Weekly Crypto Wrap: 6th June 2024

TLDR

• BTC Markets is celebrating 11 years in crypto with a $5,000 Bitcoin giveaway!
• Ondo (ONDO) is coming to BTC Markets in June.
• Pendle (PENDLE) is now live and available to trade on BTC Markets.
• Bitcoin breaks out of US$70,000 range, eyes all-time high.
• Regulatory clarity could unlock US$20 trillion financial advisory market for crypto.
• Trump becomes 1st President to accept Bitcoin lightning payments for donations.
• Bitcoin ETFs resume inflow streak, BlackRock's IBIT surpasses US$20b in aum.

BTC Markets announcements

BTC Markets is celebrating 11 years in crypto with a $5,000 Bitcoin giveaway!

This month, BTC Markets has reached an incredible milestone - 11 years in the crypto market! To celebrate we're giving away AU$5,000 worth of Bitcoin to 10 lucky winners!

It’s easy to enter:

• Follow us on X (Twitter).
• Retweet the giveaway post.
• Comment ‘#BTCMarkets is celebrating 11 years in #crypto.’

You will automatically go in the running to win! T&Cs apply. Enter now!

This journey has been nothing short of extraordinary, and it’s all thanks to you, our loyal clients. Your unwavering trust and support have been the cornerstone of our success.

From our humble beginnings as a startup, we’ve grown into a powerhouse in the Australian cryptocurrency landscape. We’re honoured to have you as a vital part of our journey and are excited to continue being a part of yours.

New listing: Ondo (ONDO) is coming to BTC Markets!

We are excited to announce that BTC Markets will be introducing another new asset this month. Ondo Finance, an innovative financial infrastructure platform, harnesses blockchain technology to improve market efficiency, transparency, and accessibility.

For further details on Ondo Finance, please visit our blog. Follow us on X/Twitter, LinkedIn, or Facebook for the latest updates on new asset listings.

Pendle (PENDLE) is now live and available to trade on BTC Markets.

Pendle offers unique features that make it an attractive asset for traders and investors. By leveraging its protocol, users can access and manage future yield, unlocking new possibilities in the DeFi space.

Read more about Pendle on our blog and follow us on X/Twitter, LinkedIn, or Facebook for the latest updates on new asset listings.

Start trading PENDLE/AUD today!

BTC Markets x Ticker News ‘Crypto Corner’ with Steve Vallas, CEO of Blockchain APAC.

BTC Markets has partnered with Ticker News to produce a ground-breaking news series called ‘Crypto Corner’. Each episode, we investigate cryptocurrency and blockchain technology, exploring the latest innovations and their impact on you and the industry.

In our first episode, Caroline Bowler catches up with Steve Vallas, CEO of Blockchain APAC. They discuss the evolving landscape of Bitcoin and the broader industry, highlighting innovations, regulatory challenges, and the future of digital assets.

Watch on YouTube or Ticker News.

Did you know…AUD card deposits are available at BTC Markets?

BTC Markets now allows users to deposit AUD directly into their accounts using Australian-issued Visa or Mastercard credit or debit cards.

This new method provides a fast, convenient, and secure way to fund accounts instantly without leaving the exchange.

Users can simply log in and enter their card details to make an instant deposit.

Benefits of AUD card deposits include:

• Instant deposits without leaving the exchange.
• Flexibility to use Visa or Mastercard credit or debit cards.
• Enhanced security for card information.

Additionally, BTC Markets continues to offer other deposit methods such as Osko (PayID) and direct deposits.

Our goal is to provide Australians with easier access to digital assets and a more convenient trading experience.

Deposit AUD today!

To learn more about AUD card deposits, please visit our Help Centre.

BTC Markets in the news

The Block: Ark Invest’s spot Bitcoin ETF logs record $100 million in daily net outflows.

“The unusual spot bitcoin ETF flows appear to be influenced by investor uncertainty regarding the Federal Reserve's interest rate path, particularly in anticipation of major economic reports due out from the U.S. on May 31,” BTC Markets’ Crypto Analyst Rachael Lucas told The Block.

Read the full article here.

