Crypto Market Update

Despite May PCE data coming in line with expectations at 0.0% MoM, U.S. Treasury yields are moving higher across the curve, and the DXY is holding steady at $105.8. Equity indices are flat on the day in the final trading session of Q2. Crypto is showing weakness, with BTC 0.42% declining to $60.7k and ETH 3.19% falling below $3,400. After surging upon news of VanEck filing for a Solana ETF, SOL -1.20% has given back most of yesterday’s gains, while Solana meme coins BONK -1.57% and WIF -2.59% are among today’s worst performers. Conversely, AVAX -0.31% continues to flex its relative strength this week, rising above $28.4 amid broad-based declines in altcoins.

Coinbase and Stripe Form Partnership

Coinbase has inked a partnership with payments company Stripe to increase on-chain adoption and provide faster and cheaper financial infrastructure. The partnership features three key integrations across the two companies; Coinbase (COIN -1.41% ) will integrate Stripe’s crypto-to-fiat onramp directly into Coinbase Wallet, enabling Stripe as a payment option when funding wallets. Stripe will add support for USDC on Base to its onramp so users can convert between fiat and USDC seamlessly as well as integrate it into its crypto payouts product, supporting USDC transfers across 150+ countries. Coinbase continues to add new features and integrations that make transacting on Base more accessible and less arduous than other blockchains, fueling the network’s rapid growth. Daily active addresses are approaching 600,000, while daily transactions have reached new highs, surpassing 3.5 million.

Animoca Brands Exploring a Public Listing

Animoca Brands, an Asian-based web3 and venture capital firm, is considering pursuing a public listing next year. Animoca would explore a listing in a crypto-friendly jurisdiction such as Hong Kong or Singapore, and if it were to happen, it would more likely be in the second half of 2025. Animoca has been one of the most active crypto venture capital firms this year, participating in 59 rounds, including Io.net, Humanity Protocol, and Polyhedra Network, with other prominent investments include TON, The Sandbox, and Axie Infinity. Animoca completed a private funding round in September 2022, valuing the company at $5.9 billion, but given industry volatility and the significant decline in private valuations since 2022, it’s difficult to estimate a potential valuation for Animoca. As of March 2024, Animoca reported close to $3 billion in assets, not including approximately 400 minority VC investments.

Technical Strategy

Bitcoin’s recent decline very well might be coming to an end when considering the cycle composite created by daily cycles of Bitcoin which show the possibility of a short-term low by the 2nd week of July before a turn higher in the months ahead. Despite the bearish slope of intermediate-term weekly Bitcoin cycles until the US Election before turning higher (Not shown) this Daily cycle composite seems to suggest the possibility of a near-term low approaching.  However, both daily and weekly cycles suggest that November 2024 into next Summer should be a very bullish time for BTC 0.42% as both start to trend sharply higher. At present, near-term trends remain bearish and could allow for a drop to test and break early May lows near $56,500.  To have faith that a rally has begun before that target is reached, BTC 0.42% requires a push back over $65k which looks premature at this time.

Daily Important Metrics Crypto Size Bullish signal is tied to the crypto market growing Market cap 2.29T +$23B (1.04%) BTC Dominance 53.06 % (-0.38%) Stablecoins Increase in circulating stablecoins is a Bullish signal In Circulation +$113B (0.00%) In Exchanges +$19B (0.14%) BTC Metrics A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage # BTC Exchanges +$3.0M (27.78%) Funding Rates Positive funding rates indicate traders are Bullish Aggregate +0.8638 (0.2041) Binance +0.9989 (0.0286) Bitfinex -0.0162 (0.0000) Bitmex +1.0000 (0.0000) ByBit +0.5211 (0.5888) Deribit +2.2062 (2.1719) Huobi +1.0428 (1.0428) Kraken +2.2605 (0.8955) Mean +0.8638 (0.2041) OKex +0.8250 (-0.6555) Sentiment BMI : 23 (100.00%) Futures A positive spread between Futures Prices and Spot Prices is Bullish CME Price $61,625 (0.56%) Spot Basis +$140 (0.23%) Volume 404,987 (-4.25%) Open Interest 294,933 (1.72%) Options all exchanges Higher open interest change in a bull market is bullish for the sector Volume 19,449 (1.48%) Open Interest 287,286 (0.48%) Vol. Put/Call Ratio 0.7707 (11.96%) OOI Put/Call Ratio 0.4700 (0.46%) All metrics as of 2024-06-28 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 $1.20T $60,904 -1.10% 44.21% ETH $409B $3,407 -1.27% 49.71% 3.82% SOL $65B $142 -4.06% 39.20% -3.47% DOGE $882,606 $0.0009 -1.64% -99.01% -99.31% All prices as of 2024-06-28 11:52:22 Exchange Traded Products (ETPs) Symbol Prem. to Nav Last Price Daily Change Year to Date Relative to BTC YTD BITW -32.38% $34 -1.10% 46.61% 1.67% ETHE -1.24% $32 -1.34% 63.59% 13.44% News Quick Bits The Block Animoca Brands considering public listing in second half of 2025, founder says Animoca Brands is considering returning to the public market after delisting from the Australian Securities Exchange in 2020. Decrypt.co VanEck Files for Solana ETF in US, Following Bitcoin and Ethereum Approvals Solana ETFs could be the next big push after Bitcoin and Ethereum approvals in the United States, as VanEck files for the first attempt. Decrypt.co Solana Will Get Support for Worldcoin’s World ID Wormhole will tap Solana-based protocols to verify user’s Worldcoin World IDs that were originally verified on Ethereum. Market Data The Block US spot bitcoin ETFs post $12 million net inflows, continuing intake at slower pace Bitwise’s BITB led the pack of inflows yesterday by drawing in $8 million, followed by Fidelity’s FBTC reporting net inflows of $7 million. The Block Bitcoin put-call ratio turns pessimistic ahead of Friday’s quarterly expiry The put-call ratio for bitcoin options on Deribit has risen to 1.66, indicating that more put options than call options are being traded. Regulation CoinDesk EU's Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time The European Banking Authority told CoinDesk it intends to publish a final report on how it will monitor stablecoin issuers by the end of the month. Fundraising and M&A CoinDesk MegaLabs, Behind the 'Real-Time' Blockchain, Raises $20M, Led By Dragonfly The fresh round of capital will go towards building out the MegaETH protocol, with the aim of having a testnet go live in the next few months. Mining The Block CleanSpark acquires Bitcoin miner GRIID in $155 million deal CleanSpark's operational power is expected to reach 100 MW by the end of the year, with the goal of achieving 400 MW by 2026.