Cryptocurrency daily summary:
Concentrated bullish buying in BTC options could help prices break new highs
Paxos International to issue regulated interest-bearing stablecoin USDL
Stablecoin minting protocol M^0 raises $35 million
Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on June 5, Grayscale Bitcoin Spot ETF (GBTC) continued to receive $14.6 million in funds. At the same time, Fidelity Bitcoin Spot ETF (FBTC) received $220.6 million in funds, Bitwise Bitcoin Spot ETF (BITB) received $18.5 million in funds, and ARK 21Shares Bitcoin Spot ETF (ARKB) received $71.4 million in funds.
U.S. spot Bitcoin ETFs saw their second-highest combined net inflows ever at $886.6 million.
Bitcoin options traders expect new highs above $74,000
Market data shows that Bitcoin (BTC) options traders are increasingly betting that the asset will hit new highs this month. “Our trading desk is seeing strong bullish movement, with large purchases of June expiration call options, suggesting that the options market could break through the all-time high of $74,000 this month,” digital asset hedge fund QCP said in a market update on Wednesday.
Joshua Lim, co-founder of major crypto derivatives trading firm Arbelos Markets, noted that “call buying was very concentrated” on Tuesday, with about 1,100 June 28 call option contracts bought at strike prices of $74,000 to $80,000, equivalent to about $80 million in notional demand.
“Option flows are clearly bullish today, with BTC out-of-the-money call spread longs larger in late June and smaller in late July,” said Paradigm, an institutional crypto derivatives trading network, in a Telegram broadcast.
Matrixport noted that a break above the $72,000 level could trigger a short squeeze as there are about $1.5 billion worth of leveraged futures contracts betting on lower prices concentrated in that range, which could be liquidated, exacerbating the uptrend.
Paxos International to issue regulated interest-bearing stablecoin USDL
Paxos International is issuing an interest-bearing stablecoin called Lift Dollar (USDL). USDL will be regulated by Abu Dhabi Global Market (ADGM) and pay an overnight yield based on the interest Paxos International earns on its backing reserves.
USDL will be backed 1:1 by liquid U.S. government securities and cash equivalent reserve assets in accordance with the requirements of the ADGM Financial Services Regulatory Authority. Paxos International will not earn interest on these reserves, but will charge issuance fees to token holders.
Paxos also announced that USDL will be available in Argentina through distributors Ripio, Buenbit, Manteca, and Plus Crypto.
Paxos claims that USDL is the first of its kind. Ethereum smart contracts will use a mechanism called "rebasing" to automatically distribute USDL's earnings based on market conditions. According to Bloomberg, the yield will be around 5%. Paxos International said in a statement that USDL is the first interest-bearing, regulated stablecoin. Stablecoin holders can also earn interest through staking, re-staking, and yield farming.
Bain Capital Crypto Leads $35M Series A for Stablecoin Minting Protocol M^0
M^0 (M Zero), a decentralized stablecoin minting protocol, raised $35 million in a Series A round led by Bain Capital Crypto. Officials said it has been deployed on the Ethereum mainnet and will be live in the coming weeks.
M^0 is an Ethereum-based stablecoin minting protocol that allows approved entities to create a stablecoin called M that is "overcollateralized solely by U.S. Treasuries." To mint M, entities need permission from the protocol's governance. Once approved, they provide their own standardized "high-quality" collateral, which is checked by independent validators to ensure it meets the standards.
M^0 said on Wednesday that other investors in this round of financing include Galaxy Ventures, Wintermute Ventures, GSR, Caladan and SCB 10X. Luca Prosperi, chairman of the M^0 Foundation Board of Directors, said that this round of financing is in the form of equity plus tokens. M^0 issued two "governance tokens" - POWER and ZERO - to investors, but they must comply with the lock-up period.
M^0’s Series A round came a year ago, in April 2023, when the company raised $22.5 million in a seed round led by Pantera Capital. The Series A brings M^0’s total raised to $57.5 million. Prosperi noted that demand for the Series A round was 2.5 times the amount raised.