State of crypto

• Bitcoin breaks out of US$70k range, eyes all-time high.
• Deutsche Bank partners with Austrian crypto broker, in 'cautious' move.
• Ripple CEO warns of 'critical' regulation needs, as crypto ETFs surge.
• Regulatory clarity could unlock US$20 trillion financial advisory market for crypto.
• Australia’s first direct Bitcoin ETF set to launch on the CBOE this Tuesday.
• Trump becomes 1st President to accept Bitcoin lightning payments for donations.
• Unexpected approval of ETH ETFs linked to crypto's rising influence in U.S. elections.
• Bitcoin ETFs resume inflow streak, BlackRock's IBIT surpasses US$20b in aum.

Bitcoin breaks out of US$70k range, eyes all-time high.

This week, Bitcoin is experiencing a price surge, currently up 5% after a 1.08% loss on Monday's close. It is attempting to break through the US$72,000 barrier and challenge the all-time high of US$73,777 set on March 14, 2024.

Ethereum has been consolidating since its impressive 20% daily gain on May 20, following the SEC's announcement to allow spot ETH ETFs in the U.S. Ethereum is currently up 2%, despite a 1.19% loss at Monday's close.

Solana is benefiting from Bitcoin's momentum, showing a weekly gain of 6%. Last week, Solana narrowly closed in the red, with a slight 0.16% loss on Monday's close.

XRP remains range-bound for the eighth consecutive week, currently up 2.5% after a 2.80% loss last week. Its price action appears unaffected by broader market movements.

Deutsche Bank partners with Austrian crypto broker, in 'cautious' move toward crypto services.

Deutsche Bank has partnered with Austrian crypto broker Bitpanda to handle customer deposits and withdrawals, providing local bank account numbers for Bitpanda users in Germany. This collaboration signals a cautious shift toward integrating crypto with mainstream finance.

Following the collapse of several crypto-focused banks in 2023, the industry has struggled to find reliable banking partners. Deutsche's involvement is limited to supporting fiat currency transactions and Bitpanda's treasury and payment processes, without directly handling crypto transfers.

This partnership marks Deutsche Bank's first crypto client in the Europe, Middle East, and Africa region, though it also partners with Hong Kong-based crypto exchange Hashkey.

Ripple CEO warns of 'critical' regulation needs as crypto ETFs surge amid Bitcoin & Ethereum boom.

Ripple CEO Brad Garlinghouse predicts a surge of crypto ETFs, including XRP, Solana, and Cardano, as inevitable, but emphasises the need for critical regulatory clarity in the U.S. Bitcoin has soared over US$70,000, driven by new Wall Street bitcoin ETFs.

Garlinghouse highlighted the importance of getting the regulatory posture right, especially as Ripple faces a potential US$2 billion SEC fine. Despite regulatory hurdles, the approval of spot Ethereum ETFs signals growing acceptance and enthusiasm in crypto markets.

Political factors, including positions of President Biden and former President Trump, continue to influence the crypto regulatory landscape.

Regulatory clarity could unlock US$20 trillion financial advisory market for crypto.

Regulatory uncertainty has hindered the US$20 trillion U.S. financial advisory industry from investing more in crypto according to Matt Hougan, Bitwise's chief investment officer. He believes recent political shifts, including bipartisan efforts to repeal Staff Accounting Bulletin (SAB 121)and the House passing the Financial Innovation and Technology for the 21st Century Act (FIT21), signal progress toward regulatory clarity.

Hougan suggests that once these legal uncertainties are resolved, significant investment from the financial advisory sector could flow into crypto, potentially transforming the market. However, despite these advances, President Biden's veto of the SAB 121 repeal and pending Senate approval for FIT21 indicate that substantial regulatory changes are still forthcoming.

Australia’s first direct Bitcoin ETF set to launch on the CBOE next week.

Australia's first spot Bitcoin ETF to hold Bitcoin directly will launch on Tuesday and will trade on the Cboe Australia exchange. Unlike previous exchange-traded products in Australia, this ETF will directly hold Bitcoin, offering enhanced investor protection under the Australian Financial Services Licensing (AFSL) regime.

The swift approval, following Monochrome's application in April, reflects Australia's push to align with global trends in crypto-related ETFs. This move follows similar approvals in the U.S. and Hong Kong, aiming to establish these regions as leading digital asset hubs.

Trump becomes first President to accept Bitcoin lightning payments for campaign donations.

In a groundbreaking move for the crypto industry, Donald Trump has become the first U.S. President to accept Bitcoin Lightning Network payments for campaign donations, marking a significant milestone in integrating Bitcoin into mainstream politics.

