized dapps. These innovations aim to drive mainstream adoption by simplifying blockchain access, similar to Farcaster’s Frames but with broader applicability. Early adopters of these tools include various crypto and web3 projects, emphasizing the potential for diverse applications from NFTs to staking.

Technical Strategy

Hut 8 is showing some constructive upside follow-through today after a big push higher in recent weeks to challenge its intermediate-term trendline extending down from last July’s peaks. Today’s 16% surge is helping HUT break this downtrend and outperform many Crypto-miners as this now trades at the highest levels since January.  Following a lengthy period of consolidation throughout much of 2024, it’s June rally has helped this to begin a more intermediate-term rise which should initially find short-term resistance at $15.62 with more meaningful levels found at December 2023 peaks at $18.42.  While this recent rally over the past six of seven weeks has helped HUT’s weekly momentum, it could show a possible Weekly TD Sell Setup (DeMark exhaustion signal) as early as next week which might cause a short-term stallout before this can push higher to $18.42.  Overall, this looks bullish, but short-term overbought, and pullbacks would afford the opportunity to buy dips near support at a zone of support from $11.40-$12.40. Thereafter, a possible rise to $18.42 looks possible into August.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.26T $-83.3B (-3.55%) BTC Dominance 53.34 % (-1.31%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$113B (-0.01%) In Exchanges +$19B (-0.34%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$2.3M (0.41%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate -0.0001 (-0.4796) Binance 0.0000 (0.0000) Bitfinex 0.0000 (0.0000) Bitmex 0.0000 (0.0000) ByBit 0.0000 (0.0000) Deribit 0.0000 (0.0000) Huobi 0.0000 (0.0000) Kraken 0.0000 (0.0000) Mean 0.0000 (0.0000) OKex 0.0000 (0.0000) Sentiment BMI : 36 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price N/A Spot Basis N/A Volume 1.1M (824.45%) Open Interest 300,497 (0.84%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 45,553 (784.71%) Open Interest 278,191 (6.03%) Vol. Put/Call Ratio 0.7658 (10.17%) OOI Put/Call Ratio 0.4622 (0.04%) All metrics as of 2024-06-25 12:00:11 All Funding rates are in bps Crypto Prices Symbol Market Cap Last Price Daily Change Year to Date Relative to BTC YTD BTC $1.22T $61,857 1.84% 46.46% ETH $411B $3,418 4.22% 50.23% 2.57% SOL $64B $139 10.24% 37.06% -6.42% DOGE $664,383 $0.0007 -1.86% -99.25% -99.49% All prices as of 2024-06-25 12:06:55 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $34 2.30% 44.89% -1.07% ETHE -3.28% $32 3.10% 62.82% 11.17% News Quick Bits The Block Trump may be headed to Nashville to speak at Bitcoin 2024: Axios Former President Donald Trump might be headed to Nashville to speak at Bitcoin 2024 later in July, according to a report from Axios. The Block Bitcoin payments app Strike launches in the UK following European rollout Strike's "Send Globally" feature allows users to make fast and low-cost local currency remittances using Bitcoin's Lightning Network. The Block RWA platform Swarm Markets to offer tokenized gold via NFTs as MiCA stablecoin rules begin Users will be able to swap the NFTs on a peer-to-peer basis via Swarm's decentralized platform after passing KYC and AML checks. Market Data CoinDesk Mt. Gox Effect? Bitcoin Dominance Drops Most in 5 Months BTC's dominance tanked Monday as news of Mt. Gox repayments bolstered concerns of supply overhang entering the market. Dose of DeFI The Block Blast announces foundation for protocol governance ahead of airdrop Ethereum Layer 2 network introducing foundation to help manage the governance and X account of the Blast protocol. Mining CoinDesk Hut 8 Receives $150M Investment as Thirst for Energy Brings AI Firms to Bitcoin Miners The funding came from Coatue Management, which is also an investor in CoreWeave, a cloud-computing firm looking to take over miner Core Scientific. Product Updates and Partnerships The Block ZKsync introduces ‘elastic chain’ architecture as part of its 3.0 roadmap ZKsync has introduced a new "elastic chain" architecture as part of its ZKsync 3.0 roadmap — improving interoperability and user experience. Hacks, Exploits, and Scams The Block Bitcoin DeFi application Alex Lab attributes $4 million exploit to North Korea’s Lazarus Group Alex Lab said that it has identified substantial transaction evidence linking an attack last month to the Lazarus Group.