The PBoC has announced a fresh package of economic stimulus, weighing a $142 billion injection into top domestic banks and pledging to stabilize the housing and stock markets. Domestically, durable goods data came in better than expected, and GDP met expectations, providing more confidence in the stability of the U.S. economy. Crypto is responding positively to both developments, as BTC 0.01% has gained to $65.3k and ETH 1.73% to $2,650, with altcoins showing larger moves. SOL 1.04% and ecosystem memecoins WIF 2.81% and BONK -0.70% are some of the top gainers, rising 6.01%, 12.13%, and 9.65%, respectively. Crypto-related equities are reacting to the move, with COIN and MSTR gaining about 8%. Equity indices are showing more muted gains, with the SPY and QQQ gaining around 0.30%, while Chinese names continue to outperform, with KWEB gaining more than 10%.
Ethena Announces UStb
Ethena, a stablecoin protocol, has announced its newest product, UStb, a fully collateralized stablecoin backed by Blackrock’s BUIDL fund. BUIDL is a tokenized MMF fund that mainly holds U.S. treasuries. UStb will diversify Ethena’s product suite, creating a fiat-backed stablecoin separated from its main product, USDe. The new product comes in response to concerns about how USDe would operate in times of prolonged negative funding environments. If needed, Ethena can now adjust the backing composition of USDe between basis positions and liquid stables. They can close hedging positions and reallocate collateral towards UStb to alleviate potential risks. Additionally, as Ethena integrates with centralized exchanges, they can now offer two options for margin collateral. Ethena has surged following the product announcement, with ENA 0.88% gaining more than 16%.
Source: Ethena
Paypal Enabling Crypto Capabilities for Businesses
Paypal has announced plans to allow U.S. business customers to buy, sell, hold, and transfer crypto via their PayPal accounts. The service will be available in all states except New York upon initial launch. The same functionality has been enabled within personal PayPal and Venmo accounts since 2020, but they stated they have observed how users want to leverage crypto and have seen increased interest among businesses looking to accept or use crypto. PayPal continues diving deeper into crypto, launching its own stablecoin last year, which has grown substantially after launching on Solana. PYUSD’s market cap has grown to over $700 million, making it the 7th largest stablecoin. PYPL shares are up 2.67% today and have risen more than 36% over the past three months.
Source: Defi Llama
Technical Strategy
NEAR -0.09% has begun to turn the corner given today’s 12% gains. This directly followed last week’s trendline breakout which exceeded a downtrend extending back since May, and NEAR was able to bottom out at an exact area of Ichimoku cloud support. Overall, gains look likely to test $8.52 in the months ahead and this is a very key technical area of resistance. Getting above this argues for a much larger rally up to $10.91 and then $13.22, both of which have importance being retracements of the former decline from early 2022. Overall, NEAR looks like an appealing risk/reward and pullbacks likely find support near $5-$5.15 before turning back higher.
Source: TradingView
Daily Important Metrics
Crypto Size
Bullish signal is tied to the crypto market growing
Market cap 2.27T
+$24B(1.09%)
BTC Dominance
56.31 % (0.19%)
Stablecoins
Increase in circulating stablecoins is a Bullish signal
In Circulation +$119B
(0.04%)
In Exchanges +$22B
(0.02%)
BTC Metrics
A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage
# BTC Exchanges +$3.0M
(-0.03%)
Funding Rates
Positive funding rates indicate traders are Bullish
Aggregate
+0.5710(0.0200)
Binance
+0.4082(-0.3787)
Bitfinex
+0.1997(0.1997)
Bitmex
+0.2519(-0.0401)
ByBit
+1.0000(0.0047)
Deribit
+0.2392(-1.4501)
Huobi
+0.9887(0.9887)
Kraken
+1.0253(-0.2815)
Mean
+0.5710(0.0200)
OKex
+0.5071(-0.4331)
Sentiment
BMI : 55 (100.00%)
Futures
A positive spread between Futures Prices and Spot Prices is Bullish
CME Price $64,495(1.17%)
Spot Basis $-133(-0.21%)
Volume 428,453(-22.73%)
Open Interest 308,483(-0.14%)
Options all exchanges
Higher open interest change in a bull market is bullish for the sector
Guggenheim Treasury Services, a subsidiary of financial services giant Guggenheim Partners, has issued $20 million of tokenized commercial paper on the Ethereum blockchain, its partner, blockchain platform Zeconomy, announced Thursday.