Partnering with OpenNode and Anedot, Trump's campaign now enables supporters to donate via fast, low-cost Bitcoin transactions. At a recent Libertarian Party convention, Trump emphasised his commitment to making the U.S. a Bitcoin-friendly nation if elected.

This initiative is aimed at appealing to over 50 million cryptocurrency enthusiasts in the country. Meanwhile, President Joe Biden vetoed pro-Bitcoin legislation that would have allowed financial firms to custody cryptocurrencies, highlighting a contrasting stance on the industry.

Unexpected approval of ETH ETFs, linked to crypto's rising influence in U.S. elections.

ARK Invest CEO Cathie Wood remarked that the unexpected approval of Ethereum exchange-traded funds (ETFs) is due to crypto becoming a significant U.S. election issue.

At Consensus 2024, Wood explained that the Ethereum ETF filings were approved suddenly, without the usual SEC scrutiny, indicating the evolving political landscape around crypto.

She highlighted the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House as evidence of bipartisan support and noted former President Trump's recent acceptance of crypto donations as influencing factors.

Wood affirmed ARK's stance on making Bitcoin accessible as a public good and reiterated her preference for Bitcoin over Ethereum, describing it as a unique global monetary system and new asset class.

Bitcoin ETFs resume inflow streak, BlackRock's IBIT surpasses US$20b in aum.

After a period of flat to negative flows, U.S.-traded spot Bitcoin ETFs have added US$2.4 billion in assets over the past month. BlackRock's iShares Bitcoin Fund (IBIT) crossed US$20 billion in assets under management (AUM) for the first time, benefiting from a 15-session streak of net inflows and a rally in Bitcoin's price.

According to Bloomberg Intelligence, this marks the third-largest net inflows across the entire ETF market. Despite initial slowdowns, inflows have averaged US$140 million per day since mid-May, demonstrating strong investor interest and resilience in the market.

Source: TheBlock.co

The weekly crypto close on Tradingview

The crypto market saw a widespread decline, with most major assets closing in the red in the last trading week.

While Chainlink (LINK) climbed 6.56%, other assets experienced varying degrees of losses.

Solana (SOL), Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Cardano (ADA) and Ripple (XRP) all saw single digit decline.

Overall, the total crypto market capitalisation decreased by 1.28% over the week, closing at a valuation of US$2.459 trillion.

The weekly trading stats as of Monday, June 3rd at 10:00 am AEST, based on data from Tradingview in USD.

Year-to-date in the crypto space from TradingView

The year-to-date performance summary for selected cryptocurrencies is as follows:

• Solana (SOL) leads the pack with an impressive gain of 70.37%.
• Ethereum (ETH) follows closely with a 69.20% increase.
• Bitcoin (BTC) not far behind, holding onto a 67.42% gain.
• Chainlink (LINK) is sitting on a 18.73% annual increase.

Year-to-date performance as of Thursday, June 6th at 10:00 am AEST approximately. Based on data from Tradingview in USD.

Crypto Fear& Greed Index

Source: alternative.me

The week ahead: economic events

June 6th: Euro Area Deposit Facility Rate and Interest Rate. Canada Balance of Trade.

June 7th: Canada Ivey Purchasing Managers Index. China Balance of Trade. Germany Balance of Trade. Canada Unemployment Rate. United States Non-Farm Payrolls and Unemployment Rate.

June 8th: Euro Area Interest Rate.

June 11th: Australia Business Confidence. United Kingdom Unemployment Rate.

June 12th: China Inflation Rate. United Kingdom Monthly GDP MoM. United States Core Inflation Rate MoM, Core Inflation Rate YoY, Inflation Rate MoM and Inflation Rate YoY.

June 13th: United States Fed Funds Interest Rate. Australia Consumer Confidence MoM.

Source: trading economics

Market reflections

Overview

In Q1 2024, Australia's economy experienced slow GDP growth, declining corporate profits, rising inflation, and mixed consumer confidence. Real estate values increased due to low supply, while manufacturing and industry faced significant challenges. In the U.S., job openings fell, manufacturing contracted, and GDP growth slowed. China showed mixed PMI results, while India experienced strong growth. The Eurozone saw rising inflation, and Canada reported a modest GDP increase.

Australia

• Australia’s Q1 2024 GDP growth slowed, reflecting weak economic performance.
• Corporate profits declined, highlighting underlying weaknesses in key sectors.
• Real estate values increased due to low supply, driving significant market trends.
• Inflation rose for 3 consecutive months, indicating persistent price pressures.

