Crypto

• Last Wednesday, the U.S. Consumer Price Index (CPI) for May was released, showing soft inflation.
• However, during the U.S. Federal Reserve’s (FED) subsequent FOMC meeting on the same day, the Fed was more hawkish than expected, indicating only a 25 basis points interest rate cut this year.
• This led to declines across the crypto market.

• On Monday’s Crypto Crisp, we briefly discussed the Bitcoin basis trade, a strategy in futures markets that exploits the difference between an asset’s spot price and its futures price, known as the ‘basis.’
• Since this strategy involves taking both long and short positions of similar size, it is considered market-neutral, meaning it does not by default impact the asset’s price.
• Given its market-neutral nature, one might wonder why the Bitcoin basis trade is worth discussing.

• BTC Spot ETFs see record inflows, signaling strong market interest despite flat prices.
• Market structure remains bullish as BTC consolidates near all-time highs, indicating potential breakout.
• Altcoins suffer double-digit drawdowns amid BTC’s resilience, highlighting market dispersion.

• Here is to another week in crypto, following an exceptionally strong performance for U.S.-based Bitcoin spot ETFs last week.
• Over the five trading sessions, these Bitcoin spot ETFs saw total net inflows of $1.829 billion.
• Last Tuesday was particularly notable, with the ETFs experiencing their second-best day since their launch on January 11, bringing in a net inflow of $887 million.

• It should come as no surprise that 2022 was rife with contagion in the crypto industry.
• Numerous crypto companies went bankrupt, many due to fraud.
• Now, the majority of these bankruptcy cases are nearing their conclusion, and some have already been completed, allowing creditors – primarily clients with assets stuck in these firms – to receive the remaining assets.

• BTC Spot ETFs Net $2Bn in May: Discover how consistent ETF inflows are driving Bitcoin’s impressive rally and near all-time highs.
• BTC Market Structure Insights: Learn about the consolidation patterns and market scenarios that could lead to Bitcoin breaking new highs.
• Upcoming Token Unlocks: Stay informed about significant upcoming token unlocks and their potential market impact.

• In the past one and a half months, exchange-traded crypto funds have been launched in two countries.
• Hong Kong introduced both Bitcoin and Ethereum exchange-traded products in late April, followed by the UK doing the same last week.
• Tomorrow, Australia will launch its Bitcoin spot ETF, but like the recent launches in Hong Kong and the UK, we do not expect it to be a major success.

• Recently, we have discussed the significant positive shift in the U.S. regulatory environment for crypto.
• You might be weary of regulatory discussions, but we need to address the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework.
• This framework is set to take full effect on December 30, 2024.

• BTC Spot ETFs Fuel Bull Rally: ETF inflows drive Bitcoin’s rally, signaling strong bullish momentum and potential all-time highs.
• Market Structure Shift Supports BTC: Positive ETF flows correlate with Bitcoin price gains, indicating crucial market structure changes.
• ETH Spot ETF Ignites Alt Season: Unexpected ETH spot ETF approval boosts Ethereum, sparking a potential altcoin surge.

• Do we even need to mention the most significant news from last week? Probably not.
• However, here is a brief summary: the U.S. Securities and Exchange Commission (SEC) approved an Ethereum spot ETF on Thursday.
• Almost as significant as the approval itself is the shift in the U.S. regulatory environment’s tone toward crypto.

• The launch of bitcoin ETFs, specifically ibit, ibiz, and Blackrock software, has seen unprecedented success and rapid growth
• Ibid ETF reached $10 billion in assets in just 49 days, breaking records previously held by other ETFs
• Robbie Michnick, head of digital assets at Blackrock, discusses the journey of bringing bitcoin and Blackrock together and the potential transformative impact on the industry

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• Indeed, this has been a remarkable week.
• In last week’s Crypto Moves #28, we noted that the tight race between President Biden and Trump in the 2024 Presidential Election, along with Trump’s unexpected pro-crypto stance, might push Biden to publicly support the crypto industry.
• This move would aim to attract the growing number of pro-crypto voters.