Crypto Market

BTC and ETH Market Insight

The European Central Bank (ECB) has reduced its interest rates from 4% to 3.75%, marking the first time since 2019. The current bullish trend in Bitcoin could see a substantial increase as global liquidity hits a record high. Meanwhile, US spot bitcoin ETFs have recorded their 18th consecutive day of net inflows, the longest streak since they were listed. Strong non-farm payroll data in the US indicates a thriving labor market, which may lead to the Federal Reserve maintaining or increasing interest rates to curb inflation. Following the release of the NFP report, Bitcoin briefly surged to $72,000 before losing support at $70,000.

Options Market

BTC steadily climbed up to nearly 72k with strong ETF inflows  before the sentiment turned sour on a strong non-farm payroll which erased most of the weekly gain. ETH fell in tandem with BTC on the release. The optimism fueled by the anticipating ETH ETF inflow cooled off. Front-end implied volatility dropped to echo the lower realised volatility. The term structure for both BTC and ETH is now in deeper contango. Call skew, front-end in particular, shifted lower on the downward movement. BTC dealer gamma is neutral, with big short strikes around 70k and 75k whereas ETH dealer gamma turned slightly negative.

Altcoins and Blockchain News

• io.net Founder and CEO Ahmad Shadid announced on social media that he is stepping down as the CEO of io.net and donating 1 million IO tokens to drive ecosystem development.

• According to DefiLlama data, the total market value of stablecoins has grown by 0.72% in the past week, surpassing $160 billion. Furthermore, USDe has experienced an 11.43% increase in market value over the past week, reaching $3.343 billion and becoming the fourth-largest stablecoin by market capitalization.

• Game venture capital firm Griffin Gaming Partners plans to raise $500 million for its third flagship fund, which is 33% smaller in size compared to its second fund.

• Oracle protocol Tellor announced that its Oracle L1 and Tellor Layer will undergo an audit. The upcoming audit will verify the security and reliability of Tellor Layer, transitioning it from an EVM-based smart contract system to an independent, oracle-specific L1. Updates will be released subsequently.

• ERC-404 project Pandora announced on social media that the ERC-404 Launchpad test version has been launched, with 5% of the token supply to be airdropped to PANDORA holders.

• Ethena announced its integration with Aave, allowing users to deposit USDe into the Aave protocol and leverage their positions with other stablecoins on Aave.

• Income-based stablecoin issuer Mountain Protocol announced the completion of an $8 million Series A funding round led by Multicoin Capital, with participation from Castle Island Ventures, Coinbase Ventures, and other investors.

• Robinhood announced its acquisition of global cryptocurrency exchange platform Bitstamp. The acquisition is reported to be completed in cash for $200 million.

Marco

The US stock market experienced varied movements during the week of June 6th to June 10th, driven by economic data, corporate earnings, and global events. The S&P 500 opened the week with a subdued rise, while the Nasdaq snapped its losing streak. Concerns surrounding economic growth persisted, with falling oil prices indicating a weakening economy. Nvidia led the market to record highs on Wednesday, while Thursday saw a tech pullback, and on Friday, stocks slipped as bond yields rose after an unexpectedly strong jobs report. Investors cautiously awaited clarity on the economy's strength and potential interest rate shifts.