In the first quarter of 2024, Australia's economy grew by a modest 0.1%, down from 0.3% in the previous quarter and missing market expectations. This represents the slowest growth pace in six quarters. Key indicators show underlying economic weaknesses: corporate profits declined, business inventories rose, and the current account balance shifted to a deficit, revealing vulnerabilities in trade dynamics. Retail sales growth was modest, with regional variations reflecting mixed consumer confidence.

Household spending and government expenditure increased, but fixed investment dropped by 0.9%, and imports surged, outpacing exports. Consequently, overall domestic demand remained weak, impacting broader economic growth. Annually, GDP grew by 1.1%, the lowest rate since Q4 2020, highlighting ongoing challenges such as weak domestic demand, declining investment, and trade pressures.

The Ai Group Australian Industry Index fell sharply in May, continuing a 25-month contraction streak, driven by significant declines in new orders and the employment indicator. The manufacturing sector faced steep declines due to recruitment challenges and rising costs. Conversely, the Judo Bank Australia Services PMI indicated slower but continued growth in the services sector.

The Judo Bank Composite Output Index showed moderate private sector output growth, primarily driven by services, while manufacturing remained in contraction. New orders increased, with exports rising for the first time in 15 months, contributing to overall growth.

The CoreLogic Home Value Index rose month-on-month in May for the 16th consecutive month, reflecting significant supply constraints in the real estate market. Commodity prices year-over-year in Australia decreased but showed signs of stabilization. The Melbourne Institute's Monthly Inflation Gauge rose by 0.3% in May, the highest since January, following a 0.1% increase in April, marking three consecutive months of rising inflation.

This economic landscape signals cautious consumer demand, persistent supply constraints in real estate, and rising inflation, which could affect investment strategies. The modest GDP growth and challenges in key sectors suggest a cautious approach, while opportunities may

Global

• U.S. job openings decline, indicating potential weakness in the labour market.
• China's PMI shows mixed trends between state and private sector manufacturing.
• India's economy grows robustly, reinforcing growth trajectory.
• Eurozone inflation rises, driven by higher energy and service prices.

U.S. job openings hit lowest since February 2021, missing forecasts.

In recent economic reporting, U.S. job openings hit their lowest level since February 2021, missing market forecasts. Although job quits rose slightly, the quits rate remained steady, indicating consistent worker mobility and confidence in the labour market despite the drop in job openings, particularly in key sectors and regions.

The ISM Manufacturing PMI for May indicated continued contraction in the manufacturing sector, falling below expectations. Despite a rebound in employment and stable supplier deliveries, the overall reading highlighted soft demand and slow production growth amidst reduced input cost pressures.

The U.S. economy grew at a slower pace in Q1 2024, largely due to weaker consumer spending and a larger negative impact from private inventories. Non-residential and residential investments showed stronger growth, and government spending, exports, and imports saw upward revisions, reflecting a complex economic landscape.

The core PCE inflation rose by 0.2% in April, marking the slowest increase so far in 2024 and falling below market expectations. Annually, core PCE inflation remained at 2.8%, the lowest since March 2021. Personal income increased month-over-month, decelerating from a 0.5% rise in March, while personal spending grew by 0.2%, the smallest increase since January, driven primarily by higher spending on services.

China's manufacturing PMI sees divergent trends in May.

In China, the NBS Manufacturing PMI unexpectedly contracted in May, marking the first contraction in factory activity since February. Conversely, the Caixin China General Manufacturing PMI showed robust growth, driven by a significant rise in output and new orders, reflecting divergent trends between larger state-owned enterprises and smaller private sector companies.

Indian economy surges in Q1 2024, exceeding forecasts.

The Indian economy grew by 7.8% in Q1 2024, significantly surpassing forecasts and reinforcing India’s position as the world’s fastest-growing major economy. However, the discrepancy between GDP growth and gross value added suggests that net indirect tax components may have inflated the overall economic gauge.

Euro Area inflation rises, surpassing forecasts.

In Europe, the annual inflation rate in the Euro Area rose to 2.6% in May, driven by a rebound in energy prices and a faster rise in service prices. This marks the first increase in five months, with core inflation also rising slightly above market expectations.

Canadian GDP expends Q1 but falls short of expectations.

