Crypto Market

BTC and ETH Market Insight

Federal Reserve Chair Powell stated that FOMC held a general consensus that it would be suitable to increase interest rates once more this year and potentially two additional times. GBTC has seen an impressive rally of more than 25% following BlackRock's filing for a Bitcoin ETF application. Its trading volume hit $10.24 million on Tuesday, the highest trading volume since November 22 last year. $BTC broke $31,000 and reached a new ATH of the year. The BTCfi and Optimism ecosystem outperformed other categories, up 17% and 13.3% respectively.

Options Market

The pessimistic sentiment surrounding BTC and ETH derivatives in recent months was lifted by the news of traditional financial institutions entering the crypto space. Despite both BTC and ETH spot prices both rallying, the derivative markets for BTC have indicated an implied volatility that is approximately 3% higher across the term structure. The months-long selling of volatility flipped with dealers rushing to reduce their gamma risk and takers looking for potential gains on the ride. Flow into ETH options was, however, rather muted in comparison with less of a colossal surge in implied vols. 25D skew suggested a refreshed bullish sentiment on BTC in the long run while less pronounced for ETH.

Altcoins and Blockchain News

• Eric Balchunas, senior ETF analyst at Bloomberg, tweeted that asset management company WisdomTree once again submitted a spot bitcoin ETF application. Additionally, Invesco refiled its 19b-4 filing for a spot Bitcoin ETF.
• The Monetary Authority of Singapore (MAS) released a technical white paper on purpose-bound money (PBM), proposing a general protocol to specify the conditions for the use of digital currencies, such as central bank digital currency (CBDC), tokenized bank deposits, and distributed ledgers of stablecoins.
• EDX Markets, a digital asset marketplace backed by Citadel Securities, Fidelity Investments, and Charles Schwab, officially announced the launch of trading services and completed a new round of funding.
• According to a report by CryptoSlate, Glassnode data shows that the week before Bitcoin rose above the $30,000 mark, the circulating supply of the stablecoin TrueUSD increased significantly, from slightly more than $2 billion on June 14 to $3.13 billion on June 21, an increase of 56.5%.
• According to OKLink data, DASH has completed the halving at block height 1,892,161, and the current block reward is 2.3097 DASH.
• Tether announced that it will issue native USDT on Kava on July 3. USDT currently supports networks including Ethereum, Solana, Algorand, EOS, Liquid Network, Omni, and Tron.
• According to The Block, DeFi infrastructure Maverick Protocol completed a US$9 million strategic round of funding, led by Founders Fund, with participation from Pantera Capital, Binance Labs, Coinbase Ventures, and Apollo Crypto.

Macro

The next rate hike is now weighing on market sentiment and major equity indexes gave up some grounds last week. Futures market has priced in a 72% probability of 25bps hike in July and a 93% probability that target rates will be at or above the current band by year-end. Over the week, the Dow lost 1.7%, the S&P 500 lost 1.4%, the NASDAQ lost 1.4%.