Cryptocurrency daily summary:
BTC ETF continues to see net outflows for a week
BTC fell below $59,000 in the short term, and the Mt. Gox repayment incident exacerbated market turmoil
Swarm Markets offers tokenized gold via NFTs
ZKsync token continues to fall after launch, with valuation down 40%
Let's first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on June 24, Grayscale Bitcoin Spot ETF (GBTC) continued to outflow $90.4 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) outflowed $35.2 million, Bitwise Bitcoin Spot ETF (BITB) outflowed $8.2 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) outflowed $7.2 million. This is the seventh consecutive day of net outflows from Bitcoin spot ETFs.
BTC fell below $59,000 in the short term, and the Mt. Gox repayment incident exacerbated market turmoil
On June 24, around 20:30 UTC, Bitcoin fell below $59,000 in the short term, a drop of 8.28% in 24 hours. The total amount of liquidation on the entire network exceeded $370 million, mainly concentrated in long positions.
From a technical perspective, Bitcoin’s recent pullback from above $70,000 has formed a bearish double-top reversal pattern. However, data from FalconX shows that spot and futures volumes in Bitcoin and Ethereum markets on centralized exchanges are well below all-time highs in March, indicating a decline in investor participation or willingness to sell, which is often a characteristic of a “bear trap.”
The cryptocurrency market has been on a downward trend since the beginning of this week. Earlier, the bearish sentiment in the cryptocurrency market became more intense. The closed cryptocurrency exchange Mt. Gox announced that it would start repaying money next month. Mt. Gox plans to return more than 140,000 bitcoins to victims of the 2014 hacker attack. After the news was released, the price of Bitcoin fell to $60,723, a drop of more than 5% in 24 hours. Ethereum and other major cryptocurrencies were also affected, with the CoinDesk 20 index falling by more than 5%.
MiCA Stablecoin Rules Coming Soon, Swarm Markets Offers Tokenized Gold via NFTs
With just over a week left until the European Union’s Markets in Crypto Assets (MiCA) stablecoin regulation comes into effect, RWA platform Swarm Markets has found a new way to offer asset-backed tokens: issuing NFTs backed by gold.
Berlin-based Swarm Markets plans to let individuals buy NFTs that represent ownership of physical gold. The gold bars backing these tokenized assets will be stored in Brink’s vaults in London. According to Swarm’s website, the total value locked on the protocol exceeds $14.6 million. In addition to gold, the platform also offers tokenized public company stocks and U.S. Treasury bonds.
Timo Lehes, co-founder of Swarm Markets, said: "NFTs provide unparalleled transparency to token owners. Through this structure, people can benefit from the liquidity of DeFi while leveraging the value and liquidity of traditional finance (TradFi). Swarm plans to expand the on-chain asset space, and tokenized gold is just the first step in its commodity journey."
Swarm claims that its tokenized gold will not face the upcoming MiCA regulation because "the regulation does not apply to unique and non-fungible crypto assets, including digital artworks and collectibles," according to the official MiCA text. The EU first adopted MiCA in mid-2023 to regulate the digital asset market and eradicate related money laundering activities, and it is expected to fully take effect by the end of 2024.
After passing know-your-customer (KYC) and anti-money laundering (AML) processes, users will be able to exchange NFTs on a peer-to-peer basis through Swarm’s decentralized over-the-counter (dOTC) platform.
ZKsync token continues to fall after launch, with valuation down 40%
On June 17, the much-anticipated ZKsync token, ZK, was launched with a market cap of over $1 billion. In the first few hours of the launch, the ZK market cap briefly surged. On the day of the ZK token launch, the network had nearly 675,000 active addresses, a record high.
However, this uptick in activity was short-lived. On-chain transaction volume plummeted 37% the day after the ZK token launch, and continued to fall by another 32% on the third day. The 7-day moving average of active addresses on Zync Era saw a similarly sharp swing. However, just three days later, the number of active addresses had halved. This sharp drop suggests that the initial surge may have been driven by airdrop mining addresses suddenly becoming active to claim tokens.
Currently, ZK has a market value of approximately $600 million and a fully diluted valuation of $3.4 billion, a 40% drop from its valuation at launch.
In the week before ZK was released, the number of new unique addresses on the Zsync Era chain was relatively quiet, averaging about 7,000 new addresses per day, but on the day of the ZK token release, this number soared to 18,000. The day after the initial release, this number soared again by more than 76% to 31,800, and by June 19, the number of new unique addresses reached 35,800.
