Cryptocurrency daily summary:
Bitcoin breaks through $71,000, facing volatility and selling pressure
Shibarium developers warn against fake TREAT tokens
Modular blockchain Avail receives $43 million in Series A funding
Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on June 4, Grayscale Bitcoin Spot ETF (GBTC) received an inflow of US$28.2 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) received an inflow of US$378.7 million, Bitwise Bitcoin Spot ETF (BITB) received an inflow of US$61 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) received an inflow of US$138.7 million.
Bitcoin Price Hits $71,000, Volatility and Sell-Side Pressure Loom
Bitcoin briefly breached the $71,000 mark in the past 24 hours, resulting in over $20 million in short liquidations. Bitcoin is currently trading at around $70,853.01, up more than 3% in the past 24 hours. The total amount of Bitcoin positions liquidated reached $27 million, while the broader cryptocurrency market suffered over $87 million in liquidations during the same period.
According to a Glassnode market report on Tuesday, selling pressure from long-term Bitcoin holders (those who have held Bitcoin for 3 months to 3 years) is increasing. The report believes that "if the price rises, the incentive for these holders to sell more supply will increase, thereby increasing their unrealized profits."
Glassnode also noted that the recovery of Bitcoin price above $68,000 in the past 24 hours has left only 0.03% of long-term holders in the red. This has forced most short-term holders to re-hold unrealized profits. Analysts said that the price surge has forced most short-term holders to re-hold unrealized profits.
After relative stability over the past week, Bitcoin’s price volatility is expected to increase.
Shibarium developers warn against fake TREAT tokens
On June 2, Shibarium team member and developer DaVinci warned the community about malicious activity on the network that resulted in the release of fake TREAT tokens. DaVinci reminded investors and community members that the TREAT tokens currently on the market have nothing to do with the real tokens developed by the Shibarium team. Malicious actors also used the official shib.io address in their online posts to add legitimacy to the fake tokens.
The CoinGecko page also issued a warning that this token has nothing to do with Shiba Inu and its upcoming Layer 3 blockchain, reminding investors to conduct due diligence before trading tokens.
The actual TREAT token has not yet been issued. It is one of the five tokens of the Shibarium ecosystem, the other three being Shiba Inu, BONE, LEASH, and SHI stablecoin. TREAT tokens are primarily used as reward tokens to issue rewards from the Shiba Lands metaverse and the Shiba Eternity card game, and will also be used to help balance the SHI stablecoin under development. In addition, TREAT will also support Shibarium's privacy layer, giving users greater anonymity on the chain.
Modular blockchain Avail receives $43 million in Series A funding, and Avail DA mainnet and tokens are expected to be launched soon
Avail, a modular blockchain project that spun out of Polygon last year, is building a “rollup-centric infrastructure” and has raised $43 million in Series A funding ahead of its mainnet launch.
Avail said on Tuesday that this round of financing was co-led by Peter Thiel's Founders Fund, Dragonfly and Cyber Fund. Other investors include SevenX Ventures, Figment Capital, Nomad Capital and Chapter One. Many investors, such as Founders Fund and Dragonfly, are long-term supporters of Avail and have increased their investment in the project.
Avail’s Series A comes three months after the company raised $27 million in seed funding in February. The funding brings Avail’s total raised to $75 million, including $5 million in pre-seed funding, co-founder Anurag Arjun told The Block.
Arjun revealed that the Series A financing was a combination of SAFE (Simple Agreement for Future Equity) and SAFT (Simple Agreement for Future Tokens), and was officially closed last week. However, he declined to comment on the valuation; sources said that when Avail conducted a seed round of financing in February, its fully diluted valuation was hundreds of millions of dollars.
Currently, Avail DA is in the incentivized testnet stage, and it is said that at its peak it had 310 validators, created nearly 110,000 accounts, and processed 116 million transactions. Arjun said that the Avail DA mainnet is expected to be launched in the coming weeks along with the AVAIL token.
Market analysis: BTC is close to its previous high, and altcoins are generally rising
Market Trends
1. BTC: Breaking through $71,000, close to its all-time high. This shows that the market demand for Bitcoin remains strong, likely driven by the continuous net inflow of Bitcoin spot ETFs.
2. ETH: Breaking through $3,800, showing strong upward momentum. ETH's rise may be related to the continuous expansion of its ecosystem and the progress of Layer 2 solutions.
3. Altcoins generally rise: This is usually a signal of more optimistic market sentiment, as investors turn to riskier altcoins after making profits in mainstream currencies.
