DigitalX Weekly Crypto Update: Market Trends and Analysis

Market Commentary

The price of Bitcoin surpassed US$70,000 again this week, as the US-based spot Bitcoin ETFs reached an all time high in assets under management (AUM) of circa US$62 billion, as at 6 June. BlackRock holds close to US$21 billion in its IBIT ETF controlling roughly 35% of the total market share now making BlackRock the world’s largest Bitcoin fund. Institutions such as Standard Chartered Bank are continuing to adjust price predictions for Bitcoin as the US approaches its national election in November. Geoffrey Kendrick, head of Standard Chartered Bank’s forex and digital assets research, stated that he expects Bitcoin to reach US$100,000 by the time the election comes around and then “US$150,000 by year-end in the case of a Trump victory”. 

Following the approval of the US-based spot Ethereum ETFs, predictions for the price of Ethereum over the next 5 years have begun to gain momentum, with VanEck analysts stating that they have raised their 2030 price prediction for Ethereum to US$22,000. VanEck listed their own spot Bitcoin ETF on CBOE back in January which now holds US$716 million in AUM, and was one of eight spot Ethereum ETFs that was approved by the SEC at the end of May. The timing on the launch of the spot Ethereum ETFs is still unclear and according to SEC Chair Gary Gensler, will depend largely on how quickly the ETF issuers respond to the SEC’s queries. At this stage the process to launch the spot Ethereum ETFs for trading could take weeks or months.

CEO Comment

The Gap between Bitcoin and the S&P 500 has decreased to 5%, from 19% last week.

As for the shift list, which we define as the major events and announcements facilitating the broader market’s transition to Web3 financial rails or the internet of value, the top shifts for this week include:

1. In terms of shifts – yield bearing stablecoins which are effectively a bank account in a token are the future. 
2. This piece of news on the spot Bitcoin ETF’s PLUS this piece of news from miners equals a potential supply crunch and we are seeing that in the price action – we may not see US$100,000 by 30 June however it is shaping up in technicals once we break through ATH’s

Our Top “alts shifts” for this week, featuring shifts in our altcoin universe that drive our thematic approach, saw the second gap, or the broader digital asset market, drop ever so slightly to circa 42%. I want to reiterate that this is a big opportunity, as mentioned we see this as a selective opportunity to identify and grow our alternatives portfolio via our “alThematics” work. The gaps themselves are proving to be a risk on, risk off proxy and hugely high Beta – volatility is a certainty and an opportunity – the building is happening no matter what.

1. Starkware planning to bring ZK scaling to Bitcoin is a game changer for Zero Knowledge.

What are our favourite thematics for 2024? We continue to like any infrastructure plays of the shift from Web2 to Web3 financial rails and any plays in the real-world asset tokenisation infrastructure, data validation and decentralised storage, as well as scale-up technologies such as ZKrollups. We are closely following all the ”de’s” – DeFi, DePin, DeSoc – (want to know what that means? – message us). 

Lisa Wade, CEO DigitalX

 

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

 

Market Updates

 

• A16z Crypto gives another $25 million to pro-crypto super PAC Fairshake
• Former banker sentenced to 41 months for crypto fraud
• BlockDAG’s $39.3M Presale Outpaces BNB Bullish, Ethena (ENA) Price Trends
• Bitcoin miner balances fall below 1.81 million BTC, lowest in years post-halving
• 48 billion yen in bitcoin cryptocurrency disappears from Japan exchange
• Ethena’s ‘synthetic dollar’ USDe crosses $3 billion supply just four months after launch
• ARK Invest no longer a partner with 21 Shares for proposed spot Ethereum fund
• Bitcoin registers an all-time low transaction volume, spot trading fades away
• $8.2B in Bitcoin and Ether options expire, here’s how it could impact the markets
• Solana saw nearly half a million tokens launched last month
• Bitfarms mining revenue drops 45% to $7 million in first full month after Bitcoin halving
• Mercuryo and Trust Wallet Partner to Offer Crypto-to-Fiat Conversion
• Crypto fund inflows hit $2B in May led by BTC — CoinShares
• StarkWare plans to bring ZK scaling to Bitcoin alongside Ethereum
• Polygon Acquires Zero-Knowledge Cryptography Firm Toposware
• Global X slashes fees on European crypto ETPs to zero
• Bitcoin ETFs See $2.4 Billion Inflows in Last 3 Weeks
• Spot Ethereum ETFs could absorb over 1 million ETH in first 5 months: K33
• Peter Thiel’s Founders Fund co-leads $43 million Series A for modular blockchain Avail
• Centralized crypto exchange trading volume falls to $5.2T in May
• Paxos Unveils Yield-Generating Stablecoin Lift Dollar
• U.S. Lawmakers Push Biden to Bring Back Detained Binance Exec Tigran Gambaryan From Nigeria
• Crypto Exchange DMM Bitcoin to Raise $320M to Pay Back Hack Victims
• Coinbase rolls out smart wallet with no gas fees and easy onboarding
• Robinhood acquires global crypto exchange Bitstamp for $200M

The Shift List

• Singapore’s DBS Bank holding $650M Ether? Nansen flags whale holdings
• Biden vetoes bill overturning SAB 121, says standard ‘necessary’ for crypto innovation
• ‘Australia’s only spot bitcoin ETF’ commences trading on Cboe
• Deutsche Bank ties up with Bitpanda in ‘cautious’ crypto shift
• Thai SEC approves first Bitcoin fund
• Turkey denies plans to tax crypto, stock gains
• Nigel Farage calls for UK crypto push as Reform campaign kicks off
• Canada first major central bank to cut rates ahead of ECB
• European Central Bank cuts main interest rate by 0.25 points
• Chinese expats can trade crypto on Bybit, the exchange officially announces

Macro and Regulatory Environment

• FTX lawyers and advisors charged over $500 million in bankruptcy process so far
• New York Stock Exchange to Collaborate with CoinDesk for Potential Crypto Trading
• SEC told spot Ethereum ETF issuers to get first round of draft S-1 forms in by Friday: sources
• NYDFS Issues New Crypto Firm Guidance for Consumer Complaints
• Biden campaign reportedly seeking help from crypto industry to rebuild new policy
• Biden Shoots Down Measure Limiting SEC Crypto Authority
• Nigeria seeks crypto clarity one year into Tinubu’s tenure
• Hong Kong Discloses List of To-Be-licensed Crypto Exchanges
• Binance to limit unregulated stablecoins in EU ahead of new crypto rules
• Biden vetoes House and Senate votes on SEC’s anti-crypto resolution: Law Decoded
• Dubai financial regulator updates crypto token rules for funds
• Block Earner spared penalty in regulator’s crypto yield suit
• SEC to Shutter Office Behind Failed DEBT Box Crypto Lawsuit
• Milestone case filed against JPEX in bid to recover crypto funds
• MicroStrategy and Michael Saylor Settle Tax Evasion Lawsuit in $40 Million Deal
• European stablecoin provider halting issuance amid MiCA, following Binance announcement
• Epoch Times CFO Charged With $67M Fraud Scheme Involving Crypto Platform
• Crypto exchange Binance seeks to slash size of $13 bln UK lawsuit

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.

Disclaimer:

DigitalX Asset Management Pty Ltd is a corporate authorised representative (CAR) of Boutique Capital Pty Ltd (AFSL 508011), and True Oak Investments Ltd (AFSL 238184). To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service. The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.