Bullish Insights Weekly Market Recap
Jun 1, 2023 • 3 min read
The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of May 29, 2023.
This week’s peak exchange trade volume 24h: $462,769,574 (17,182 BTC) on June 1, 2023.
This week’s headlines
- China’s capital Beijing has issued a Web3 innovation and development whitepaper with plans to develop the city into a digital innovation hub.
- The World Economic Forum (WEF) with the assistance by its Digital Currency Governance Consortium has published a whitepaper on crypto regulation.
- A bilateral meeting held between the Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) discussed how the two central banks would cooperate and strengthen initiatives on financial infrastructure, financial market connectivity and virtual asset
- In a partnership with Uruguay, issuer of USDT, Tether is looking at developing its mining operations in the country as part of a South American initiative. The country’s generation of a high percentage in renewable energy in hydropower and wind has made it a desirable mining destination.
- According to PANews the Trust Reserve team that raised $10mn earlier in March this year has been detained by Chinese police for investigation. The protocol is the issuer of the CNY and HKD stablecoin CNHC and HKD.
- Custodian and trust firm, First Digital has announced the launch of their new stablecoin FDUSD “First Digital USD” which will be back one-to-one by USD equivalent assets.
- One of Europe’s biggest telecoms provider, Deutsche Telekom is set to become a Polygon network validator. Currently the protocol has about 100 validators on the network.
- The Multichain protocol issued a tweet yesterday explaining that they were unable to contact their CEO Zhaojun for server access maintenance. Following this, the team has suspended cross-chain services for affected chains.
Macro market highlights
- US equity markets were closed on Monday for Memorial day public holiday. US equity markets closed mostly higher in Tuesday's session as debt ceiling talks drew closer to a deal.
- Fears of another rate hike drew US equity markets in the red in Wednesday's session. The S&P 500 dipped 0.6%, the Dow fell by 0.4% and the Nasdaq Composite retreated by 0.6%.
Crypto market highlights
- Recent lack of clarity in regulation coming out of the US, combined with Beijing releasing their white paper on web3 innovation and development has drawn attention to the correlation metrics between the US and Chinese equities to Bitcoin. The CSI 300 has historically seen a much lower correlation
to that of Bitcoin compared to the S&P500. Recently for the first time since April 2021, its correlation to BTC exceeds the S&P 500.
- Bitcoin reserves on exchanges are exhibiting a declining trend as the decrease in deposit transactions steepen YTD. Generally speaking, as the value decreases it indicates lower selling pressure with an inverse trend in price action.
- Bitcoin's correlation with US equity indices have begun exhibiting an inverse correlation since mid-May when looking at a three month period. The correlation between Bitcoin and the S&P 500 was -0.37 and with the Nasdaq 100 was -0.44 on June 1. Year-to-date, the past week has seen the deepest decoupling in correlation between BTC and the two US indices.
- Custodian and trust firm, First Digital has announced the launch of their new stablecoin FDUSD “First Digital USD” which will be back one-to-one by USD equivalent assets. (Source: The Block)
- Gemini exchange has revealed in a blog post that the company will soon be buying crypto licences for operations in the UAE. “By applying for a license, we will be taking another step towards making Gemini a truly global company,” the exchange noted. (Source: Reuters)
- One of Europe’s biggest telecoms provider, Deutsche Telekom is set to become a Polygon network validator. Currently the protocol has about 100 validators on the network. (Source: CoinJournal)
- The Multichain protocol issued a tweet yesterday explaining that they were unable to contact their CEO Zhaojun for server access maintenance. Following this, the team has suspended team has suspended cross-chain services for affected chains. (Source: Twitter)