Bullish Insights Weekly Market Recap
Jun 15, 2023 • 4 min read
The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of June 12, 2023.
This week’s peak exchange trade volume 24h: $687,050,419 (27,511 BTC) on June 15, 2023.
This week’s headlines
- VC firm a16z has expressed in a blog that the firm will be looking to expand its operations in the UK as they believe “…it has become clear that the UK government sees the promise of web3.”
- In partnership with UBS, Bank of China has issued the first ever tokenized security on Ethereum’s blockchain in Hong Kong. The bank has issued 200mn RMB ($28mn) worth of digital structured notes.
- Representative Warren Davidson has brought forth an “SEC Stabilization Act” with the bill’s main goal to remove Gary Gensler as Chair of the SEC. In a statement the representative said, "U.S. capital markets must be protected from a tyrannical Chairman, including the current one. That’s why I'm introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come.”
- Uniswap has rolled out a draft on it’s v4 update that would allow developers to customize pools through “hooks” integrated with v4’s smart contracts. A few features include a time-weighted average market maker (TWAMM), on-chain limit orders, out-of-range liquidity deposits fed into lending protocols etc.
- Amy Berman Jackson, a US district judge has asked the SEC and Binance US to work on reaching an agreement without having to shut the exchange down. Jackson said, "Shutting it down completely would create significant consequences not only for the company but for the digital asset markets in general.”
- Polygon has announced the vision for Polygon 2.0, a value layer of internet that would allow for DeFi, digital ownership, etc. allowing for users to create, exchange and program value.
- According to the Financial Times, the Hong Kong Monetary Authority (HKMA) noted in a letter to HSBC and Standard Chartered Bank that the due diligence process on prospect clients should not cause or "create undue burden” for those setting up in Hong Kong in reference to crypto exchanges remaining unbanked in the city.
This week’s headlines
- US equity markets opened the week on a lower note in Monday's session with the tech and energy sector erasing earlier gains.
- US equity markets closed in the green in Monday's session seeing bullish momentum as investors anticipate a pause in rate hikes ahead of Wednesday.
- US equity markets continue to rally ahead of Fed rate decision. CPI data came in at 4.0% YoY below expectations of 4.1% YoY. US equity markets closed on a mixed note in Wednesday's session despite the Fed pausing rate hikes for June. Fed officials maintained their hawkish tone that further hikes would be appropriate for the remainder of the year. The S&P 500 saw little change, the Dow fell by 0.7% and the Nasdaq Composite advanced by 0.4%.
Crypto market highlights
- Bitcoin dominance is at 49.2 its highest level since April 2021.
- Currently the circulating supply of $USDT has peaked to an all-time high of $83.35bn with an increasing absorption of USDC's marketshare by Tether.
- Exchange flow data by Nansen indicates that Binance saw a net outflow of $2.4bn on multichain tokens (not including Bitcoin) over the past seven days as of June 12. Binance US also saw outflows of $124mn while Coinbase and Coinbase Custody saw outflows of $1.8bn and $739mn respectively.
- The correlation between Bitcoin and the S&P 500 had historically show weak correlations ranging from +0.4 to -0.3. Prior to Fiscal and Monetary expansion the rolling 3-month correlation is observed in the orange shaded area below. Post the outbreak of Covid and extensive quantitative easing coming out of the US (yellow shaded area), the correlation measure started to exhibit positive dynamics ranging with peaks of +0.7 and averages of +0.4.
- Miners have been sending large flows of BTC to exchanges in the month of June. Exchange inflow from miners reached $70.8mn on June 3 which records the third largest inflow. The peak inflow occurred back in 2021 at $101mn.
- According to Lookonchain, the depegging of Tether $USDT followed when CZSamSun borrowed 31,544,278 $USDT on Aave for 31,475,408 $USDC, shorting USDT on AaveV2. He subsequently deposited 10mn $USDC then another 2.68mn $USDC, and borrowed 12mn $USDT, shorting $USDT on AaveV3 this time. He repaid 12mn $USDT and redeemed 21.68 $USDC.
This week’s headlines
- According to the Financial Times, the Hong Kong Monetary Authority (HKMA) noted in a letter to HSBC and Standard Chartered Bank that the due diligence process on prospect clients should not cause or “create undue burden” for those setting up in Hong Kong in reference to crypto exchanges remaining unbanked in the city. (Source: Reuters)
- Floating Point Group has seen a cybersecurity hack leading to $15mn-$20mn worth of losses. In a Twitter update, the firm said it is working with the FBI, regulators, Chainalysis and the Department of Homeland Security regarding the matter. (Source: Twitter)
- Binance is launching its cloud mining services at $10.728 at 1 Th/s. The service is targeted to users who lack mining equipment but are looking to get exposure to mining. (Source: CoinTelegraph)