Market analysis: Market sentiment is extremely depressed, but major cryptocurrencies have begun to rebound
Market Trends
-BTC: It once fell below $58,500 last night, but has now rebounded. This price is a key support level, and the rebound shows that the market recognizes this support level. Mt. Gox Exchange will repay about $10 billion to users in July. This event may cause short-term fluctuations in the market, especially the circulation of BTC and ETH will increase, and its impact on the market needs to be closely monitored.
-ETH: Also rebounded after falling below $3,250. Similar to BTC, this price is also an important support level, and the recovery of market sentiment may further drive prices up.
- Altcoins: During the decline of BTC and ETH, altcoins showed relative strength and rebounded first. This may be because market funds flowed out of mainstream currencies, and some funds flowed into relatively niche altcoins in search of higher returns.
Macroeconomics
-US stocks fell: Nvidia, the leader in technology stocks, led the decline, and funds may flow back to the cryptocurrency market. The volatility of US stocks usually affects the risk appetite of global investors, and the return of funds to the crypto market may bring new investment opportunities.
Market Hotspot Analysis
1.ETH Ecosystem:$LDO , MOG and other tokens have surged. It is expected that before the Ethereum spot ETF is approved in July, the market will continue to focus on Ethereum ecological projects as the main speculation line. Investors can focus on the trends of these projects.
2. AI sector:$FET 、$AGIX , OCEAN, PHB and other tokens have soared. The AI sector has always been ahead of the market in historical trends, and AI is still one of the most mainstream narratives in this round of trends. FET, AGIX, and OCEAN will merge their tokens on July 15, and the merged token will be ASI. This event may trigger further market fluctuations and speculation, and investors are advised to plan ahead.
3. New coin sector: LISTA rose alone. The Lista project announced yesterday that a new round of mining will be launched, and the annualized rate of LISTA/BNB mining is as high as 245%. High-yield mining projects can usually attract a large amount of capital inflows, and there may be a large increase in the short term.
4. Blast Airdrop: Ethereum Layer2 project BLAST will start token airdrop at 20:00 tonight. Airdrop activities usually bring short-term market heat and may cause fluctuations in trading volume and prices.
In general, although the market sentiment is low, altcoins have taken the lead in rebounding, and the trends of the ETH ecosystem and AI sector are worth paying attention to. There are still many potential investment opportunities in the cryptocurrency industry. Investors are advised to pay close attention to market dynamics and rationally allocate assets to cope with possible future fluctuations.
Macro: Technology stocks take turns to withdraw, S&P 500 and Nasdaq fall, Dow rises; Asian stocks are suppressed by technology stocks, Nvidia's share price decline affects market sentiment
The Dow Jones Industrial Average climbed to a one-month high on Monday, while the Nasdaq fell more than 1%, as investors pulled money out of artificial intelligence-related stocks and invested in some lagging stocks, betting that the Federal Reserve will cut interest rates this year.
In terms of specific indices: the Dow Jones Index rose 0.66%; the S&P 500 Index fell 0.31%; and the Nasdaq Index fell 1.09%. Although the S&P 500 and Nasdaq Index closed lower due to the withdrawal of technology stocks, 9 of the 11 major industry sectors of the S&P 500 Index achieved gains.
The main focus for investors this week will be Friday's report on the personal consumption expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, which is expected to show some easing in price pressures. Also on the agenda this week will be data on durable goods orders, weekly unemployment claims, final first-quarter GDP and the annual Russell index reconstruction. Some quarterly earnings reports are also expected to be released.
President Joe Biden will debate Republican rival Donald Trump in Atlanta on Thursday, which could influence the November election, which polls currently show is too close to call.
The wave of profit-taking in large U.S. technology and artificial intelligence stocks seemed more pronounced in early Asian trading on June 25, which could dampen investor sentiment and risk appetite in Asian markets on Tuesday, even if a shift to the beaten-down sectors could partially offset the impact. Markets are likely to remain cautious ahead of U.S. inflation data on Friday, especially as Friday is also the last trading day of the quarter.
MSCI's index of Asia-Pacific shares rose 0.3%, having fallen 1.4% over the past three sessions. Japan's Nikkei rose 0.5%. Taiwan's stock market fell 0.4%. Chinese blue chips edged up 0.1%, while Hong Kong's Hang Seng rose 0.9%.
In currencies, minutes from the Bank of Japan's last meeting showed on Monday that Japanese policymakers discussed the possibility of a near-term rate hike, with one calling for a hike "without much delay" to help lower inflation. The yen appreciated slightly on Monday, but the gain was small and remains close to 160 yen per dollar.
In commodities, oil prices were largely flat. Brent crude futures were unchanged at $85.95 a barrel, while U.S. crude futures were little changed at $81.60 a barrel.
Gold fell 0.3% to $2,325.52 an ounce.