Market analysis: BTC consolidates at high levels, while altcoins generally rise
Market Trends
1. BTC: BTC is consolidating around $71,000 and may be looking for a new direction. Consolidation periods are often a reflection of market sentiment, and investors should pay close attention to key support and resistance levels. Nearly $900 million in spot ETF inflows indicate strong interest from institutional investors and may indicate future upside potential.
2.ETH: Breakthrough of $3,850: ETH’s breakthrough could trigger further gains, especially driven by Layer 2 solutions and DeFi projects.
3. BNB: BNB broke through $700, setting a new record high, showing strong market demand. Projects in the BNB ecosystem (such as BB and BURGER) also benefited from this.
Macroeconomics
1. U.S. stocks surge: Strong performance in the stock market usually boosts investment sentiment in risky assets, including cryptocurrencies.
2. Expectations of interest rate cuts: The expectation of a US interest rate cut in September has increased to 70%, and the Bank of Canada has already cut interest rates. This may lead to more funds flowing into high-risk assets such as cryptocurrencies.
Market Hotspots
1.Meme section:$PEOPLE , SLERF, GME, etc. performed well, with an increase of more than 20%. Investors can pay attention to these high-volatility assets, but should pay attention to risk management.
2.BNB Ecosystem:$BB 、$BURGER Projects such as BTC, ETH, and ETH will benefit from the rise of BNB and may have further room for growth. You can consider looking for investment opportunities in these projects.
3. Pow sector: KAS rose 20% and hit a record high. The krc20 standard may be launched in the future. Similar to Ethereum's erc20 standard, this may attract more projects to be issued on the Kas chain.
4.TAIKO: Listed on Gate.io, but the price performance is average. With a market value of $2.5 billion, it may be considered to be overvalued, and investors should be cautious.
Overall, the current market performance is strong, but the cryptocurrency market is highly volatile and investors should be prepared.
Macro: Data supports Fed easing, S&P 500 and Nasdaq hit record highs, global stocks rise
The S&P 500 and Nasdaq hit record closing highs on Wednesday, driven by technology stocks as markets digested economic data that could support the Federal Reserve's launch of a much-anticipated policy easing cycle.
Index performance: The Dow Jones rose 0.25%, the S&P rose 1.18%, and the Nasdaq rose 1.96%.
Wednesday’s private payrolls report for May showed some easing of labor market tightness, which could prompt the Federal Reserve to start cutting interest rates this year, while a report on Tuesday showed the number of job openings in April fell to the lowest level in more than three years.
Technology stocks led the S&P 500's 11 sectors, followed by communications and industrials. The chip sector rose 4.5%, driven by Nvidia and Taiwan Semiconductor Manufacturing Co. Nvidia's market value exceeded $3 trillion for the first time, surpassing Apple to become the world's second most valuable company.
A combination of strong gains on Wall Street, falling volatility, lower bond yields and a relatively stable dollar should be bullish for investors in Asia on Thursday.
Indian stocks rose more than 3% on Wednesday, recouping half of Tuesday's losses. Both the National Stock Exchange's Nifty 50 index and the S&P BSE Sensex are now above Friday's levels after volatility sparked by the election results and final outcome.
In currency markets, the euro strengthened slightly on Thursday ahead of a European Central Bank (ECB) policy decision, with traders viewing a rate cut as almost certain. The dollar fell as markets renewed bets that the Federal Reserve is expected to start an easing cycle this year. The euro rose 0.07% to $1.0876 as traders looked to an ECB meeting later in the day for guidance on the bank's interest rate outlook.
The yen recovered some of its losses from the previous session, rising 0.4% to 155.50 per dollar.
Data showed euro zone business activity expanded at its fastest pace in a year in May as growth in the services sector outpaced a contraction in manufacturing. The pan-European STOXX 600 index rose 0.8% and MSCI's broadest index of Asia-Pacific shares rose 1%. However, the Nikkei fell 0.9% in Tokyo as the yen strengthened again.
In commodities, oil prices rose in early Asian trading Thursday on expectations that the Federal Reserve will cut interest rates in September and as the market rebounded from a sell-off caused by rising U.S. inventories and OPEC+ plans to increase supply. Brent crude futures rose 27 cents, or 0.34%, to $78.68 a barrel, while U.S. West Texas Intermediate crude futures rose 36 cents, or 0.49%, to $74.43 a barrel.