Web3 is reshaping the music industry as platforms like Audius enable direct stablecoin payouts, offering artists more control over pricing and fan engagement. Few industries have been as proactive as the music industry in exploring and adopting emerging technologies at the intersection of Web3 and culture.From streaming and distribution to fan engagement and exclusive communities, the use cases for Web3 in music are plenty and only becoming more so. One of the early pioneers at this intersection, Audius, a decentralized, community-owned, and artist-controlled music-sharing and streaming service, just announced that artists can now be directly paid for their content via stablecoin. Read more
Leverage Shares has launched the first leveraged and inverse exchange-traded product tied to the performance of MicroStrategy stock. These new investment products, now available on the London Stock Exchange, include the 3x Long MicroStrategy exchange-traded product (ticker symbol ‘MST3’) and…
The losses were dominated by hacks on crypto exchanges WazirX and BingX, which were exploited for $235 million and $52 million, respectively.
Disclosures(show)
This research is for the clients of FS Insight only. FSI Subscription entitles the subscriber to 1 user, research cannot be shared or redistributed. For additional information, please contact your sales representative or FS Insight at fsinsight.com.
Analyst Certification (Reg AC)
Tom Couture, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that
all of the views expressed in this report accurately reflect
his
personal views, which have not been
influenced by considerations of the firm’s business or client relationships.
Neither I, nor a member of my household is an officer, director, or advisory board member of the
issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this
research report. There is a possibility that we will from time to time have long or short positions
in,
and buy or sell, the securities or derivatives, if any, referred to in this research.
Conflicts of Interest
This research contains the views, opinions and recommendations of FS Insight. At the time of publication of this report, FS Insight does not know of, or have reason to know of any material conflicts of interest.
General Disclosures
FS Insight is an independent research company and is not a registered investment advisor and is not acting as a broker dealer under any federal or state securities laws.
FS Insight is a member of IRC Securities’ Research Prime Services Platform. IRC Securities is a FINRA registered broker-dealer that is focused on supporting the independent research industry. Certain personnel of FS Insight (i.e. Research Analysts) are registered representatives of IRC Securities, a FINRA member firm registered as a broker-dealer with the Securities and Exchange Commission and certain state securities regulators. As registered representatives and independent contractors of IRC Securities, such personnel may receive commissions paid to or shared with IRC Securities for transactions placed by FS Insight clients directly with IRC Securities or with securities firms that may share commissions with IRC Securities in accordance with applicable SEC and FINRA requirements. IRC Securities does not distribute the research of FS Insight, which is available to select institutional clients that have engaged FS Insight.
As registered representatives of IRC Securities our analysts must follow IRC Securities’ Written Supervisory Procedures. Notable compliance policies include (1) prohibition of insider trading or the facilitation thereof, (2) maintaining client confidentiality, (3) archival of electronic communications, and (4) appropriate use of electronic communications, amongst other compliance related policies.
FS Insight does not have the same conflicts that traditional sell-side research organizations have because FS Insight (1) does not conduct any investment banking activities, and (2) does not manage any investment funds.
This communication is issued by FS Insight and/or affiliates of FS Insight. This is not a personal recommendation, nor an offer to buy or sell nor a solicitation to buy or sell any securities, investment products or other financial instruments or services. This material is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice.
The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Intended for recipient only and not for further distribution without the consent of FS Insight.
This research is for the clients of FS Insight only. Additional information is available upon request. Information has been obtained from sources believed to be reliable, but FS Insight does not warrant its completeness or accuracy except with respect to any disclosures relative to FS Insight and the analyst’s involvement (if any) with any of the subject companies of the research. All pricing is as of the market close for the securities discussed, unless otherwise stated. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, risk tolerance, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies. The recipient of this report must make its own independent decision regarding any securities or financial instruments mentioned herein. Except in circumstances where FS Insight expressly agrees otherwise in writing, FS Insight is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice, including within the meaning of Section 15B of the Securities Exchange Act of 1934. All research reports are disseminated and available to all clients simultaneously through electronic publication to our internal client website, fsinsight.com. Not all research content is redistributed to our clients or made available to third-party aggregators or the media. Please contact your sales representative if you would like to receive any of our research publications.
