Crypto Market

BTC and ETH Market Insight

The institutions kept coming for crypto and Fidelity officially refiled its spot BTC ETF with the SEC. FTX was reportedly set to explore a relaunch and the market psychology shifted from the bearish environment. The Solana ecosystem and $FTT obviously benefited from the news. BTC was dominating the derivatives markets this year as the ratio of the volume of BTC relative to ETH increased from 47% to 70%. $BCH brought dino narratives back to markets, as the desk observed BTC & ETH forks and Defi 1.0 tokens outperformed this week.

Options Market

Although BTC and ETH both erased most of their gains for the week on SEC’s inadequate comment, ETH showed stronger momentum outperforming BTC by 4%. OTC option flow saw firm bull bias with outright calls and call spreads bought in decent size. IVs on BTC and ETH traded rather stable compared to last week - ETH’s still trailing behind BTC’s at a marginal level. Skew was steady for BTC where we observed a big boost on call skew on ETH in the long-dated expiries. 

Altcoins and Blockchain News

• Bankruptcy Judge Martin Glenn of the Southern District of New York has granted Celsius permission to sell or exchange any altcoin for BTC and ETH starting July 1st.
• Poly Network, a cross-chain interoperability protocol, announced that due to recent attacks, it has temporarily suspended its services, and is actively contacting relevant parties to assess the impact of related assets.
• CME Group (CME) plans to launch ETH/BTC ratio futures “Ether/Bitcoin Ratio” futures (EBR) on July 31. With EBR, market participants can now efficiently execute relative value trades between ethereum futures (ETH) and bitcoin futures (BTC) contracts in a single trade, the CME said.
• According to the Wall Street Journal, the US Securities and Exchange Commission (SEC) said that the application of the asset management company's recently launched spot bitcoin ETF was insufficient.
• Worldcoin, the cryptocurrency company founded by OpenAI CEO Sam Altman, has integrated with German identity and access management software provider Okta to launch its identity protocol World ID in Germany, CoinDesk reported.
• The decentralized derivatives protocol dYdX announced the completion of the fourth  milestones of the dYdX V4 (dYdX Chain), that is, the public testnet of dYdX Chain will be officially launched at 01:00 Beijing time on July 6th.
• According to data from Dune, the number of independent addresses on the zkSync Era chain has exceeded 1 million and is now 1,086,771, and the total bridged TVL on the chain has reached 562,299 ETH.
• Gaming giant Ubisoft is about to launch the on-chain game "Champions Tactics", which will run on the Oasys blockchain. Ubisoft is also one of the node operators of the Oasys blockchain network.
• AzukiDAO released a proposal titled "Hire a Lawyer and help the community reclaim the 20000ETH from Zagabond”, aimed to file lawsuits against the founder Zagabond for rugging multiple projects.

Macro

The major indexes round out the second quarter with a solid gain. Inflation data released on Friday appeared to boost market sentiment: Personal Consumption expenditures (PCE) price index increased by 0.1% in May, bringing the year-over-year increase down to 3.8%. Weekly jobless claims also marked a sharpest drop of 26,000 since October 2021. Over the week, the DJIA added 2.0%, the S&P 500 added 2.3%, and the NASDAQ 2.2%.