Macroeconomics
1. Falling US dollar index: A weaker US dollar is usually good for the cryptocurrency market because cryptocurrencies are seen as an asset to hedge against a depreciating dollar.
2. Rising U.S. stocks: Rising stocks and improved employment data have boosted market expectations for rate cuts, which could further push investors into risky asset markets, including cryptocurrencies.
Market Hotspots
1. BTC ecosystem projects generally rose: CKB, STX, ORDI and PUPS and other projects rose sharply, showing the market's confidence in the Bitcoin ecosystem. In particular, Ethereum layer 2 project STRK announced its expansion to the BTC Layer 2 track, which may bring more innovation and applications.
2. BNB and its ecological projects: BNB broke through $700, setting a new record, driving ecological projects such as$CAKE 、$XVS 、$BAKE UNI's surge and the major events announced by its official account have also attracted great attention from the market, which may be related to its settlement with the US SEC, which will be a major positive.
3. TON Ecosystem: The surge in TON and NOT has driven the rise in the ecological Meme coin FISH, showing investors’ confidence in the TON ecosystem. The market value of FISH is only 1% of NOT, but its intraday increase is more than 100%, showing the market’s high-risk preference for small-cap tokens.
The current strong performance of the cryptocurrency market is mainly due to the rise in the prices of Bitcoin and Ethereum, the improvement in market liquidity, and the support of the macroeconomic environment. In addition, the concentrated outbreak of market hotspots, such as the performance of BTC ecological projects and BNB chain ecological projects, has also brought more investment opportunities to the market.
Macro: U.S. stocks close slightly higher on weak labor market data; Asian stocks rise on rate cut expectations; India in focus
On Tuesday, June 4, Reuters reported that U.S. stocks closed slightly higher as the latest data showed that U.S. economic growth slowed due to weak labor market data, further supporting expectations of a rate cut by the Federal Reserve.
Data on Monday showed U.S. manufacturing activity slowed for a second straight month in May. Data on Tuesday showed U.S. job openings fell to their lowest level in more than three years in April, suggesting some easing of labor market tightness and supporting expectations that the Federal Reserve will cut interest rates this year. U.S. Treasury yields fell after the report. Nonfarm payrolls data for May will be released on Friday.
Technology stocks, led by companies such as Amazon, Alphabet, Nvidia and Microsoft, closed higher after falling in early trading.
In currency markets, the dollar steadied on Wednesday as traders cut riskier bets on emerging markets while awaiting a Canadian interest rate decision and U.S. services data. The yen fell 0.2% to 155.27 in early Asian trading and hovered at 168.74 against the euro after the single currency rose 1% overnight, its biggest gain against the dollar in a month.
Data on Wednesday also showed that real wages in Japan fell for a 25th straight month in April as inflation outpaced nominal wage growth. The yen is the worst performing G10 currency this year, and the Bank of Japan's deputy governor said the central bank must be "highly vigilant" about the impact a weak yen could have on the economy and inflation.
Asian stocks rose on Wednesday, June 5. The dollar remained stable as a weakening U.S. labor market strengthened market expectations for a Federal Reserve rate cut in September; investor concerns about a cooling U.S. economy curbed risk appetite, and Asia's focus turned to the situation in India.
Indian stocks fell and the rupee depreciated after Prime Minister Narendra Modi's election results showed a smaller-than-expected victory, as it was the first time in a decade that his Bharatiya Janata Party lost its parliamentary majority and needed to rely on regional allies to win the seats needed to govern the world's largest democracy. This raised uncertainty about economic policy forecasts, including the push for investment-led growth, which has been a cornerstone of Modi's government.
MSCI's index of Asia-Pacific shares rose 0.24%, while Nikkei fell 0.8% as the yen traded near a two-week high.
Chinese stocks were mixed after a private sector survey on Wednesday showed activity in the country's services sector grew at the fastest pace in 10 months in May and headcount increased for the first time since January, pointing to a sustained recovery in the second quarter. The blue-chip CSI 300 index was little changed in early trading, while Hong Kong's Hang Seng rose 1%.
The Caixin/S&P Global Services Purchasing Managers' Index (PMI) rose to 54.0 from 52.5 in April, expanding for the 17th consecutive month and the fastest growth since July 2023.
In commodities, oil prices edged lower in early Asian trade as an industry report showed a build in U.S. crude and fuel inventories, adding to concerns about demand. Brent crude futures fell 0.1% to $77.47 a barrel, while U.S. West Texas Intermediate crude futures fell 12 cents to $73.16 a barrel.
Gold prices rose 0.09% to $2,330 an ounce.