Canadian GDP grew by 1.7% on an annualised basis in Q1 2024, falling short of market expectations but marking a significant acceleration from the previous quarter. On a quarterly basis, GDP grew by 0.4%, indicating a stronger economic performance compared to the end of 2023.

Crypto news

EU Elections: potential catalyst for first Ethereum ETF.

The upcoming European Union elections, scheduled from June 6 to June 9, are anticipated to have a significant impact on crypto regulations, particularly regarding the approval of spot Ethereum (ETH) exchange-traded funds (ETFs).

According to reports, right-wing and populist parties expected to gain ground, there's speculation about potential shifts in regulatory stances that could either introduce more protective measures or foster innovation-friendly policies for the crypto industry. The outcome of the elections might also influence the implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for cryptocurrencies in the EU.

Despite potential conservative regulatory policies, spot Ethereum ETFs are gaining momentum in Europe following the approval of similar ETFs by the United States Securities and Exchange Commission. This development has bolstered confidence in European financial institutions regarding Ethereum ETFs, with some already taking steps to list them in anticipation of regulatory approval.

Europe's major banks, like Germany's Landesbank Baden-Württemberg (LBBW) and Austria's Raiffeisen, are entering the crypto space due to MiCA bill clarity, with LBBW offering institutional crypto custody and Raiffeisen partnering with Bitpanda for retail digital assets.

Trade ETH/AUD on BTC Markets.

Solana gains institutional traction and sparks ETF speculation.

Solana, ranked fourth in total value locked (TVL) among blockchains, is gaining traction in institutional adoption. Industry leaders like PayPal, Stripe, and Visa are increasingly integrating with Solana to future-proof their offerings. PayPal's recent expansion of its stablecoin PYUSD onto Solana aims to facilitate cost-effective transactions, broadening its utility. Visa's introduction of USD Coin (USDC) on Solana further underscores this trend.

Solana's scalability, with a theoretical throughput of 65,000 transactions per second (TPS) and low transaction costs, outpaces Ethereum, making it attractive to institutions. Ran Goldi of Fireblocks notes that Solana's infrastructure can seamlessly integrate with traditional payment systems, potentially leading to further institutional adoption. The addition of confidential transfers could unlock more partnerships. Currently, Solana boasts over US$4.7 billion in TVL, representing 4.49% of the total TVL across all blockchains.

Speculation is growing about a potential Solana-based ETF, driven by endorsements from key figures such as Franklin Templeton and CNBC's Brian Kelly.

Buy SOL/AUD on BTC Markets.

Aptos integrates Chainlink's CCIP for enhanced dApp development.

Aptos, a Layer-1 blockchain, announced its integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) and data feeds as part of joining Chainlink's SCALE program during Consensus 2024 in Austin. This collaboration marks Aptos as the first Move-based blockchain to leverage Chainlink's services, enhancing its capabilities for decentralised application (dApp) development.

Chainlink's CCIP addresses the challenge of communication between independent blockchains, exemplified by its partnership with SWIFT, while Aptos, founded by former Meta employees, prioritises low-cost transactions and high throughput. By joining Chainlink's SCALE program, Aptos aims to empower developers with increased access to Chainlink services, facilitating the creation of secure, scalable and fully featured dApps.

Trade LINK/AUD on BTC Markets.

Compliance conversations

P2P crypto scams are on the rise, and they are targeting BTC Markets clients.

At BTC Markets, we’ve noticed a rise in scams using P2P cryptocurrency platforms to bypass banking safeguards. Scammers often direct victims to buy crypto via P2P platforms, then transfer it to them, impacting both victims and sellers.

What is a P2P crypto platform?

A peer-to-peer (P2P) cryptocurrency platform is a decentralised platform that facilitates direct transactions between buyers and sellers without the need for an intermediary or central authority, such as a traditional exchange. These platforms connect individuals looking to buy and sell cryptocurrencies directly with each other, allowing them to negotiate terms, payment methods, and prices.

Buyer’s risk falling victim to scams without the vigorous protections of exchanges, while sellers’ risk having their accounts closed and funds confiscated. We strongly advise against direct fund transfers, recommending transactions through reputable exchanges instead.

Platforms like BTC Markets, provide enhanced security and thorough verification checks. Please report any suspicious activity to our support team immediately.

Read our blog on ‘What are P2P scams and how to avoid falling victim to them.’

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document.To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.

Weekly prices are accurate as of 10:00 AM AEST on 03/06/2024.